Download Oi Innovation Ecosystem

Oi Innovation Ecosystem
Jose Rogerio Vargens
Executive Consultant
PhD on Economics
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Johannesburg, South Africa
October 5th 2011
ABOUT BRAZIL AND ABOUT OI
OI INNOVATION ECOSYSTEM
ABOUT BRAZIL AND ABOUT OI
OI INNOVATION ECOSYSTEM
BRAZIL SNAPSHOT
Land Area
Income Classes
ƒ 8.5 Million Km2 (80% of the size of Europe)
Population
ƒ 191 Million inhabitants (5th largest)
ƒ 57 Million households (84% urban)
2005
2010
Income*
A/B
15%
22%
R$ 2,983
C
34%
53%
R$ 1,338
D/E
51%
25%
R$ 809
7th largest economy in the world
ƒ GDP: US$ 2.2 Trillion (2010)
ƒ Currency – US$ 1.00 = R$ 1.66 (Dec/10)
Strong expansion in GDP per capita plus record low
unemployment rate have resulted in a significant shift
in income classes.
* Average income per household per month
Source: PNAD, O Observador – OPSOS2010, IBGE
BRAZILIAN TELECOM MARKET
BRAZILIAN TELECOM MARKET IS RELEVANT GLOBALLY
AND IS THE LARGEST IN LATIN AMERICA
Fixed Lines
in Service
ƒ June/10
Mobile Users
MILLION
4º
ƒ March/11
5º
Fixed
Broadband
Users
10º
ƒ June/10
Source: ANATEL, IBGE, Teleco, ML Wireless, UNCTAD and Internet World Stats
OI IN BRAZILIAN TELECOM MARKET
Economic
Group
Oi
(Brazil)
Telefônica
(Spain)
Telmex
(Mexico)
TIM (Italy)
GVT
(France)
Others
Vehicle
Service
Clients
mkt share
Fixed
48%
Mobile
20%
Fixed
Broadband
31%
Telesp
Fixed
27%
Vivo
Mobile
29%
Telesp
Fixed
Broadband
23%
Embratel
Fixed
17%
Claro
Mobile
25%
Net
Fixed
Broadband
25%
~ pure
mobile
Mobile
25%
Fixed
6%
Fixed
Broadband
9%
Fully
Integrated
~ pure
fixed
Fixed
2%
Mobile
1%
Fixed
Broadband
12%
Revenue
mkt share
Oi telecom clients:
25%
41,5 million
mobile access
28%
19,7 million
fixed access
23%
4,4 million
broadband access
12%
0,3 million
pay-TV access
3%
9%
66 million access
(25% of Brazilian access)
OI AMONG MAJOR GLOBAL TELECOM
GROUPS
Oi is small among the
world largest telecom
groups, but big enough
to worry about
innovation
We believe innovation
is crucial to our
survival
ABOUT BRAZIL AND ABOUT OI
OI INNOVATION ECOSYSTEM
FOCUS OF INNOVATION
Oi aims innovation in telecom and information services.
Industry
innovation
Develop
technologies to
make products.
≠
Service
innovation
Use products and
develop technologies of
process to serve clients.
Oi innovations main aims:
ƒ High operational efficiency and low costs.
ƒ Differentiation in products and offers.
ƒ Improvement and sustainability in client
relationship.
COMPROMISE TO INVEST IN R&D
In 2008, Oi assumed a
compromise with
Anatel to invest 0,5% of
its revenue in R&D
until 2025.
In 2010:
R&D compromise
US$ 40 million
R&D invested
US$ 60 million
Considering R$ 1,66/US$ in dec/2010
OI INNOVATION LAUNCHED IN 2009
• Acceleration and project foment
• Organization and first projects
• Creation of Innovation Management
Unit inside Oi, to lead and operate the
innovation program.
• Partnership with researcher centers
and other firms and institutions, to form
the innovation ecosystem.
• Start-up of the first programs and
projects.
2009 - 2010
• Stimulation of new projects using new
foment forms
• Expansion of the innovation ecosystem.
• Creation a Innovation and R&D investment
fund.
2011
THE INNOVATION PROCESS
Oi
Oi Innovation
Management
Unit
Lead and manage
the process
Other Oi
Management
Units
Demands innovation
Brazilian
Research
Center
Development of innovation
supervised by or in
partnership with Oi.
INNOVATION CALLING INSIDE OI
Calling of innovation
projects on the intranet.
Prize for the best
innovation projects.
Prêmio
inovação
“simples assim”
NEW RELATIONSHIP WITH TELEINDUSTRY
Traditional
relationship
Oi used to buy telecom
equipment and solutions
calling suppliers and
buying from whoever
offered the best costbenefit relation.
New
relationship
For some solutions, Oi calls a
strategic technological or equipment
supplier to develop a solution in
parternship.
These solutions are developed
jointly with Oi and the partner, in
order to better meet Oi necessities.
After development, Oi calls all firms
in the market to get the best offer.
Oi only buys from the initial partner
if it has the best commercial
condition, but it has a previous
advantage of having participated in
the development process.
ACTORS ENVOLVED IN THE ECOSYSTEM
SOME OI INNOVATION VECTORS
Convergence
Chip Alone
e-public school
Client has an Oi, not
only a mobile phone.
Shared mobile and fixed
local and large distance
voice minutes.
Micro recharge
Solutions to public
administration
Oi Total Card
“Over the air”
micro recharge
Unique card to main
telecom services.
On line
presence
Transport to
school
Mobile payment
Food at
school
Curriculum
THANK YOU
Jose Rogerio Vargens
[email protected]