Carlos Domingo Director, Internet and Multimedia Lab

TELEFÓNICA I+D June 19th, 2009

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Openness in the telecommunication industry Open with care or care to open?

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Differentiation from competition and identifying new sources of growth is critical

Cumulative Annual Growth Rate (Percent)

Revenue growths in traditional broadband and mobile markets

are diminishing…

…and strong co-opetition for new revenue sources is

emerging

Telecommunications industry will need to reinvent itself to face challenges ahead

Mobile Internet Services & Content

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Innovation will be key but we have to change our mindset to innovate differently…

Environment changes

•  Pressures on TTM, shorter development cycles, permanent Beta as a must

•  Knowledge is spread everywhere and is a not preemptive resource

• Increasing information availability

• Global Markets but finer segmentation

• Coopetition versus competition

• Here come the Prosumer ….

From

To

(*) Analogy borrowed from Henry Chesborough

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… that for Telco’s particular case is represented on five paths to openness

Open to Employees

Open Innovation

Open to Consumer

Open the Network

Open to Developers

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Opening conversations with customers to really understand them and foster co-creation

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Co-creation and two ways conversations with customers

If you’re no longer speaking your customers’ language, if you no longer live in their world, the disconnect will be costly

Transparency and simplicity on communication, tariffs, billing, offer and, of course, claims

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Going beyond traditional partnerships to establish open innovation networks…

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Universities & Technology

centers

Large corporations

Startups and SMEs

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Although not something easy to do….

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Remember last year experiment after the “friendly” operators panel at Mobile 2.0 Europe?

Only 4 companies contacted me:

 One just with an idea, no product to test or see

 One with a product in a category already had one (and happy with it)

 One in a category we were not interested

 One ended up participating in a RFI (did not make to RFQ it though)

Let´s continue trying!!!

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… while fostering the internal culture of innovation to harness employees’ untapped talent…

“…open innovation does not mean killing internal R&D, you need smart people to talk to other smart people…”

Bottom up Idea generation Using Web 2.0 Tools

Transparency Great Place to Work

Boosting internal conversations and co-creation

Information has to flow inside the companies, no more limited visions

Building a better society, by transforming the companies workplaces.

Implementing mechanisms to allow any employee to propose an idea for a new business opportunity.

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… and openning our Networks as a Service to cover the long tail of innovation

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Telco companies has unique and valuable assets that potentially could be mashed-up with the others

Telcos are finally realizing that there are major advantages to be leveraged by becoming an open ‘service platform’ to reach the long tail of developers without getting on their way

Service Delivery Call Control Device access/control

Infraestructure Mobile Internet SMS

QoS Identity Charging Location

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…but realizing that network resources are not the only telco assets interesting for developers

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Telco social graph

To know customer’s social context & social spheres

Context-awareness

To know any relevant information for each particular situation

Personal

To know the person behind the customer

Exploit user insight to deliver personalized services

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Network fragmentation Device and OS fragmentation

and trying to make the developer’s dream come true: One API to rule them all!

Network independence Device independence

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…and showing you the money!!!!

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It is a long trip but the industry has started to walk the talk

UX and Living Labs

Open to Employees

Open Innovation

Open to Consumer

Open the Network

Open to Developers

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