presentation title Specific CDI Headcount - April 2007 Region ECS FR & Affiliates Intl (1) Total France 8,510 1,574 10,084 Americas 170 2,036 2,206 Asia-Pacific 201 1,760 1,961 Europe-Middle East-Africa 333 3,875 4,208 Russian Federation - 806 806 Total CDI Headcount 9,214 10,051 19,265 (1) Includes 208 SITA CDI contract employees, does not include 108 FT Affiliates CDI staff (FTLD, Orange Denmark) CHALLENGES: Generally Orange Business Services is challenged with increasing our services skills globally and providing career development and clear mobility paths to our staff. The transformation into the services business requires different skills than in the past. Therefore excellent services expertise and skills in IT technology/Telecommunication are critical and can be quite rare in some markets. This has clearly an impact that good profiles have to be well compensated and if retention is not carefully being monitored, competition will buy them off. We require flexibility to adapt quickly to constantly changing local market conditions. AMERICAS : we are challenged with mainly stabilizing our labor costs and retaining key talents and further developing our services skills in a market where the Orange brand is not well known, and thus we cannot use this powerful tool to attract and retain. We utilize ACT; provide services training, and are exploring further linkage with affiliates where possible to provide economies of scale, and other mobility opportunities for our staff. ASIA PACIFIC : we are challenged with managing our people in a very dynamic and competitive labor market, particularly in high growth areas such as India and China, requiring flexibility to maintain our workforce and adapt quickly to changing labor market conditions, economic indicators, etc We must remain constantly vigilent and network with other HR professionals in the market place to keep pace with the changes. Europe: Europe generally is a high cost region versus the new emerging countries in Eastern Europe, plus India, Egypt, and China offering low cost labor cost opportunities. We work towards strengthening the brand and the attractiveness as an employer. Benchmark the existing job roles and verify to take necessary action to align existing compensation with market rates. Define training activities to offer to the existing employees to grow and obtain new skills. MEA: Middle East is a growing and emerging market. We expect continued growth in this region and more in Cairo (to 1500+). The gulf area in particular has a top financial potential and interesting customer opportunities to go for. We have inflation and general compensation & benefit issues. Culturally, the approach can sometimes be seen as not fostering change nor transformation. It's therefore a challenge to align this region with our dynamic HR projects (Manager and Employee self service, web-based tool instead of face-to-face communication, remote management etc.). Analysing the existing compensation & benefit situation and supporting professional HR support to the countries to find well balanced solutions and optimizations. Ongoing training of changing HR processes and procedures. Focus on management level to get their buy in to support the mind-set change in the various countries. Russia: Russia has a high growth potential in the domestic, enterprise and services business. .Russia has in many ways not yet reached the technical and social standards of Europe; however, the major urban centers in Russia are growing with high speed. The dimension of this country is huge. There are many international companies expanding into Russia that inspires the people market with interesting job opportunities. Managerial roles are highly paid. We're in the process of aligning our existing organization to the requirements of the future, this in all business aspects. The HR challenge is to align the Russian HR processes and procedures to the company standards.. Think Globally, Act Locally. So we hire the right profiles for the top management of our organization as a start. Enroll the international HR guidelines into Russia. Bring Russia closer to the European organization in all we do (training, compensation, bonus, benefits, communication, leadership).
Orange Partner is the entry point of the Orange group, it is the global programme with over 60,000 members, dedicated to existing and potential members of Orange and France Telecom group – team of 15
Orange Partner started in the mobile world And is now more than Mobile, it is the umbrella for all Orange partners and a launch pad for success. Orange Partner is now your gateway into Orange Working with fixed line ADSL Working with Orange network APIs Working with Orange Web APIs Your first stop for everything that is happening in Orange around the globe
Working together in one programme…..…application developers, games publishers, content providers, system integrators and providers of converged products and services – delivering mobile, fixed line and broadband solutions.
2 regions : (mention the names) -Europe, Middle East and Africa -Americas
2 regions : (mention the names) -Europe, Middle East and Africa -Americas
Innovation new buzz word throughout orange and FT – but everyone agrees that the implementation and introduction of new innovation in our services is the challenge but one we must take on to meet our customers expectations
Innovation through Partnerships Steve Glagow VP Marketing Operations Orange
Orange Partner launched January 2004 to encourage, inform , develop and foster third parties for innovation
Orange wanted a global resource for third parties who are distributing / want to distribute their innovative mobile applications, content and solutions to customers of FT & Orange.
We created this global programme from country led programmes in OUK & OFR and we continue to provide benefits to both our external and internal customers to ensure we; source, identify, capture, and exploit external innovation.
...3 rd parties and Orange will work together, to deliver compelling products
To do this we provide them with a wealth of key information about the Orange Worldwide distribution channels, our customers and our requirements from FT and the countries in which the Orange brand operates.
Inform, educate and train
Help provide 3 rd parties with the tools to develop
Provide plentiful benefits at the different membership levels
Innovation pipeline process - overview Draft innovation paper – this will go various iterations before receiving final approval to proceed to implementation 3. Innovation team review 1. Initial innovation concept (can come from almost anywhere) Anything suitable for Orange Partner and its channels is filtered at source Other teams… LCOs Best practice sharing 3 rd party company Executive push Propositions Market research Group Product Marketing Innovation pipeline 2. Introduced to Product Marketing through standard stage 1 innovation paper – Invited to join Orange Partner Orange First Innovation Everywhere Approved innovation paper 4. Idea taken to next stage (e.g. presented to Product Board for Gate approval, executed through best practice sharing, etc.) Approval Approval A range of options are now possible for an approved idea…see following slides FT R&D
Innovation process submissions pass through a series of stages, each with increasingly detailed requirements First draft innovation paper – half page overview (stage 1: Alpha Paper) Other teams… LCOs Best practice sharing 3 rd party company Executive push Propositions Market research Group Product Marketing Orange First Innovation Everywhere 2-page paper returns to innovation team with additional economic detail (stage 2: Beta Paper). Final paper returns to innovation team with further detail – principally informal country feedback & costs (stage 3: Gamma paper) Approved stage 3 gamma paper may be taken to implementation (e.g. submitted to global marketing board for approval, executed as best practice sharing, submitted to Innovation Everywhere, etc) Specific actions may be requested at any stage – e.g. market research via Product Insights Programme FT R&D
Innovation team review – possible outcomes Draft innovation paper (at stages alpha, beta or gamma) Innovation pipeline Approved innovation paper Innovation team review Paper approved (perhaps with minor changes); approval to proceed to implementation (mostly for gamma stage papers) Request for further Product Marketing work - move to next stage or re-submit at existing stage Fail – idea is killed immediately* Request for market research or analysis (existing or new, Group Mkt Res team, FTR&D, etc) *with positive and encouraging feedback to the idea originator ! Passed to Orange Partner to manage
Landscape is changing: we are finding new ways to co-exist, collaborate and compete
We saw In 2007, many new market entrants in an evolving mobile and digital landscape: o Google – once search/software, now developing mobile apps o Apple – once PCs, then entertainment devices/content, now iPhone o Orange – once mobile operator, content services now online advertising
More experiences in today’s digital world (music, TV, social networks) o Digital pace is faster, Orange is finding new ways to simplify – and extend - this experience for customers o In this new digital environment no one can deliver every element of the customer experience o Orange believes in partnering to give customers a simple straightforward and consistent experience, on any device
The consumer market landscape
• Increasing consumer desire for application-rich devices and personalised services o e.g. Push Content to give consumers more choice and control of services/ Call Plan to keep consumers up to date on usage and plan status
• Greater device upgrading requiring greater consistency of application, UI and experience • New genres of applications: social networking - tailored services in a changing market • The need for market segmentation and personalised services to maximise customer loyalty
Orange differentiates itself by providing an end-to-end customer experience of value added services, delivered through our Signature portfolio of devices.
The Orange Signature portfolio: improved customer experience drives demand for better handsets and applications o 27 million devices were shipped in 2007 - 70% of these Signature devices o Over 200 Signature devices lauched since the programme began (stated over 180 at the end of 2007) o On average a Signature device was launched every 5 days in 2007. o Orange is on target to have 80% of device shipments and an installed base of 50% Signature devices by the end of 2008
o Around 10% of our device volumes are from open OS handsets which is above the EU average and set to significantly increase
The challenge is to continue to deliver bespoke services amidst the proliferation of devices and platforms.
Orange provides the software of the Signature Accelerator Programme, enabling pre-integrated applications in the open OS to help the device manufacturer to adapt his device. This ensures a great Orange experience through the delivery of embedded, Orange customised, applications. Microsoft S60 and ACCESS are our key platform partners within the Orange Signature Accelerator Programme. (also Java)
The emergence of the iPhone and Android, LiMO, Linux, Symbian consolidation presents new challenges in addition to the evolution of existing platforms e.g. new generations of Windows
Orange welcomes all initiatives whose objectives are to establish consistent open environments, that positively encourage innovation and reduce fragmentation. We feel that the LiMo Foundation best reflects these objectives in its desire to create a truly open approach to Linux based devices. It is also the reason why we are focusing our resources in developing a standard LiMo platform in collaboration with our other LiMo members. Android is an interesting initiative and we would certainly look to provide our customers with devices built on this platform, should the device, its services and user experience meet our customers' needs.
Operator and developer needs • Operator requirements for differentiated consumer experience within parameters of workable technical specifications
• Developer need for advanced access to platform developments • Operators and developers want to cut time to market without compromising breadth and range of application quality