6 Years of Alcatel-Lucent's Bootcamps Drive Innovation
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the Alcatel-Lucent bootcamp is a famous intrapreneurial initiative put in place a few years ago. Olivier Leclerc is supervizing it. He gave the presentation at the Intrapreneurship Conference 2012 (Paris, Dec 13)
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6 Years of Alcatel-Lucent's Bootcamps Drive Innovation
- 1. ALCATEL-LUCENT : HISTORY, SUCCESSES & LEARNING OF 6 YEARS OF BOOTCAMPS Olivier Leclerc, Innovation Director @setolivier | #bell_labs | #alcatel_lucent December 2012 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 2. ALCATEL-LUCENT AT A GLANCE 1000+ 2011 TR50 Most 2,655 patents in 2011 2011 CUSTOMERS revenues Innovative 29,133 Adjusted (NETWORK OPERATOR) €15.7b Companies 2012 active patents operating margin 1M+ 7 3.9% NETWORKS Nobel 76,000 130+ prizes employees Collaborate 2011 countries with 100+ R&D/Sales nationalities 250+ 15.7% universities DJSI leader in Technology 400G IP DSL vectoring Carrier cloud Motive Customer lightRadio 400G photonic XRS Core router Experience
- 3. INDUSTRY TRENDS A FAST-GROWING INDUSTRY +30% +32% +346% +990% FIXED BROADBAND MOBILE WI-FI M2M CONNECTIONS CONNECTIONS PUBLIC SPOTS DEVICES 7.3 Billion 691 5.5 Billion 5.8 Million 532 Million 1.3 Million 12 1.1 Million Billion Billion 2011 2015 2011 2015 2011 2015 2011 2015 +129% +134% +98% +879% APPLICATIONS SMARTPHONE PUBLIC CLOUD MOBILE VIDEO DOWNLOADS SALES REVENUE CONSUMPTION 41.7 1 428 4.2 18.2 Billion Billion Million 89.4 Billion 177 Billion 429 Billion Billion Million 2011 2015 2011 2015 2011 2015 2011 2015
- 5. SET YOUR “INNOVATION GOAL” New Markets Low Risk, High Risk, Many High Reward Competitors Existing New Technology Technology Customer High Risk, Experience, Defensive Cost Savings Strategy Existing Markets
- 6. ORIGINS • 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 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 7. Défi ENTREPRENDRE BRINGING ENTREPRENEURSHIP INSIDE Entrepreneurial Boot Camp ―Innovation is the responsibility of every employee in the company‖ 7 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 8. INTRAPRENEURS Intrapreneurs*, like their entrepreneurial counterparts, have the need to imagine and create an idea. But instead of convincing foreign investors and risking their personal assets, the intrapreneur need to create a good team within your company to successfully launch new products. (*) The term “intrapreneur” was coined Gifford and Elizabeth Pinchot, who cited Macrae’s 1976 article as their inspiration.
- 9. HAVE THE FULL INNOVATION MANAGEMENT PROCESS IN PLACE Share-ID Sharpen-ID Shape-ID Grow-ID Monetize-ID Business Division Internal Venture F2F Boot Camp Idea Capturing Incubation Customer Customer Seed Opportunity Investment Contacts Contracts readiness readiness readiness
- 10. 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 ?
- 11. MAKE IT A CHALLENGING ONE LINKED TO CORPORATE STRATEGY
- 12. INVOLVE THE WHOLE ORGANISATION FROM CEO … • Call for Ideas by CEO • Give on-line feedback, during employee collaboration • Presence at Final Event • Overcome silo-mentality, not invented here-syndrome
- 13. COLLECTING IDEAS Web site : http://all.alcatel-lucent.com/defi-entreprendre https://engage.alcatel-lucent.com/groups/defi-entreprendr Follow us on Twitter : http:twitter.comALU_Defi 13 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 14. THE ENTREPRENEURIAL BOOTCAMP INNOVATION BOARD INNOVATION BOARD (Selects Ideas & teams, Support participants & Act as part of Final Jury) President : Pascal HOMSY (CEO Alcatel Lucent France) - Hélène SALLIC (Corp. Strategy) - Didier BERTHOUMIEUX (Bell Labs / Corp. CTO) - Jean-Luc BEYLAT (Bell Labs) - Philippe BAUD (Global Account Orange) - Jérôme LE MOUEL (HR) - Christophe BEJINA (Networks/Wireless) - Thierry BONNIN (Enterprise) - Laurent LE GOURRIEREC (Bell Labs / Corp. CTO) - Caroline DIQUELOU (Corp Marketing, Strategy & Comms) - Karine CALVET (CU France / Sales / Verticals) - Mercedes MARTINEZ MARTIN (EMEA Application Enablement) - André MECHALY (Solution & Marketing CU France ) - Vincent MOREAU (Networks / Video) - Pascale THORRE (Bell Labs / Bus Modelling) - Vincent LARA (Corp. Finance) - Dominique VINCENT (Procurement & Design to Cost) Board Secreatry : Olivier LECLERC (Bell Labs) 14 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 15. INNOVATION BOARD • Cut the red tape • Do not try to decide based on consensus • Projects that deserve support should be quickly expedited INVOLVE AN EXTERNAL PARTY • Good cop – Bad cop • Trust • Another view, not company-biased • Business school, VC, Business Angel, …
- 16. 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 ?
- 17. THE TEAM
- 18. THE CAPTAIN SCOUTING ENTREPRENEURIAL TALENT
- 19. ENTREPRENEURIAL BOOTCAMP 'ACTIVE' PHASE Intensive learning program in partnership with top- ranked French business school MODULE 1 (2,5 days) MODULE 2 (2,5 days) • Entrepreneurship essentials • Innovation, Creativity • Legal aspects • Workshop Business Plan • Entrepreneurial strategy review Support for the project team by ULYSSCO • Team coaching by entrepreneurs; one coach by team. • Active participation during all the process Internal support • Individual training in eLearning, Training on intellectual property aspects • Internal mentoring by alumini, Club Défi… 19 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 20. FACE-TO-FACE IS KEY PROCESS
- 21. CREATING THE BUSINESS PLAN customer value curves competitive arena business model format technology value chain evolution path value proposition earnings model go to market strategy cash curve business business business model I roadmap model case financial roadmap II Business Opportunity Plan team & team rollout III competencies action/work plan IV roadmap profile plan (short/medium term) mile stone planning team roles are you an entrepreneur? Time to Market/Time to Profit alliance/cooperation profile competencies profiles path for validating assumptions & gap analysis
- 22. ENTREPRENEURIAL BOOTCAMP FINAL EVENT 22 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 23. INNOVATION FUND CREATED SEPT 2009 Recommendation to incubate (or not) As to : -- Buy equipment + pay for service (POC) -- Allow / enable some team members to work 100% of their time on the project for a limited and defined period => Help concretize the proposition Eligible projects are high-rated ones after BC Back 23 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 24. WHAT HAPPENS TO PEOPLE AFTER? • Business as usual • Career switch • Leaving the company
- 25. ENTREPRENEURIAL BOOT CAMP What is it? SPREAD, STIMULATE & CONCRETIZE AN ENTREPRENEURIAL SPIRIT WITHIN ALCATEL-LUCENT CREATE VALUE FOR ALCATEL-LUCENT OBJECTIVES THINKING ‗OUT-OF-THE-BOX‘ PROVIDE PERSONAL DEVELOPMENT OPPORTUNITIES FOR ALCATEL-LUCENT EMPLOYEES 25 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 26. ENTREPRENEURIAL BOOTCAMP SOME KEY SUCCESSES MOSAR became Alcatel-Lucent „Alternative Energy Program‟ Energy-autonomous wireless base station MOSAR Commercial contracts (M€) 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€) 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 26 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 27. KEY LEARNINGS • DIVERSIFICATION OF THE PRODUCT PORTFOLIO • FIRST REVENUES FROM THE BOOTCAMP PROJECTS • NEW IMAGE OF THE COMPANY • EMPLOYEES ENGAGEMENT & CULTURE CHANGE 27 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 28. ANSWER THE “WHAT’S IN FOR ME?” Education Business New career New service Transformation New product Networking Incubation Opportunity Mini-MBA Plan
- 30. NEEDED SKILLS OF THE INTRAPRENEUR • Conviction • Passion • Drive • Persuasion • Social skills • Company politics
- 31. INTRAPRENEUR'S 10 COMMANDMENTS BY GIFFORD PINCHOT (1985) 1. Come to work each day willing to be fired. 2. Circumvent any orders aimed at stopping your dream. 3. Do any job needed to make your project work, regardless of your job description. 4. Find people to help you. 5. Follow your intuition about the people you choose, and work only with the best. 6. Work underground as long as you can publicity triggers the corporate immune mechanism. 7. Never bet on a race unless you are running in it. 8. Remember it is easier to ask forgiveness than to ask permission. 9. Be true to your goals, but realistic about the ways to achieve them. 10. Honor your sponsors. •Ask for advice before asking for resources. •Express gratitude. •Build your team; intrapreneuring is not a solo activity. •Share credit widely. •Keep the best interests of the company and its customers in mind, especially when you have to bend the rules or circumvent the bureaucracy. •Don't ask to be fired; even as you bend the rules and act without permission, use all the political skill you and your sponsors can muster to move the project forward without making waves.
- 32. BOOTCAMPERS AS CHANGE AGENTS GERD LEONHARD, MediaFuturist.com @gleonhard 32 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 33. BOOTCAMPERS are ALU BUCCANEER‟s Courtesy of PHILIPPE MEDA - @Merkapt 33 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
- 34. KEEP INNOVATING THE INNOVATION PROCESS EMEA BOOT CAMP
- 35. SOME (ADDITIONAL) FINAL THOUGHTS • 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.
Editor's Notes
- The Bubbles contain key statistics about Alcatel-Lucent and the line below shows key innovations for Alcatel-Lucent in the last 18 monthsAdded Motive and customers/networks statistics from next slide as per Gary request Note: changed financials as per Tom and Frank:Revenues including Genesys of €15.7B and 4% Operating Margin orRevenues excluding Genesys of €15.3B and 3.4% Operating MarginTom M. BevilacquaAlcatel-Lucent Investor RelationsEmail: thomas.bevilacqua@alcatel-lucent.comOffice: (908) 582-7998 Mobile: (908) 723-1831 We should use including Genesys to get 3.9% of Adj. OP in 2011. Our 2012 guidance is based on the 3.9%.Frank Maccary.
- Broadband Traffic is growing, why?Improve devices, better connectivity, more compelling applications (video, social networks, M2M), Regulatory elemnts (spectrum, refarming, digital dividend) and increasing number of connections (fixed and mobile penetration)What are the main trends in the Telecom industry? Even though there is a global view, think it is important to reflect differences between developed and emerging markets at this time. FIXED: The total number of Consumer Fixed Broadband Connections, End of Year, Worldwide, 2008-2015 (Forecast Analysis: Consumer Fixed Voice, Internet and Broadband Services, Worldwide, 2008-2015, 4Q11 Update, Nov 2011- Gartner) 2011 - 532M 2015 - 691 MTOTAL MOBILE CONNECTIONS : Gartner numbers, March 2012 forecast for mobile connectionsWIFI PUBLIC SPOTS: Increasing density of WiFi networks, spreading to a next generation of hotspots locations retail outlets, wider areas, cities, etc . The number of hotspots is expected to increase from 1.3Million in 2011 to 5.8 Million in 2015, as per Informa, telecoms and Media forecast . an increase of the order of 350% (Source: Wireless Broadband Alliance WBA Report and Informa, Global Development sin WiFi, September 2011)APPLICATION DOWNLOADS: Growth in the content market shows no signs of slowing down. Ovum indicated that during 2009 2.7 BILLION APPS WERE DOWNLOADED. This figure reach over 18 billion in 2011 and it will reach 41.7 billion in 2015. (Source: OVUM, September 2011) SMARTPHONES Sales: Total number of smartphones sales units purchased by end-users (Source: PYRAMID SMARTPHONE FORECAST — NOVEMBER 2011)2011 – 428M2015 – 1.059 billionApproximately 70% of total handset sales and nearly half of smartphone sales in 2012 will come from emerging markets (Pyramid research SMARTPHONE FORECAST — NOVEMBER 2011)DATA MOVING TO CLOUD - Increasing cloud usage and storage. To grow 5x over next 5 years (source Mylene?)There is emerging a trend to have several types of cloud: personal, hybrid, public. Also analysts are sizing different segments of cloud differently. These figures refer to the PUBLIC CLOUD. Based on Gartner's sizing and forecast of cloud services at a worldwide level (Source: Cloud Services, Worldwide, 2010-2015 (Billions of Dollars), June 2011). Total Public cloud will growth from $89.4 billion in 2011 to $176.8 billion in 2015 . As a contrast point, ENTERPRISE CLOUD REVENUE: Yankee Group forecasts that Enterprise cloud services are converging with mobile applications and device diversity, and the revenue for enterprise cloud services is increasing from US$7 billion in 2009 to 12 billion in 2011 (Yankee Group Enterprise Service forecast March 2011)Ubiquitous Broadband and Multiple devices are driving demand for PERSONAL CLOUD. Consumers expect to be connected to all devices, all the content all the time. However current OTT approach is fragmented – different non-seamless offerings from Apple, Amazon and Google which opens up opportunities for SPs.Tablets:In 2011, the number of mobile-connected tablets tripled to 34 million,According to the latest NPD DisplaySearch Tablet Quarterly report, sales of tablets will surge from 72.7 million in 2011 to 383.3 million in 2017.M2M technology is becoming mainstream and part of critical business processes Operators building their M2M portfolios- scalability will drive costs down- Regulation is providing stimulus- CE connectivity driving market e.g. kindle, Cloud: jasper wireless model…Over 12B M2M devices in 2020 (Excluding PCs, TVs and other handheld mobile devices) – Machina Research/BLM. M2M DEVICESProjected CAGR (2011-2016): 33%Projected CAGR (2016-2020): 36%80% of traffic revenue contribution from Smart Cities, Healthcare and Public Safety verticals. Connectivity through: 2G, 3G, 4G, short range, MAN, fixed WAN and satellite. Over 90%of current cellular M2M connections will use 2G technologies and vast majority will use WiFiM2M capabilities using mobile connectivity are migrating from second-generation (2G) to 3G and 4G technologies. In 2011, 55% of connections were 2G, in 2016, 67% of those connections will use 3G and 6% 4G technologies. Revenue World-Wide revenue ramp-up from 200B in 2011 to over 1T 2020Traffic revenue under 2%: 80% OF TRAFFIC REVENUE CONTRIBUTION FROM SMART CITIES, HEALTHCARE AND PUBLIC SAFETY VERTICALS System Revenue 15% (Revenues from activation, integration, management, diagnostics and other device management and control functions (horizontal layer) )83% VAS Revenue (Revenues from value-added-services and functionality specific to the vertical)According to GSMA:The global business impact of the connected life can be split into two broad categories: revenues and cost reduction and service improvements. In 2020, revenues from the sale of connected devices and services, and revenues from related services, such as pay-as-you-drive car insurance, will be worth $2.5 trillion – $1.2 trillion of which could be addressed by mobile operators and the remainder by the broader connected life ecosystem. In terms of other geos, Asia Pacific will account for $1.6 trillion, North America for $1.23 trillion, Europe for $1.12 trillion, Latin America for $272 billion, Africa $114 billion and the Middle East for $63 billion.M2M is expected to increase to xx by xx, impacting many areas from health to energy management, critical infrastructure diagnosis & monitoring, seismic activity monitoring, traffic management, air quality monitoring, etc. (Smart grids & smart cities)The huge quantity of connected devices requests new device management systems from SPs and impacts network dimensioning modelsNetwork SPs have an advantage compared to pure M2M SPs in providing M2M apps & contentGartner:Mobile video users will grow from 429 million in 2011 to 2.4 billion in 2016, driven by easieraccess to a variety of content.■ Nearly 70% of mobile video users will use only Wi-Fi to view mobile video, while the rest will use a mix of cellular and Wi-Fi networks.YOUTUBE.COM: 600m VIDEO STREAMS A DAY ON MOBILEIn Jan 2012 , 84.4 percent of the U.S. Internet audience viewed online video. (comScore, Inc. )
- Time-based
- Employees like and even need “challenges”Norms
- Time-based