david belanger at&t labs chief scientist, and information & software systems research v.p

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


Outline

• A Strategic Process

• Product Development Process (One-Process)

• Innovation Process

• Incubation Processes

• Summary


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, …


Outline





• Summary


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’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


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


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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


Outline





• Summary


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


Outline





• Summary


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


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


PIP Report – Default View

Last ,First


AT&T InfoLab

The objective of the InfoLab is to revolutionize the way AT&T uses information to operate and compete.


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 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)


A Proven Model for Technology Transition

Research Systems Operations

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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.


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


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


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


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


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.


Outline





• Summary


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


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

david belanger at&t labs chief scientist, and information & software systems research v.p

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