Leclerc keynote intrapreneurshipconference dec2013

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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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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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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

http://www.thersa.org/

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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 )