innovation for the sustainable enterprise seminari 1 e … · › innovation for the sustainable...

Ericsson AB 2011 1

Innovation

for the Sustainable Enterprise

Competing through Business Model Innovation

Dr. Mauro Ugolini

Rome, 9 March 2011

© Ericsson AB 2011 | Page 2

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.

Source: http://www.linkedin.com/in/maurougolini

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The company

› Vision– “to be the prime driver in an all-

communicating 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– http://www.ericsson.com

Source: Take the World with You, Ericsson’s Annual Report 2010, http://www.ericsson.com

* 2010

** Excluding restructuring charges and share

in earnings of JVs


The context

› Ericsson and Roma TRE University

› The Permanent Advisory Board, School of Engineering, Applied Electronics Department

› “Ingegneria e Industria”, a cycle of cross-curricular workshops for laurea magistralis:– Bioingegneria

– Ingegneria delle Tecnologie dellaComunicazione e dell’Informazione

– Ingegneria Elettronica per l’Industria e l’Innovazione

› Academic Year 2010-2011

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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


March 9th and 16th

› Innovation (9)

› Sustainability (16)

› Business modelling (through innovation) (16)

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Inspiration…

“My interest is in the future,

because I am going to spend

the rest of my life there”

Charles F. Kettering


What is innovation?

› Voices from The Innovation Summit, Lisbon Council 2010

Source: Lisbon Council 2010 Innovation Summit, YouTube video

Something new

Turning ideas into money

Catalyst for economic growth

Introduction of a new process or product

Creating value for users

Opportunities which create jobs

Bringing tools closer to people

Research Products

Market

An improvement of something that already exists

Impact

Looking forward into the future

Education

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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


Pathways to success

› Clear, immediate benefits

› Similarity with ordinary things

› Gradual transparency of complexity

› KISS (keep it simple, speedy, stupid)

› Easy (to sell, understand, buy )

› Forget just a gap… you fail!

Source: Busacca & Associati, L’uovo di Colombo, online video

Product ok,

price ok

Product ok,

customer knows it

Product ok, customer

knows it and find it

idea

success

place

promotion

product

Place gap:

closed

Promotion gap:

closed

Product gap:

closed

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imagine

engage

think

what if?dare

believe

change

perspective


Vision 2020

Source: Ericsson internal

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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


Discussing global trends…

› … and the ways companies can act on them!

Source: McKinsey Quarterly, https://www.mckinseyquarterly.com/Global_forces_shaping_the_future_of_business_and_society_2701

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Five technological revolutions in 240 years

1771 - The Industrial Revolution

1829 - Steam, Coal, Iron & Railways

1875 - Steel & Heavy Engineering

1908 - Automobile, Oil & Mass Product.

1971 - IT & Telecoms

Source: Professor Carlota PerezUniversities of Cambridge, Tallinn and Sussex

Biotech?


Time

INSTALLATION DEPLOYMENT

Turningpoint

20-30 years 20-30 years

More efficiently solving

old problems - winners

among old players

Applying paradigm to

innovate across society –

new winners

Source: Professor Carlota PerezUniversities of Cambridge, Tallinn and SussexBROADBAND IS AT THE TURNING POINT

Technological revolutionpropagates in two different periods

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ICTICTICTICT----integratedintegratedintegratedintegrated

PrePrePrePre----ICTICTICTICT

ICTICTICTICT----emergentemergentemergentemergent

““““ICT everywhereICT everywhereICT everywhereICT everywhere””””24/7 Life 24/7 Life 24/7 Life 24/7 Life

The Changing Nature ofThe Changing Nature ofThe Changing Nature ofThe Changing Nature of

•WorkWorkWorkWork

•EducationEducationEducationEducation

•EntertainmentEntertainmentEntertainmentEntertainment

•PrivacyPrivacyPrivacyPrivacy

•Intellectual Property RightsIntellectual Property RightsIntellectual Property RightsIntellectual Property Rights

•GovernmentGovernmentGovernmentGovernment

•............

TurningTurningTurningTurning

pointpointpointpoint

We have only started the journey



What Ericsson does

(and how and for whom)

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PRODUCTS SOLUTIONSSERVICES

a full service vendor from services to products & solutions

› Consulting

› System Integration

› Network Roll-out

› Customer Support

› Learning

› Managed Services Areas

› Mobile & Wireline systems

› Transmission & Transport

› Consumer and business applications

› Revenue management

› Service delivery and

provisioning

› Broadband

› Enriched communications

› Media

› Network efficiency

› Operations efficiency



The globe is Ericsson’s home turf

Source: Ericsson internalUsers of Ericsson’s offerings are

everywhere and almost anyone

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The Ericsson’s new perspective

MUCH

MOREWORLDORIENTEDSource: Ericsson internal


Telecom as industry with many

stakeholders

CONSUMERS

REGULATORS

GOVERNMENTS

SERVICE PROVIDERS

MEDIA/CONTENT PROVIDERS

ENTERPRISES

DEVELOPERS

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IP

Changes our ways of workingand doing business

Network evolution

Changes our engagement model

Software

Changes our pricing andbusiness models

Telecoms reality is presenting majorchallenges and opportunities

THE ABILITY TO DEVELOP COMPETENCE,BEHAVIOR AND POSITION IS KEY

Traditional telecom

New roll outs

Hardware

From To


Fundamental shift in the role Ericsson plays

ERICSSON

AS CHANGE AGENT

Advising on the big worldagendas e.g. sustainability,energy, security

Use our knowledge and perspective tore-think the telecoms industry

Re-think how our solutions affect areas of society e.g. urban living, travel, mobile payment

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A new brand idea

• The driving force• Timeless• Fundamental• Practical

Innovation that

Empowersbuilt on our

innovation capabilities

Innovating to empower

people, business and society

At the heart of who we, in Ericsson, are and what we do as a business


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

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Networked everything…

Tools for the networked generation

Services for the networked enterprise

Networked

sustainability

Networked platform for

networked everythingSource: Ericsson internal


Imagine

engage

think what if?dare

believe

change

perspective

Ericsson AB 2011 15


Make a difference

fight against

networked divide


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