The document presents the new strategy and positioning for an Open Innovation area. It aims to make the Open Innovation area the world's most global, connected, and tech-driven innovation hub. The strategy focuses on connecting internal assets and innovations with external ecosystems through various plays like business development with startups, micro-CVC investments in startups, and strategic branding. It emphasizes focusing investments in strategic technology areas with proven product-market fit like IoT, video, AI, and cybersecurity. The strategy expects to measure both financial returns and wider organizational impacts.

1. We choose it all
Open Innovation
Prototyping the future
Open Innovation
12/07/2018
10/07/2018 | 15:15
[Delivery date and time]

2. 22
Purpose of the presentation
1. Present the new strategy & positioning for the Open Innovation
area.
2. Set the ground on past & expected performance with key goals
to achieve in 2018.
What is expected form the ExCom?
1. Feedback on the alignment of the new Strategy with
Telefonica’s current & future business focus.
2. Ask for support to increase the impact of Open Innovation
initiatives company wide, touching on company’s cultural shift.
Razón social
00.00.2015

3. 33
Telefonica’s joint innovation play
Innovation area in context
CORE Innovation
OPEN INNOVATION
0 - 1 YEARS 1 – 3 YEARS 3 – 10 YEARS
SmartWifi
Movistar Money
Novum IoT
Movistar play
AI / ML -Aura
Cybersecurity
Blockchain
Edge Computing
INTERNAL
DEVELOPMENTS
CORE Innovation
5G
Internal development works with core innovation & open innovation to find
innovation where it is happening
Open Innovation OPEN INNOVATION
Open Innovation

4. 44
Open Innovation
Strategy

5. 55
WE ARE the world’s most
global, connected & tech-
driven Open Innovation
Hub
WE ARE the global interface
{API} between Telefonica &
innovators
WE LOOK outside Telefonica to
bring in new Products, insights,
processes & culture to our
business globally, while we
connect our internal assets &
innovations with the external
ecosystem.
MISSIONVISION (aspirational)

6. 66
A great toolbox – Our Open Ecosystem
50 CROWDWORKINGS
11 WAYRA HUBS
HUBS
CORPORATE & GOVs
INVESTMENT PARTNERS
TECH PARTNERS
3 SCOUTING OFFICES IN SILICON
VALLEY, ISRAEL & CHINA
The most global, connected and tech-driven open ecosystem in the world
…
…
…
GLOBAL BU’s
& OB’s
STARTUPS

7. 7
7
INNOVATION HAPPENS EVERYWHERE
http://www.dailymail.co.uk/news/article-3467534/Who-calling-white-elephant-amazing-pictures-albino-animals-not-pigment-imagination.html
The Elephant needs to dance
with the Gazelles.
And not step on their toes.

8. 88
Various simultaneous plays
STARTUPS BUSINESS
DEVELOPMENT (FIT)
40%
CONNECT ECOSYSTEMS WITH
GLOBAL DIGITAL PRODUCTS: IoT –
SMARTWIFI – NOVUM – VIDEO… (FIT)
20%
MICRO-CVC
INVESTMENTS IN STARTUPS
20%
POLITICAL CORPORATE
INSTITUTIONAL ASSET
10%
STRATEGIC BRAND & POSITIONING AS
THOUGHT LEADERS
10%
Internal cultural change is key to achieve our
results at scale

10. 1010
Focus on strategic areas & global digital products with proven technological
advantage. Mature startups with product-market fit.
NEVER ALONE
TRY TO PARTNER WITH KEY BAs & VCs
BIGGER TICKETS
$150K MAX per startup with FLEXIBLE
TERMS WITH MULTIPLE CONTRACTS
OPTIONS.
ADD SALES BASED WARRANTS MORE
THAN ACTIVATION OF ACCELERATION
SERVICES.
NO MORE BATCHES –
ROLLING PROGRAM
FLEXIBILITY TO INVEST WHEN THEY NEED IT MOST
FIT FIRST, INVESTMENT
FOLLOWS
STRONG SPONSORSHIP FROM BUSINESS
AREAS IS A PRE-REQUISITE FOR
INVESTMENT
IoT (Smart M2M)
Video & AR/VR (Movistar Play)
Advanced Data Analytics
AI – ML (Aura)
Cyber Security
Fintech (Movistar Money)
Operational efficiency
Future of Telco:
Blockchain, Edge Computing…
Investment Thesis (20% weight within total strategy)

13. 13
New Revenue Streams
Costs savings
Financial ROI
Organizational
learnings &
Cultural shift
Future trends
scouting
Innovative & SCR
positioning w/
Free Positive
Publicity
Competitive
advantage
Institutional
relations
Big Sales
sweetener
The innovation Ripple effect
Hard $$ need to be measured, but the impact is wider & lasting.

14. 1414
Portfolio Status

16. 1616
Top 40 – Portfolio Champions
B2BIoT, ML, Analytics, Global Digital Products… B2CMarketing, Movistar Play,
Product integrations…
Best performing startups in our portfolio with strong disruption potential
and high growth ratios

19. 21