Reputation@ISB = Innovation x Conviction

Foundation stone for ISB was laid in 1999. Ten years down the line, ISB ranks among the world’s top 15 business schools (Financial Times 2009). ISB emerged as an inspiration for Indian higher education, especially in the private sector.

Much is written about the tremendous success ISB has achieved but what is also important to understand is that ten years back there were many more people who didn’t believed in the ISB model than who believe in it today. Many more articles were written about why ISB would fail rather than why it would succeed. Consider this article published in the Hindu “Indian School of Business -- Counting unhatched chickens”

“In sum, the mindset of the founders reeks of the ‘what-is-good-for-the-US-is-good-for-the-world’ syndrome, because it equates Western with the US. Not a single academic institution from the UK, Europe or Asia has been regarded the equal of Kellogg and Wharton. The biggest lacuna in the governing board is the absence of the Tatas, the Birlas, the Oberois, the National Dairy Development Board, the T. V. Sundaram Group of companies, Maruti Udyog -- to cite but a few examples -- which can compare with the best in the world in experience and management skills, though not in puffery.”

Doing best practices analysis is easy, as hindsight is always 20:20. Today, it is much easier to find many factors which enabled ISB success. Among several factors, I believe the combination of innovation and conviction had been the most critical success factor for the ISB.

Rewind ten years and let us assess following parameters on its innovation and conviction to deliver:

1. Tuition—In the early 2000, Indian MBA market was still conditioned to tuition fee in the range of Rs.30,000 and ISB launched its program in the range of Rs.1,000,000. Thus, in a price-concious market, ISB was positioning for high quality at a price.
2. Location—A decade back, Hyderabad was gaining attention as the IT hub, but it still didn't had the cache of Delhi or Mumbai. Convincing faculty members, funders and corporates would not have been easy.
3. MBA Program—Indian MBA programs were typically of two-years duration, launhing a one-year MBA program was a novel concept.
4. Work experience—In India, most of the students of MBA programs joined it straight out of their undergradaute colleges. Asking for work-experience as a preference for admissions process required ISB to reach to a different target segment--working professionals.
5. GMAT—CAT was the norm as the admissions test in India and asking applicants to take GMAT exam, which was also much expensive was disruptive. However today, according to GMAC, ISB (not Harvard or Wharton) receives largest number of reports from the Indian GMAT test takers.
6. Faculty—Flying global faculty under a visiting faculty model from international b-schools was definitley a huge logistical and financial undertaking.
7. Fundraising—Raising standards of professional higher education management and professionally and ethically raising money when no one understands “development” in higher education context?
8. Partners Schools—Convincing global B-schools like Kellogg, Wharton & London Business School to lend their names to an institution which exists only on paper?
9. Infrastructure-ISB campus was built to provide world class facilites and required significant upfront cost (more than Rs.20m).
10. Executive Education--Finally, a high quality executive education program with global faculty which was again positioned with a premium pricing.


It may be easier to make one incremental innovation, however, radical innovation in a price concious, regulation driven education market is truly remarkable. ISB case proves that innovation requires relentless conviction to achieve successful execution.

Now, what do you think about possiblity of failure or success of some of the following initiatives:


Vedanta University

Georgia Tech, India

South Asian University


Rahul Choudaha, Phd