While school education has embraced digital content, the textbook hasn't —and in all probability will not — lose its sanctity. While a number of players are providing digital infrastructure systematically, books and e-learning continue to co-exist independently. With a view to bridge the gap between text books and digital learning, Pearson Education launched Active Teach in November 2011 in India. As a digital learning solution it offers a digitised version of printed book and aims to provide a comprehensive approach towards introducing technology in school education. Currently available for students from class 3 to 8, for Science and English, Active Teach comprises two separate versions — one for Teachers and another for the students. The product has been adopted by a large number of schools so far across cities such as Delhi, Kolkata, Guwahati, Patna and Hyderabad among others. Ranu Kawatra, President and CEO of Pearson Education, India, is a champion for the cause of digital education and intends to make significant headway in the domain of e-learning. Active Teach is being heralded as the first step in the right direction. In an interview with BW Online's Alokita Datta, Kawatra talks about the idea and development of Active Teach, the challenges that plague teaching, as a profession and the future of digital learning in education.How did the idea for Active Teach develop and why do you intend to differentiate it from other companies (such as Educomp) which have a tangible presence across schools in India? When it comes to technology, this generation (of students) is different. I met the principal of a school recently, who's been serving in the position for the last 30 years or so, and was talking to her about generation gap, and she says every year is a new generation. The pace of change, happening all across is tremendous. So when you look at the new generation of learners coming up, technology happens to be in their DNA. The media has been a huge benefit when it comes to this phenomenon. Within the context of the rural/urban divide that everyone keeps talking about, the learner's ability to learn is probably equal, in both cases. Where you suffer is with the educator, the teacher or professor. The way teaching gets transacted in a classroom is that the teacher speaks and the student listens. Thus, mathematically it is not possible for the student to know more than the teacher. And teaching as a domain, doesn't receive the kind of talent it should be getting in classrooms. The growing technological intelligence of the current generation of students also corresponds with the willingness of parents paying for the education of their child; if a school is technologically enabled, it is preparing their child for the future. Therefore, there are a lot of people who have been thinking of ways to take technology forward (in education). And there have been a number of players doing so, quite well. We have our company by the name of Edurite which runs digitally. Content is delivered in an engaging way, which is great because once you have engaged learners, you have their attention automatically. But it is the educators who are most important and here teachers still use books to teach. Even the students use books to learn. If that is the case, then we (Pearson) publish books and hence why shouldn't we make our content a lot more engaging because any which way, they're using our book. Typically if one looks at the technology interventions in schools today; books are published by publishers (such as Pearson and others) and technology solutions are provided by a different set of companies. So there is a lot of burden on the teacher to try and marry the two streams; integration becomes a huge issue. We've gone forward with a very simple concept of making the book a lot more interesting by providing digital content. And digital content is a lot more than just audio and video clips; this platform will be linked to the textbooks used in classrooms. It appeals to the logical mind, and I think one of the best things here is the global depth and reach of knowledge that Pearson has. We're not just hardware providers; we are content experts and are now moving into delivery mode, as we have done, globally.Could you talk about the research that went into developing the product, keeping in mind the specificities of the Indian educations system?Schools in South Africa and the UK had been using Active Teach and it had worked very well. That was a model that we worked on adapting to the Indian education system for a whole year before it was launched (in November 2011). We invited a pool of teachers, experts and spent a lot of time developing the product; not just in terms of content but also making it richer, for instance we incorporated assessments within the learning package. The other important aspect is the application of knowledge being imparted; we looked into what teachers were seeking from us. There was a survey conducted to understand the needs of educators and anlyse them. We then developed the product and then took it out for piloting because that is when the rubber hits the road. We took a lot of material from the BBC Motion gallery and global Pearson material among other sources. While the pilots were being conducted, a teacher would often turn around and say she didn't like a certain voice over or video clip. We received a lot of feedback from them which has helped make the product a lot more robust in the Indian market. When we would talk about this concept to any of the stakeholders: school principals, teachers, coordinator, parent, learner, everybody said that this was probably the best solution that could be given across because it is easy for everybody. The essential feature is that we provide different sets for students and teachers. What the student takes home is a subset of the teacher's Active Teach pack and that even includes a parents' guide along with workbooks etc. This is step one. Tomorrow, hopefully when we have schools which more digitally aware and stroke connected, we're looking at smart ways when the assignments could be done at home and uploaded directly by students. Moreover, we're providing a very cost effective solution. We are using what the school already has. If the school has interactive whiteboards, the whole paraphernalia and is digitally equipped, that's perfect In other cases we recommend a not very expensive device (less than Rs 1,00,000) using which the school can become digitally advanced. Technology has got an oomph factor, a futuristic ringtone to it. All schools aspire to be technologically enabled yet not all of them can afford to be. When we started rolling out Active Teach in November, starting with the North East in Don Bosco, Guwahati , because their session starts in February, the initial feedback was very pleasing. At the moment we are focusing on Middle school and a couple of subjects (Science and English for classes 3 to 8) but I believe this product has great applicability in higher education as well. We will also come up with another version of Active Teach very shortly which will support enhanced capabilities. While e-learning solutions have increasingly enabled students to learn better, the examination system in India still continues to follow the tradition pen to paper format. From this point of view, isn't there a disconnect that comes in and how does one try and reconcile that?First of all, any book we publish follows the curriculum mandated by the (Central Board of Secondary Education) CBSE and we also have research partnerships with them. Our content is created around the CBSE curriculum. We're starting to influence them on the nature of the curriculum but it is a process that works step by step. With regard to the system of evaluation being followed, changes are starting to take place. With technology, one can introduce a system of assessment after every module which will evaluate both knowledge and application. I think the CBSE is taking some radical steps — and this seems like the forward looking board — with the system of continuous and comprehensive evaluation , once it is rolled out. They are very keen in making the examination system a lot more robust. We may not be there right now, but the movement is in the right direction. And with the kind of people who are driving this change it gains momentum. India's like an elephant which takes time to move but when it does, it is difficult to stop it. The move to digital will now start happening rapidly because this generation is happy with technology. The only think probably holding everybody back is the device space. To access digit content you need a device; whether it is Akash (tablet) or something better. It could turn out to be like the mobile phone revolution.break-page-breakBased on its acceptance and progress in other countries, what are your expectations from Active Teach In India?When I joined Pearson (about a year ago) one of the main objectives was to not only bring Pearson to India and we wanted to take India to Pearson as well. Bringing Pearson to India entails inculcating the experience from the company's presence in 60 countries and importing the leaning and educational products. However, India is different and we all realise that. I remember, when the iPad was launched a lot of people thought, how many people can afford this in India? But the fact is that even if 1 per cent of India can afford it, it amounts to 12 million people which is half the size of Australia's population. And this excites everyone, globally and it is the Idea of India as a non homogenous country/society that we want to take back to Pearson. Therefore, we want to build on the capabilities that we have and take it to Pearson (worldwide). For instance in vocational education, 500 million people being trained for the future, this arises from an inherent need emerging from the economy. There is an opportunity for Pearson to utilise its expertise and when you overlap the need and the available resources it is beneficial for everyone.Since you talk about the importance finding competent educators (in order to bridge the urban/rural divide), is that a focus area for Pearson at the moment?It will be an area of focus for us. I think when you create a product it flows to where the need is. Our initial belief was that only schools with advanced IT infrastructure would be interested in Active Teach but I was in Punjab recently where I realised that even smaller schools had a digi-class and smart boards because if you don't have these you're left behind. Technology has the strength to cut across this rural divide. There still is an issue with the educator's competence, because today when you're setting up schools in small towns, the aspiration level among parents is much higher (as compared to their counterparts in big cities). There are a number of schools across India which have the hardware in place but the chip needed to make it function is missing, because you don't find teachers of that caliber. There was a school in Vellore, where the owner was building quarters to attract teachers from Chennai and other cities. Active Teach hopefully helps fill a larger gap that is prevalent in smaller towns. Also, teaching as a profession has to be made far more lucrative considering the multiplier impact it has. But this is a global struggle. At Pearson, India we take teacher training seriously and want to invest in it a lot moreWhat is the methodology you follow with teachers training? Is the modus operandi different with e- learning? We provide training on the digital content we have and how, where it is to be used. There is a lot of resistance also. The resistance comes from the fact that teachers perceive digital learning as an additional burden. And all of us are generally scared f something new. But when they saw what we were talking about they were more receptive to the idea. Digital content in schools has been present for over 10 years and teachers have a set notion of what it involves: coordinating with different resource centres to educate students on a subject. We had to explain to them that our content is essentially a page from the book; a page that is more interactive and familiar for the learner. Even when a student buys his/her bundle of books from school, now the Active Teach kits for English and Science are to be found at the bottom and it piques the parent's interest as well. The digitisaton of English, for instance, was not an easy task. On the contrary if you want to demonstrate a volcano there are great video clips (from BBC, Discovey) to serve he purpose. The system of assessment in India is based on reading and writing; language is based on speaking. With English therefore, listening and speaking makes a huge difference. It is also a fact that we judge people's abilities based on their command of English. The CII states that your proficiency in English could give you a multiple of two to four times in your job. A number of young professionals start working and realise that English is a stumbling block for their growth. With our product, it is also about selling a concept that schools take time to understand. We believe a number of schools will adopt the product in the near future.How has Active Teach been received by the schools that have adopted it? Is there a feedback mechanism at work which influences the further development of the product?We intend to get back to selected schools at an interval of 3-6 months to firstly see if it is actually being or used or not and secondly, to see what kind of issues teachers face when they actually start using it. Because this is really the feedback that will help us develop the product in the next phase. As such the product is simple and doesn't need much hand holding in the process of its implementation. Active Teach is a learning step for us in the digital space. We will take the product further to include management and engineering programmes. The digital infrastructure is much better in engineering schools anyway, where it is needed a lot more.
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They were nervous. The ties were loosely knotted on the young men. The young ladies were a bit self-conscious. They fidgeted with the laptops to set up their business plan presentation. They handed out the hard copy of the presentation, a bit apologetic about the hurriedly photocopied pages bound in transparent plastic folder.The presentation was enthusiastic but occasionally hesitant. The revenue figures, marketing plan and business idea were passionately articulated.The questions to the would-be entrepreneurs were tough and penetrating. Had they considered the competitive space? Could they prevent another company from copying their business idea? How many potential customers had been surveyed to assess the market need?The answers were confident on occasion and but sometimes the presenters struggled to respond. They could be forgiven. For most were 14, some were 16 years old.Five teams of school students were making presentations to jury as part of the TiE Young Entrepreneurs business competition programme. This unique competition was launched in 2009 by TiE in the US and India. In 2011, the global finals were held in Boston with more than 400 students from different cities of US, UK and India. The winner got cash awards. And hopefully will get funding when they graduate.This is a most welcome effort to bring in a glimpse of the real world to students who are usually confined to class room experiences.The business plan they presented was the culmination of a six month programme where a TiE member entrepreneur mentored the team. Each team had a mentor who helped them discover and define the business idea. And then guided them to create a financial, marketing and sales plan. The mentor did not give any ideas, but only helped in identifying the processes that would lead to a strong team and a robust business plan.I was part of the Indian jury in 2011 and 2012 and was impressed with the diligence with which the students approached their business idea. In fact some of the business ideas were so good and obvious that I wondered why many existing business had not thought of it. The ideas ranged from catering to finance to online commerce."The students have surprised us with their insights and understanding of complex business issues. The mentoring honed their instincts and allowed the children to realise that being an entrepreneur is an exciting career option," says Geetika Dayal, Executive Director, TiE Delhi/NCR.Many of us have snacked on the drama of entrepreneurship oriented reality TV shows. But nothing comes close to the excitement and enthusiasm of young students untouched by management degrees.Our education system and curriculum does not include such innovations. Schools should be encouraged to organise and participate in such programmes.At the policy level the debate has shifted from rote learning to experiential learning. From collecting degrees to collecting skills.It may not be enough for India to just educate and skill it's young. The government and industry will also have to nurture millions of entrepreneurs. Each of these will then create value and wealth for a growing society.India doesn't just need skilled and educated employees. The country also needs many more employers. Hopefully we will see far more students make successful business presentations to idea hungry investors.(Pranjal Sharma is a senior business writer. He can be contacted at pranjalx@gmail.com)
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Middle managers are the unsung heroes of any organization. They act as links between top management and the front-line. They are also translators - responsible for understanding the strategy envisioned at the top, translating it into meaningful action plans and then despite their mission-critical role, they are often neglected or even ridiculed as barriers or "glorified postmen". Let us examine the issue of remuneration, for instance.In tandem with India's growth story, the ratio of CEO pay to the average worker's pay has widened significantly in the past few years. Hay Group's Top Executives' Compensation Report 2012 stated that CEO compensation in India has gone up by close to 30 per cent in the last year, pegging CEOs of large organizations at Rs. 7 crores per annum. Further, the amount that CEOs' take-home pay is approximately 2.7 times greater than what their executives one-level down are receiving.At the other end of the spectrum, fresh graduates from this year's XLRI cohort have been reported to be promised an average of Rs. 16.48 lakhs. A back-of-the-envelope calculation shows the inequity of the situation: Consider a middle manager with five years of experience and has loyally worked his/her way up the hierarchy. This middle manager would have started in the post-India Shining era, at the meagre base pay offered to a trainee, and had earned a pay raise of 12 to 16 per cent a year. Contrast this against today's fresh graduate starting with a base pay almost equivalent to that of the above-mentioned middle manager. It doesn't make sense, does it?If we expect that our next generation of leaders to come from middle management, then this state of affairs cannot continue. However I am not advocating that we simply elevate their pay levels, though I am sure the middle managers among us won't say no to more money! Indeed there is a whole host of other ways in which they can be recognized and Paying for performance: Adding variable pay to their package will ensure that there is commensurate performance for the additional outlay. Intangible benefits: Middle managers want better work-life balance and work flexibility and these cost very little to organizations to provide. Such intangible perks can be more motivating than an annual gym membership or smartphone upgrading Leadership accessibility: Middle managers want to be heard and trusted by their senior management. Beyond the annual "tea-with-CEO" sessions, having a channel for continuous two-way feedback would boost mutual confidence and ownership. Meaningful work: Middle managers want to know that what they do on a daily basis is contributing to the overall objectives of the organization. Hence, let us ensure that they wear "enterprise hats", as opposed to focusing on their own individual or departmental achievements. Today, we are facing an acute shortage of leadership talent, and this is one of the reasons why CEO salaries gone through the roof. Given that the top level is enormously cost-heavy, it the onus lies on the shoulders of our middle managers, to rise to the challenge of constituting the bench strength as tomorrow's leaders.We've all sat in townhall meetings where the CEO makes the annual strategy presentation to the middle managers. Ever wondered what is going on in the minds of your colleagues? According to a Hay Group FTSE350 research: About two in five will co-operate, if they are absolutely forced to One-third don't understand what is being presented well enough to implement it The rest are divided between being bored or actively plotting to sabotage the plans. Your company's credibility is its history of keeping promises. While the CEO makes the promises to customers, shareholders and employees, it's really not in his/her power to keep them. In fact, it is the middle managers who fulfil them or break them.If middle managers are supportive of senior executives, they can foster high levels of confidence in the organization's leadership and direction. If, on the other hand, middle managers signal to employees through their words or worse, actions that they lack faith in organizational leaders, employees' trust can be expected to decline rapidly. Performance will also quickly follow the downhill slide.It is time to look at our middle layers. Indeed, unless treated properly, they can become the enemy within. As Napoleon Bonaparte had once said, ‘There are no bad soldiers, only bad officers'.(The author is Business Manager India – Productized Services, Hay Group India. Hay Group is a global management consulting firm that works with leaders to transform strategy into reality)
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What does a company expects from its employees? Other than efficiency and loyalty, it is somebody who is smart enough to deal with people and problems. To justify the deals and consultancy, they need to look authentic and approachable. Suman Agarwal is a Master Image Consultant from the Federation of Image Professionals International (FIPI– UK). As the co-founder, guide, trainer and consultant at ICBI - Image Consulting Business Institute — Agarwal has 15 years of experience in services including aviation, hospitality and training industry. Starting off as a cabin crew in Jet Airways in 1996, Agarwal went on to become the grooming and recruitment in charge in 2001. She started her own company in 2009. She was trained by Judith Rasband, the senior most image consultant in the world, who later became a curriculum partner.Agarwal talks to BW Online's Poonam Kumar about why corporations, individuals and housewives need image management.Excerpts:What was the idea behind the image consulting business?After being a professional for several years, I realised the need to do something that what be the need of the hour in India, something that gives me a great satisfaction and something that I can relate to my experience and I am passionate about doing, hence after a lot of research, I realised that this is my calling. Image Management is a big miss as far as India is concerned. A lacunae exists in India. It is a multi-billion dollar industry abroad. It's time people/ corporates benefitted through image makeovers and etiquette guidance in India. We got started in setting up our company, which is now called First Impression Consulting Pvt. Ltd.What made you start the Image Consulting Business Institute?First impression consulting was formed in 2009 to create an industry of Image Management in India. (Industry First), It went in a phased manner to cater each aspect of the industry. It started Image Consulting Business Institute (ICBI) offering a business program for image consultants. After completion of training, the image consultant receives all required certifications and accreditations to carry on independent business of image management or offer services to individuals/ group workshops/ and corporates.The company not only trains these consultants but also creates their business identity in terms of logo, website and social media presence. It then goes on the give complete business, system and marketing support to them. With more than 200 consultants in ten cities, the company has now launched career programs and short courses in image management. There are 40 franchisees centers in the 10 cities. The company employs about 150 people as of now.Why do corporates need Image Consultants?Many corporations seek the services of our systematically-trained image consultants on retainer or assignment basis to build positive customer perception, leading to enhanced customer loyalty and retention.Employee Image Audit – ICBI-trained image consultants conduct employee image audit with stakeholders like customers, partners and the employees themselves, providing you with a clear picture of the current image.Client Need Analysis – The image consultants study your work environment and the customer-facing environment. Coupled with the Employee Image Audit, they analyze the areas of employee image that require correction, providing recommendations based on the observations.Employee Dress Code – Employee dress code is a projection of the organization's image. In fact, research shows that office dress code has a positive impact on productivity.Whether it is power dressing, casual tailored formals or casual attire, ICBI-trained consultants carry the knowledge of attire that suits different industries from banking to manufacturing to service industries or departments. Their services include creating the company uniform or drawing up the corporate dress code for employees, including the Friday casual dress code.The consultants also offer training programs for employees, regarding the rules of your company or industry attire. These training programs can be offered at different levels of the corporate hierarchy – entry level that is, trainees, management cadre, senior level executives, and employees traveling to international locations, sales and service executives as well as front office executives. They also provide individualized services required at the senior levels.Event Dress Code – ICBI-trained Consultants offer their consulting services towards internal or external conference and event dress code which creates greater recall value and lasting impressions of the event, resulting in higher returns for the marketing rupee spent.Grooming – The consultants also offer training in grooming either in the form of on-site or off-site group and individual coaching.Body Language & Etiquette – On-site training from consultants supports internal HR programs, imparting business etiquette to customer-facing employees with exposure to domestic or international situations as well as for back-office employees.Vocal Communication-ICBI-trained image consultants offer training in vocal communication for front-office staff, streamlining this critical service factor.Who all are your targeted clients?Individuals and groups who need image consulting include: High Net worth Individuals Celebrities and their wives Socialites Wealthy Housewives College and University Students looking for success at their first interviews Professionals in different domains – Doctors, Lawyers, Financial Advisors and more People in the Public Eye – like Politicians, Corporate Communications Professionals Service industries like Retail, Hospitality, Airlines, Healthcare HR, Recruitment, Training Companies Consultancy Firms Corporate professionals at different stages of their career Corporations looking towards creating a corporate identity that enhances their corporate image and work ethic, involving code of conduct for different levels, days like Casual Fridays and different occasions Why does a person need an image consultant? How does this help in career building?In today's world, practically everyone realizes the need to create a positive first impression. From succeeding at the first job interview, having a successful first meeting, creating a great impression at a new job or role, to having a great first date, success depends on the first impression. Millions of successful people in different spheres of life – corporate executives, lawyers, doctors, other professionals, High Net worth Individuals (HNI), socialites, housewives, celebrity wives and many more recognize that the right image makes people attribute confidence, superior ability and other positive elements to them. It opens doors, giving them access to decision makers, greater success in hiring and salary levels, allowing them to lead satisfied personal, professional and social lives. Hence, rather than leave it to chance, they make a conscious effort to project the right image.Image consultants can choose among multiple career options to follow the one most suited to them. The options are many more than can be listed: Individual coaching to individuals and companies Group coaching to individuals and companies Corporate image consultants Retail image consultants Specific service – Marriages, Other special occasions Specific target market – Celebrities, Corporate Identity, Service Professionals Specific domain – International travel and interaction Sell a line of clothing or accessory – Hold a show and assist clients in making a personal choice Deliver keynote addresses Write columns and books Teach in community education classes and academic institutions Is image consulting all about personality development?Image Management is not personality development, which focuses only on the self, nor is it image makeover or grooming which focus on the outside. It is about managing the "image from the inside out", creating the right image based on the real self (Inside) and projecting it based on the occasion (Outside). As such, it is comprehensive as opposed to personality development which focuses only on the inside, and makeover and grooming which focus solely on the outside. It combines all the different aspects of the person, including the inner self, characteristics, goals, as well as the outer environment, the differing roles and occasions the person undertakes when working towards achieving the image goal.What are the courses and fee structure of ICBI? What is the duration of the training? Image Consulting Partner Program: Training to be a Image Consultant 9 months with practical assignments, fees come to Rs 2.6 lakh International Program: Training to be image consultant with international exposure. It's a 9- month with practical assignments abroad. Fees total Rs 4 lakh Diploma in Image Management: The course involves intensive classroom sessions of 10 units, for the Foundation and Advanced Learning in addition to Industry Learning through compulsory project requirements with companies. Investment required is Rs 71,695 Advanced Diploma in Image Management. An advanced course with a total of 16 Units of curriculum for turning out a well-rounded professional who carries not just technical expertise, but also all the important factors that go into making you a Leader within your chosen profession of Image Management. Total fees come to Rs 1,21,330 Other than professionals do you provide training to graduates/schoolmates? What is the training procedure? Is it in sessions? How long is one session?We offer training in specific need based requirements: - Job Ready is a comprehensive program on how to project a powerful image and get the best jobs, a higher position and remuneration. Future Adult is a comprehensive program to help every teenager build a powerful image for their future. Marriage Ready is a comprehensive program that helps every girl become marriage ready. Super Housewives is a comprehensive program about how to transform one from a simple Housewife to a Lifestyle Super Housewife. The duration for above courses is 48 -60 hours of guided learning during weekdays, weekends and fast track batches.
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There I was, almost settling in for night's sleep, when I happened to see a snip of news that nearly made me fall out of bed. Facebook is buying Instagram. For $1 billion. That's apparently more than the valuation of the New York Times. But that's not the reason I was jolted. Speaking purely as a user, I wasn't thinking of Instagram being bought by anyone, and least of all Facebook.Instagram is the seemingly minor photo-sharing app that was so far limited to the iPhone (and iPad, if you push it) but recently opened up to Android with a much anticipated long-awaited version. In a matter of hours, the app was downloaded a million times, adding that many users to Instagram's 32 million. iPhone users were none too pleased about Instagram becoming part of the Android world, because they felt Instagram was exclusive to them. Many nasty comments popped up about how this move now meant bad photos would pollute photo streams because all Android cameras were inferior to the iPhone's. In general, it was a case of Apple snobbery and even when the Instagram-Facebook news came out, iPhone users were saying well, now maybe Android users know exactly how we, felt when Instagram went Android.All that aside, why a little app should matter so much in the larger scheme of things is probably not easy for a non-user to understand. For in less than two years, Instagram shot from out of nowhere to 33 million users – with no signs of slowing – because users love it so much. Instagram may be a good case for bad photography, but it also is a social network on its own, where there's a special warmth and charm about sharing images from one's life, making new connections with people because of these images, and feeling truly good about it. Photos on Instagram can go up with the addition of various filters that give the photos a nostalgic, vintage or low-fi look that users have grown to love. Instagram was, until now, a happy little world of its own where sharing a picture really is insta and the give and take of appreciating each others' photos left you with a feel-good like no other social network.Actually, Instagram isn't where the most photos are shared, it's Facebook where 200 million are shared each day. So why does Facebook even need Instagram? Well, Instagram's method of sharing is far easier and smoother than Facebook's, even though Facebook has been working on improvements to the process all the time. So, when they think of just how to integrate Instagram with Facebook, a new capability could be added to the giant network and its 847 million users.And now many Instagram users are upset. While some are congratulating Mark Zuckerberg on his Facebook page, there's also a significant number, me among them, who are doing nothing of the sort. For many of us, Instagram will never feel the same again. Once it's Facebook property, the atmosphere changes from implicit trust to distinct discomfort. I've put up black blank pictures up in protest – or rather, in sadness, for all they're worth. Mark Zuckerberg makes all the right noises about how they're only evolving things to make for a better photo-sharing experience, users wonder what happens to their data. Location, interests, friends and the images themselves are all now going to be at Facebook's disposal, where it will be free to do as it pleases, probably targeting users with ads all the more finely. It's no more than it does already, of course, but let's see the innovative ways that will come up in the future.Instagram, satisfying as it was to users, had no business model in place. It's possible that someone would have bought it even if Facebook hadn't. The honeymoon would not have carried on forever and this brings to the forefront that users have to pay a price for services, if not with money, then with the wealth of data they bring about themselves. Kevin Systrom, CEO, founder and designer of Instagram (who has a 40 per cent stake in Instagram) reassures users that the photo app will not go away but evolve and build on its strengths.What is also difficult to predict is what will happen to the many third party apps and services that tap into Instagram photos. See Flipboard, for example. Instagram photos actually look more beautiful there than they do on the app. InstaFlow is another app that gives you a beautiful fluid way of browsing and responding to Instagram photos.Another billion dollar deal took place on the same day as the Facebook-Instagram one. Microsoft is buying a billion dollars worth of internet-related patents from AOL. What it will do with them, we don't know, but acquiring patents has become a recent way of strengthening a company, giving it assets that mean it has an edge over the competition.
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The Businessworld INFOCOM ICT Awards were presented at a glittering ceremony at the Taj Mahal Hotel, New Delhi on 23 March 2012.D.D. Purkayastha, managing director and CEO of ABP Group, and chairman Infocom, gave the welcome speech. This was followed by the chief guest, Minister of State for Communications & Information Technology Sachin Pilot's address to the audience. He remarked that despite the Indian IT & ITeS industry facing its biggest challenge (the slowdown in its largest markets, the US and Europe) companies in the sector have grown. He said that in future telecom companies need to join hands with content companies to ensure that rising data demands of consumers are met.Emphasising the value of the ICT industry, Kenji Urai, managing director of Toshiba India, said that the sector served to empower people. Prosenjit Datta, editor, Businessworld, explained the process and parameters for selecting the winners. In each of the three verticals, IT, telecommunications, media & entertainment, there were three awards: for growth, for profits & profitability and for innovation. There was also a Lifetime Achievement Award. The winners were selected by an eminent jury comprising Nripendra Misra, former chairman, Telecom Regulatory Authority of India; Sanjeev Aggarwal, senior managing director, Helion Advisors; Smita Jha, consulting head, entertainment & media, PricewaterhouseCoopers India and Arun Arora, chairman, Edvance Pre-schools. The awards were given by Sachin Pilot, Aveek Sarkar, editor-in-chief of the ABP Group and Kenji Urai, MD, Toshiba India. The Lifetime Achievement Award was conferred on N.R. Narayana Murthy, chairman emeritus, Infosys. Tata Consultancy Services won in both revenue growth and profitability categories in the IT sector. Bharti Airtel won the award for revenue growth in the telecommunications sector. The award for revenue growth in the media & entertainment sector was shared by the Zee Group and the Network18 Group. In profitability, the award in the media & entertainment sector went to UTV Software Communications. The jury decided not to give any award in the telecom profitability category. In innovation in IT category, TCS again emerged a winner because of its mKrishi application that provides information to farmers on their mobile handsets. The telecom innovation award went to Stay In Touch (SINT) Mobile and Tata DOCOMO for their Offers Near Me service which is offered to subscribers in Andhra Pradesh. The presenting sponsor for the event was Toshiba India and the associate sponsor was Sify. The registration desk was sponsored by Kingston, while Chivas was the beverage partner. Exchange4media was the online partner and NDTV Profit was the television partner for the event.(This story was published in Businessworld Issue Dated 16-04-2012)
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Ever since the indian economy was opened to global competition two decades ago, information technology companies have been India's flagbearers. Today, many of these companies are global leaders. The Businessworld INFOCOM ICT Awards were instituted to recognise the contribution of these companies. We looked at growth, profits & profitability and innovation across the three ICT categories: information technology; communications; and media & entertainment, over the last three fiscal years. Over the next few pages, we provide a glimpse of the winners in each of the categories.COINING SUCCESS VIA INNOVATIONN. Chandrasekaran, CEO and MD, TCSGROWTH, PROFITS & PROFITABILITY AND INNOVATIONIndia's largest software services company Tata Consultancy Services (TCS) has grown at a compound annual growth rate of close to 17 per cent over the past three years. TCS now straddles the entire spectrum of consulting to implementation in IT and IT- enabled services.TCS won the Businessworld Infocom ICT award in all the three categories in the information technology sector.TCS practises what it calls Co-Innovation Network (COIN) with customers, alliance partners, research and academic institutions. With more than 1,000 employees in core R&D and nearly 300 patent applications, TCS relies on COIN to give it an edge in the marketplace. The company has developed an interactive voice response system, mKrishi, which uses the inexpensive data channel for transferring content. This platform allows farmers to send queries as well as essential information via their mobile phones to experts who remotely and seamlessly guide them on farming practices. These can include information on micro climate, local mandi price as well as personalised solutions.The mKrishi service has been launched across the country. TCS has also planned a few international pilots. Subhash Chandra(BW Pic By Subhabrata Das) THE TELEVISION PIONEERSSubhash Chandra, Chairman & promoter, EsselGROWTHMedia conglomerate, the zee group, has won the Businessworld INFOCOM ICT Award for sustained growth. The media companies under the Zee banner have displayed sharp growth, a tight leash on expenditure and healthy profits year after year. Over the last three years, Zee Group saw its sales turnover expand from Rs 2,686 crore in FY2009 to Rs 4,070 in FY2011, a CAGR of nearly 15 per cent. Each of the Zee companies has shown strong growth. The credit for this goes to chairman and promoter, Subhash Chandra, who will be celebrating 20 years as a media mogul this year. In 1992, using his earnings from rice exports, Chandra launched the first private television broadcasting company in partnership with STAR TV in Hong Kong. Zee TV, as an entertainment channel, was Chandra's first big success story. Chandra has experimented with everything in media. He has dabbled with communication satellites, made Bollywood movies, bought cricket rights and sports channels, tried to acquire news agency UNI and has even ventured into print with the newspaper DNA. Not everything has been as successful as his television ventures; but he has dared to dream and experiment. Raghav Bahl(BW Pic By Tribhuwan Sharma) Raghav Bahl, Managing director, Network18GROWTHThe Network18 group, though smaller than Zee, has followed a similar trajectory for growth, and hence emerged as a joint winner of the ICT Awards. The group has interests in television, Internet, e-commerce, magazines, mobile content and allied businesses.The company has restructured, with TV18 being the umbrella for all its broadcast ventures, that includes 10 news and entertainment channels. Earlier, the channels were distributed over two listed entities; some of them like CNBC were held by TV18 while others, including the entertainment channel Colors, were under the IBN18 banner.Starting as a content provider for Doordashan and BBC in the early 1990s, Raghav Bahl launched business channel, ABNi, from Singapore which soon fell apart. Later, his partnership with CNBC became a success story. Due to regulatory restraints, CNBC sold its holding to the TV18 Group. That saw Bahl join the ranks of media broadcasters.With recessionary conditions, the company's debt burden became huge. However, with the recent merger proposal with ETV and the planned infusion of Rs 1,700 crore through a Mukesh Ambani trust, brighter days may be on the horizon. Ronnie Screwvala (BW pic by Subhabrata Das) BRINGING IN PROFESSIONALISMRONNIE SCREWVALA,CEO and founder chairman, UTV Software CommunicationsPROFITS & PROFITABILITYutv software communications won the Businessworld INFOCOM ICT Award for the media and entertainment sector in the profits and profitability category. UTV is spread over five verticals: broadcasting, gaming and games content, motion pictures, interactive and television content. In a sector that has been hit hard by the economic slowdown, UTV has shown both steady growth and an increase in profits. While the company's sales turnover jumped 40 per cent to Rs 930 crore in FY2011 from Rs 664 crore in the previous year, profit after tax has grown from Rs 29 crore in FY2009 to Rs 135.5 crore in FY2011, at a whopping compound annual growth rate (CAGR) of 207 per cent over three years.Ronnie Screwvala, CEO and chairman of UTV, started out with the cable television business in Mumbai. In 1990, after UTV was founded, he moved into film production, movie distribution, family-oriented television channels and, later, web content. After 2005 when UTV became a publicly traded company, it grew rapidly. Subsequently, UTV entered the big league as a movie production house and a television broadcaster. break-page-breakStarting with the Aamir Khan hit, Rang De Basanti, UTV has produced a string of blockbusters including Raajneeti, Dev.D and No One Killed Jessica. Today, motion pictures is its largest vertical, accounting for Rs 454 crore in sales, almost half its revenue in FY2011. The company has brought in a studio culture in Bollywood, which includes signing of completion bonds with actors. This has given a fillip to an industry steeped in an informal style of functioning. A professionalised approach to movie making is UTVs biggest contribution to Bollywood. Part of the reason for the company's evolution to the Hollywood-studio mould is its close working and structural ties with the Walt Disney Company. Over the years, Disney has steadily bought into UTV Software. Last July, after buying out Screwvala's stake, Disney now has controlling equity in the company. The synergy between entertainment giant Disney and UTV is obvious. Screwvala has assumed charge as MD of Walt Disney India, and he is in the process of integrating the businesses of the two companies. Sunil Bharti Mittal (BW pic by Bivash Banerjee) AN AFRICAN SAFARI SUNIL BHARTI MITTAL, CMD, Bharti AirtelGROWTHIt was almost 19 years after he got into business that Sunil Bharti Mittal ventured into mobile telephony. With over 162 million mobile subscribers in India and another 44 million across 17 African countries, Bharti Airtel is among the top five telecom service providers globally, by subscribers. Bharti Airtel won the Businessworld Infocom ICT award for revenue growth in the telecommunications sector.While the company's subscriber base was growing, revenue growth posed a problem. Cut-throat competition in the Indian telecom sector, which has caused tariffs to plummet and revenues to shrink, forced Bharti to try alternative options. To increase revenues, Bharti went to Africa. The average revenue per user in Africa at $7 is almost 75 per cent more than the $4.2 in India. Bharti's Africa opertaions have ensured that the company continues to lead in the Indian market. Bharti recorded a CAGR of 13.79 per cent in its revenues over the three-year period ending FY2011. In the quarter ending December 2011, Bharti recorded revenues of Rs 18,467 crore, a 17 per cent increase over the same period in 2010. Profits, however, are yet to pick up. Raj Karan ZEROING IN ON THE SUBSCRIBER RAJ KARAN, CEO, SINT MobileINNOVATIONWith six billion-plus mobile subscribers, almost 86 per cent of the world's population has access to mobile services. As consumers across the world move from pure voice to data services, operators are gearing up to offer services that attract more customers. Innovation, therefore, is critical.Stay In Touch (SINT) Mobile along with Tata DOCOMO won the Businessworld Infocom ICT award for innovation in telecom. CEO Raj Karan, a former management consultant, leads the SINT team that offers a location-based service called Offers Near Me to Tata DOCOMO subscribers in Andhra Pradesh. Once the consumer subscribes to the service, he can select from various categories including restaurants, cinemas and coffee shops, to receive alerts on discount coupons and information from such businesses in and around the exact location that they are in.The service is free and is currently available in and around Hyderabad. Over the year, it is expected to be rolled out in other markets across the country. Initial results have shown significant conversion rates when SINT Mobile used location data to promote local brands targeting users. The service is a means to generate additional revenue for telecom service providers from advertisers and retailers. N.R. Narayana Murthy (BW pic by Sanjay Sakaria) THE COUNTRY'S ICT GURU N.R. Narayana Murthy, Chairman emeritus, InfosysLIFETIME ACHIEVEMENTIndia's Information Technology (IT) industry which hit $100 billion in revenues this year, including $69 billion in exports, owes a lot to a handful of visionaries. Amongst them are the likes of F. C. Kohli, S. Ramadorai, Azim Premji, Ashok Soota, Shiv Nadar, and, most would agree, N.R. Narayana Murthy. Murthy won the Businessworld Infocom ICT Lifetime Achievement Award. The financial success of Infosys is one reason for the respect that Murthy commands. The other is the corporate governance practices which he introduced in the company. Many of the things that Infosys did, such as sharing wealth through an employee stock option plan, guiding the market on what to expect not just for the next quarter but the next year, investing in building a talent pool, sharing best practices and setting benchmarks for information disclosure, were emulated by its competitors in the industry. His insistence on separation of ownership and management (no family member of the founders work at Infosys), giving everybody an opportunity to share the wealth created (the co-founders collectively own just about a sixth of the company) and bringing in a high degree of transparency in decision-making have worked to Infosys' advantage. Three decades after setting up Infosys, Murthy stepped down as chairman in August 2011. But he continues to advise and guide the company as chairman emeritus. He has received several awards including the Padma Vibhushan, Commander of the Order of the British Empire and the French Légion d'honneur.Murthy is now involved in his second act: funding and mentoring India's next generation of entrepreneurs through investment fund Catamaran Ventures. He operates his fund from ‘Tathagatha', an aptly named 2-storied bungalow in Jayanagar, Bangalore. Tathagatha, which is the name Buddha uses in the scriptures, paradoxically means both ‘one who has thus gone' (tatha-gata) and ‘one who has thus come' (tatha-agata). With the first phase of Murthy's career, in which he built India's technology industry, behind him, his second act will be watched with a lot of interest. METHODOLOGY The process began with database company ace equity pulling out figures on growth and profits for companies in the ICT sectors over the last three financial years (2008-09 to 2010-11) along with their three-year compound annual growth rate (CAGR). Based on the CAGR growth, a list of top 10 companies was drawn in each of the three categories — information technology, communications and media & entertainment — for both revenue growth and profits & profitability. To identify the innovation in the ICT sector we sought applications from companies. More than 50 companies responded. The bulk of the applications were in the IT category. The applications were vetted by an external panel to draw up a shortlist. Based on this, the jury was provided a docket on growth & profitability across the categories along with the innovations. The jury comprising Nripendra Misra, former chairman of Telecom Regulatory Authority of India; Sanjeev Aggarwal. senior managing director, Helion Advisors; Arun Arora, chairman, Edvance Pre-Schools; and Smita Jha, consulting head, entertainment & media, at PricewaterhouseCoopers, decided on the winners. The jury also identified the winner of the Lifetime Achievement Award. (This story was published in Businessworld Issue Dated 16-04-2012)
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Facebook is organizing a party and is going to sell tickets to all of us. It is a party that we have been waiting to be invited to for a long time, but until now, it was restricted only to the company's founders, key employees and some fortunate investors who had been buying its restricted stocks. We still do not know how much of the company will be sold, nor what the price per share will be. We do not know how markets will behave in the next months, since a depressed market could jeopardize the success of the IPO. But we do know that Zuckerberg and his team are selling us tickets worth about $5bn. But, isn't the fact that we are invited a clear sign that the party is not as fun as we thought it was? Two details make us wonder. Firstly, we know that the objective of Facebook's IPO is not to raise funds to finance investments or repay debts. The firm is trying to create a liquid market for its employees, who are until now in possession of a very valuable asset which they cannot easily sell. Moreover, Facebook intends—after covering the tax liabilities arising from the conversion of stock options by Zuckerberg and colleagues—to keep most of the proceeds from the IPO in cash. That is, the worst possible use for money (putting it in a box). In the current economic environment where central banks print money only for it to freeze on bank balance sheets and where governments and international organizations are trying to make money move, here comes Facebook to sell us the possibility of storing our cash for good. Secondly, creating a public market for inside shares may seem like a reasonable pursuit. Yet, there is a catch. Facebook has two share classes, A and B. Only A shares will be sold, but B shares are entitled to ten votes while A shares are entitled to one. After the IPO there will be about 117 million class-A shares, and 1,759 million class-B shares. Therefore, Facebook is selling a maximum of 6.2 per cent of the cash flow rights, and 0.66 per cent of the voting rights! We are sold admission to the party, but we cannot choose our own drinks. Will the world be a better place after Facebook goes public? We surely hope so. However, the question should be: Whose world will be better? Well, certainly that of Zuckerberg and his associates, who will cash in their well-deserved millions of dollars. This is the reward for innovation, value creation, courage and hard work. And there are the non-executive shareholders (mostly hedge funds) who have bought restricted Facebook stock in the pre-IPO market. Unfortunately that stock was only available for a few "sophisticated" investors: under SEC rules, only sophisticated investors (read: already wealthy) can purchase restricted stock (so probably, you did not get much of that action). Finally, we have the investment banks. The IPO is underwritten by Morgan Stanley, JP Morgan and Goldman Sachs. If they follow the usual practice of charging 7 per cent of the IPO proceeds as a commission, they will share a $350 million prize for perhaps one year of work. Not bad. The underwriters have also reserved the possibility of an "over allotment option." This means that, if there are too many people willing to buy a ticket to the party, they will just print out more tickets (and get the 7 per cent commission of course). The typical over allotment option gives the underwriter the possibility to increase the number of shares by 15 per cent (that is, $52.5 million in additional compensation to the banks). Of course the party goes on only to the extent that we, the potential shareholders, are willing to participate. But should we participate in the IPO? Consider a lucky employee at Morgan Stanley trying to sell Facebook shares to her clients. How would she organize her selling strategy? She would probably start from her most prized customers, those whose acceptance would mean a high dollar amount for the IPO. If Plan A does not work, she will tap her next best customers, wealthy people who are potentially willing to put up a considerable amount of money. Finally, she will go down her list of clients starting from the third best and finishing up with … you and me. When normal investors get the call, should we be happy? Not really. Chances are that there were reasons why the super rich passed on this "spectacular" opportunity: maybe it was not so spectacular after all! Could this be why we were asked to join? Think for a second: if it were such a great party full of celebrities and superstars, why would they be inviting us? This is not to say that the Facebook party is all together bad. But if we get an invitation, chances are that it won't be as much fun as we thought it would be. As Groucho Marx said, "I don't care to belong to any club that will have me as a member." This party is not for us.(Professor Arturo Bris and Salvatore Cantale are professors of finance at IMD and teach on the Advanced Strategic Management and Building on Talent programs)
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