david belanger at&t labs chief scientist, and information & software systems research v.p
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AT&T Proprietary Information
David Belanger AT&T Labs Chief Scientist, andInformation & Software Systems Research V.P.
AT&T’s Approach to Defining Invention, Incubation, and Innovation, Processes
SATM Conference, May 19, 2005
AT&T Proprietary Information 2
AT&T Labs
Florham Park, NJ
Middletown, NJ
Menlo Park, CA
• 4,200 of the world’s best scientists and engineers
• AT&T’s patent portfolio includes 2,069 U.S. issued patents and 1,162 Global issued patents
• 120 years of technology breakthroughs and product/service innovation
• Over 78% of our scientists & technologists hold a PhD or other advanced
degree
• Currently involved with over 50 U.S. & international universities:
• 12 active research collaborations • 40 informal research exchanges & collaborations
The Innovation Engine Behind AT&T’s World-Class Technology
AT&T Proprietary Information 3
Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
AT&T Proprietary Information 4
New Services and Operations
Technology Strategy & Roadmap
Business Strategy & Roadmap
Combined Processes
Sources of Market & Product
Information
Integration of Information by CTO
Business Strategic Analysis & Product
Planning
Sources of Technical Information
Sources = Customers + Suppliers + R&D + Consultants + Universities + Start-ups + Venture Companies + Trade/Professional Relationships + … Sources = Customers + Suppliers + R&D + Consultants + Universities + Start-ups + Venture Companies + Trade/Professional Relationships + …
CTO Process
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Examples: E-Contact, Concept of 0/1, …
AT&T Proprietary Information 6
Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
AT&T Proprietary Information 7
Product Development Cycle
AT&T’s Core Competency is to develop products and implement them into a production environment. Examples of our products include, but are not limited to:
– Connectivity: Voice and Data
– Managed Solutions: Desktop, IP, Hosting
– Local Services: Voice and Private Line
– Various access networks (e.g., Cable, DSL, Fixed Wireless, Dial, PSTN, Wireless, Fiber, PL/OC-X, ATM/FR, Ethernet and IP)
» Tools to manage these networks (e.g., Asset Management, Fault Management, Capacity Management, Configuration Management, Performance Management, and Element Management)
AT&T excelled in systematically bringing people, technologies and processes together to rapidly deliver the highest-quality services. Our approach underscores the need to not only maximize customer satisfaction and minimize cost, but to constantly provide innovative solutions in a dynamic market environment.
AT&T Proprietary Information 8
AT&T’s PDP Process
Service Test: Tests the service against the test plan in simulatedand live environments
Service Test
Definition: Defines the detailed plan and requirements needed to implementthe service
Definition
Feasibility: Determines the specification of the solution for the service
Feasibility
SG-11
SG-9
SG-2SG-1
A phased process that defines how all components for services are realized– 6 Phases with 5 major business decision points (Decision Gates)– 9 Service Gates (5 support Decision Gates) for technical readiness decisions– Serial gates for managing risk of any concurrent operation
DG-2
DG-3
DG-4
SG-14
Feasibility Report
Proj Plan
SW/HW,Test Plans
TestResults
Concept
Concept: Defines a high levelview of the service idea and associated time and cost
SG-13
NeedsRequest
Development: Creates the physical realization that implements the given requirements
Development
Introduction: Introduce asrequired and begin LifeCycle Management
Introduction
SG-0General Availability,Controlled Introduction,Market or Technical Trial – as required
Service Gates (Can We Go Forward)SG-14 StartSG-13 Start FeasibilitySG-11 Start DefinitionSG-9 Start DevelopmentSG-5 Start VerificationSG-4 Start Service TestSG-2 Start ORTSG-1 Start IntroductionSG-0 End IntroductionReserved SGs are not shown
Decision Gates (Should We Go Forward)DG-1 Proceed with FeasibilityDG-2 Proceed with DefinitionDG-3 Proceed with DevelopmentDG-4 Proceed with IntroductionDG-5 Proceed with Life Cycle
DG-5
DG-1
SG-5SG-4
AT&T Proprietary Information 9
Concept-of-One/Zero Definition
Process Systems Network
Concept-of-One
• Consolidate similar functions across organizations
• Consolidate systems
• Create and re-use components
• Deploy integration bus
• Consolidate transport, packet, voice, and VoIP networks
• Deploy multi-service edge, MPLS BB
Concept-of-Zero
• Deploy rules, workflow, auto-inventory, e-enabled self-service and supply chain, collab. Bus
• Retire systems
• Scrub DBORs
• Choke sources of DBOR errors
• Deploy hands-free, intelligent, self-healing network
• Retire legacy network elements
High quality network and operations yield a more efficient cost structure and improved customer experience
AT&T Proprietary Information 10
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Concept-of-One Systems Concept-of-One Modular Platform Shared Data Bases of Record,
Common Data Model
Policy-Based Configuration Web Services / Customer Control
Billing and Financial MgmtSales & Account Mgmt
“Concept of One” System
FaultManagement
CapacityManagement
Configuration Management
PerformanceManagement
Customer Relationship Management
Service Management
Element Management
Network Management
AccessCustomer
Prem..Network
Global MPLS / Optical Network
Data Bases of Record
CustomerCustomer
ServicesServices
NetworkNetwork
AT&T Proprietary Information 11
Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
AT&T Proprietary Information 12
High Level Innovation Process
Identify new technologies,
emerging needs, or firms
Determine strengths,
weaknesses, market potential
Winnow down for further
evaluation or investment
Validate new technologies or
firms
Put through GMSP or
OneProcess for market launch
- Research- Product Drivers- Academia- Press- Analysts- Consultants- Customers- Vendors- Partners- VCs- Start-Ups
- Market Size- Fit with Core Business / Strategy- Synergies- Customer Franchise- Customer Interest- Competitive Advantage
- Outline Business, Technical, & Operational Term Sheet- Determine ITB Expense and Capital Requirements- Architecture Fit
- Clear Trial Goals- Focused Time Bucket- Stage-Gate Investment Plan
- Business Case- Market Sensing- Strategic Fit- Platforms
WorthEvaluation?
StrategicOpportunity?
$$$ forTrial?
TrialObjectives
Met?
Prospect Evaluate SelectTrial /
PrototypeIntroduction
AT&T Proprietary Information 13
Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
AT&T Proprietary Information 14
PIP Mission/Goal/Scope Project Incubation Process (PIP) tracks all AT&T incubation projects in the Concept or
Feasibility stages of OneProcess life cycle. It provides a dashboard view of all projects by organizations, technology areas, funding organizations, vendors, and business impacts.
Define portfolio of new, innovative services to incubate in alignment with strategic direction driven by BU initiatives and customer/market needs not yet in product plans
Provides a dashboard view of all projects to SLT by organizations, technology areas, funding organizations, vendors, and business impacts.
Manage Incubation activities across AT&T Starting with viable ideas and proposed concepts Escorting concepts and innovation through technical trials and feasibility validation Ending with technology services
Identify and exploit synergies: bridge the gap between ideas and technologies emanating from Customers, Development, Offer, Operations, Product, Research or Sales of new services; avoid duplication & share resources, experiences and expertise
Reduce new technology introduction cycle into AT&T and accelerate Time-to-Market and Time-to-Volume
Market
OffersIncubation
Technologies
AT&T Proprietary Information 15
IncubationManagementTeam, SLT
Process Flow
External
Product, Business, SLT, …
Vendors,VCs, SCP,
…
Prioritize,
Filter,
Select
Incubate,Manage
Incubation
Arch, Eng,Develop, CTO/RFX,
SMD
Drop
VendorTrack
FoundationArch
Updates
IncubationTracking
Management Data
Reports, KPI
Reports, KPI
Internal(E-enabled Channels)
PIP
AT&T Proprietary Information 16
PIP Report – Default View
Last ,First
AT&T Proprietary Information 17
AT&T InfoLab
The objective of the InfoLab is to revolutionize the way AT&T uses information to operate and compete.
AT&T Proprietary Information 18
AT&T Data Mining Approach
Efficient, Reliable, Secure DataTransport
NETWORK
Fraud, Customer Focused Operations,AT&T Switched Network, Frame Relay,
Retail Marketing, . . .Storage and processing architecturesThat operate at scale,
and in real time
Industry leading Information Mining Technology for Transactional Data
The most effectiveways to deliver
Information & Alertsto decision makers?
DATAMANAGEMENT
DATAANALYSIS
INFORMATIONVISUALIZATION
Application Specific Knowledge
DATA
Structured Data - RDBMS
Semi -Structured Data - WEB Unstructured Data
Text
Speech
Image
Video
Data Spectrum
Sensors
Packet Nets
Collectors
AT&T Proprietary Information 19
AT&T InfoLab End-to-End Data MiningInput(Raw Data)
Collection Cleaning,
Validation &
Serialization
Transformation&
Augmentation
Storage &DB
Management
Mining &Analysis
Interpretation&
Presentation
Output
InfoLabDatabases
Signatures
SCAMP
DataBarn
450Switches
Collector
Collector
Collector
Collector
Vetter
AMA Data from switches
-350M calls/day-60 Gb data/day
-150 bytes/record
Billing
AMAProcessor
Pzip’dCall
Detail
SWIFT
GlobalFraud Mgmt
System
Streamer
Hancock
COIAnalysis
Fixed-formatCall Records
PowerWall
Alerts
Reports
Cases
COIDisplays
Analysts
FraudCase
Managers
Operationalization:-Procedural-Automated
Analysts
StrategicDecision-Making
Call Detail
2 minutes
Learning and
New Questions
Further Investigation(Queries)
AT&T Proprietary Information 20
A Proven Model for Technology Transition
Research Systems Operations
610-xxxxxxx
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610-xxxxxxx
267-xxxxxxx
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610-xxxxxxx
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661-xxxxxxx
AT&T Proprietary Information 21
Background
Bridging research prototypes and tools into production systems provides competitive advantage for AT&T
In 2000, a formal incubation process was established for Information Mining
The result is over 10 production systems have successfully been incubated and deployed.
AT&T Proprietary Information 22
Rapid* Incubation Process
Research Developed
Technology/Prototype
DocumentationTesting
User SupportHelp Desk
User AdminTraining
Production level environmentStable/scalable code
Stable/redundant physical architectureRelease Management
Production controls/alerts/auditsData security/privacy
Project ManagementCustomer Presentations
* New technology incubated, hardened and deployed commercially in 2 -5 months
AT&T Proprietary Information 23
Rapid Technology Infusion and Productization
Research Production Systems Business Impact
•Smart Sampling
•Streamer, COI, Daytona
•MVS2PC
•Deployed in TAS
•Utilized in GFMS, XRICS, Government projects, TAS. Planned for OCDD rearchiatecture
•Planned for several major billing system re platforms
•TAS: Revenue and retention for key customers
•GFMS: World class fraud rate of under 1% plus averted losses measured in tens of millions
•XRICS: $NN millions savings per year
•OCDD: Savings of $NN m
•Per Billing System: Savings estimated to be $NN millions per year.
•VIT/VIP: Savings of $NN m
AT&T Proprietary Information 24
Rapid - Seamless Technology InfusionPhase Projects Technology
Market Launch Internet Protect/Storm/Flood
Traffic Analysis Service
Daytona
Daytona, Smart Sampling/Gigascope
Pre Sales-Internal RAMP replatform
CPP Replatform
Universal Biller Replatform
MVS2PC, Daytona, XML transforms
MVS2PC
MVS2PC
Pre Sales- External Government (2 classified, 2 non classified) Daytona, streamer, IP, COI, Visualization
Delivery - Internal XRICS
OCDD
GFMS
Access Abuse Detection System
IPSS: Streaming Video
Employee Abuse System
Profit
VIT/VIP
Daytona, Streamer, YOIX, PZIP
Daytona, Streamer, YOIX, Seecalls
Daytona, Streamer, YOIX, COI, HTN
Daytona, Streamer, YOIX, HTN
Video Compression
Daytona, Streamer, YOIX, HTN
Customer scoring models
Intelligent Caching
Delivery - External AWS Network Diagnostics
Governement (2 classified)
EMN
American Idol
Daytona, streamer
Daytona, streamer, COI, pzip, Bellman
EMN
Streamer, Daytona, Visualization
Incubation Gigascope/Edge
CVE
Gigascope, Daytona
Ningaui, Streamer
AT&T Proprietary Information 25
Challenges for R to D for Information Systems
Prototypes or Proof of Concepts have hurdles to overcome to go directly into a development process
Need to have Operations Plan developed Need Performance Mgmt/Controls to be implemented Limited or no documentation exist in the PoC phase Need production level hardware and software architecture Need testing plans, environments and test cases Need integrated security plan developed and implemented
Many of these systems utilize niche products due to the size and speed of the information management needed to support the business. Transition and training to the development group needs to be done
AT&T Proprietary Information 26
Process for R to D for Information Systems
Proof of Concept
Output: PoC complete, PoC confirmed that the technology works and PoC meets the business needs.
IncubateDevelopmentTransitioned
OperationsTransitioned
Output: System on production HW, Documentation complete, OTP complete, Test plan and system complete, ETE performance controls in place
Output: System Operation fully transitioned to new organization, team trained, documentation provided.
Output: Development fully transitioned to new organization, team trained, documentation provided.
AT&T Proprietary Information 27
Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
AT&T Proprietary Information 28
StrategicGo-To-Market
Alliances
CorporateStrategy
The Innovation Process Fits Within a Broader Context
SegmentMarketing
Public /Analyst
Relations
Sales
CurrentService
Extension
One-OffDeals
GMSPProcess
Cost andCapital
Reduction
FoundationArchitecture
CFO /Budgeting
MarketingComms
ABSStrategy
InnovationProcess
InnovationProcess
AT&T Proprietary Information 29
Summary
• One Process – For Well Understood Processes
• Iteration – For the Innovation Process
• Model Transfer – Incubation Processes
• Measurement – The Key to Controlled and Optimized Processes
• Feedback Control – No Process Should Run Open Loop
• Scale – Of Services, Of Processes
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