Open Telefonica: Open Innovation Experiences in Telefonica I+D (the R&D Unit of Telefónica Group) OECD. Business Symposium Open Innovation in Global Networks Copenhagen, 25-26 February LUIS I. VICENTE
Index 01 Telefónica Group: a solid leader in the telecommunication industry 02 Telefonica I+D s Global Innovation Network 03 Open Innovation Challenges 2
Index 01 Telefónica Group: a solid leader in the telecommunication industry 02 Telefonica I+D s Global Innovation Network 03 Open Innovation Challenges 3
Telefónica has experienced a significant transformation during recent years 1990 Today Customers 12.6 Million Customers More than 206.5 Million Customers Services Voice & Data Services Diversification of services, with more added value Geographic areas Spain More than 20 countries Finances Revenues: 5,100 M Assets: 19,800 M Revenues: 52,900 M Assets: 109,000 M Note: Financial data as of end 1990 Note: Financial data as of end 2006; Operational data as of March 2006 4
and today is one of the largest telecom operators in the world Total accesses worldwide Top 10 Million accesses as of September 2007 Total accesses (as reported by companies)=fixed lines + Mobile subscribers + Narrow and Broad Band + Pay TV. 5
Telefónica has a really european scope and is a leader in Latin America SLOVAKIA CZECH REP. GERMANY USA MEXICO SPAIN MOROCCO PANAMÁ PUERTO RICO VENEZUELA CHINA GUATEMALA EL SALVADOR NICARAGUA COLOMBIA ECUADOR PERU BRAZIL URUGUAY ARGENTINA UNITED KINGDOM IRELAND CHILE It s share capital trades in 9 countries Significant presence in 23 countries Listed among the top 50 index of most important companies in the world 6
For Telefonica, innovation is the process through which knowledge is turned into profitable P&S that add value for the customer or better business processes Menu 1 Play 2 Pause 3 Previus 4 Next Menu 1 Play 2 Pause 3 Previus 4 Next Technological Commercial Processes Management 10
An innovation framework has been defined Innovative ways for growth Converge into the best innovation process Focus on other themes than technology Increase our relationships with third parties Promote an innovative culture 11
Agreements with third parties. Some examples R&D&I 14
Index 01 Telefónica Group: a solid leader in the telecommunication industry 02 Telefonica I+D s Global Innovation Network 03 Open Innovation Challenges 17
One of the main topics: How your company has set up its global innovation networks? R Research D Development I Innovation European, National & Regional Funding Vendors Customer experience Venture Capital Management Web 2.0 Incubation & Spin in Movilforum Contents providers 18
Global innovation networks focused on Research R Research D Development I Innovation European, National & Regional Funding Vendors Customer experience Venture Capital Management Web 2.0 Incubation & Spin in Movilforum Contents providers 19
Three different profiles in the open innovation process can be identified with research activities: The research guy We can use also Universities 20
. new ideas scout Universities, SMEs, MNEs,Market 21
venture... SME s 22
Applied research funding 23
Telefónica has launched a new model of Venture Capital companies Telefónica began in 2007 with this program, allocating 20 million euros. It has already been invested in 3 companies (Usability and user interface) At the end of the year, we expect to have a portfolio consisting of about 10 or 12 companies, well positioned in areas as advertising in the mobile social networks, converged fixed-mobile services or medical and health care services. (Advertising in the mobile) Telefónica's strategy is based on controlling minority shareholdings in companies from the strategic point of view, benefiting Telefónica in "key areas and possible future growth. (Video+ mobile + social networks) 24
Global innovation networks focused on Development R Research D Development I Innovation European, National & Regional Funding Vendors Customer experience Venture Capital Management Web 2.0 Incubation & Spin in Movilforum Contents providers 26
There are a specific profile that could be identified with development... SME Outsourced 27
Our market is global Our goal is develop global solutions...but well adapted to regional and local preferences. 28
People demands adaptable services...... FOR SATISFYING ALL THE COMMUNICATIONS, INFORMATION AND LEISURE NEEDS In everywhere Always on With everybody 29
Thus, we need to develop new services putting the user at the centre, improving people s lives, while helping to eliminate barriers in a global world... 32
Some best practices of Telefónica in Open Innovation: Open movilforum Open source software community Application development support on Open Source, Web 2.0 and mobility Open APIs Interfaces with other Movistar services (SMS, MMS, localization, pay ) Collaborating third parties interested in the application exploitation (IBM, PayPal) Content provider is the user 33
Global Innovation Network focused on Innovation R Research D Development I Innovation European, National & Regional Funding Vendors Customer experience Venture Capital Management Web 2.0 Incubation & Spin in Movilforum Contents providers 34
We need also a specific profile related to the deployment and the launching of new services. Outsourced Customer experience 35
Innovation 2.0.: web 2.0, social networks, collaborative working, open source... A new way to create knowledge Social Networks Open source Knowledge marketplaces... 36
Opening Level Today, are talking about Open Innovation, but from the user point of view new trends are arriving Massive Innovation Democratizing Innovation Open Innovation Closed Innovation time 38
Conclusion: Telefonica s Innovation Network is based on higher openness at different levels R Research Collaboration with partners : Universities: Public Administrati ons SMEs Venture Capital D Development Collaboration with services developers. I Innovation Customer Experience 40
Index 01 Telefónica Group: a solid leader in the telecommunication industry 02 Telefonica I+D s Global Innovation Network 03 Open Innovation Challenges 41
Open innovation opportunities & Challenges Opportunities A good way for building common standards and new business models More efficiency At the ICT sector the open innovation model is already evident Challenges How to balance internal and external resources? How to control and monitoring collaborative projects? How to manage multicultural and virtual teams? 42
Conclusion: Some proposals to Public Administrations Innovation is essentially a business phenomenon, but with the open innovation, the role of public actors becomes more significant: Some proposals: Putting focus on the physical ICT networks for exchanging knowledge between all the agents of the Global Innovation Networks, Promoting public grants, loans and tax Credits for R&D in collaboration Putting focus on R&D&Innovation management tools (promoting new models and professional profiles) Building new ways for transferring knowledge between public and private sectors. Collaborating from the public sector to identify new technology trends and promoting living labs for forecasting new market trends. Evolving the IPR framework from an open innovation point of view. Putting focus, also, on the innovation in services, where the open innovation model is evident. 43
Q&A? THANK YOU! My e-mail: livdo@tid.es (Name: Luis I. Vicente) 44