INFORMATION

AND

COMMUNICATION TECHNOLOGY

FOR

ORGANIZATIONAL EFFECTIVENESS

1|S tr a tegi c Im pa ct o f IC T i n Co a ch ing Ce n tr es

 A
Comprehensive study
Of
Strategic Impact of IT in Coaching Centres

Submitted by:

Avinash Chandra Kishan – 411/16

Himanshu Joshi – 415/16

Khobragade Ashish Shyam – 416/16

Raunaq Tambi – 429/16

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 Index
Table of Contents Page No.

About the project 4

An overview of Coaching Centre industry in India 5

About Career Launcher and its Competitors 6-8

The Industry Structure 9-10

Porter’s Five Forces Analysis 11

Critical Success Factors for Coaching Centre Industry 12-13

Scope of ICT in this Industry 14-16

Current state of ICT in Career Launcher 17-23

Conclusion 24

References 25

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1. About the project

The days when coaching classes were synonymous with an individual running a
small tuition centre in his home are long gone. The teacher used to charge an amount
close to Rs. 500 per month and teach 3-4 days in a week. However a major
transformation was seen when businessmen actually started looking at it as a
financially interesting career option.

The expansion of the old form of coaching has been profound. Strategic
business knowledge is now increasingly being used to gain competitive advantage
by different coaching centres and slowly the industry is starting to become an
organized one. Currently the coaching centre industry in India is worth Rs. 10,000
Crore.

In this project we have studied the structure of coaching centre industry of India. We
have analyzed the major players in this industry and have performed a detailed
analysis on “Career Launcher” which is arguably the biggest player in this industry
currently. We have then tried to have a look at the involvement level of career
launcher in ICT based applications.

An analysis of how they are using ICT for strategic advantage has also been
performed. We have used data obtained through Interviews to study the impact of
ICT on these organizations. We have also used internet as a resource to obtain some
important data to complete the analysis.

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2. Coaching Centre Industry in India

Good quality education is of primary importance in India today. The increasing

population and limited number of seats in prestigious institutes has raised the bar of
students getting into these institutes to a very high level. There is a huge demand
and thus, potential to create a large market from this underestimated sector. Hence
private coaching institutes have proliferated across the nation in the past few years.
Thus a nation, which was more inclined towards private tuitions, is now starting to
focus on a planned “Professional Coaching Centre” method.

The severe competition makes even the best of the students feel the need of
professional help. Even the parents do not hesitate paying huge amount of money to
these institutes since they realize that they are making an investment that can prove
decisive for the child’s future. Right now there are coaching classes available for
almost all kinds of competitive exams.

Coaching centres are making a foray into diverse fields ranging from board exams -
school tuitions - IIT JEE – Medical - Management et al. There has been an increase in
the interest level across various income and educational levels to get into the best
possible institutes India has, to get a satisfying and ‘high returns’ career. The
organized part of the coaching centre industry has, as of now, eight major players –
Career Launcher, IMS, TIME, Brilliant Tutorials, FIITJEE, Pie Education, Raus’s IAS
comprising of 20% of the market.

Some of the following figures are astounding and prove the fact that coaching centre
industry without a doubt has a lot of potential:

 As of now, the industry is estimated at Rs 10,000 crore.

 It is growing annually at 20%.
 It comprised of close to two to three organised players till about six years back
but now has around 8-10 highly preferred institutes.
 Within the industry, the individual coaching centres are growing
significantly. Career Launcher, for example, has been growing at 30% per
annum.

We have selected Career Launcher as the subject matter for analysis in this report.

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Career Launcher India Limited (CL) is Asia’s leading education service provider
with presence in over 130 locations across India, Middle East and the United States
and having over 400 academicians and professionals to counsel and groom over
60,000 students. It provides test-prep education to enable school and college students
gain admission to professional courses that include MBA, BBA, Engineering, Law,
GMAT, GRE, Hotel Management, etc. It is also actively involved in the field of
mainstream education, mainly through its growing network of play schools and
secondary schools.

Career Launcher strives to enable people to realize their potential and make their
dreams come true. Its primary focus is on the students’ needs, and treats technology
as a key driver. CL has put a strong team in place to ensure that its targets are met.
The day-to-day functioning of the company lies with the co-founders and a strong
team of professionals from IITs and IIMs through a structure consisting of “business
councils” and their “anchors”.

Career Launcher had initially been funded by Intel Capital, and now by Gaja
Capital. Career Launcher has a subsidiary in the US (CL USA) and is planning a
footprint across Asia. In fact, its plans to go for a public listing to raise funds have
been postponed only due to the recent state of the markets.

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Its Competitors

Triumphant Institute of Management Education (T.I.M.E.)

is a Hyderabad headquartered India’s leading test preparation institute with a pan-
India. In just a decade and a half, T.I.M.E. has grown into a specialist, multi-location,
multi-programme training provider running on corporate lines.

T.I.M.E. has a presence with 197 offices in 102 cities across the country. T.I.M.E.
offers training for national level exams like the CAT, NIMCET, IIT-JEE, AIEEE, etc.,
as well as exams like the ICET in Andhra Pradesh, the Maharashtra CET, and other
local exams in different states. T.I.M.E. also offers training for international tests such
as the GRE test, the GMAT and the TOEFL iBT.

Besides an expansion in its product portfolio, the company has also grown as an
organization. Today T.I.M.E. has over 2000 full-time employees in its Faculty,
Research, Management, Marketing & Administration teams.

T.I.M.E. believes in letting its results do the talking with 1000 of its students who
were part of its flagship program making it to the IIMs. The last few years have been
financially rewarding with T.I.M.E. achieving an impressive brand turnover of Rs.
200 crores and growing at a CAGR of over 55% for the last 5 years.

IMS, having been in existence for the past three decades,

remains a market leader in the field of Management Entrance training. It has a
presence through more than 80 centres across India enrolling over 50000 students
every year.

IMS India provides help to students right from career counselling to coaching classes
for major entrance tests like CAT, GMAT, GRE, MCA and all State Level
Management Entrance Tests including group discussions and personal interviews.

IMS believes that its primary focus is its student, trust their primary concern and
career building their job which involves mentoring, motivating and guiding all
those who interact with them.

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 PT Education has in its fold a wholesome range of training
courses that span from MBA entrance to MCA entrance, from personality
development to Campus Placement Training, from career guidance after class XII to
a complete package for education abroad. PT will train more than 50,000 delighted
students this fiscal and has a nationwide team of more than 500 individuals with
more than 100 at the HQ, working relentlessly in pursuit of perfection.

Group PT’s revenues are poised to cross Rs.40 crores this fiscal. They foresee
themselves as a quality education corporate, that would be worth at least Rs 250
crores by the end of this decade, delivering quality services to students around the
globe through a mix of online and off-line delivery models.

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4. The Industry Structure

In the initial stages, the industry was a fragmented one with private tutors being the
major players and commanding the maximum amount of respect. However, with the
advent of competition reaching dizzying heights and population explosion not
helping the cause, the coaching centre industry is finally starting to realize that it is
important to bring in strategic management principles in order to remain profitable
in this highly competitive business environment where there is a coaching institute
available in every nook and corner of the city.

- The Franchise Model

Major players like Career Launcher, IMS, Time and others work at their own level in
big cities and in order to capture the market in smaller cities franchise system is
followed. An example of such a system is prevalent in a city like Dehradun. When
Dehradun became the capital of Uttarakhand, it resulted in the opening up of many
engineering and other professional education institutes. This further led to setting
up of coaching institutes like CL, IMS, TIME etc, who set up their franchisees in this
city to promote their brand. Time coaching Institute, for example, is primarily driven
by the franchisee model and currently it has about 90 learning centres in 59 cities.

- Intense competition

The competition in this industry is intense. There is no dearth of people willing to

spend money to get into one of the premier institutes. Coaching centres like CL, IMS,
and Time etc have performed remarkably well over the years making sure that their
students get the best training possible to handle the exam day pressure of high-stake
entrance tests like CAT, IIT-JEE, GMAT etc. Since the quality of education provided
by these institutes is top notch, the major differentiating factor becomes the price
that they have to pay. This sector has seen a lot of Price undercutting where each
coaching centre tries to charge lower than the other for a course module. Also a
primary requirement in this industry is to attract the best possible teachers. Number
of students enrolling is a direct function of the quality of teachers coaching in the
centre. Thus these coaching institutes try to hire best possible teachers and are ready
to shell out big bucks on them. Also the entry and exit barriers in this industry are
very low. Hence, institutes are ready to try out to keep struggling in the industry
since scope of returns in high.

- New entrants – always ready to barge in

Setting up a coaching centre does not require a huge capital outflow initially. The
primary reason for this is the fact that there are economies of scale. One does not
need to own a fixed infrastructure initially. A class can be started by renting a room.

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Also to build a brand you need around two years, in which you can try to attract
good faculty and students. The investments, although gradually increase, it is still
better when compared to certain other industries.

- Customer power – high

Customers in case of coaching institutes are students. The students are one of the
most important entities in this industry. A student would be willing to choose a
coaching institute on the basis of two basic qualities – Quality of teachers and the
course content and the cost that they are paying for it. The cost that the student has
to pay for the entire module is very much decisive in determining whether a
customer prefers one institute over another. A difference of even thousand rupees
can force him to think about other such institutes. For a student switching from one
institute to other is not costly both in terms of money and in terms of course content,
since the major entrance exams have similar syllabus. Hence a customer would not
be overtly disappointed about switching from one institute to other provided he is
getting a good deal. It also depends upon the customer loyalty factor. If my cousin
joined Time coaching institute and he made to an IIM, chances are I would also
prefer to go to time rather than any other coaching centre.

- Substitute to a coaching centre?

A large number of private tutors are present in India. Some of them are
exceptionally good teachers. A student who can afford private coaching is highly
likely to opt for a personalized form of coaching where the teacher is only teaching
to him and nobody else at the same time. Thus the student can try to gain a lot more
than what he could have had he gone to a class of 30-4- students. Another form of
coaching could be through correspondence. People living in remote areas prefer this
over travelling for 2-3 hours to attend a class. Also there are few coaching centres
trying to focus primarily on imparting education through online mechanisms. All
these are alternatives to classroom coaching and hence serious candidates for
substituting it.

- Are suppliers powerful in this industry?

The major suppliers for this industry are stationery providers and the teaching
community. Stationery suppliers do not have a lot of muscle since there is an
abundance of such suppliers and if one overcharges, can be easily replaced by the
other. However the teaching community can be seen as a supplier as well and a
professor who is very famous and actually admired by students highly, can
command a big price in the market and hence has a high bargaining power.

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Porter’s Analysis of the industry has been shown below:

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5. Critical Success Factors (Must have’s / do’s for Coaching centre industry)

John F. Rockhart says “There are things that your organization must do right if you
expect to survive in the future. These critical areas require constant care and
attention on the part of management. Critical success factors for any business are the
limited number of areas in which results, if they are satisfactory, will ensure
successful competitive performance for the organization."

From the Porter’ five force analysis, we find that they are strong with the industry
being extremely competitive. We believe that for a coaching firm to be successful in
this industry, it is exceedingly necessary for it to differentiate itself with high quality
offerings but at the same time be extremely price competitive.

For a coaching centre, these key areas could be –

Best possible faculty for students – It is of utmost importance to have

teachers who are competent enough to guide students who are trying to
compete with close to 2.5-3 lakh students. These teachers should have the
necessary know how of how to crack the entrance exam and should have the
ability to get their point across. Measures could be educational qualification,
experience, student feedback ratings, and amount of contribution to various
course materials

Attract students who can deliver the results – It is imperative that a

coaching institute makes a conscious effort towards attracting students who
have a high probability of cracking the various exams. Obviously, they are a
very small percentage of students studying in these. But it is important to
select these students who will act as promoting entities of the coaching
institute in the future. Measures include the number of students who clear the
exams each year and number of students’ enrolled with high marks (say, 90%
in Boards) or previous attempt scores.

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 High quality content creation is the key – The course material that is
provided to the students’ plays a pivotal role in determining their preparation
level for the exam. The better the quality of the content the higher the chances
of the student being ready for the exam day to handle the questions being
asked. Measures include the number of students enrolling for content access,
and student feedback ratings.

Location of the Institute – An institute located far off, where not a lot
of people would be willing to go for coaching is of no strategic importance
since it would not be able to attract students. It is important that a centre is
opened near a place from where it can be sure to get maximum possible
enrolments. An example of this strategy these days can be seen in how
coaching centres open their branches very near to an engineering college from
where it expects a lot of customers. Measures include the number of students
in each new centre.

Price being charged to the customers – A very important feature is

price. As already discussed in the Porters’ five forces model, a student would
prefer to join a coaching institute that charges lower price for providing
similar service. Hence, the firm must manage its resources as efficiently as
possible. Measures include price comparisons with rivals.

Customization of offering – Coaching centres must try to come up

with customized offerings for different students. A student would thus be
able to select a module based on his comfort. For students who work in their
office in the morning and go to the institute in the evening a comfortable plan
is very important. An institute which can provide such an offering and fits the
student’s requirements benefits the most. Measures include number of
students enrolled with different background, say, work in office.

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6. The importance and scope of ICT in this Industry

Information technology is currently the basis on which most organizations work. No

matter what the industry, IT is being promoted and used at all levels. An
organization using IT for strategic business advantage performs exceptionally well
as compared to another organization which is using IT as just a hygiene factor. Role
of ICT in coaching centres could be phenomenal. Wise usage of IT applications could
give extraordinary leverage to IT savvy firms in the industry.

From the Critical Success Factors identified for a firms’ success in the industry, we
realize that ICT can play a major role in each of them: attracting the best faculty and
students, generating high quality content, deciding upon location, price cutting as
well as offering customized services.

# We have identified the various ICT applications that could be used by a firm in
Coaching centre industry:

 Best possible faculty for students

- Training system for conducting training for its franchisees and faculty across the country.

- Distance learning through Video conferencing to reach remote locations in the country
instead of having a fully fledged centre.

- Performance management system to decide on the various incentive mechanisms for its
employees. Feedback, taken from student feedback system, could be an important criterion.

 Attract students who can deliver the results

- Information system is a system used for storing, retrieving, transforming and disseminating
information in an organization. It can be used by coaching centres to communicate with their
students, be it change in class timings or inform them of their results.

- Intelligent data mining can be employed on the student performance to conduct an analysis
and identify their strengths and weaknesses based on which modules can be suggested to help
them improve on their performance.

- Virtual learning environment facilitates e-learning. It can be used by coaching centres to

provide information about the various courses including course outline, reading material, self
assessment quizzes, assignment submission and display results.

- Social networking website having profiles of students wherein they could form their own
groups and share and recommend any useful information.

- Student Boards accessible for all its students across the country wherein they can post their
queries and get help from other fellow students.

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  High quality content creation is the key
- Knowledge management is process of capturing and making use of a firms’ expertise
anywhere in the business. In Coaching Industry, it is an extremely essential system required
for capturing question bank, course material, current affairs, past student experiences, etc

- Intranet is a private computer network that to securely share any part of an organization's
information or operational systems within that organization. It can be used by employees for
interaction and collaboration on creation and improvement of courses.

- Media development software to develop lessons which are more fun and interactive for your
students.

- Presentation software required to display information and construct slide for conducting
classes.

- Collaborative software to help in content generation by bringing faculty members across the
country to share information. E.g. Wikis, email

 Location of the Institute

- Geographic information system integrated with student information system to take decisions
on where to open the next centre

 Price being charged to the customers

-Enterprise resource planning (ERP) is a cross-functional enterprise backbone that integrates

and automates processes within the organization. As the coaching industry is spread out all
across the country, ERP is necessary to facilitate various information flows and consolidate
all business operations helping in cost reduction.

- Workflow system to ensure faster and glitch free business processes. A coaching firm can
utilise it to register students conveniently and content creation by information transfer
between its different teams.

-Online Enrollment System is a web based system for students to browse classroom locations
and select courses and enrolls by paying their fees using a credit card.

-Accounting software to record the various financial transactions that occur across the firm.

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  Customization of offering

- Feedback system to get the feedback of the students on the various courses being taught to
them, the faculty and the course material offered helping them better orient themselves for
satisfying student needs.

- Scheduling software to allot batches for each student based on his requirements and to
schedule faculty time table accordingly.

- Mobile-IS integration to send important information to students on their mobile phones. E.g.
as soon as there is an unexpected change in the class schedule send an automated message to
the student

- Career counselling service to help students decide on a future career path. This would
involve asking him to fill a form based on his interests followed by an aptitude and
personality test.

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7. Current state of ICT in Career Launcher

Career Launcher is a technology-driven organization. They have an internal

technology team which endeavours to integrate technological innovations and
education. At Career Launcher, Technology focuses on two points: to help in
education delivery, and to run business more efficiently.

Career Launcher strongly believes that it is the technological edge that differentiates
it from any other coaching centre in India. It has helped them in scaling up their
business more conveniently. Also, it recently invested $1 million in 361 Degree
Minds, a Chennai-based research and technology-driven company to improve
technology, bring out new programmes, go-to-market strategy and research.

It has always been at the leading edge of implementing technology in education

delivery. Several groups at Career Launcher are working on building knowledge
repositories to help academic staff and students to have better access to educational
resources.

7.1. Productivity and Learning Tools in Education

Career Launcher's technology team has deployed in-house solutions built on the
latest technologies across all of its centres. Some of the key IT initiatives are

Student Information System (SIS): It is a unique messaging and performance

tracking system for students and allows faculty to interact with their students and
exchange information. It is used daily by over 10,000 students and 200 faculty
members. The performance tracking system keeps a record of every classroom or
online test taken by the student with a sophisticated analysis of the results informing
a student about his/her strengths and weaknesses, and provides comparative
benchmarks and inputs on test taking strategies. Also, links to the videos of the latest
classes and alerts on important topics and discussion forum are provided through
SIS.

The students mention the following about SI usage:

About the software: “very resourceful. Even if I miss a class, I can view the tutorial videos. It
works as a back-up. The test is online which is almost in sync with the CAT format.”

“Even people with very little experience of working on computers can understand it without
much hassle.”

“I like the alert system. Keeps me up-to-date and helps me brush-up all the basics.”

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Mr. Naveen Saraf, Branch Head and Faculty - CL, Park street Kolkata, mentioned the
following:

“Absolutely, in love with the software. Works for me very well. My students appreciate the
way, this software has been designed.”

“My tutorial videos are uploaded as soon as the classes are over. My students can take
references whenever, wherever they want.”

Figure: Displaying the welcome screen, note: the mailing system and latest
announcements

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Figure: eLib providing links to various video and e-materials

Workflow System: Career Launcher enables its content development team with an
Advanced workflow management system for managing the entire content
development effort involving over 100 authors, editors, language experts, proof
readers, and quality assurance team members. The workflow system also serves as
content repository and is capable of handling various document formats.

CLzone: Career Launcher has developed a portal for its employees that tells them
everything from their salary break-up, HR policies, their leave status and so on -- all
confidential and online.

Heard about CLzone from its employees:

“It’s simple, convenient and easy to use. We also have something called ‘anniversary’
updates. So we can wish friends in other offices.”

“I love the simple interface. Payroll system etc are not that complicated to use. I can check my
payment date at the click of a button.”

Digital Content Development Tools: CL content authors use a sophisticated

workflow management system and the latest authoring tools to build electronic
repositories of question banks and lessons.

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Prepzone: Popularly known as 'The Hive', Prepzone is the Career Launcher student
forum dedicated to MBA test preparation. It is an exclusive area for MBA aspirants
to get the latest news on B-school announcements, entrance test tips, resolving
academic queries or exchanging preparation strategies with other aspirants.

Online Enrolment System: A web based system for students to browse classroom
locations and select courses and enrol by paying their fees using a credit card.

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CL Management system – (Enterprise Resource Planning): An integrated solution
developed in-house that helps CL maintain information about students, courses,
pricing, payment collection, scheduling of classes, and customer inquiries. The front-
end applications have been developed in Java Swing with Oracle 8i as the database.
The ERP uses advanced database replication methods to organize nationwide
customer data.

Figure: ERP system - New Enrollment

Mr. Satya Narayanan, the chairman of Career launcher was quoted as saying the
following on a website:

“It is the strongest bond between the head office and the centres all over the country. New
admissions in Guwahati, the financial position in Dehradun, material requisition from Pune,
it's all a click away.”

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 7.2. Enabling Education Delivery via Satellite and Internet Technology

VSAT Technology: A proprietary technology that allows Career Launcher to

broadcast its classes from a single studio to multiple school locations
simultaneously. The students are able to see and hear their teacher make a prepared
electronic presentation and use a blackboard or whiteboard when required. The
teachers and students can interact over a voice channel that brings about an
experience very similar to being in an actual classroom.

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VOIP Technology: Career Launcher gives its students in remote the benefits of
participating in live classroom sessions from their homes or a cybercafé. The best
faculty on any topic can make available the recordings of their sessions, which can
be downloaded and heard at any time of the day. VOIP allows for two-way video
and voice, allowing hundreds of individual students to participate and learn
together from the very best faculty on the subject.

Mr. Satya Narayanan on VSAT (Quote taken from a website):

"On the academic front, we aim to assist the teacher teach better and work on how he can
reach more people. We have two distinct platforms for this: the public Internet and the
proprietary VSAT. If you look at the growth of the broadband market, it is no exaggeration to
say that in a few years from now, students will be able to study at home as efficiently as they
do in a classroom.”

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8. Conclusion

The advent of Information technology in coaching centres has been phenomenal.

Not many people back in the 90’s would have even expected that “tuitions” would
one day, end up becoming an organized industry. As competition and the need for
job security grew it became very clear that a student will have to work hard to the
maximum extent possible to even stand a minute chance to get into the hallowed
institutes like IIT’s and IIM’s.

Only about 0.7% of all students who take the combined admission test (CAT) make
it to the IIM’s. Mindboggling figures such as these force the parents and students to
leave no stone unturned in the preparation for such tests both in terms of fees and
hard work.

Career Launcher, the coaching centre studied by us in this comprehensive

analysis is arguably the leader in this industry currently. Career launcher
understood the potential of this industry very early and capitalized on it from the
beginning. Right from the beginning ICT played a significant role in the policies of
CL.

Some of the features that we realized through our analysis:

 Career launcher pays close attention to ICT tools and techniques & it is
technology driven.
 Develops in-house ICT applications for cost cutting. This is made possible
because of a strong IT team
 After CAT became online it had a major advantage over its rivals since it was
somewhat prepared for this eventuality already
 Stupendous spending on ICT infrastructure is expected to pay CL rich
dividends in years to come

In short, Career Launcher’s IT applications have played a major role in it becoming a

market leader in the industry by differentiating itself by delivering high quality
products at competitive prices.

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References:

www.timesofindia.indiatimes.com
www.businessworld.in
www.careerlauncher.com
www.time4education.com
www.pteducation.com
www.expressindia.com
www.hindu.com
www.news.mba4india.com
www.business-standard.com
www.rediff.com
www.livemint.com
www.rsatya.in/
www.slideshare.net
Interviews were conducted with
o Mrs. Sapna Ludhani, Faculty-VA, Career Launcher, Delhi
o Mr. Naveen Saraf, Branch Head and Faculty - CL, Park street Kolkata

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