Business and R&D needs strengthening / needing eachother

Transcription

1 Business and R&D needs strengthening / needing eachother Presentation for the ICES R&D managers meeting Jonas Wigander BDGS R&D

2 Today s presentation Intro Who am I? Ericsson and Business Area Digital Services Our reality B A P O Four concepts depending on each other Reflections Self re-enforcing needs Commercial in confidence Ericsson AB Page 2 (22)

3 Who am I? Jonas Wigander Ericsson since 1993 Transport Networks GSM Radio Base AXE Platform GF Technology BA Digital Services Different line and project management positions Computer Science, Stockholm University Live in Stockholm Self re-enforcing needs Commercial in confidence Ericsson AB Page 3 (22)

4 From copper wire to artificial intelligence 140 Years of enabling communication 95% Of world population covered by mobile broadband (3GPP) 18 Billion connected devices in X Worldwide data traffic from 2017 to 2023 Ericsson Internal

5 Ericsson at a glance Enabling the full value of connectivity for service providers Business areas: Networks Digital services Managed services Technology and emerging business By the numbers: 180+ countries b.sek in sales 100,700 employees 45,000 patents Image: Ericsson headquarters, Kista, Sweden Ericsson Internal

6 Global presence North East Asia 12,4 100,700 employees worldwide 10,0 North America X 1,000 employees Ericsson Internal ,2 Europe & Latin America 4,5 Middle East & Africa 24,5 South East Asia, Oceania & India 55,000 of our employees are active within Services 23,600 of our employees are dedicated to R&D

7 Opportunity to create a competitive advantage Service providers face a tough environment. Demand grows fast while revenues are flat. Mobile data, EB 1 +74% Year-on-Year, CSP 2 revenues % Year-on-Year, Create an advantage Winners will leverage technology advances to improve and innovate Ericsson Mobility Report 2 Communication Service Provider 3 Ericsson analysis based on IDC, constant currencies Ericsson Internal

8 Three key opportunities for service providers Relentless efficiency Customer experience New revenue streams Ericsson Internal

9 Ericsson s organization Reflecting our business CEO Börje Ekholm Group Functions Finance & Common Functions Marketing & Corporate Relations Human Resources Legal Affairs Business Area Networks Market Areas North America Business Area Digital Services Business Area Managed Services Business Area Technology & Emerging Business Europe and Latin America Middle East and Africa North East Asia South East Asia, Oceania and India Customer Units Media Media Solutions Red Bee Media Self re-enforcing needs Commercial in confidence Ericsson AB Page 9 (22)

10 Self re-enforcing needs Commercial in confidence Ericsson AB Page 10 (22) I would like to talk about why so many of the changes we are currently working on are building on, supporting, strengthening, or are depending of each other, in a way I have not seen before!

11 Our reality - The world we live and act in We develop large SW systems for ICT and IoT solutions For hundreds of (mostly) larger customers (e.g. telecom operators) We are using a multitude of technologies We have many different competitors And all of the above is constantly evolving fast! I.e we are operating in a rapidly changing, highly complex world

12 B A P O usiness rchitecture & technologies rocesses and tools rganization Self re-enforcing needs Commercial in confidence Ericsson AB Page 12 (22)

13 Four changes depending on each other SW Subscription High efficiency in customer op s Container based SW components Continuous Delivery & Deployment Self re-enforcing needs Commercial in confidence Ericsson AB Page 13 (22)

14 SW Subscription Software Subscriptions or Software subscriptions & product support We are introducing Software Subscriptions Always providing you access to the latest and greatest SW Release of purchased Base- and Value Packages Paid as a recurring fee based on contracted Base- and Value Packages and used capacity

15 Let s start with the business perspective Attractive SW Subscription means customers want SW updates and upgrades regularly Self re-enforcing needs Commercial in confidence Ericsson AB Page 15 (22)

16 What does this mean for R&D? R&D need (and want) to be able to provide a continuous, fast flow of value Self re-enforcing needs Commercial in confidence Ericsson AB Page 16 (22)

17 Continuous Everything Continuous Analysis Continuous Delivery Continuous Deployment Other Deployment Methods Continuous Design Continuous Integration Continuous Release Self re-enforcing needs Commercial in confidence Ericsson AB Page 17 (22)

18 What does this mean for our products and solutions? Systems and solutions needs to be designed for fast, independent changes Self re-enforcing needs Commercial in confidence Ericsson AB Page 18 (22)

19 From Monolithics to Microservices Self re-enforcing needs Commercial in confidence Ericsson AB Page 19 (22)

20 What does this mean in services / op s? Customers need fast and simple deployment of SW packages Self re-enforcing needs Commercial in confidence Ericsson AB Page 20 (22)

21 Customer perspective Move OPEX costs to feature, capacity and quality growth by simplification, stability, predictability, efficiency Simplified operation, installation, updates, upgrades as natural part of products functionality Stability as a result of high quality products Predictability in when SW packages and commercial releases are available Efficiency increase through automation of manual interaction Self re-enforcing needs Commercial in confidence Ericsson AB Page 21 (22)

22 And then we have a self re-enforcing system of needs Attractive SW Subscription means customers want SW updates and upgrades regularly R&D need (and want) to be able to provide a continuous, fast flow of value Customers need fast and simple deployment of SW packages Products and solutions needs to be designed for fast, independent changes Self re-enforcing needs Commercial in confidence Ericsson AB Page 22 (22) or in worst case the opposite

23 What effect does this have on BDGS? Internal culture shift towards standardization and cooperation across organizations Strong focus on heavy automation of the SW delivery pipeline Paradigm shift in how we sell Simplified complexity, by focus on usability, and systems built on reusable components Self re-enforcing needs Commercial in confidence Ericsson AB Page 23 (22)

24 Reflections I have never seen this tight correlation between sales technology methods products before Why is this? Effect of the DevOps discussion? No, CD&D happened earlier Effect of SW subscriptions? No, they have been there for a while Effects of the abilities automation and data analytics brings? Mmm, we actually had that before I simply think we have a focal point where a lot of possibilities actually matured enough at the same time, And we have built the experiences to understand how they strengthen each other, As a result of starting on the journey towards business and development agility, The SW industry becoming more mature, And as a result of the needs for even higher efficiency in all aspects of our industry, Being an effect of ICT and IoT being in the rapidly changing, highly complex domain Self re-enforcing needs Commercial in confidence Ericsson AB Page 24 (22)

25 Self re-enforcing needs Commercial in confidence Ericsson AB Page 25 (22) Questions, comments?

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