Education- Crisis Is An Opportunity

Education- Crisis Is An Opportunity Ravi Shakamuri Star Tech Group

Introduction • Star Tech Team: • Venu Yankarla: Senior I.T. Manager • Vasu Polu: I.T. Manager • Star Tech Team Business Background: • Home Based Services • Medical Transcription Services • Star Health Card Services • Acclaim 2.0 Education • Star Care India • Presentation Outline: • Handout Structure / Presentation / Discussion / Survey

A brief history of recent events • Budget Lockdown in D.C. • Budget slashing in every State. • Tsunami / Earthquake in Japan • Middle Eastern Crisis • World-wide Financial Crisis • Mortgage Crisis in USA • September 11, 2001 Attack • Tech Bubble of 2000

Middle Eastern Crisis • Egypt • Yemen • Bahrain • Syria • Kuwait • Saudi Arabia • Iran • Cause: Unemployment of Educated Youth • No Middle Class Growth

Reallocation of World GDP: Hungry for jobs & middle class growth

Global Financial Crisis • $50 Trillion Asset Value Lost • Headlines: • A Nation of dropouts • State of education significant contribution • Must generate long-term economic growth to pay off large sums of debt • An unskilled work force makes that hard. • Country: Portugal on the brink of breakdown • Countries with systemic risk: PIIGS • Portugal, Ireland, Iceland, Greece, Spain

Debt Matters • The rich world cannot afford another crisis • Managing natural/financial disasters unmanageable. • Average Debt of Central Govt: 74% of GDP • Triple the level of 1974

Debt Cost • Portugal Woes: • Pile of debt: 90% of GDP • Uneducated Population • No manufacturing base • Slow growth over a decade • Education System: • Calcified Bureaucracy • Immigrants Issue • Evaluation Teachers • Resulted in 2008 strikes. • Deep cuts in school budgets

Why Growth Rate Matters • China 2nd largest economy in 2010. • China projected to be the largest economy by 2020 / 2040. • China: • Growing Middle Class • Educated Workforce • Low Cost Labor • A reflection of the post WWII track of USA.

Why demographics matter • India: 10 working people support 5 children and one adult. • In 15 years: 10 w.p. support 4 children and 1 adult. • Reverse Trend in U.S.A. • India: • Growth rate chasing china • Demographic Benefit • Growth Benefit • Middle Class Growth • Internal Market Growth • Raising standards

The silent killer of USAeconomy • Vanishing middle class • 1970: • 75% from Wages • 14% Interest /Dividend • 8% Govt. Benefits • 2010: • 64% from Wages • 18% Govt. Benefits • Consumption: • 85% from labor in 1970 • 61% from labor in 2010

Nation of Takers / Not Makers

A spending binge! • $ 1Trillion of $ 2.2 Trillion Govt. Spending for pay and benefits. • Every state except Indiana & Wisconsin have more on govt. payroll than manufacturing. • California :2.4 M Govt. Employees • Twice as many as in manufacturing • School Spending being watched: 1970 to 2005: • School spending per pupil (adj. inflation) doubled. • Standardized Achievement Test Scores flat. • Employment in schools doubled.

What Next? • Immediate spending cuts: 2 to 5 year period. • Every country is pulling jobs locally • Thanks to technology! • One cannot cut yourself to greatness • One cannot bail yourself out with a pail • Growth is the only option / requires ed. workforce • Innovate your way out: Technology system support • Where is the blind spot? • For our children? • For our future?

Need of the Hour: Spending Cuts • Strong Community Leadership • Manage the crisis to stabilize today. • Leverage the crisis to secure tomorrow. • Around the curve / extended vision guidance. • Prepare for the blind spots: short term / long term. • Every crisis is an opportunity • Shakes up the organization out of the zone of comfort. • Resistance to change is minimized. • Turf wars become secondary. • Organization solidarity to face a common threat! • Prepare for the unexpected!

Need of the hour: Modification of the social compact • Government driven employment model: Out • Escalation of benefits from Govt.: Out • Lifetime tenure at work: Out • Lifetime career: Out • Structured work environment: Out • Structured productivity expectations: Out • Result: • Project management career model • Career productivity demonstration: frequently • Flexible work assignment: 24/7/365 • Retirement / 401K benefit model out. • Continuous educational qualifications matter.

Need of the hour: Take Charge! NOT AT FEDERAL LEVEL ONLY POSSIBLE BY TAKING CHARGE IN OUR OWN COMMUNITY!

West Texas Is Doing Great- For Now!

Power of the Black Gold! • Transformed Discoverers with great wealth! • 1st & 2nd Generations Benefited. • A successful upper & middle class created. • Transformed Texas into a power house. • Industry Transformation: • Entry of the multinationals. • Consolidation of regional players. • Consolidation of management positions. • Revival of the fields at high price points. • Service related job swings a new norm. • Industry creates a passing lifestyle. • Not staying wealth.

Extract the 21st Century Black Gold • Mission Statement: • We, the leadership of Permian Basin will drill through the assumptions and bureaucracies of our education model to tap into the intrinsic energies of our students & their parents in Black Gold II. • We will come together as one in this community to bring most innovative technologies to unleash the passion of our community, just as we did earlier. • Vision Statement: • We, the leadership will create an environment of learning that easy to use, flexible to meet individual needs and affordable by all – seamless education from K to College. Education for lifetime.

B.G. II Operational Strategy • Every work opportunity in Permian Basin will be filled by qualified, community graduates. • Defines the immediate scope of service focus. • Aligns with current market demands. • Supports service level jobs, majority in the field. • Every job that can be done in the Permian Basin, will find a qualified graduates. • Prepares to bring skilled jobs of digital economy. • Retains jobs in the Permian Basin. • Creates the base on which a middle class can grow again.

BG II: Implementation Strategy • Partner without borders across institutions. • Integrate community leadership. • May lead to more questions than answers. • A dialogue of relevant questions is a great start. • Reposition Institutional Approach. • Experiment with Consumer Centric Model. • Create a ‘value system’ on a technology platform. • Provide guidance / flexibility at the individual level. • Institution as a resource. • Respect Institution Independence. • Reinvent the passion of BGI that brings out the best in our leadership, institution & community.

Who Are these Guys? • We are not afraid of being silly. • We are not afraid of making a mistake. • We are committed to succeed … or else • SEPPUKU is always on option • … JUST KIDDING !!!! • We want to make education & healthcare easy to use. • We want to facilitate the creation of a health record & education record for every individual. • Surprisingly .. We are far ahead of everyone else in the Country … and may be in the world.

STAR TECH GROUP SOLUTIONS TECHNOLOGY WITH PURPOSE ACCLAIM Personal Finance Record Personal Health Record Personal Education Record Personal Career Record

Healthcare: Where are we now? CURRENT MODEL HOME MEDICAL MODEL ACUTE CARE GLOBAL FEE MODEL POST ACUTE CARE REFORM PREVENTION OF RE-ADMISSIONS PRIMARY CARE N.P. & P.A. PRIMARY CARE PHYSICIANS / N.P. & P.A. MANAGE ENTIRE FAMILY PRIMARY CARE N.P. & P.A. PRIMARY CARE N.P. & P.A. PRIMARY CARE N.P. & P.A. PRIMARY CARE PHYSICIANS PRIMARY CARE PHYSICIANS PRIMARY CARE PHYSICIANS PRIMARY CARE PHYSICIANS SPECIALTY CARE PHYSICIANS SPECIALTY CARE PHYSICIANS GLOBAL FEE: SPECIALTY PHYSICIANS & HOSPITAL BASED SERVICES SPECIALTY CARE PHYSICIANS SPECIALTY CARE PHYSICIANS OUT PATIENT SERVICES OUT PATIENT SERVICES OUT PATIENT SERVICES OUT PATIENT SERVICES INPATIENT SERVICES INPATIENT SERVICES INPATIENT SERVICES STEP DOWN UNITS SKILLED NURSING FACILITIES HOME HEALTH SERVICES INPATIENT SERVICES HOME HEALTH SERVICES STEP DOWN UNITS / LTC STEP DOWN UNITS / LTC STEP DOWN UNITS / LTC SKILLED NURSING FACILITIES SKILLED NURSING FACILITIES SKILLED NURSING FACILITIES STEP DOWN UNITS / LTC HOME HEALTH SERVICES HOME HEALTH SERVICES HOME HEALTH SERVICES SKILLED NURSING FACILITIES

Star Health Card – Service Modules: • Make it easy for consumers to access healthcare. • Check-in made easy from provider perspective. • Discharge made easy from patient, physician and compliance perspective. • Protect patient’s preference for service providers. • Platform for providers to manage their consumer base.

Connecting Medical Providers – LocallyCoordinating Medical Need Management: Rural to Urban Population & Provider Mix. STAR HEALTH CARD: CONNECTING PATIENTS, FAMILY MEMBERS & RELATED MEDICAL PROVIDERS

Synchronization of Star Health Card with Microsoft HealthVault

Regional Health Exchange Capability STAR PHR ROLE: Connecting Devices, Labs, Health Plans, Pharmacies, Physicians and Hospitals into a regional health exchange model. Microsoft Healthvault Access Healthvault Devices, Labs, Health Plans & Pharmacies Connected to Star PHR Star PHR to push & pull information to deliver ‘Meaningful Use” with Provider Centric ‘PHR’ Service Model Star PHR integrated to Regional Health System with Consumer Centric ‘Call Center’ Service Model

Integration into Hospital I.T. architecture EMR – M.D. Nursing Homes Consumers Horizon Enterprise Network (HEN) Registration, Schedules, Insurance, Pt check-in status Horizon Ambulatory Care McKesson In-patient Clinical Applications HorizonPracticePlus ADT McKessonHIS Systems Shared Technology Billing Billing Shared Data Shared Content (ex: FDB) Enterprise MPI

Foundation for a meaningful regional health exchange! SERVICE PROVIDERS SERVICE CONSUMERS M.C.H. REGIONAL OUTREACH • SERVICE FOCUS • Comprehensive Regional Strategy • Exemplary Staffing • Seamless Connectivity • PRIMARY CARE: • Engage Locally • Support Regionally • Home Medical Model EMR connect HIM connect • SPECIALISTS: • Engage Locally • Support Regionally • Global Fee Model • QUALITY FOCUS • Sustainable Quality Measures • Regional Outcomes • Regional Management EMR connect HIM connect PHR connect PHR connect • INFORMATION TECHNOLOGY • Connect Communities • Connect Providers • Connect Services / Quality • SMALLER HOSPITALS: • - Engage Locally • Support Regionally • Regional Health Partner HIM connect HIM connect

Focus on your core customers - leveraging tech! • INITIATIVE # 1 – Consumer Centric • Establishing Regional Consumer Support (Call) Center for consumer centric services. • Regional Medical Service Resource Center: Directing Consumers regionally. • New Patient / Pre-Op Registration Service: Ease of Access to MCH • Post-discharge Follow-up: Patient Satisfaction / Prevention of re-admissions. • INITIATIVE # 2 – Physician Centric • Integration of Specialists Services into the regional care continum. • Effective physician practice management team: Operations & Billing Focused. • Establishing a effective compesation model that promotes productivity. • Education & partnership with all regional physicians in well defined roles. • INITIATIVE # 3 - Technology Centric • Establishing of Regional Health Information Exchange for seamless service mgmt. • MCH - HIM connectivity between regional hospitals. • Any - EMR connectivity between physician practices. • Star - PHR connectivity with all regional community members.

STAR TECH GROUP SOLUTIONS TECHNOLOGY WITH PURPOSE Student HiQ Index KPI Integration of Employers Student Athlete, Arts & Extra Curricular Activities Portal ____ Volunteer Portal Integration Of Colleges Teacher HiQ Index KPI Family HiQ Index KPI

STAR TECH GROUP SOLUTIONS TECHNOLOGY WITH PURPOSE “ACCLAIM”: PROPRIETORY TECHNOLOGY PLATFORM Community Resources Employer Platform College Platform Strategic Advisory Board

STAR TECH GROUP SOLUTIONS TECHNOLOGY WITH PURPOSE ACCLAIM 2.2 : Strategic business unit: Campus focus General Administration Instructional ACCLAIM 2.2: A Second Generation Solution School Leadership Guidance, Evaluation & Counseling Services Student Transportation

Acclaim 2.0 Education • What is Acclaim 2.0 Ed? Online Demo • A game changing, technology platform. • Repositions organization to a true consumer centric model. • Engages the families in a meaningful manner. • Identifies & promotes good practices across campus. • Delivers on a flexible, individual focused K-12 system • A revenue generating platform for ECISD • Partnership Matters: • Technology Partner – Sogeti USA / CapGemini • Certified By Microsoft as Best Global Partner for Share point Technology in 2010.

What do we need? • Acclaim has been recognized by Hector Mendez as one of the four priorities for ECISD. • State budget crisis has eliminated funding option for ECISD. • Expenses to Date: • ECISD: $30,000 – Funding for Discovery Phase • Star Tech: $ 70,000 – Cost Absorbed to date. • Expense for Implementation: • ECISD: $ 400,000 with no follow-up cost. • Star Tech: $ 370,000 – Cost To Be Absorbed. • Implementation Time Line: • Six months development / 2 Year Implementation.

What is the benefit? • One time cost for perpetual use within ECISD. • No recurring maintenance or upgrade cost. • Skin in the game: • For $400K investment, a 15% net royalty fee for a period of five years from date of implementation. • Revenue Generating Model: • In a flexible education model, system identifies individual student needs & expectations. • Directs to online resources in a payment model. • ECISD receives a transaction fee for every unit. • Royalty + Transaction Model = Best ROI

Where is Star Tech Group Heading? • Star Tech Acclaim to be spun out as an independent company. • Round One: $1M initial investment • 10% equity with One Board Seat to facilitate: • True Partnership with Odessa Chamber of Commerce. • ECISD as our initial customer. • OC / UTPB mentor partners. • Open to Institutions and/or Individuals. • Round Two: $10M: V.C. Investment. • 20% equity with One Board Seat to facilitate: • Facilitate State/Nationwide Implementation. • Please note that all business investments, conditions and requirements have to be finalized and approved with appropriate legal documentation, authentication and legal oversight.

Survey / Q&A • Survey: Paper / Telephonic Option. • Q&A: • The land is yours and we are promising to drill for Black Gold II. • Will you let us? • What is your gut instinct? • What are the blind spots in this approach to education for 21st century model? • Open to the floor. • Thank you for this outstanding opportunity.

We are available 24/7/365 • Web Site: www.startechgroup.com • Ravi Shakamuri: CEO • Cell: (432) 349-5001 • Office: (432) 552-1950 • Email: rshakamuri@startechgroup.com • Venu Yankarla: Senior I.T. Manager • Cell: (432) 978-1519 • Office: (432) 552-1945 • Email: vyankarla@startechgroup.org • Venu Vasu: I.T. Manager • Cell: (432) 661-5432 • Office: (432) 552-1930 • Email: vpolu@startechgroup.com

Education- Crisis Is An Opportunity