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Why Intrapreneurship, Open Innovation & Enterprise 2.0 are critical for Alcatel-Lucent’s future?
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COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
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WHY INTRAPRENEURSHIP, OPEN INNOVATION & ENTERPRISE 2.0 ARE CRITICAL FOR ALCATEL-LUCENT’S FUTURE?
Olivier Leclerc, Director Innovation & Intrapreneurship
@setolivier | #bell_labs | #alcatel_lucentIntrapreneurship Conference - December 12th, 2013
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COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. THE SHIFT PLAN
Alcatel-LucentAt a glance 500K
+Customers(enterprise)
1M+Networks
1000+Customers(network operator)
400G IP CloudBand™
Motive customer
experience
lightRadio™
400G photonic
XRS Core router
VDSL2vectoring
Network DVR Emmy
Award
TR100MOST
INNOVATIVECOMPANIES
201120122013
72,000Employees
7NobelPrizes€ 14
Bn2012 revenues
-1.8%2012 adjusted
operating margin
2,900+patents in 2012
16.1%2012
R&D/Sales250+Universities
collaborating
30,000+
Active patents
DJSI 2012 & 2013
Industry GroupLeader for Technology
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Bell LabsFoundation for our innovations
30,000+Active patents
15,000+Patent Applications
250+Universities collaborating
4Japan Prize Winners
4Turing PrizeWinners
12Nobel PrizeLaureates
LEADERSHIP
INFORMATION THEORY
SOLAR POWER
MIMOSYSTEMS
SATELLITE-BASED
NETWORKS
DIGITALSWITCHIN
GFIBER
OPTICS
HDTV STANDARDS
CELLULAR COMMUNICATIO
NS
PROGRAMMING
LANGUAGES
SECURITY STANDARDS
BROADBAND
ACCESS
SMALL CELLS/ LIGHTRADIO
QUANTUM COMPUTING
CLOUD SDNNFV
ENERGYEFFICIENCY/
GREENTOUCH
DEPTH AND BREADTH OF EXPERTISE
IMPACT
7Nobel Prizes
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Industry TrendsA fast growing industry
WI-FIPUBLIC SPOTS
2011 1.3 M2015 5.8 M
APPLICATION DOWNLOADS2011 18.2 Bn2015 41.7 Bn
M2MDEVICES
2011 1.1 Bn2015 12 Bn
MOBILE CONNECTIONS2011 5.5 Bn2015 7.3 BnENTERPRISE
CLOUD SERVICES2011 € 8.7 Bn
2015 € 18.7 Bn
MOBILE VIDEO CONSUMPTION
2011 429 M2015 4.2 Bn
SMARTPHONE SALES
2011 428 M2015 1 Bn
FIXED BROADBAND
CONNECTIONS2011 532 M2015 691 M
+346%
+134%
+30%
+879%
+129%
+100%
+32%
+990%
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COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. THE SHIFT PLAN
Alcatel-LucentThe Shift Plan – CEO Vision
“Michel Combes
CHIEF EXECUTIVE OFFICERJune 19, 2013
“We are taking comprehensive action to position Alcatel-Lucent at the heart of the
digital ecosystem. The Shift Plan is fundamentally an industrial plan that also
addresses the Group’s operational and financial challenges by putting in place a
strong and fully accountable leadership team with clear goals and the appropriate levers in
and to deliver on these goals and on our commitments to all stakeholders.”
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COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. THE SHIFT PLAN
The starting pointsOur strong assets
WINNING PRODUCTS & SERVICES
STRONG CUSTOMER
RELATIONSHIPS
STRONG INNOVATION CAPABILITIES
In Core Networking with IP and 100G
In Platforms with IMS & Customer experience
managementIn Ultra-Broadband Access with
vectoring, FTTx, LTE & Small cells
With Tier 1 operators and large Strategic Industries across the
worldIn key regions of North
America, China & Europe
In Core & Access of the network
Over € 2 Bn in R&D and Bell Labs
20,000 engineers
30,000+ patents and 15,000+ patent applications
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The Shift PlanOur industrial ambition
SPECIALISTGENERALIST
Across all domains IP NETWORKING, ULTRA-BROADBAND(1)
FROM TO
Mixed positions BUSINESSES IF LEADING POSITION
Non-attached services push PRODUCT RELATED SERVICES
Gradual pruning ACCELERATED
Solution-driven FOCUSED
Global direct sales footprint MORE CHANNELS
Adjacencies as a derivative AS A PRIORITY
Limited use of partners EXTENSIVE USE
(1) Including leading capabilities/assets in the Products and Services related to these domains
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Redefined innovation
BELL LABS RESEARCH
DEVELOPMENT
INCUBATION
INTELLECTUAL
PROPERTY
New engagement model
Closer to Alcatel-Lucent portfolio lifecycle
Innovation integration at speed and scale
Example: lightRadio™ small cells, 100G
coherent, vectoring
SHIFTED RESOURCES TO GROW
Stimulated by Cloud IP
Focused “strategictechnologies” program
fornon-reciprocal licensingExample: video/audio
coding, cloud
+8% R&D increase over the period & 85% of the
R&D in 2015 for IP Networking and Ultra-
Broadband AccessDecline of 60% legacy
R&D, evolving from 35% to 15% of our total R&D spending over the period
In-house startups
Located in incubation geographies
Example: Nuage Networks™, CloudBand™
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GERD LEONHARD, MediaFuturist.com @gleonhard
CHANGING THE CULTURE
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LAUNCHING THE OPEN INNOVATIVE CAMPUS
EMPLOYEES: OUR HUMAN CAPITAL
CUSTOMERS: OUR BUSINESS PRIORITY
ECOSYSTEM: OUR CATALYST IN THE MARKET
• All development, research, and customer teams in one place
• Cross-fertilization, agility, mobility
• Executive Briefing Center : our innovations show room
• All ALU functions in one site for a unique customer experience
• Our platforms and Operations Centers: a sneak preview of your future networks
• Our Bell Labs & research labs partners
• Competitiveness clusters
• Startups
• Academics
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TANGIBLE INNOVATION ASSETS & EXPERTISE
Creativ’Lab
User Centric DesignCreativity methods
Quick Prototyping
Mockup
Technology Expertise
Experimentation
Demo
Business opportunities
Prototype
Entrepreneurship spirit
Open Innovation
Video
Creative Business Modeling
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SHOWCASING INNOVATION
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(RE-) ENCHANTING EMPLOYEES
Innovation City Site Infrastructure Parkings Buildings renovation with new building names & signaling Outdoor furniture and leisure areas
Transportation to Innovation City Densified shuttle service including electrical
shuttle with on-board WiFi connectivity
Services @Innovation city « Espace bien-être » Sports place (350 m2) Smartphone application Outdoor WiFiOther services Under Study
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From lively RSA Animate (http://www.thersa.org ), adapted from Dan Pink's talk at the RSA
(RE-) ENCHANTING EMPLOYEES
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ENTREPRENEURIAL BOOTCAMPBRINGING ENTREPRENEURSHIP INSIDE
Entrepreneurial Boot Camp
“Innovation is the responsibility
of every employee in the company”
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• Year 2004 :
‘‘There are a lot of great ideas in this company… but for many reasons these great ideas drop off the table, so the challenge became how do we create a culture of innovation where people feel empowered to follow through on their ideas’’
Business Plan training for researchers but …
• Year 2006 1st BootCamp with multidisciplinary teams around research ideas in Belgium
• Year 2008 : BootCamp concept in France open to all employees
• … and so on
ORIGINS
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Inspiration
Call for Ideas: Idea Submission & Employee Collaboration
Team Building, Dating Event (F2F & online)
Creation of Business Plan: training/coaching
at #locations
Pitch at local & global final event (MC)
Incubation
Ventures ?
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CREATING THE BUSINESS PLAN
rolloutplan
team profile
businessmodel
businesscase
Business Opportunity Plan
financial roadmapbusiness modelroadmap
action/ work plan (short/ medium term)
team & competencies
roadmap
I
III
II
IV
business model format
customer value curves
technology evolution path
competitive arena
go to market strategy
value chain
earnings modelvalue proposition
cash curve
Time to Market/ Time to Profit
mile stone planning
are you an entrepreneur?team roles
competencies profiles& gap analysis
alliance/ cooperation profile
path for validating assumptions
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ENTREPRENEURIAL BOOTCAMP FINAL EVENT
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KEEP INNOVATING THE INNOVATION PROCESS
EMEA BOOT CAMP
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ENTREPRENEURIAL BOOTCAMP SOME KEY SUCCESSES
Augmented Reality services (for smartphones)
funded by Innovation Fund from Jan til Dec 2010
Transferred to , an Alcatel-Lucent company on Jan 2011
Commercial contracts (hundreds k€)
MOSAR became Alcatel-Lucent ‘Alternative Energy Program’
Energy-autonomous wireless base station
Commercial contracts (M€) MOSAR
Service for Smart Sharing and Enrichment of Videos Transfered to Alcatel-Lucent Entreprise – Now part of OpenTouch Video Store product line
Gold prize at Intranet Innovation Awards 2011
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KEY LEARNINGS
• EMPLOYEES ENGAGEMENT & CULTURE CHANGE• NEW IMAGE OF THE COMPANY
• FIRST REVENUES FROM THE BOOTCAMP PROJECTS
• DIVERSIFICATION OF THE PRODUCT PORTFOLIO
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THE CAPTAINSCOUTING ENTREPRENEURIAL TALENT
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BOOTCAMPERS are ALU BUCCANEERS and CHANGE AGENTSCourtesy of Philippe MEDA - @Merkapt
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www.alcatel-lucent.com
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• Ideas are useless unless used. The proof of their value is in their implementation. Until then, they are in limbo.
• Ideas without action are worthless. Action is the foundational key to all success.
• The creative process does not end with an idea. It only starts with an idea.
• Genius is 1% inspiration and 99% perspiration.
• There have been many fine scientists desperately trying to become poor businessmen.
• Three factors lead to better performance and personal satisfaction: autonomy, mastery, and purpose.
SOME (ADDITIONAL) FINAL THOUGHTS
(Dare )
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