open innovation in alcatel-lucentleti.congres-scientifique.com/annualreview2009/ar09_session1... ·...

Open Innovation in Alcatel-Lucent

11th LETI Annual ReviewOlivier Leclerc

22 June 2009

All Rights Reserved © Alcatel-Lucent 20092 O.Leclerc / June 2009

Last month news

Pope to You : Vatican partners with Facebook

Google will not buy the NY times !

GE et Intel jointly invest250M$ in e-health


Internet : over a billion users

Source: Datamonitor and Euromonitor

Internet Users (Millions)

APAC

APAC

Europe

Europe

0

200

400

600

800

1000

1200

1400

2000 2008

APAC

Europe

North America


Information data doubles every 2 years ….

The volume of new data generatedworldwide in 2009 is estimated to reach 1.5 exabytes (1.5 x 1018) …

It simply exceeds what has been generated in 5000 years …..

An exponential growth ….


More a producer than a user

Innovation from individuals

Multiplication of connections

Immediate and simple services

Social networks

Greed for personnalisation

INTERNET MEDIA

TELECOM

Chat

Web TV

Social Networks

Web 2.0

VOD

IM

E-shopping

PersonalTV

Web Radio

DTTV

IM over TV

SMS

FMC

VOD

Ringtones

IM

Mobile TV

Mobile

Web sites

FTP

Email

Radio

TV

Gaming

Fixed

Music

Press

A changing customer….


A demultiplied capability to exchange ….

Over 200 million people are registered in Facebook, with severalhundred of thousands new users every day centaines de milliers de nouveaux abonnés s’inscrivent chaque jour

If Facebook was a country, it would be the 4th country in the world (between Brasil and Indonesia)

Every month > 850 million of pictures and > 8 million videoare uploaded on Facebook


and tomorrow ?


Anytime

Anywhere

Anyway

Any Thing

Internet of Things


Challenges for Internet of tomorrow

.

Too Manythings

6 billion of people -> 60 billion of object

Recognition of objects and addresses

Volume of data

Traffic diversity

The network has to be more intelligent

Painless connexion

Self-configurable & agile network

Security, protection of people and of data, trust

Green network

Too

complex


Alcatel-Lucent at a Glance

R&D PROFILE

� Budget: €2.5 billion

� Active Patents Held: More than 26,000

� Patents Awarded in 2008: More than 2,700

� Nobel Prizes Won: 6

� More than 500 experts in ~100 worldwidestandards organizations.

ParisGlobal Headquarters

Ben VerwaayenChief Executive Officer

� Worldwide Presence: More than 130 countries

� Annual Revenues: €16.98 billion (2008)

� Employees: More than 77,000

� Employee Nationalities: More than 100


2008 Market Share Highlights

Broadband Access with 40,6% of DSL market share (1) and 46.4% of GPON (1)

Optics (Terrestrial and Submarine) with 22.2% of market share (2)

CDMA with 42.4% of market share (1)

Western Europe Enterprise Telephony with 17% of market share (3)

#1

#2 IP/MPLS Service Edge Routers with 19% of market share (2)

#3GSM/GPRS/EDGE Radio Access Networks with 10.8% of market share (1)

W-CDMA with 14.6% of market share (1)

Market shares in revenues for the full year 2008

(1) Dell’Oro Group (2) Ovum (3) Gartner Dataquest (July 2008)


Research Development

Firm boundaries

Current

Markets

New

Markets

Other firm’s

Markets

Open Innovation concept from Henry Chesbroughhttp://www.haas.berkeley.edu/faculty/chesbrough.html

Internal technology

base

External technology

base

Closed model Open innovation

External technology in-sourcing

Licensing,Spinout,divest.

Internal/external venture handling


Open innovation : what is it ?

Open vs. closed innovation

We should profit from others’ use of our innovation process, and we should buy others’ intellectual property (IP) whenever it advances our own model.

We should control our innovation process, so that our competitors don’t profit from our ideas.

If we make the best use of internal and external ideas, we will win.

If we create the most and the best ideas in the industry, we will win.

Building a better business model is better than getting to market first.

The company that gets an innovation to market first will win.

We don’t have to originate the research to profit from it.

If we discover it ourselves, we will get it to market first.

External R&D can create significant value; internal R&D is needed to claim some portion of that value.

To profit from research and development (R&D), we must discover it, develop it and ship it ourselves.

Not all the smart people work for us. We need to work with smart people inside and outside the company.

The smart people in our field work for us.

Open innovation principlesClosed innovation principles


Alcatel-Lucent

Strategy

Research & Development

Customer Focus

Accountability

For a world that’s always on.

Improving the end-user experience.

A spirit of open innovation.

Local partners, global solutions.

A socially responsible corporate citizen.


Innovation Leadership

A Spirit of Open Innovation that Leads the Industry

� Alcatel-Lucent Bell Labs has unrivaled technical depth and breadth.

� At the heart of our solutions are disruptive Bell Labs technologiesand compelling new products that our customers value.

� A heritage of creating life-changing innovations: DSL, PON, WiMAX, WDM, computer networking, the transistor, digital signal processing,the charge-coupled device (CCD), the communications satellite,the laser and cellular telephony.

� Alcatel-Lucent Ventures incubates and commercializes innovationfor key customers.


Bell Labs : Unrivaled Research Breadth and Depth

Researchin mathematics, physical sciences, nanotechnology,

convergence and computer science.

1000 Scientists and Researchers

Collaborations with 300+ Academic Institutions

Global Reach with Presence in 10 Countries


Some recent resultsLocated 30 min.

South of Paris

Designing Photonic integrated circuit

Defining 100GEthcoherent receiver

Leading the opticaltransmission competition

Creating mobile TV standard

•Video tagging

Social radar experimentationProfiling

Contact meMy way


Research Partnerships

Cooperative Research

AcademicPartnerships

CustomerPartnerships

JointLaboratories

FP6 / FP7 / Eureka

Technology Platforms: Photonics21, NEM, eMobility, NESSI, EPOSS

ANR (Fr), BMBF (Ge), IWT (Be)

French competitive clusters: System@tic, Image et Réseaux,

OSEO innovation (former AII): Unlimited Mobile TV

Alcatel-Thales III-V Lab

Alcatel-Lucent Research Partner Program: close long-term relationships with major universities & research institutes

* INRIA – ALU Common Lab

* Telecom Paris – ALU Common Lab (Ubimedia)

NTT Photonic Research for Optical Packet Switching

TeleCom New Zealand for mobile networking

British Telecom for IMS and Triple Play applications

Telecom Italia for ambient services


Solaris

An example of innovation ecosystem : DVB-SH

STANDARD

DVB-SH specs. Approved Feb 14, 2007

REGULATION

SERVICE PROVIDERS

French Institutional support & Funding of the ecosystem

CHIPSETSTERRESTRIAL COMPONENTS

TERMINALS

EU decision on MSS Band published Feb 14, 2007

CGC ATC

FCC Rules on ATC

Satellite in-orbit by early 2009

Alpha Trial US Spring 2008

SATELLITES

Solution testing / assessment

European-wide Collaborative Research Project

Support from


Télé-surgery solution with UPMC (University Pittsburgh Medical Center)

IP-DICOM

IP-Ethernet

IP-DICOM

BMC / VGA

IP-???? IP-????

HD _(Transport)

Multi-media Bridge / Single Session Control Collaboration Platform

VLAN


Research Partnerships

Cooperative Research

AcademicPartnerships

CustomerPartnerships

JointLaboratories

FP6 / FP7 / Eureka

Technology Platforms: Photonics21, NEM, eMobility, NESSI, EPOSS

ANR (Fr), BMBF (Ge), IWT (Be)

French competitive clusters: System@tic, Image et Réseaux,

OSEO innovation (former AII): Unlimited Mobile TV

Alcatel-Thales III-V Lab

Alcatel-Lucent Research Partner Program: close long-term relationships with major universities & research institutes

* INRIA – ALU Common Lab

* Telecom Paris – ALU Common Lab (Ubimedia)

NTT Photonic Research for Optical Packet Switching

TeleCom New Zealand for mobile networking

British Telecom for IMS and Triple Play applications

Telecom Italia for ambient services


Common Labs

Why this concept of common lab ?

Because previous challenges require a large scale, multi-disciplinary and coherent collaboration

To capitalize on complementary backgrounds and current activities on these topics

To join teams in a early stage in order to elaborate together well understood and shared strategic objectives with long term perspectives

To alleviate overhead of setting up multiple and uncoordinated punctual collaborations on this axis

To setup agreed and revisited rules of collaborations

� Intellectual property, publications, team coordination …


A win-win partnership with a high added value

Long term partnership = mutual understanding fostering cross fertilizations

Bell Labs expecting technological breakthrough bringing long term competitive impacts on Alcatel-Lucent solution portfolio

Bell Labs expecting positive impacts on the scientific backgrounds of its teams

� Including the training of phDs/postdocs matching its key competence needs

Opportunity for partner to reinforce concrete industrial transfer perspectives

Virtual team, embedded in existing projects, maximizing the interaction surface

� With means to support collaboration efficiency, such as researcher mobility


INRIA / Alcatel-Lucent partnership

July 2008 �� Creation of INRIA - ALU Bell Labs Common Lab

Point-to-point relations

Research program

Joint Scientific events

1997first framework agreement

2003Alcatel external Research Program

2008Common lab

INRIA / ALU-Bell Labs

1995initial contacts

Common Culture, research and strategic

vision

A common lab w/o walls

� 55 dedicated researchers

� Incl. 18 newly and specifically-hired young researchers


« Alcatel-Lucent and Institut TELECOM put their brain s together »Neteco.com

« Alcatel-Lucent and Institut TELECOM : to conquer th e digital world »

“Bell-Labs Ubimedia labs”

Institut Telecom / Alcatel-Lucent partnership

Joint Research labs between Bell-Labs France and Instit ut Télécom on the ubiquity of digital media launched on Jan 27, 2009

Paris, Jan 27th

Silicon.fr

« The Secretary of State [ Mrs Kosciusko-Morizet ] wel comedAlcatel-Lucent [..] continues to invest and make the challenge of the future » AFP 271333 JAN 09

A common lab w/o walls

� 35 dedicated researchers

� Incl. 15 newly and specifically-hired young researchers


Alcatel-Thales III-V lab

III-V lab is an industrial research laboratory dedicated to advanced III-V semiconductor technology for Telecommunication, Defence, Security and Spaceapplications

It is a joint operation with Alcatel and Thales, world leaders in their respective Telecommunication and Defence domains, they decided to join their forces to conduct a world class research activity in III-V technology, which they both consideras strategic for their future systems

Our aim is to bring advanced new concepts, that we developwith our academic research partners, to a sufficient maturitylevel to allow prototype demonstrations, to prepare ourmother companies for future breakthroughs and to conducttechnology transfers for industrialization

Launched

in

2004

A common lab with walls

100 dedicated researchers

All Rights Reserved © Alcatel-Lucent 200927 O.Leclerc / June 200927 | Guido H. Petit | HSATM | June 2009

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Bringing Entrepreneurship Inside

Entrepreneurial Entrepreneurial Entrepreneurial Entrepreneurial Entrepreneurial Entrepreneurial Entrepreneurial Entrepreneurial BootcampsBootcampsBootcampsBootcampsBootcampsBootcampsBootcampsBootcamps

““““““““Innovation is the Innovation is the Innovation is the Innovation is the Innovation is the Innovation is the Innovation is the Innovation is the responsibility responsibility responsibility responsibility responsibility responsibility responsibility responsibility

of every employee in the of every employee in the of every employee in the of every employee in the of every employee in the of every employee in the of every employee in the of every employee in the companycompanycompanycompanycompanycompanycompanycompany””””””””


Takeaway 2

Encouraging Risk Taking

and Entrepreneurship

A Way to Change the Innovation Mindset


You are challenged every day by your peers!

Overcome Gravitational Forces and

Organizational Barriers

A Stretch Track – A Real Challenge


Transition barrier increases over time

An Exponential

Learning

Curve


Scouting Entrepreneurial Talent


Takeaway 3Constantly move borders – no status quo

Network and build relationships


A StageA Stage--Gated Process Gated Process

Individuals

Ideas

Expressionof ideas

Innovation Board

Idea owner

G0

InformationSelection of 10 ideas

1

ConnectIdeas &People

‘Atelier Rencontre’or Dating Event

Selection of 5 teams of 5 people

Identificationof Mentors

22

G1Constructiondu Business

Plan

"ENTREPRENDRE"Training

Final Event

33

Jury = Innovation Board& ‘external’ VCs

ExternalVenture

Alcatel-LucentVenture

BDprojet

44

Decision to incubate (or

not)

- prototype - customer interest- market validation

Focus on Implementation and Business Development


The The BootcampBootcamp ProgramProgram

�Weekend 1 (Friday + Saturday)- From Idea to Business Plan

�Weekend 2 (Friday + Saturday) - From Business Plan to Project

�Weekend 3 (Friday + Saturday) - From Project to Market

�Dry-Run

�Final Event - Presenting and Selling the Business Opportunity Plan to a Jury

Elapsed Time = 2 to 3 m

onths

Coaching stop-over by form

er (serial)

Entrepreneurs–1 per team


CoachingCoachingCoaching

Theory


On top of daily duties


Research

Engineering

Marketing SalesFinance

Encourage Diversity :Talented people are everywhere but …they are often not connected!


A Real Life Experience


Let people pursue their passion


Convince the Jury about Convince the Jury about ……

•Vision, trends and market needs

•Sustainable business opportunity

•Team Strength

•Value Chain and Players

•Business case and financials

•Competition

•Solution and Technology

•Fit with business strategy/core competences

•Lead customers

•Rollout plan and exit strategy

•Need for partnering

In 15 minutes!


… the Jury is …

Venture Capitalists

The CEO, CTO and CFO

of Alcatel-Lucent Belgium

Business School Professors

Venture Capitalists

CEO and executives of

Alcatel-Lucent in France


… the Jury is …

Venture Capitalists

The CEO, CTO and CFO

of Alcatel-Lucent Belgium

Business School Professors

Exposure to Top Management


Managing Expectations :

Learn from Failures

Success is a journey, not a destination!Deepak Chopra


~40% of the Bootcamp projects results in new business value

• 6 Bootcamps completed in 2006-2008 (2 per year) in Belgium

• 2nd “Defi ENTREPRENDRE” currently on-going in France

2 new ventures, 6 (+1 under way) major transfers to BU, 2 customer projects

Ventures Business Units Customers

MOSAR

The Outcome so far The Outcome so far ……

In 2H 2009, 3 Bootcamps will be running in parallel in Belgium, France and US


touchatag applications – www.touchatag.com

Time or Service registrationOrdering systemsElectronic counters

Smart posterCity gamesEvent access

Link toys to online world steer iTunes or web radio

Link souvenirs to photo albums

AutomationOutdoorHome

tag mgmtapplicationscommunityAPI/widget

Application Correlation Server action – RFiD tag

3rd party applications relying uponAPI/widget/templates/DIY starters kit

Open Innovation

Already 40+ App Developers on the platform


Conclusion

� Internet will continue to evolve

� New solutions will emerge at the boundaries of differentactivity domains

� Open innovation will likely become the reference innovation model to create new markets

www.alcatel-lucent.com

open innovation in alcatel-lucentleti.congres-scientifique.com/annualreview2009/ar09_session1... ·...

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