INTRODUCTION TO MULTIPLE INDUSTRIES / SECTORS

EDUCATION INDUSTRY
The education industry can be described as the collection of organizations and businesses that
provide products and services aimed at enhancing the quality of education in society. The
education industry consists of schools, colleges, universities, and various private institutions.
The education industry provides its students with the knowledge and skills to adapt to a
continually changing working world. The industry consists of an expanding array of
organizations that strive to provide lifelong learning to its customers. The education sector
can be broadly classified as primary education, secondary education, higher education, and
vocational education.

The education industry is expanding rapidly and its many businesses are eager for new talent,
including experienced professionals and enthusiastic individuals just entering the workforce.
The education industry consists of schools, colleges, universities, and various private
institutions. The education industry is booming across the world. The industry generates large
scale revenues and employment. The revenues from higher education alone in the US are
worth over $400 billion. There is a huge growth potential for this industry is fast-growing
economies like India and China. The literacy rate in these countries is still below 60% .

The Education Division provides education services from preschool through to postgraduate
courses and other education providers like music and driving schools but excludes childcare
operators and student accommodation services. Consumers are the key users of educational
services and choose between private and public providers. International students provide an
export market for education services.

Education Industry Products:

Government school education

Private school education

Preschool education

University and other higher education

Language and other education

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The Global Education Industry:

In terms of global size, the education industry is estimated to be valued in the trillions of
dollars. The education industry plays a vital role in the global economy. Over 800 million
adults in the developing world are illiterate and the majority live in the poorest countries.
Education is the key to alleviating poverty in these nations – the more people who have
access to education, the greater their chances are of leaving poverty behind. Knowledge, and
the ability to educate citizens, is an important factor in a nation's worth. Countries with
advanced education systems do better on the global market.

HEALTHCARE INDUSTRY

Health care (or healthcare) is the diagnosis, treatment, and prevention of disease, illness,
injury, and other physical and mental impairments in humans. Health care is delivered by
practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other
care providers. It refers to the work done in providing primary care, secondary care, and
tertiary care, as well as in public health.

The health care industry, or medical industry, is a sector that provides goods and services to
treat patients with curative, preventive, rehabilitative, or palliative care. The healthcare
industry is composed of establishments devoted to prevention, diagnosis, treatment, and
rehabilitation of medical conditions. Such treatment may be through providing products or
services and may be provided privately or publicly.

The modern health care sector is divided into many sub-sectors and depends on
interdisciplinary teams of trained professionals and paraprofessionals to meet the health
needs of individuals and populations. The health care industry includes establishments
ranging from small-town private practices of physicians who employ only one medical
assistant to busy inner-city hospitals that provide thousands of diverse jobs. The Healthcare
industry is littered with risks and challenges as it is an industry that requires constant
innovation under increased regulations.

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Importance of Healthcare Industry:

The health care industry is tremendously important to people around the world. This industry
comprises of different players including hospitals, doctors, nursing homes, diagnostic
laboratories, pharmacies, medical device manufacturers, and other components of the health
care system. This article provides an overview of the healthcare industry. Aging populations
and increasingly prevalent chronic diseases are the fundamental drivers creating demand for
the expansion of lifestyle medical procedures and the healthcare industry. There will be a
huge demand for medical technology products for years to come.

Impact of Healthcare Industry on Economy:

The health care industry is tremendously important to people around the world as well as to
the national economies. It is one of the fastest-growing industries in the world. Consuming
over 10 percent of gross domestic product (GDP) of most developed nations, a correlation
exists between income levels and expenditure on health care in various countries. For
example, some of the large developing economies, such as Brazil, India, China, and Russia,
spend less on health care than more industrialized economies, such as the United States or
France.

Classification of Healthcare Industry:

For purposes of finance and management, the health care industry is typically divided into
several areas. As a basic framework for defining the sector, the United Nations International
Standard Industrial Classification (ISIC) categorizes the health care industry as generally
consisting of:

 Hospital Activities
 Medical and Dental Practice Activities
 Other human health activities

This third class involves activities of, or under the supervision of, nurses, midwives,
physiotherapists, scientific or diagnostic laboratories, pathology clinics, residential health
facilities, or other allied health professions

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INFORMATION TECHNOLOGY INDUSTRY

The information technology (IT) sector includes companies that produce software, hardware
or semiconductor equipment, and companies that provide internet or related services.

The three major industry groups within the IT sector are software and services, technology
hardware and equipment, and semiconductors and semiconductor equipment. These three
industry groups are further divided into industries and sub-industries. Companies are aligned
to a specific sub-industry that best describes their core or most profitable business.

 Software and services

 Technology hardware and equipment
 Semiconductors and semiconductor equipment

Software and services

The software and services industry group is made up of companies that provide internet
services, as well as companies that provide software and IT services. Internet services include
companies that provide online databases or interactive services, such as search engines or
social networks. IT services includes companies that provide IT consulting or data processing
services to other companies. Finally, software consists of any sort of software for business or
consumer use, ranging from enterprise software and systems software to video games.

Table 1.1 IT Industry Software and services

Industry Sub-industry Description

Internet software Internet software and services Companies that develop and market
and services
internet software or provide internet
services, including online databases
or interactive services. This also
includes companies whose revenue
mainly comes from online
advertising.
IT services IT consulting and other Companies that provide IT services
services or systems integration services,
including IT consulting and
information management.

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 Data processing and
outsourced services
Application software
Companies that provide data
processing or outsourcing services,
including back-office automation
services.
Companies that develop and
produce software for business or
consumer use, including enterprise
applications and technical software.
This excludes home entertainment
and educational software.

Systems software Companies that develop and

Software produce database management
software and systems.

Home entertainment software Companies that produce home

entertainment software, such as
video games, and educational
software for consumer use.

Examples of companies that provide software and services include Google, eBay, Facebook,
Accenture, PayPal, Adobe, Microsoft and Electronic Arts (EA).

Technology hardware and equipment

Technology hardware and equipment is broken down into three industries: communications
equipment; technology hardware, storage and peripherals; and electronic equipment,
instruments and components.

Communications equipment includes routers, telephones and switchboards. Technology

hardware, storage and peripherals includes computers, printers and cell phones. Electronic
equipment, instruments and components includes companies that make equipment like
barcode scanners, transformers and security systems, as well as companies that are
distributors or Original Equipment Manufacturers (OEM).

An OEM is a company that makes parts or components that are used in another company’s
end product. For example, many Dell computers use Intel processors and have Windows pre-
installed. Therefore, Intel and Microsoft could be considered OEMs for Dell.

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Industry Sub-industry Description
Communications Communications Companies that produce communication
equipment
equipment equipment, including local area networks
(LAN), routers, telephones and
switchboards. This excludes companies
that make cell phones.

Technology hardware, Technology Companies that produce cell phones, PCs,

storage and peripherals
hardware, storage servers, electronic computer products and
and peripherals peripherals. This also includes
motherboards, audio and video cards,
monitors, keyboards and printers.

Electronic equipment Companies that produce electronic

and instruments equipment, including scanner/barcode
products, lasers, point-of-sale
machines/cash registers and security
systems.

Electronic Companies that produce electronic

Electronic equipment,
instruments and components components, including transformers,
components electronic capacitors and resistors,
electronic coils and connection devices.

Electronic Companies that produce electronic

manufacturing equipment as an Original Equipment
services Manufacturer (OEM). An OEM is a
company that makes a part or component
that is used in another company's end
product.

Technology Companies that distribute hardware and

distributors technology equipment to other companies,
but do not produce this equipment or sell
it to consumers. This includes companies

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 that distribute communications
equipment, computers and
semiconductors.
Table 1.2 IT Industry hardware

Examples of companies that produce technology hardware and equipment include Apple, HP,
Dell, Motorola, Cisco Systems, SanDisk and Western Digital.

Semiconductors and semiconductor equipment

Semiconductors are substances that can conduct electricity under some conditions, but not
others, making them ideal for controlling electrical currents. Silicon is a material that is
frequently used as a semiconductor. This industry group includes both companies that make
semiconductors and companies that make peripheral equipment for semiconductors.

Table 1.3 IT Industry semiconductor

Industry Sub-industry Description

Semiconductor Companies that produce semiconductor
equipment equipment, including manufacturing raw
Semiconductors and materials and creating equipment used in the
semiconductor equipment
solar power industry.

Semiconductors Companies that create semiconductors,

including companies that make solar
modules and cells.

Examples of companies that make semiconductors and related equipment include Intel,
Microchip Technology, Nvidia, Qualcomm and Texas Instruments.

BANKING, FINANCIAL SERVICE AND INSURANCE (BFSI) SECTOR

The BFSI Sector Skill Council of India is set up to bring leading organizations of the BFSI
industry together to create strategies and operational plans that will create standardized skill

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requirements for the various job roles in the industry. The skill council will also accredit well
equipped service providers who will partner to disseminate the training. The skill council is
seen by its stakeholders and partners as a nation-building activity with far reaching
implications for social development and empowerment through financial inclusion. Great
care is being taken to appropriately address the needs of the various industry verticals as well
as the geographical regions of the country.

BFSI stands for the Banking, Financial Services, and Insurance sector. Fundamentally, it
represents a major portion of the multi-billion dollar Indian economy comprising all Banking,
Insurance, and Non-Banking Financial Institutions. The latter is known as the NBFCs. Also,
the BFSI industry largely refers to financial service firms such as Broking, and Asset
Management.

India, as a business destination, fosters all the positives for the BFSI sector to flourish at an
appreciable pace. Inter-dependent factors of government policy, active public/private
involvement, robust regulatory measures, and technological evolution have spurred the BFSI
sector to register strong numbers in recent years.

Banking is one of the pillar components of the BFSI industry. It would not be wrong to call it
an industry in and of itself, comprising of the following structure:

1. Central Bank
2. Scheduled Commercial Banks
They are further classified into 3 categories:
 Public Sector Banks (PSB)
 Private Sector Banks
 Foreign Banks

3. Regional Rural Banks (RRB)

4. Cooperative Banks
5. Specialized Bank
6. Development Banks
7. Small Finance Bank (SFB)
8. Payments Bank
9. Non-Banking Financial Institutions (NBFCs)

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Rising Trends in the Banking Industry
As pointed in the last section, technology has played an influential role in furthering the
cause and effect of banking on the Indian masses. In addition to that, the industry owes its
current shape and size to developing trends like growing customer centricity, from the
banks towards customers. This has allowed wider competition and more options for people
to choose from. Alternative Channels such as Point of Sale (PoS) terminals have digitally
transformed the industry to make services mobile-friendly. As per a stat, in 2020, such
channels will account for an estimated 87% of the transaction volume. Government
Regulations are supporting the innovation in the industry the effect of which is visible in
the following trends:

Digitization & Digitalization

The advent of services like internet-enabled banking, Real Time Gross Settlement, National
Electronic Funds Transfer, and Immediate Payment Service (IMPS) have driven the cost of
operations down. They are aiding front-lines to make fewer human errors than before and
adding to the profit margins of the banks.

Online Mobile Banking

Mobile banking apps have taken banking to a whole new level and reduced the dependence
on retail banking outlets. At the moment, an individual with a smartphone and an internet
connection can easily monitor account balance, perform fund transfer, and make payments
without visiting the branch. In the not so distant future, we can easily see the Internet of
Things (IoT) and voice-enabled functions making banking seamless. Real-life use cases of
the same have already made it to our homes with television, cars, and other appliances
becoming voice-friendly.

Unified Payment Interface (UPI)

Staying put with technology, a Unified Payment Interface app is a payment system that
allows immediate inter-bank fund transfer with a few clicks on your smartphone. It was
engineered by the National Payments Corporation of India with the ruling oversight of the
Reserve Bank of India. As far as inter-bank payment systems go, it doesn’t get any better
than this. Introduced in the year 2016, the service is available 24/7, 365 days. As of writing,
more than 50 banks support fund transfer through UPI.

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Block Chain
This immutable technology has served ample proof to show how far it can go in securing
records and preserving the history of data. The tech has crossed over from blog-hype on to
ground realities and wherein the NITI Aayog is tasked with creating IndianChain to speed
up transactions and reducing the risk of fraud.

Digital-Only Banks
In other words Payment banks. This is a new category of banking introduced by the
Reserve Bank of India. Payment banks have the legal capacity to offer the majority of
facilities that conventional banks do, except for issuing loans and credit cards. Each retail
customer can deposit up to Rs. 100, 000 in the payments bank. Eleven entities have been
accredited the license to operate as a payments bank by the RBI. Of these 11, 6 are active at
the time of writing.

In FY 19, the Indian economy grew at 6.8%. Figures suggest that the economy could grow
in 2019 - 20 at a pace of 5% and approximately 5.8% in 2021. With the rising disposable
income of the masses, the banking sector as a whole would continue to expand at a double-
digit CAGR from 2019 – 2024.

E-Commerce Sector

The term electronic commerce or e-commerce refers to any sort of business transaction that
involves the transfer of information through the internet. By definition it covers a variety of
business activities which use internet as a platform for either information exchange or
monetary transaction or both at times.

Over the last decade the advent of e-commerce has actually transformed the manner in which
people used internet. People now are not only just using internet for gathering information,
leisure or socializing online but also at the same time they are seeking measures to conduct
business. Even popular social networking sites like Facebook(dot)com are allowing people to
promote and sell products and services online and the introduction of computer and mobile

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based e-commerce application software like Shopify provides evidence of how e-commerce
have boomed over the past 5 years.

E-Commerce – Objectives: Development of Business-Relationship, Better-Customer

Service and Getting More Customers

1. Development of Business-Relationship:

The business development can be done through the e-commerce being the primary and the
basic object. As their direct contact in between the company and the consumer, their business
relationship will be enhanced. Hence the area of the market can be increased.

2. Better-Customer Service:

As it is done round the clock, the customer will always have online help regarding the
products. As all the information is furnished to the customer, it becomes easy to him to
choose the best product among all other alternatives. As even the service can also be done
through the net immediately, the customer service will be ballooned.

3. Getting more Customers:

In these days it becomes the mandate of the companies to double its customers, and this can
be done by rendering the value add service and maintaining the quality. Hence, it is also one
of the primary objectives of the companies which supply impetus for the robust growth in
sales and overall profit.

E-Commerce – Business Applications: Sale, Purchase of Goods, Real Estate Market,

Online Banking, Delivery of Goods, Import and Export, E-Tailing and a Few Others

1. Sale, Purchase of Goods:

By using E-Commerce, consumers can buy the various products and services from the
different manufacturers. Industries can purchase raw materials, components etc. using E-
Commerce. Sellers can sell their products by using E-commerce.

2. Real Estate Market:

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Online real estate services are provided by websites that show listing of houses, shops and
flats put up for sale and rent. Online real estate sites play supporting role for property dealers.

Now builders can use virtual reality technology on their website to demonstrate three
dimensional floor plans to buyers. This helps real estate companies to attract buyers. So
transactions normally can be initiated online but materialize offline in a face to face contact
of parties. Many websites are providing online real estate services.

3. Online Banking:

Online Banking is also known as electronic banking, Net banking, virtual banking and
internet banking online banking is defined as automated delivery of new and traditional
banking products and services through electronic and interactive communication channels.
Customers can access online banking services by using electronic devices like personal
computer, laptop, palmtop, ATM, kiosks etc.

4. Delivery of Goods:

E-Commerce allows the delivery of products. For example, the computer software is directly
downloaded by the software manufacturer on computer of the customer.

5. Import and Export:

Electronic payments are playing a great role in import and export business. The internet has
simplified the import and export business. By using E-commerce importers can make
enquiries about the products, their manufacturers, price, quality, other terms and conditions
etc.

Exporters can also make enquiries about suitable customers. Payments can be made by
electronic modes including digital means like internet payment or internet money transfer.

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6. Supply Chain Management:

A supply chain is a set of relationships between a number of companies who have a

symbiotic relationship with each other in that one company supplies commodities or services
to other companies which, in turn, supply commodities or services to other companies, and so
on.

An important point about an application such as this one is that information should be kept
confidential as it flows across the internet.

7. E-Tailing:

E-tailing refers to retailing over the internet. Thus an e-tailer is a B2C business that executes
a transaction with the final consumer. E-tailers can be pure play businesses like
amazon(dot)com or businesses that have evolved from a legacy business, Tesco(dot)com. E-
tailing is a subset of e-commerce.

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