Alcatel-Lucent Enterprise: Building New Revenue Streams through Connectivity/IoT - From Physical Products to Cloud Solutions

1. ALCATEL-LUCENT
ENTERPRISE
Where Everything
Connects
Pierre-Yves NOEL

2. COMMUNICATIONS
+
NETWORK
2.500 employees
deskphones
users
800.000+ customers
channel
partners
40M
3.000+

3. 3
Disrupt or be disrupted
Substitution by large
cloud collaboration
platforms
Transformation of
business models
(CAPEX to OPEX)
Many small players
disrupting the market
Large players
pushing down on
margin and prices

4. 4
Hospitality Transportation Education Healthcare Government
Hybrid &
UCaaS
OUR STRATEGY: FOCUS ON VERTICAL, CLOUD AND SERVICES
CpaaS IoT &
Mobility
Product as a
Service
Advanced
Services

5. 5
•This is a communication device •This is a communication device
•Physical good •Cloud service
•Sold through distribution •Consumed by developers
•Paid upfront… up to now •Paid on Usage? Commitment? etc.
•Easily commoditized •Integrated into customer business processes
•Still needed in the new era •Proposing both creates a differentiator
Building unique solutions to move away from commoditization

6. 6
ProActive Lifecycle Management
• Real-time assessment of products’ lifecycle information
• Advise customer on technology roadmap
• Upselling leverage on installed base for us and our channels
Network on Demand
• Network infrastructure as a service
• Scales to customer bandwidth usage
• Price per “used port” per month
Re-inventing through business model innovation
Hospitality
• PBX & Phone sets paid on room occupancy rates
• Increase average revenue per room for hotels
• Price per occupied room
B2B2C Banking
• Overlay cloud communications services with business process integration
• Improve engagement of Consumers through connection with their advisors
• Recurrent (advisors) & usage (interactions)
4 examples

7. 7
A PLATFORM STRATEGY: RAINBOW
RELATIONS SERVICES
PBX &
Terminals
IDENTITIES
Rainbow App
Third party
App’s
Internet of
Things
Customers and
employees
APIs
RELATIONSHIPS
BOTS
ANALYTICS
IOT CONTAINER

8. 8
Enabling Business Model innovation with Zuora
Our previous landscape could not enable our new business model...
… as it required new critical capabilities
=> we had to create a new business model innovation platform
Internal CPQ
Products not
connected
Datalake
Data not
valued
Self service
Insight to
action
Fast time to
market
Monetize anything
with agility
Flexible invoices
and payments
Payment
gateway

9. 9
Admin
E-commerce Purchasing Tunnel
ALE Digital Quote to cash chain – High Level Architecture
I-frame for payment means & VAT check
Get offer, quote and order for a given EC
API Gateway &
Orchestration
E
R
P
Payment GTW
Data Lake
Notification GTW
Enterprise Space
Create BP from CRD; Create Customer
BP user mgt; EC mgt
BP rewarding exposure, ack
List of subscriptions, invoices with status
Analytics - Insight to Action - exposure
Agile offer catalog
Discount mgmt
Subscriptions lifecycle mgmt
Recurring Invoicing
Recurring Electronic Payments
Subscription Accounting
Subscription Metrics
Exposure to Rainbow, BS, Fleet Dashboard, SFDC
Accounting
Payment
Reconciliation
Direct debit
Credit card

10. 10
Key lessons learnt
•Evangelize... And again. Repeat.
•More than a change in business models: deep transformation
•Find cross-functional champions with fresh mindset
•Advocate for simplicity with exec support
•No internal guess work : put it early in the hands of customers
•A partnership in our transformation with Zuora

11. 11
Pay Per Use
Software
Subscription
Life Cycle
Management
Managed
Service
Provide
IoT enabled
Networks and Communications
Drive
Verticals
digital transformation
Deliver
Everything as a Service
flexible models & new services
Education
Hospitality
Government Healthcare
Transportation
ALCATEL-LUCENT ENTERPRISE | WHERE EVERYTHING CONNECTS
Connected
Experience