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    Open Innovation - DigiBiz'09 Open Innovation - DigiBiz'09 Presentation Transcript

    • Open Innovation in Services Steve Wright Head of Strategic Research, BT 18th June, 2009
    • Agenda • BT in the Networked Service Economy • Digital Infrastructures – Current – Future • Research areas © British Telecommunications plc
    • The changing environment we all live in Relationships Competitors With customers, partners, New entrants, business models, employees, regulators, channels to market… competitors, shareholders, society New Markets & customers Social imperatives Geographies, ecosystems, Sustainability, transparency, value chains, customer responsibility… requirements, customer communities… © British Telecommunications plc
    • Accelerating our transformation BT has successfully undertaken several transformations Traditional telco  ICT services Global communications services company Narrowband  Broadband • Be number 1 for customer service Building the most advanced network • Develop innovative services by collaborating with our partners Creation of Openreach • Simplify and speed up the way we work to become a global software-driven services provider © British Telecommunications plc
    • Revenue - Transformation of mix The Economist % of revenue derived from voice – Feb 2006 © British Telecommunications plc Extract from Economist magazine published Oct 14th, data sourced from Westhall Capital
    • Public Global Organisations Corporates Global provider of software-driven services People © British Telecommunications plc Business
    • Service Firms* Knowledge Intensive and Professional Service Firms – Employee skills/ knowledge – Innovation is embraced – Technology transfer between industries – Organisational knowledge/ operating routines (incl. KM) – People based Systems Firms Eg Banking, insurance, supermarkets, airlines – High division of labour – Sophisticated technology – Complex organisations. – Innovation can be disruptive – Often subject to regulation Traditional Services – Asset based ? – Small – skills gaps – threat from system firms – ‘low skills’ equilibrium © British Telecommunications plc * Salter & Tether (2006)
    • Digital Infrastructures
    • Our 21st century architecture blueprint The ICT infrastructure for the digital networked economy Customers Configuration of products SDK (BT & 3rd party applications) & services Assembly Capabilities End to End Customer Experience C2M T2R L2C of services & processes IT Infrastructure Global platforms 21CN & Global IP © British Telecommunications plc
    • Innovation Continuum Revenue EBITDA Customer Innovate within each stage and through the entire value chain experience Cost reduction Invent Architect Validate Operate Productise Channels People Customers & Implement & Organisation © British Telecommunications plc
    • Innovation Continuum Innovating with our entire eco-system of partners Revenue EBITDA Customer Innovate within each stage and through the entire value chain experience Cost reduction Invent Architect Validate Operate Productise Channels People Customers & Implement & Organisation Customers Universities Government Industry © British Telecommunications plc
    • Today’s innovation foci Customers •Customer needs •Co-innovation Configuration of products SDK •SDK & services •Ribbit E2E Assembly of services experience •E2E Experience & processes •Right First Time •Cycle Time IT Infrastructure Global platforms •Virtualised resources 21CN & Global IP •Next Generation Access © British Telecommunications plc
    • Future Digital Infrastructure
    • The global context … the INTERNET Customers Information Configuration Services of products Services SDK Information & services Infrastructure People E2E Objects Assembly experience of services Global Network Content & processes Resources SaaS RaaS Communities IT Infrastructure Web Apps Global Cloud Computing platforms 21CN & Global IP © British Telecommunications plc
    • The transformational Future Internet - of Services & Resources • For our customers – • IT on demand • No Lock-in • Business responsive IT • For our entrepreneurial partners – • Global markets • Painless growth • Rich eco-system • For the common person – • Intelligent and joined up personalized services … • Smarter access to public services • …but what they make of it (difficult to predict…) © British Telecommunications plc
    • The global context … the INTERNET Web-based Service Industry Customers Configuration of products SDK & services Cloud E2E Computing Assembly experience of services Global Network & processes Global IT Infrastructure Future Internet platforms 21CN & Global IP © British Telecommunications plc
    • Research areas
    • BT Research focus - Web-based Service Industry Customers Digital Configuration Economy of products SDK & services Cloud E2E Computing Assembly experience of services Global Network & processes Global IT Infrastructure Future Internet platforms 21CN & Global IP © British Telecommunications plc
    • © British Telecommunications plc
    • © British Telecommunications plc
    • © British Telecommunications plc
    • © British Telecommunications plc
    • © British Telecommunications plc
    • © British Telecommunications plc
    • © British Telecommunications plc
    • BT Research focus - Web-based Service Industry BT Engage Customers Configuration of products SDK & services Cloud E2E Computing Assembly experience of services Global Network & processes Global IT Infrastructure Future Internet platforms 21CN & Global IP © British Telecommunications plc
    • Research & Innovation with Customers © British Telecommunications plc
    • BT Engage programme © British Telecommunications plc
    • BT Research focus - Web-based Service Industry Customers Service Science Configuration of products SDK & services Cloud E2E Computing Assembly experience of services Global Network & processes Global IT Infrastructure Future Internet platforms 21CN & Global IP © British Telecommunications plc
    • Services and Systems Science Objective: •Develop scientific methodology for defining compelling services with predictable levels of KPIs. –Create systems that are ‘perfectly designed to give customers the services and experience they want’. Innovation Benefits New ways to New Services • Improved service design deliver services – Reduced risk for new services Delivery Design Systems engineering Total Customer Experience – Improved service systems Processes orchestration Customer Journey Resource co-ordination Supplementary/support – Lower costs: better use of services people/ resources Back stage Front stage • Improved customer satisfaction/ loyalty © British Telecommunications plc
    • BT Research focus - Web-based Service Industry Customers Configuration of products SDK & services Cloud E2E Computing Assembly experience of services Global Network & processes Global IT Infrastructure Future Internet platforms 21CN & Global IP Future Internet © British Telecommunications plc Architecture
    • The Internet – Platform for Innovation … ? 3D Content Internet of Things Service Internet of Services Value NGA WiFi HPSA DSL V31bis VDSL © British Telecommunications plc
    • The Internet – Platform for Innovation … 3D Content ? Internet of Things Service Internet of Services Value Plateau Catastrophe NGA WiFi HPSA DSL V31bis VDSL TCP Various “patches” Small Optics, Scale: congestion NAT, DPI, QoS, Security … academic Terabit BGPv4 control © British Telecommunications plc routers
    • Plateau ahead ? • Value flow broken: – Over the top services • Joost • Google • i-player – RoI for NGA • Rising operational costs: – P2P – Traffic management (DPI etc) – Spam, virus, malware – DDOS from nation states • No “user” feedback or choice: – Best efforts – TCP “fairness” • Security, privacy & trust: – What? © British Telecommunications plc
    • Future Internet Vision: A Sustainable Internet We need a new sustainable architecture - urgently! • Economic Sustainability – Value flow across the value chain – RoI – Lower cost of operation • Environmental Sustainability – Zero Carbon Internet (2%) – Sustaining Internet Socially (ICT impact on 98%) Sustaining • Socially Sustaining Economically – Security, Privacy & Trust Sustaining – Digital divide / access – Culture & spiritual background Environmentally – Improved Usability Sustaining • Sustaining Innovation – New applications – New business models and industry structures – Open for innovation – Dynamic - MUST sustain change © British Telecommunications plc
    • Open Innovation in Services Thank You!