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The 'Orange Start Up Programme' - delivering 'Corporate Open Innovation'


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A specific Open Innovation programme developed by Orange to support partnerships with startups in different areas (web 2.0, mobile, enterprise solutions, etc.) as part of

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The 'Orange Start Up Programme' - delivering 'Corporate Open Innovation'

  1. 1. The ‘Orange Start Up Programme’ (OSUP) delivering ‘Corporate Open Innovation’ part of Martin Duval – Director of the OSUP
  2. 2. <ul><li>‘… Open innovation means that valuable ideas can come from inside or outside the company and can go to market from inside or outside the company as well. This approach places external ideas and external paths to market on the same level of importance as that reserved for internal ideas and paths to market during the Closed Innovation era.’ </li></ul><ul><ul><ul><li>( Book ‘Open Innovation’, 2003, Henry Chesbrough, Harvard Business School Press) </li></ul></ul></ul><ul><li>‘ The smartest people always work for someone else’ </li></ul><ul><ul><ul><li>( Bill Joy, co-founder of Sun Microsystems,1990) </li></ul></ul></ul>The ‘Open Innovation’ culture and approach
  3. 3. <ul><li>Deliver and implement a ‘Corporate Open Innovation’ programme : </li></ul><ul><ul><li>By building a sustainable business and technological ecosystem around Orange and its platforms </li></ul></ul><ul><ul><li>Through the development of relationships and partnerships with Start-Up companies and Venture Capital funds (Worldwide) </li></ul></ul><ul><ul><li>Creating and launching innovative services/products/enablers and disruptive business models </li></ul></ul><ul><li>Mostly in the area of Mobile/Web 2.0 (communities, social networking, user generated content), social media, audience, advertising & entertainment related services (video, TV, music, games), </li></ul><ul><li>Based on convergence (mobile, IPTV, web, content) </li></ul>The ‘Orange Start Up Programme’(OSUP) mission
  4. 4. <ul><li>Objectives : </li></ul><ul><ul><li>A ‘partnership platform’ based on the ’Corporate Open Innovation’ philosophy </li></ul></ul><ul><ul><li>aiming at developing a dynamic and sustainable ecosystem around, OAD and the greater Orange Group </li></ul></ul><ul><ul><li>through the creation of a “ virtuous triangle ” to generate speed and value to Orange </li></ul></ul>How does it work ? <ul><li>Provide new product /service or be part of </li></ul><ul><li>a new « mash-up » or enabler </li></ul><ul><li>Share development and experiment of first </li></ul><ul><li>launch & new business model </li></ul><ul><li>Provide funds to early-stage companies </li></ul><ul><li>Or support for partnership with FT-Orange </li></ul><ul><li>if already in their portfolio </li></ul><ul><li>Provide a first key pilot project /contract & </li></ul><ul><li>international development potential </li></ul><ul><li>Support early-stage fund raising </li></ul><ul><li>M&A opportunities </li></ul>A unique ‘partnership platform’ delivering ’Open Innovation’ Customers FT-Orange VCs Start-Up
  5. 5. Close the Gap with external innovation Research Development Current Market and Business Model Technology acquisition Technology in-licensing External research projects from Universities and Labs (Public or from other corporations) Technology from startups Venture investing Internal R&D Spin-Off Spin-Off New Markets and Disruptive Business Models + Current OSUP scope (
  6. 6. inputs outputs Deliverables Internal sourcing from : R&D,, I labs External sourcing from : Web Sites, press releases, conferences… Bring value Challenging “ Make or buy” Develop a standalone project from scratch Contribute to the ecosystem development Build a label approach to improve internal processes (purchasing, legal…) Process et deliverables (pipeline 2007) “ On demand” sourcing of partners / enablers (> 200 identified) (> 80 contacted) (> 30) (> 10) (> 4) Pilot contract 3 Opportunity studies 1 MoU 2 Beta test project management BETA Collaboration Contribution Problems solving Final launch 4
  7. 7. Relying on a ‘Innovation Partnership Platform’ <ul><li>6 layers of support, services and tools : </li></ul><ul><li> Programme ROI tracking system </li></ul><ul><li>Communication : internal and external (PR) </li></ul><ul><li>LIPPnet : collaborative intranet/extranet 2.0 and video content based knowledge management </li></ul><ul><li>Processes (MoU, monthly report,…) and organization (steering committee, interfaces with Purchasing, Legal,…), pipeline management </li></ul><ul><li>Know how : to attract, select, deal with and support the startups and their management team for the projects take-off and management </li></ul><ul><li>People & training : a team of 3/4 people to run the programme + training modules to deploy Open Innovation change (1-Open innovation, 2-Venture Project Management) </li></ul>Support layers as key succes factors
  8. 8. Best practises / lessons learnt <ul><li>1) a specifically designed partnership contract/MoU which is co-signed with the purchasing department to create momentum and speed very early in the partnership process </li></ul><ul><li>2) no exclusivity nor IP issues dealt during a first 'opportunity phase' of collaboration, again to create extra pressure on the Corporate organization to deliver faster Time To Market and first mover advantage </li></ul><ul><li>3) no direct investment, but rather support the startups to help them raise funds with third party VCs thus contributing to the development of sustainable partners within the ecosystem as well as initiate extra opportunity flows from the VC community </li></ul>
  9. 9. OSUP case studies
  10. 10. <ul><li>After reviewing numerous start-ups, mob-it was considered as unique with many specificities : </li></ul><ul><ul><li>The ability to deliver a very efficient web-to-mobile experience </li></ul></ul><ul><ul><li>A generation on-the-fly of a widget app from a website, fully personalized </li></ul></ul><ul><ul><li>No pre-installation process, no configuration </li></ul></ul><ul><ul><li>Not another Widget universe, complex to understand for the users </li></ul></ul><ul><ul><li>Easy to transfer </li></ul></ul><ul><ul><li>A very simple idea : the mobile device, with its small screen, its presence in our pocket, is the natural « to go » extension of the web . </li></ul></ul><ul><li>We are focusing at leveraging our services such as Pikeo </li></ul><ul><li>As mob-it allows the mobilization of websites, through an installed application on the phone </li></ul><ul><ul><li>Pikeo could benefit from the technology to provide micro-albums </li></ul></ul>Case Study: mob-it
  11. 11. inputs outputs Opportunity studies 1 Beta test project management BETA launch Q4 - 2007 4 Deliverables Start-up screening from our 2.0 companies networks Processes and deliverables: in real life On your mobile 6 months public beta test 3,5 months 3,5 months = 7 months from meeting To beta Pilot contract 3 MoU 2
  12. 12. <ul><li>a simple button on any album </li></ul><ul><li>a click on the album, a phone number... </li></ul>Case Study: mob-it <ul><li>a SMS is then received on the mobile phone with a wap link (wap push) </li></ul><ul><li>a click and the installation begins </li></ul><ul><li>the application automatically launches... </li></ul><ul><li>no prior installation or configuration </li></ul><ul><li>virality through the click of a button </li></ul><ul><li> (web to mobile + mobile to mobile) </li></ul>
  13. 13. <ul><li>OSUP MoU has been highly valuable for mob-it </li></ul><ul><ul><li>New prestigious clients : Universal Music, Marathon Group (TV production company), Canal+ </li></ul></ul><ul><ul><li>Mob-it has been selected by Eureka for a 900 K€ public funding </li></ul></ul><ul><li>As the pilot is being launched, OSUP is now providing support to mob-it team </li></ul><ul><ul><li>Communication on the product : Press Releases, Newsletters, Conferences and shows to present the company. As an example of the OSUP contribution, we invited to this conference the CEO, Jerome Chouraqui. (Feel free to share and meet with him) </li></ul></ul><ul><ul><li>Financial : the company is currently looking for 1 million €. OSUP is organizing meetings with VCs thus bringing credibility to the project.This conference is also an opportunity to meet VCs. </li></ul></ul>Case Study: mob-it
  14. 14. <ul><li>Vringo have developed a community video ringtone service relying on Web servers, scripts as well as mobile phone clients. It allows friends to configure the video ringtone which will play on their friends’ phone when they call. </li></ul><ul><li>Among other service providers (usually based on IMS ), Vringo was considered unique : </li></ul><ul><ul><li>Vringo’s architecture does not require any modification to operator telecom systems or mobile phones radio stack. </li></ul></ul><ul><ul><li>Vringo have developed an end-to-end synchronization solution between their servers and a wide range of mobile phones already (Symbian Series 60, Windows Mobile, Sony Ericsson (≥JP7), Nokia S40 (≥5th edition). </li></ul></ul><ul><ul><li>They have filed a number of patents which FT R&D have verified </li></ul></ul><ul><li>Vringo can be seen as Personalisation 2.0 and its virality across mobile phones within a community of buddies could facilitate the roll-out of community services on mobile phones (MOC) as well as the uptake of the “Internet” options (“Internet Max” in France) </li></ul>Case Study: Vringo
  15. 15. inputs outputs Opportunity studies 1 Trial with Lab’O BETA trial Q2 - 2008 4 Deliverables Start-up screening from our 2.0 companies networks Processes and deliverables Jan 2008 Mar 2008 Jun 2008 Jul/Aug 2008 1 months Pilot contract 3 MoU 2 Prepare launch with OFR 5
  16. 16. Orange & Vringo inputs & deliverables <ul><li>Billing management </li></ul><ul><ul><li>Data – flat fee </li></ul></ul><ul><ul><li>UGC upload (if necessary) </li></ul></ul><ul><ul><li>Premium content </li></ul></ul><ul><li>Content (local & international partners) </li></ul><ul><li>Free SMS routing to Orange customers to enable SMS wake-up </li></ul><ul><li>Embedded clients signature (WM & J2ME) to enable SMS wake-up </li></ul><ul><li>Devices selection to match user installed base </li></ul><ul><li>Promotion of the service within MOC </li></ul><ul><li>And looking further into an advertising model… </li></ul><ul><ul><li>Advertising network </li></ul></ul><ul><ul><li>Call Data Records (required to determine which video played on whose phone) </li></ul></ul><ul><li>Service development </li></ul><ul><ul><li>Mobile clients </li></ul></ul><ul><ul><li>Web site </li></ul></ul><ul><ul><li>Mobile site </li></ul></ul><ul><li>Content (international outside of France Telecom / Orange partners) </li></ul><ul><li>Interop with other operators (e.g. Bouygues & SFR in France) </li></ul><ul><li>Promotion of MOC & mobile Internet bundle in Vringo invitations </li></ul>Private alpha on :
  17. 17. <ul><li>V4x is a company selling authoring tools for Mobile Interactive TV </li></ul><ul><ul><li>The solution is designed to repurpose content for mobiles, allowing to add the interactive metadata on existing video content </li></ul></ul><ul><li>Among other service providers, V4x was considered as unique : </li></ul><ul><ul><li>V4x’s platform is a technology enabler that makes Mobile TV a compelling experience. Working with original content, “mixing” it best for the small screen, and distributing it through a range of channels, V4x are the company delivering real, “made-for-mobile” programmes. </li></ul></ul><ul><ul><li>They have a complete software suite in ASP mode, from creation of interactive metadata to publishing </li></ul></ul><ul><li>Result? </li></ul><ul><ul><li>Lead to a proof of concept of an end-to-end mobile TV factory : from creation of interactive metadata, the end-to-end delivery on a unicast network and the browsing / rendering of this interactive info on a specific mobile </li></ul></ul>Case Study: V4x
  18. 18. <ul><li>A repurposing tool for video on mobile, bundled with an interactivity editing tool </li></ul>Case Study : V4x <ul><li>Interactivity information is added to the video stream, and displayed under the video picture </li></ul><ul><li>Interactivity allows : </li></ul><ul><ul><li>click-to-call </li></ul></ul><ul><ul><li>click-to-wap </li></ul></ul><ul><ul><li>click-to-SMS </li></ul></ul><ul><li>This will allow integration of voting, quizz, interactive ad banners into broadcast or unicast mobile TV </li></ul><ul><li>This interactivity can be scheduled using a calendar or triggered manually during a live event </li></ul>Ex : voting for the next clip on a music channel
  19. 19. OSUP case studies with startups met during the previous Camp
  20. 20. <ul><li>ClicMobile was identified as a valuable proposition for Orange, enabling: </li></ul><ul><ul><li>Innovative ideas around micro web 2.0 applications leveraging social networking data </li></ul></ul><ul><ul><li>Open API which allows bulk import of contacts into products </li></ul></ul><ul><ul><li> (U bb of audience function between the various products ) </li></ul></ul><ul><li>First focus on Bubbletop </li></ul><ul><li>Result? </li></ul><ul><ul><li>Development of a unique Orange application (Birthday Reminder & Wish List app) is nearly complete and subject to finalising commercials we will launch the product in Q2 2008 </li></ul></ul>Case Study: ClicMobile
  21. 21. inputs outputs Opportunity studies 1 Beta test project management BETA launch Q2 - 2008 4 Deliverables Start-up screening from our 2.0 companies networks Processes and deliverables: in real life 6 months public beta test 4 months 3,5 months = 6 months from meeting To beta Birthday Reminder Pilot contract 3 MoU 2
  22. 22. Case Study: ClicMobile Birthday Reminder My contact list to configure alerts 0 2 kind of alerts : e-mail and/or SMS 1 2 types of friendship. For a good friend, I receive 2 birthday alerts, one week before and one day before 0 1
  23. 23. <ul><li>Following an introduction at an Orange Partner Camp, NYN was identified as a potentially valuable proposition for Orange, enabling: </li></ul><ul><ul><li>Orange to offer a choice of personal numbers to their customers based on personal preferences (names, birthdays etc) </li></ul></ul><ul><ul><li>A simple interface that can be incorporated either on local Orange websites or into a customer service interface in store </li></ul></ul><ul><ul><li>A new acquisition tool to convert new customers </li></ul></ul><ul><ul><li>A new revenue stream </li></ul></ul><ul><li>Monetisation of an existing unexploited Orange asset (the mobile number pool) </li></ul>Case Study: NYN
  24. 24. Case Study: NYN Customer visits Orange Shop to purchase new phone/upgrade. Offered option to pick a personal number for a one-off fee. Salesperson uses online tool to search number pool according to preferences of the customer (name, DOB etc) New customer in-shop Existing customer churning Customer visits Orange online to purchase new phone/upgrade. Offered option to pick a personal number for a one-off fee. Directed to online tool to search number pool according to preferences of the customer (name, DOB etc) New customer online Customer speaking to CS about leaving Orange. Retention team offers customer ability to select a personal number for free Algorithme Number Pool Number possibilities Orange to provide the number
  25. 25. <ul><li>OSUP has helped to get NYN by </li></ul><ul><ul><li>Introducing the concept to the right people and the right projects within Orange </li></ul></ul><ul><ul><li>Identified trial opportunity in Moldova </li></ul></ul><ul><ul><li>Identifying other trial opportunities elsewhere around the Orange group </li></ul></ul><ul><li>As a result of the trial, OSUP can offer NYN valuable material in the form of a case study of the Orange experience for NYNs own publicity </li></ul>Case Study: NYN
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