1. CONFIDENTIAL 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. Creating a World Class Educational Institution

2. 1 Over the last 50 years of its history, IIT Bombay has done well on faculty an students, but lags in other areas 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 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 IIT Bombay vision 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 External linkages To be an integral part of Bombay city by linking with the local industry and society Strong Medium / weak

3. 2 Academic Research Curri- culum InfraStudentFaculty What is a world class educational institution? Source:Interviews; McKinsey analysis... and are supported by a strong set of inputs and enablers World-class schools excel at both academics and research... Unsustain- able in long run World- class Losers Research centers High Low Academic excellence Research excellence Output Key inputs Enablers Funding Governance structure External linkages

4. 3 IIT Bombay vision Key elementsPotential metrics External linkages: Strengthen linkages industry and alumni to generate funds and grow practical / commercial research for economic growth Number of sponsored projects / labs Number / percent of chaired faculty Other revenues / student Funding: Be largely self sufficient in funding leveraging alumni and industry. Create an endowment of Rs. 3000 crores by 2020 Endowment per student Govt. grants to total income Gift per donor Faculty: Improve faculty compensation significantly, and put in place an effective performance management system Student-faculty ratio Percent of faculty with highest degree in their field 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 Papers published per faculty Citations per faculty Research grant per faculty Students: Strengthen the intake and quality of PhD students, while retaining pre-eminence at the under- graduate level Average percentile score of students taken in Undergraduate – graduate students ratio IIT Bombay should aim to be a world class educational institution through measurable focus in six areas Academics: Offer attractive multi-disciplinary and flexible programs, also in alliance with other schools Percent students in multi-disciplinary program Number of partner institutes in academic / research exchange Focus of the discussion

5. 4 Vision 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 Infrastructure 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 Organization Academics centric FacultyStudents Distance collaboration StudentsFaculty Industry Resident collaboration Industry The role and focus of successful universities has evolved over time

6. 5 Ideas Intellectual capital Innovations and startups Patents Published papers Funding from State grants and contracts Industry partners, contracts, fees, and donations Licensing Venture capital Startup equity appreciation People Star faculty Bright students Collaborators in industry and other institutions Venture capital firms/investors and entrepreneurs That bring in Attracts Who generate and commercialize Research Economic dev. Community Funding for Buildings Equipment Operational infrastructure Endowed chairs Research fellowships Seed money External linkages have enabled universities like MIT and Stanford to become economic engines

7. 6 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 Univer- sity of Georgia Medical College of Georgia Emory Clark- Atlanta University GRA nonprofit, private enterprise Georgia State Georgia Tech ATDC Telecom- munica- tions (GCATT) Environ- mental Tech- nology (GETC) Biotechnology (GBC) Founded  1990 Research investment US$ million  242 (state)  65 (private match)  600 (sponsored research) Endowments  32 eminent scholar chairs The Georgia research alliance is a good example of research collaboration

8. 7 Commercial focus Fund raising Key benefits Funding and management advice to Oxford Access to intellectual property and equity in potentially attractive start-ups for Beeson Key benefits The largest donation in Britain’s philanthropic history Funded over 200 ‘Gates Cambridge Scholars’ each year £140m Cambridge University Rival to Oxford’s Rhodes scholarship The Bill and Melinda Gates Foundation £14b foundation Focuses on academic funding and health issues Beeson Gregory An investment bank specializing in European high– tech companies Joint Venture VC Fund Oxford University’s Chemistry Department £20m Isis Innovation (Technology transfer company) Oxford University There are other successful examples on commercialization and fund raising

9. 8 Linkages with industry Key elementsDescription IIT Bombay should aim to strengthen linkages with industry by pulling six levers Faculty incentivization growth Incentivize faculty to participate in startups and consulting work.Potentially also to take a sabbatical to get practical industry experience Funding from industry 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) Learning collaboration Promote CEP / EEP for industries located in / around Mumbai Offer credits to employees doing learning in industry (trainings / projects) linked to educational certification Commercial partnerships Create structures for commercial partnerships with established industries Strengthen ability to incubate new ventures / startups in focus areas through enough seed capital Sponsored research / labs 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 Framework for sharing IP Establish a clear framework, on the lines of Silicon valley, for technology sharing, academic recognition and sharing the benefits of commercialization

10. 9 Back Up