The education system in India is undergoing significant transformation, with a total addressable market opportunity for digitizing education estimated at USD 3 billion over the next three years. Challenges include poor infrastructure, low literacy rates, and a high dropout rate, but reforms like the Right to Education Act and increasing expenditure on education signal positive change. Technology companies are encouraged to innovate and form strategic partnerships to capitalize on this opportunity, ultimately aiming to enhance education and impact a billion lives.

1. Education for Emerging Users
Touching Lives. Changing Worlds.Through Technology
Digitizing
This report is solely for the use of Zinnov client and
Zinnov personnel. No part of it may be circulated,
quoted, or reproduced for distribution outside the
client organization without prior written approval
from Zinnov.

2. ExecutiveSummary
2For sole use of Zinnov client & personnel only |
• Education system world over is going through rapid transformation.
Value derived out of centuries old factory model is being
fundamentally questioned
• India is home to 1/5th of the World’s youth and is in the midst
of a massive education reformation process.
• Digitization of education can enable this disruption and provide a
platform for the next generation workforce and touch a billion lives
• Total addressable market opportunity for digitizing education in
India is USD 3 Billion over next 3 years (Zinnov Estimates)
• Technology companies need to explore innovative business models
and strategic partnerships to tap this opportunity. Winning in India
can open up other market opportunities which are closed for linear
thinkers.

3. Our world today
Reforming
The World is looking at Education
3For sole use of Zinnov client & personnel only |Source : Wikipedia, US Census Bureau

4. Why?
We live in a flat world and
to open doors to future
prosperity Countries need
citizens ready for the 21st
century
CleanSlateonWallStreetbyKyleMayavailableathttp://www.flickr.com/photos/kylemay/498938859/
underaCreativeCommonsAttribution2.0licence
“For the first time we are
preparing students for a future
we cannot clearly describe.”
– David Warlick
4For sole use of Zinnov client & personnel only |

5. what is
21st century
literacy?
Education that creates effective learners, able
to communicate across …
… culture, time & geographies
5For sole use of Zinnov client & personnel only |
Imagecredit:iStockphoto

6. Because the world is interconnected and will become more so..
Education that creates
global collaborators
• Radio – 38 years
• Television – 13 years
• The Internet – 4 years
• Apple iPod – 3 years
• Facebook – 2 years
• ???
Years to reach an audience
of 50 Million!!
6For sole use of Zinnov client & personnel only |Source : United Nations Website
Imageusedisnotcopyrighted.Availableforfreedownload

7. India is no different from the world
1.21 Billion People
620 Million youth below the age of 25years
India is also critical for 21st century education
Home to 1/5th of the worlds youth population
7For sole use of Zinnov client & personnel only |Source : Wikipedia page on World Demographics, India Demographics
Imagecredit:iStockphoto
Imagecredit:iStockphoto

8. India’s literacy rate is ~65%
Government
School Teachers Parents
Children
Number of schools: 1.3
million
Private: 1.05 million
Public: 0.25 million
Pupil-teacher-ratio:
1:32
Average number of
teachers per school:
4.5
Average
Income: ~1000
USD Per Year
Number of enrollments in
schools
Primary : 130 Million
Upper Primary : 54 Million
8For sole use of Zinnov client & personnel only |Source : District Information System for Education – Flash Statistics 2010

9. A lot ails
education in
India
9For sole use of Zinnov client & personnel only |

10. Infrastructure……
 41% of schools do not have a
separate girls toilet.
 Still around 10% of schools are single
teacher schools.
 49% of schools do not have a
boundary wall.
 30% of schools do not have a proper
building.
 8% of schools do not have drinking
water facility.
 Only 17% of schools have computer.
 61% of schools don’t have access to
electricity.
10For sole use of Zinnov client & personnel only |
ImageCredits:http://www.freewebs.com/bfmurray/photopage4.htm
Source : District Information System for Education – Flash Statistics 2010

11. Quality….
 Only 39 out of every 100 students reach 10th grade, out
of which only 40% pass.
 Dropout rate after elementary education is as high as
44%.
 Majority of students have poor and irregular attendance.
 Only 55% of students complete their primary education
with more than 60% marks. One out of every three
students in class 5th cannot read or write.
 About 45% of teachers teaching in schools in
India are not even graduates. The situation is
worse among schools in rural areas where this
number rises to more than 50% among female
teachers.
11For sole use of Zinnov client & personnel only |Source : District Information System for Education – Flash Statistics 2010
ImageCredit:Freelyavailablepresentationtemplateforeducation.OriginallyusedbyKimCofino

12. He used to go to school
because he GOT AN
ASSURED MEAL
A DAY.
The nearest school is
2KM AWAY.
He regularly falls sick
as he is ANEMIC.
He aspires to Play
with friends & is
Scared of his
dad 12For sole use of Zinnov client & personnel only |

13. Raghu’s Father
• Earns USD 1 a day doing odd jobs
• Has respiratory illness because of cooking using coal
• Works in the fields
• Earns USD 2 a day
• Habitual drinker
• Relies on Government
Welfare Scheme
Raghu’s Mother
• Graduate and recently completed his B.Ed.
• Takes all classes for students from 1st grade to 8th grade
Spends 50% of his time managing school admin
Raghu’s Teacher
He isn’t educated but understands that education
could help his son.
She isn’t educated but wants her son to go to
school. Her daughter as well.
He wishes he had support, and the right teaching aids.
13For sole use of Zinnov client & personnel only |
Imagecredit:iStockphoto
Imagecredit:iStockphoto

14. Raghu Dropped
out of School...
• His classes were BORING.
• He did not learn much.
• Working earns him USD 1 a day.
• He misses his friends…but USD 1 a day is
a lot of money for his family.
14For sole use of Zinnov client & personnel only |

15. Had Raghu continued his EDUCATION and got
QUALITY EDUCATION his LIFE COULD BE A LOT
DIFFERENT
5th Grade
Drop Out
Graduate
USD 1/day
10th Grade
Drop Out
USD 3/day USD 10/day
15For sole use of Zinnov client & personnel only |Source : Zinnov Analysis

16. All is not Lost....India is reforming
Education!
• Right to education:
Children are legally entitled to free and
compulsory elementary education under
The Right to Education Act, 2009 (RTE)
• Student Pupil Ratio is Approaching
1:30
• Post Graduate Qualification
amongst teachers is touching
20%
16For sole use of Zinnov client & personnel only |Source : District Information System for Education – Flash Statistics 2010

17. Enrollment in Primary Education is
touching 99%
Rural Household expenditure on
education is up 79% in last 6 years
Urban Household expenditure on
education is up 98% in last 6 years
17For sole use of Zinnov client & personnel only |Source : Government Report on Domestic Household Expenditure 2010, DISE Flash Statistics

18. Education in India Today
Factory Production Line..
• Students split by Age Groups
• Pass out in Batches
• Study Specialized Subjects
• Have a fixed
curriculum and
speed of
learning 18For sole use of Zinnov client & personnel only |

19. Children need personalized
Learning
19For sole use of Zinnov client & personnel only |
ImageCredit:http://www.flickr.com/photos/jek-a-go-go/440119001/.Availableunderacreativecommonslicense

20. Apprenticeship model
Standard Curriculum
Personalised Learning
Key Trends in Education Point
towards us going back to personalized
learning
Just in case
Just for me
Just for me
20For sole use of Zinnov client & personnel only |

21. Digital
technologies can
revolutionize how
Education content are
made, distributed,
and used in India
21For sole use of Zinnov client & personnel only |

22. India has started to embrace
digital tools
 India has 800
Million+ mobile users
 85 Million Internet
Users
 100 Million+ TV
Household
 2 Million Developers
22For sole use of Zinnov client & personnel only |Source : TRAI, Economic Times, BCG Report,
ImageCredit:watblog.comImageCredit:www.physorg.com

23. There is an opportunity to digitize education
and provide…
http://www.flickr.com/photos/jek-a-go-
go/440119001/
and Social networking
Powered by
Collaboration
..customized learning experience
23For sole use of Zinnov client & personnel only |

24. “ Education is an important element to inclusive growth and
technology is an accelerator to this process ”
- Aravind Sitaraman , President, Inclusive Growth , Cisco
Global competitors like Cisco have already started
to work towards this opportunity…
Technology
 Cisco has developed CEED, a platform solution exclusively developed for remote education
delivery , through multimedia content & virtual classrooms
Model
 Partnership Model : Cisco partners with Government ( on a public private partnership model )
and emerging education entrepreneurs ( On revenue share model ). Cisco delivers the platform,
partner delivers the content
Recent Successes
 Partnership with Lakshya Networks, in Madhya Pradesh, for delivering after school tuitions in 7
villages
 Partnership with Everonn in Raichur & Karnataka Government in Shimoga to deliver distance
learning courses.
The way forward
 Cisco’s long term vision is to turn rural India into a $1 Billion market, for education, healthcare
and citizen services.
24For sole use of Zinnov client & personnel only |Source : Cisco Website

25. Technology
 Touchscreen tablet computing device with Wi-Fi connectivity. Pre-integrated content according
to subscription /category
Model
 Partners with established supplementary education providers to digitize & deliver their content
on iProf tablet. Wifi enables, video conferencing enabled classroom sessions
Recent Successes
 Partnership with IGNOU, India’s largest distance education body to conduct diploma programs
for 75 courses.
 Partnership with Kaplan Ventures and Brilliant Tutorials to deliver Test Preparation courses on
iProf device
The way forward
 iProf currently has about 20 iZones ( learning centers ) which it plans to expand to about 100 by
the end of 2011. It already has a funding of USD 5 Millions from Norwest & IDG Ventures.
25For sole use of Zinnov client & personnel only |
“ iProf addresses three major limitations that plagues e-learning
: computer penetration, content piracy and widespread reach ”
- Sanjay Purohit , Founder, iProf
Along with homegrown ventures like iProf…
Source : iProf Website & Press Release

26. And the Opportunity could be as large…
…As USD 3 Billion in next 3 years!
Govt. Spend- All
USD 30 Billion*
Private Spend- Formal Education
USD 40 Billion*
Private Spend- Informal
USD 12 Billion*
USD 3 Billion USD 8 Billion USD 2.5 Billion
400 Million 1.5 Billion ~1 Billion
10 % 20 % 20%
13 % 20% 30%
Total Spend on Education
USD 82 Billion*
Content Authoring & Creation
( USD 2.4 Billions )
Content Delivery
( USD 500 Millions )
Content Management
( USD 100 Million )
Total Digitization Opportunity
USD ~3 Billion
Relevant Spend
Digitization Filter – Next 3 years
26For sole use of Zinnov client & personnel only |Source : National Budget , Household Expenditure Report , Secondary Research. *Estimated for year 2012

27. 27
Technology companies can enable the entire…
…Digitization Ecosystem
Content
Creation
Content
Delivery
Content
Mgmt.
NCERT
Universities
Publishers
Schools
Education
Boards
Govt.
Vocational
Institutes
Private
Org.
Vocational
Institutes
Universities
For sole use of Zinnov client & personnel only |

28. Micro Entrepreneurship Promotion
Initiative : Promote small entrepreneurs ,
education startups
Model : Free/ Subsidized Software, Charge on
Content delivered
Revenue Share Partnerships
Initiative : Help existing players with content
creation, delivery & management
Model : Revenue share / Fixed charge per user
Social Tie Ins
Initiative : Partner with NGO’s & Not-for Profit
organizations
Model : Subsidized software, promotion of
partner startups / companies
Government Partnerships
Initiative : Partner with key Govt. Agencies and
Schemes
Model : End to End solution delivery
Top Line Growth
Brand Recognition
Early Mover’s
Advantage
Sustainable Market
Education focused tech companies can use several
enablement models to realize this opportunity…
28For sole use of Zinnov client & personnel only |
Conceptual

29. Zinnov can help define and execute the
transformation vision..
Evangelism
Enablement
Sustained Monetization
Zinnov Services
29For sole use of Zinnov client & personnel only |
• Map the eco-system linkages in
education value chain.
• Define Education Vertical Specific
Evangelism Programs
• Program Manage Education
Evangelism Efforts
• Customer Insights, user persona and use case
definition.
• Market sizing, Segmentation and Go-to-
Market Strategy development for Micro
segments
• Partner Selection and Alliance formulation
• Identifying disruptive business model and
validation
• Partner/ Anchor Customer Identification
and Establishment of Connects.
Growth Strategy Definition &
Business Planning
Customer Insights
Partnerships & Alliances
People Strategy

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Phone: 0124 4378212/13
Thank You
Zinnov Management Consulting

31. Total
Opportunity
($ 3 Billion)
K-12 Education
($ 1.65 Billion)
Creation
( 85%)
Delivery
( 10%)
Management
(5%)
Higher Education
($ 1 Billion)
Creation
( 70%)
Delivery
( 25%)
Management
(5%)
Vocational & Other
($ 400 Billion)
Creation
( 55%)
Delivery
( 30%)
Management
(10%)
Content Authoring &
Creation
( USD 2.4 Billions )
Content Delivery
( USD 500 Millions )
Content Management
& Analytics
( USD 100 Million )

32. Government Private Sector/ Schools
TeachersParents
1 2
4 3
1. Infrastructure 43.8%
2. Social Schemes 10.98%
3. Salary 19.37%
4. Management 2.67%
5. Trainings 3.60%
6. Text Books 4.58%
7. Innovation 1%
8. Other Activities 14%
1. Infrastructure 45%
2. Salary 30%
3. Management, Administration &
Marketing 5%
4. Content Development / Books 7.5%
5. Trainings 5%
6. Innovation 5%
7. Extra-curricular 2.5%
1. Trainings & Self Development 70%
2. Content Development for Self-use 10%
3. Books 20%
1. School Fees 50%
2. Uniforms 2.5%
3. Transportation 10%
4. Books 5%
5. Tuitions 30%
6. Others ( E.g. Internet ) 1%
7. Extra-curricular 2.5%
India
Education
Spend
Prospective Area for Digitization