Innovation for the Sustainable Enterprise

Transcription

1 Innovation for the Sustainable Enterprise Competing through Business Model Innovation Dr. Mauro Ugolini Rome, 9 March 2011 The speaker Mauro Ugolini Director Business Innovation and Development Born in Viterbo (Italy), a degree in Physics and an MBA. PhD student at Roma Tre University (Engineering). 25+ year long background in IT and telecom. Joined Ericsson in 2001 as a director, Mobile Internet business. Since then, different positions held within Global Services, Networks, Sales & Marketing, Business Innovation & Development. Before joining Ericsson, worked for systems engineering and consultancy companies Italy and UK. Cooperates with Roma Tre University, University of Rome Tor Vergata and LUISS engineering and economics. Member of several associations (FITCE, AIET-AICT, AIMBA). A history lover particularly, the Roman Empire. Ericsson AB 2011 Page 2 Source: Ericsson AB

2 The company Vision to be the prime driver in an allcommunicating world Key facts Founded: 1876 HQs: Stockholm President and CEO: Hans Vestberg Employees*: 90,261 Net sales*: SEK 203.3b Operating margin*: 12%** Net income*: SEK 11.2b Net cash*: SEK 51.3b Shares: traded on NASDAQ, NY Source: Take the World with You, Ericsson s Annual Report 2010, * 2010 ** Excluding restructuring charges and share in earnings of JVs Ericsson AB 2011 Page 3 The context Ericsson and Roma TRE University The Permanent Advisory Board, School of Engineering, Applied Electronics Department Ingegneria e Industria, a cycle of crosscurricular workshops for laurea magistralis: Bioingegneria Ingegneria delle Tecnologie della Comunicazione e dell Informazione Ingegneria Elettronica per l Industria e l Innovazione Academic Year Ericsson AB 2011 Page 4 Ericsson AB

3 The Ericsson s contribution Workshop #1 Innovation for the sustainable enterprise: competing through business model innovation 09 March 2011, aula N10, 5:30pm (part 1) 16 March 2011, aula N2, 5:30 pm (part 2) introductory workshop Workshop #2 Everything you ever wanted to know about LTE but were afraid to ask 30 March 211, aula N2, 5:30 pm (part 1) 06 April 2011, aula N2, 5:30 pm (part 2) technology-focused workshop Workshop #3 Internet of things: a revolution beneficial to society 04 May 2011, aula N2, 5:30pm (part 1) 11 May 2011, aula N2, 5:30 pm (part 2) application-focused workshop Ericsson AB 2011 Page 5 March 9th and 16th Innovation (9) Sustainability (16) Business modelling (through innovation) (16) Ericsson AB 2011 Page 6 Ericsson AB

4 Inspiration My interest is in the future, because I am going to spend the rest of my life there Charles F. Kettering Ericsson AB 2011 Page 7 What is innovation? Voices from The Innovation Summit, Lisbon Council 2010 Turning ideas into money Education Bringing tools closer to people An improvement of something that already exists Catalyst for economic growth Market Introduction of a new process or product Something new Research Products Impact Opportunities which create jobs Creating value for users Source: Lisbon Council 2010 Innovation Summit, YouTube video Ericsson AB 2011 Page 8 Looking forward into the future Ericsson AB

5 Innovation demystified #1 Creatives #2 Successful ideas (generation) #3 Innovators (lack of) #4 Innovators (role) #5 Company failures #6 Successful ideas (execution) #7 Success #8 Potentially successful ideas (identification) Source: Busacca & Associati, L uovo di Colombo, online video Ericsson AB 2011 Page 9 Pathways to success Clear, immediate benefits success Similarity with ordinary things Gradual transparency of complexity Product ok, customer knows it and find it place Place gap: closed KISS (keep it simple, speedy, stupid) Product ok, customer knows it promotion Promotion gap: closed Easy (to sell, understand, buy ) Product ok, price ok product Product gap: closed Forget just a gap you fail! idea Source: Busacca & Associati, L uovo di Colombo, online video Ericsson AB 2011 Page 10 Ericsson AB

6 imagine engage change perspective dare believe think what if? Ericsson AB 2011 Page 11 Vision 2020 Source: Ericsson internal Ericsson AB 2011 Page 12 Ericsson AB

7 Global forces shaping the future Emergent markets as centers of consumerism and innovation Improvement of developed-market productivity Ever-expanding global networks Resource consumption vs sustainability The state as a business regulator and partner Source: McKinsey Quarterly, Strategy Practice, Global forces shaping the future of business and society, online video Ericsson AB 2011 Page 13 Discussing global trends and the ways companies can act on them! Source: McKinsey Quarterly, Ericsson AB 2011 Page 14 Ericsson AB

8 Five technological revolutions in 240 years Biotech? IT & Telecoms Automobile, Oil & Mass Product Steel & Heavy Engineering Steam, Coal, Iron & Railways The Industrial Revolution Source: Professor Carlota Perez Universities of Cambridge, Tallinn and Sussex Ericsson AB 2011 Page 15 Technological revolution propagates in two different periods INSTALLATION DEPLOYMENT Turning point More efficiently solving old problems - winners among old players Applying paradigm to innovate across society new winners years years Time BROADBAND IS AT THE TURNING POINT Source: Professor Carlota Perez Universities of Cambridge, Tallinn and Sussex Ericsson AB 2011 Page 16 Ericsson AB

9 We have only started the journey 24/7 Life The Changing Nature of Work Education Entertainment Privacy Intellectual Property Rights Government... ICT-emergent ICT everywhere ICT-integrated Turning point Pre-ICT Source: Ericsson internal Ericsson AB 2011 Page 17 What Ericsson does (and how and for whom) Ericsson AB 2011 Page 18 Ericsson AB

10 a full service vendor from services to products & solutions SERVICES Consulting System Integration Network Roll-out Customer Support Learning Managed Services Areas PRODUCTS Mobile & Wireline systems Transmission & Transport Consumer and business applications Revenue management Service delivery and provisioning SOLUTIONS Broadband Enriched communications Media Network efficiency Operations efficiency Source: Ericsson internal Ericsson AB 2011 Page 19 The globe is Ericsson s home turf Source: Ericsson internal Ericsson AB 2011 Page 20 Users of Ericsson s offerings are everywhere and almost anyone Ericsson AB

11 The Ericsson s new perspective MUCH MORE WORLD ORIENTED Source: Ericsson internal Ericsson AB 2011 Page 21 Telecom as industry with many stakeholders CONSUMERS MEDIA/CONTENT PROVIDERS REGULATORS ENTERPRISES SERVICE PROVIDERS GOVERNMENTS DEVELOPERS Ericsson AB 2011 Page 22 Ericsson AB

12 Telecoms reality is presenting major challenges and opportunities From To Traditional telecom IP Changes our ways of working and doing business Hardware Software Changes our pricing and business models New roll outs Network evolution Changes our engagement model THE ABILITY TO DEVELOP COMPETENCE, BEHAVIOR AND POSITION IS KEY Ericsson AB 2011 Page 23 Fundamental shift in the role Ericsson plays Advising on the big world agendas e.g. sustainability, energy, security Use our knowledge and perspective to re-think the telecoms industry Re-think how our solutions affect areas of society e.g. urban living, travel, mobile payment ERICSSON AS CHANGE AGENT Ericsson AB 2011 Page 24 Ericsson AB

13 A new brand idea At the heart of who we, in Ericsson, are and what we do as a business The driving force Timeless Fundamental Practical Innovation that Empowers built on our innovation capabilities Innovating to empower people, business and society Ericsson AB 2011 Page 25 The networked society Future needs to be shaped, not predicted It s more than just infocom technology It s about the need of human oriented understanding the need and importance of a vision Ericsson AB 2011 Page 26 Ericsson AB

14 Networked everything Tools for the networked generation Services for the networked enterprise Networked sustainability Source: Ericsson internal Ericsson AB 2011 Page 27 Networked platform for networked everything Imagine engage change perspective dare believe think what if? Ericsson AB 2011 Page 28 Ericsson AB

15 Make a difference fight against networked divide Ericsson AB 2011 Page 29 Ericsson AB 2011 Page 30 Ericsson AB