CONFIDENTIAL

1. CONFIDENTIAL Creating a World Class Educational Institution Discussion document 20 August 2011 This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

2. Research • To be a world-class center for research in focus areas • Support India’s growth by setting up one-world class school every 5 years • IIT Bombay vision Over the last 50 years of its history, IIT Bombay has done well on faculty an students, but lags in other areas • Strong • Medium / weak • Funding • To generate adequate funding to enable the school to meet its aspirations • Faculty • To be able to attract faculty by choice, and to be able to offer them a stimulating academic environment with adequate compensation • External linkages • To be an integral part of Bombay city by linking with the local industry and society • Students • To continue to be a center for attracting the best talent in the country across under-grad and post –grad levels • Academics • To offer customised and attractive academic programs for students • Build alliances with other schools to deliver compelling academic programs

3. What is a world class educational institution? • World-class schools excel at both academics and research... • ... and are supported by a strong set of inputs and enablers • Output • Academic • Research • Unsustain-able in long run • World-class • High • Academic excellence • Key inputs • Curri-culum • Student • Faculty • Infra • Research centers • Losers • Low • Enablers • Funding • Governance structure • External linkages • Research excellence Source: Interviews; McKinsey analysis

4. Endowment per student • Govt. grants to total income • Gift per donor • Funding: Be largely self sufficient in funding leveraging alumni and industry. Create an endowment of Rs. 3000 crores by 2020 • Student-faculty ratio • Percent of faculty with highest degree in their field • Faculty: Improve faculty compensation significantly, and put in place an effective performance management system • Average percentile score of students taken in • Undergraduate – graduate students ratio • Students: Strengthen the intake and quality of PhD students, while retaining pre-eminence at the under-graduate level • IIT Bombay vision • Papers published per faculty • Citations per faculty • Research grant per faculty • Research: Be a world-class center for research in 5 focus areas by 2010. Thereafter be a world-class center for research in 5 focus areas every 5 years • Percent students in multi-disciplinary program • Number of partner institutes in academic / research exchange • Number of sponsored projects / labs • Number / percent of chaired faculty • Other revenues / student • External linkages: Strengthen linkages industry and alumni to generate funds and grow practical / commercial research for economic growth • Academics: Offer attractive multi-disciplinary and flexible programs, also in alliance with other schools IIT Bombay should aim to be a world class educational institution through measurable focus in six areas • Focus of the discussion • Key elements • Potential metrics

5. Vision • Infrastructure • Organization The role and focus of successful universities has evolved over time • Resident collaboration • Academics centric • Distance collaboration • Industry • Industry • Faculty • Students • Faculty • Students • Balance the need to promote basic or discipline-specific research with the need for interdisciplinary, applied solutions for industry • Establish the right legal structure for flexibility in writing contracts and sharing intellectual property • Focus on facilitating collaboration (internally and externally) and research rather than on managing real estate • Establish an organization that has visibility over a range of programs and actively manages cross-fertilization of ideas • Manage access to scarce resources in a fair and unbiased manner

6. External linkages have enabled universities likeMIT and Stanford to become economic engines • Who generate and commercialize • People • Star faculty • Bright students • Collaborators in industry and other institutions • Venture capital firms/investors and entrepreneurs • Ideas • Intellectual capital • Innovations and startups • Patents • Published papers • Research Economic dev. • Community • Attracts • That bring in • Funding from • State grants and contracts • Industry partners, contracts, fees, and donations • Licensing • Venture capital • Startup equity appreciation • Funding for • Buildings • Equipment • Operational infrastructure • Endowed chairs • Research fellowships • Seed money

7. The Georgia research alliance is a good example of research collaboration • Georgia Tech ATDC • Example of a “super alliance” • Sound model for cross-university partnership and for leveraging region-wide research potential • Private nature of enterprise and considerable political/business backing focuses on economic development within high-tech sector • An ancillary program, the Technology Development Partnership (TDP), promotes applied, sponsored research for commercialization • Georgia State • Environ-mental Tech-nology (GETC) • GRA • nonprofit, private enterprise • Telecom-munica-tions (GCATT) • Univer- • sity of Georgia • Clark-Atlanta University • Biotechnology (GBC) • MedicalCollege of • Georgia • Emory Founded Ÿ 1990 Research investment Ÿ 242 (state) US$ million Ÿ 65 (private match) Ÿ 600 (sponsored research) Endowments Ÿ 32 eminent scholar chairs

8. Cambridge University • Rival to Oxford’s Rhodes scholarship • £20m • £140m There are other successful examples on commercialization and fund raising • Commercial focus Oxford University’s Chemistry Department Beeson Gregory An investment bank specializing in European high–tech companies Joint Venture VC Fund Oxford University Isis Innovation (Technology transfer company) • Key benefits • Funding and management advice to Oxford • Access to intellectual property and equity in potentially attractive start-ups for Beeson • Fund raising • The Bill and Melinda • Gates Foundation • £14b foundation • Focuses on academic funding and health issues • Key benefits • The largest donation in Britain’s philanthropic history • Funded over 200 ‘Gates Cambridge Scholars’ each year

9. Encourage funding from industry in the form of endowments / grants, chairs/ professorships (e.g. target 100 chairs at Rs 1 crore per chair by 2020) • Funding from industry • Promote CEP / EEP for industries located in / around Mumbai • Offer credits to employees doing learning in industry (trainings / projects) linked to educational certification • Learning collaboration • Promote industry sponsored research in areas of focus and convergence. Establish mechanisms for absorption of research scholars in partnering industries • Encourage / compete for setting up industry sponsored labs • Sponsored research / labs • Linkages with industry • Create structures for commercial partnerships with established industries • Strengthen ability to incubate new ventures / startups in focus areas through enough seed capital • Commercial partnerships • Establish a clear framework, on the lines of Silicon valley, for technology sharing, academic recognition and sharing the benefits of commercialization • Framework for sharing IP • Incentivize faculty to participate in startups and consulting work .Potentially also to take a sabbatical to get practical industry experience • Faculty incentivization growth IIT Bombay should aim to strengthen linkages with industry by pulling six levers • Key elements • Description

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