Indexes

Index of Tables

Table 1-1: Survey Companies ..................................................................... 5
Table 1-2: Survey Research Objectives, Innovation Issues & Key Findings ......................... 7
Table 2-1: Supply & Demand Drivers Leading to the Global Telecoms Fallout ...................... 12
Table 2-2: Characteristics of the Mature Fixed Line Global Telecoms Market ..................... 13
Table 2-3: UK & International Telecoms R&D Investment (2002/03) ................................ 23
Table 3-1: Different Types of Innovation and Examples of Telecoms Innovations .................. 29
Table 3-2: The Impact of Future Returns from New Investments on Market Value ................... 39
Table 3-3: Research Linking Innovation to Enhancing Shareholder Returns ........................ 40
Table 3-4: Assessment of Telco's Approaches to Innovation to Date .............................. 52
Table 4-1: Five Generations of Innovation Models ............................................... 62
Table 4-2: Problems Associated with Only Taking a Partial View of Innovation ................... 63
Table 4-3: UK DTI's Recommended Metrics for Measuring Innovation ............................... 73
Table 4-4: Metrics for Both 'Managing' and 'Doing' Innovation .................................. 74
Table 4-5: Lagging and Leading Innovation Metrics .............................................. 74
Table 4-6: Telco's Different Approaches for Organising Innovation .............................. 77
Table 4-7: Assessment as to whether Innovation is a Strategic Priority for UK Telcos ........... 79
Table 5-1: Characteristics of Successful Innovators ............................................ 82
Table 5-2: Innovation Organisational Building Blocks ........................................... 87
Table 5-3:        Revenue & ?????? Decline (1999 to 2002) ...................................... 90
Table 5-4: Proof Points that Innovation is NOT a Strategic Priority for ?????? ................. 91
Table 5-5: ??????? Revenue & ?????? Growth (2000 to 2003) ...................................... 92
Table 5-6: Proof Points that Innovation is NOT a Strategic Priority for ??????? ................ 93
Table 5-7: ???????? Group Revenue & ?????? Growth (2000 to 2003) ............................... 95
Table 5-8: Proof Points that Innovation is NOT a Strategic Priority for ???????? ............... 96
Table 5-9: ???????? Communications Revenue & ?????? Growth (2000 to 2003) ...................... 98
Table 5-10: Proof Points that Innovation is NOT a Strategic Priority for ???????? .............. 99
Table 5-11: ????????? Revenue & ?????? Growth (2000 to 2004) .................................. 101
Table 5-12: ?????? Revenue & ?????? Growth (2000 to 2004) ..................................... 101
Table 5-13: Proof Points that Innovation is NOT a Strategic Priority for ??? .................. 103
Table 5-14: ??????? Revenue & ?????? Growth (2001 to 2004) .................................... 105
Table 5-15: Proof Points that Innovation is NOT a Strategic Priority for ??????? .............. 106
Table 5-16: ???? Revenue & ?????? Growth (2000 to 2004) ....................................... 107
Table 5-17: Proof Points that Innovation is NOT a Strategic Priority for ???? ................. 108
Table 5-18: ???????????? Revenue & ?????? Decline (2001 to 2004) .............................. 111
Table 5-19: Proof Points that Innovation IS a Strategic Priority for ???????????? ............. 115
Table 5-20: ???????????? 'Bow Wave' of Products and Services (2003/04) ........................ 118
Table 5-21: ???????? R&D Investment (2000 to 2004) ............................................ 121
Table 5-22: Proof Points that Innovation IS a Strategic Priority for ???????? ................. 123
Table 5-23: ?????? Revenue & ?????? Growth (2000 to 2003) ..................................... 127
Table 5-24: Proof Points that Innovation IS a Strategic Priority for ?????? ................... 128

Index of Figures

Figure 1-1: The Decreasing Interval between Innovations and Competitive Entry ................... 4
Figure 1-2: Rate of Adoption of WiFi, Broadband & Cellular Technologies ......................... 4
Figure 2-1: Global Telecoms Revenues (1991 to 2003) ............................................ 10
Figure 2-2: Telcos Market Capitalisation and Company Share Prices (2000 to 2004) ............... 11
Figure 2-3: The Circuit and Packet Switched (IP-VoIP) Space .................................... 14
Figure 2-4: Western Europe Data & Voice ARPUs from Mobile Devices (2000 to 2005) ............... 18
Figure 2-5: Capital Expenditure in the UK Telecoms Sector (1995 to 2003) ....................... 19
Figure 2-6: Adoption of UK Telecoms Services by Consumers (1995 to 2003) ....................... 20
Figure 2-7: The Telecoms Sector's R&D Intensity Relative to Other Sectors ...................... 22
Figure 2-8: International Telcos Revenue, R&D and CapEx Intensity (1998 to 2003) ............... 24
Figure 3-1: How One Telco Manages Business Innovation .......................................... 30
Figure 3-2: The Distinction between Telcos' Operational and Innovative Work .................... 36
Figure 3-3: EIU Survey Results on the Forces Driving R&D Today ................................. 38
Figure 3-4: ??'s Evolving Business Portfolio Mix (1977 to 1997) ................................ 41
Figure 3-5: Telco's Key Innovation Drivers ..................................................... 42
Figure 3-6: Est. & Emerging Telecoms Technologies: Internet Access ............................. 44
Figure 3-7: Est. & Emerging Telecoms Technologies: Wide Area Wireless Data ..................... 44
Figure 3-8: Est. & Emerging Telecoms Technologies: Short Range Wireless Data ................... 45
Figure 3-9: Telecoms Technology Drivers Mentioned by Interviewees .............................. 45
Figure 3-10: Telco's Different Levels of Innovation Effort (2000 to 2004) ...................... 50
Figure 4-1: Aligning Innovation Strategy to Organisational Design & Operations ................. 55
Figure 4-2: Making Long Term Innovation Investments ............................................ 60
Figure 4-3: A Model for Managing Innovation as a Core Business Process ......................... 64
Figure 4-4: A Partial View of the Telco Innovation Process ..................................... 66
Figure 4-5: A Systematic View of the Telco Innovation Process .................................. 67
Figure 4-6: Managing Telco Innovation as an Adaptive Process ................................... 70
Figure 4-7: Telco's Most Commonly Used Innovation Metrics ...................................... 75
Figure 4-8: Percentage of Telcos Surveyed that Measure Innovation .............................. 76
Figure 5-1: The Snell Innovation Learning Curve™ ............................................... 86
Figure 5-2: Telcos' Positioning along the Snell Innovation Learning Curve™ ..................... 88
Figure 5-3: ??'s Total Shareholder Return (TSR) Performance (1999 to 2004) .................... 112
Figure 5-4: ???????? New Wave & Traditional Business Revenues (2001 to 2004) .................. 113
Figure 5-5: ???????????? New Business Revenues (2001 to 2003) ................................. 113
Figure 5-6: ???????????? Markets' Strategic Business Model (2003/04) .......................... 114
Figure 5-7: ???????????? Sources of Ideas & Innovation Pipeline ............................... 117
Figure 5-8: The ???????????? Innovation Experience ............................................ 117
Figure 5-9: ????????????'s Future Revenue Growth from Innovation Investment ................... 119
Figure 5-10: ????????'s Track Record of Innovations (1970 to 2000) ............................ 122
Figure 5-11: ????????'s Recent Innovation Achievements (2003) ................................. 122
Figure 5-12: ????????'s Role in the ???????? Full Innovation Process .......................... 124
Figure 5-13: Telco's Innovation Issues ........................................................ 130
Figure 5-14: A Tool to Help Telcos Decide Where to Focus Innovation Effort .................... 134
Figure 5-15: Telco Survey Companies Innovation Potential versus Performance ................... 136

Index of Boxes

Box 2-1: The Importance of Data Traffic to Mobile Sector Growth ................................ 16
Box 2-2: Wireless Data Applications in Japan and South Korea ................................... 18
Box 3-1: Telco's Different Views on the Definition of Innovation ............................... 31
Box 3-2: Telcos Perceptions of the Different Types of Innovation ............................... 32
Box 3-3: Peter Drucker's Seven Sources of Innovation Opportunity ............................... 35
Box 3-4: The Benefits of Managing Innovation in a Disciplined Manner ........................... 37
Box 3-5: Telco's Perceptions on the Importance of Innovation to Drive Growth ................... 42
Box 3-6: Telco's Perceptions on the Business Case for Innovation ............................... 47
Box 3-7: Some Still Don't Get It ............................................................... 47
Box 4-1: Telcos confirm that Innovation is a Strategic Priority ................................ 57
Box 4-2: Imperatives for an Innovation Strategy ................................................ 58
Box 4-3: Telcos' Partial Views on the Innovation Process ....................................... 66
Box 4-4: Telcos' Views on Managing Innovation as a Systematic Process .......................... 67
Box 4-5: Telcos' Views on Innovation's Relationship to New Product Development ................. 68
Box 5-1: Telcos Stress 'Kill Low Potential Innovation Early, Often and Fast' ................... 83
Box 5-2: Telcos View Service Differentiation as a Major Innovation Outcome ..................... 83
Box 5-3: ???????'s Views on its Innovation Process ............................................. 94
Box 5-4: ????????'s Views on the Accountability for Innovation at the Company .................. 97
Box 5-5: ????'s View that its Culture Facilitates Innovation .................................. 109

Index of Exhibits

Exhibit 3-1: Innovation Best Practice - Unilever’s Definition of Innovation ..................... 34
Exhibit 3-2: Innovation Best Practice - Nokia’s & Others’ Innovation Driven Growth .............. 41
Exhibit 3-3: Innovation Best Practice - 3M’s Approach to Customer Intimacy ...................... 43
Exhibit 4-1: Innovation Best Practice - Procter & Gamble’s Innovation Strategy .................. 56
Exhibit 4-2: Innovation Best Practice - BASF’s Investment in Innovation ......................... 61
Exhibit 4-3: Innovation Best Practice - BMW’s Staff Ideas Generation Scheme ..................... 69
Exhibit 5-1: Innovation Best Practice - smith&nephew’s Evolving Innovation Journey .............. 85

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