Behind the ScenesBehind the Scenes

@ Daniel Henkel@ Daniel Henkel

StrukturStruktur

I.I. Über michÜber mich– Chronologie: Abitur Chronologie: Abitur Promotion Promotion– Persönlich:Persönlich: Fachwissen, Fachwissen, Erfahrung, Erfahrung,

ToDoToDo

II.II. DeTeCon ErwartungenDeTeCon Erwartungen– KurzfristigKurzfristig– MittelfristigMittelfristig– LangfristigLangfristig

VerantwortuVerantwortungng

LeitunLeitungg

© Google© Google

1990: Neue Horizonte1990: Neue Horizonte

• Schulwechsel: Thüringen – Schulwechsel: Thüringen – NiedersachsenNiedersachsen

• Eichsfeld Gymnasium:Eichsfeld Gymnasium:– Neue FreiheitenNeue Freiheiten– Englisch in USA/OxfordEnglisch in USA/Oxford– ““Jugend forscht” WettbewerbJugend forscht” Wettbewerb– Eigene Firma zur Computerberatung/VerkaufEigene Firma zur Computerberatung/Verkauf

• Hervorragende Vorbereitung auf Hervorragende Vorbereitung auf StudiumStudium

1995: Studium in 1995: Studium in IlmenauIlmenau

• Wi.-Ing.-Wesen (ET, Marketing, Wi.-Ing.-Wesen (ET, Marketing, Finanzierung)Finanzierung)

• Abschluss: DiplomAbschluss: Diplom• Beratung/Werksarbeit:Beratung/Werksarbeit:

– Carl Zeiss Jena GmbH: Carl Zeiss Jena GmbH: Lotus Notes Lotus Notes DatenbankDatenbank

– Otto Bock GmbH: Otto Bock GmbH: MS Access Db (VBA)MS Access Db (VBA)

• Bergfest ’95:Bergfest ’95: Finanzvorstand, Sponsoring Finanzvorstand, Sponsoring• Swing und sci e.V.Swing und sci e.V.

VerantwortuVerantwortungng

1998: Moskau und Rolling 1998: Moskau und Rolling StonesStones

• DAAD StipendiumDAAD Stipendium• 4-Wochen 4-Wochen RussischRussisch Sprachkurs Sprachkurs

– MIRBISMIRBIS– Pushkin InstitutePushkin Institute

• August ‘98: August ‘98: Börsencrash, KonzertBörsencrash, Konzert• Seitdem: Freunde und KontakteSeitdem: Freunde und Kontakte

FremdspracheFremdsprache

1999: Praktikum, 1999: Praktikum, Leicester, UKLeicester, UK

• Water Software Systems GroupWater Software Systems Group– Kooperation mit DeMontfort UniversityKooperation mit DeMontfort University

• ProjektcontrollingProjektcontrolling– Industrieprojekte/Uni-ForschungIndustrieprojekte/Uni-Forschung– Meilensteine, VerantwortlichkeitenMeilensteine, Verantwortlichkeiten– Finanzierung und BudgetierungFinanzierung und Budgetierung

• Cambridge Cambridge CAECAE Zertifikat Zertifikat

2000: Lotus/IBM, 2000: Lotus/IBM, MünchenMünchen

• Diplomarbeit: Post-Merger Diplomarbeit: Post-Merger IntegrationIntegration– Hypo/Dresdner Bank, Daimler/Chrysler, Hypo/Dresdner Bank, Daimler/Chrysler,

IBM/LotusIBM/Lotus– Kommunikation problematischKommunikation problematisch– Lotus PMI Suite / KMLotus PMI Suite / KM

• Implementierung in Implementierung in Lotus NotesLotus Notes

2000-02: Fulbright 2000-02: Fulbright ScholarshipScholarship

• University of Colorado, BoulderUniversity of Colorado, Boulder• Interdisciplinary Telecommunications Interdisciplinary Telecommunications

ProgramProgram– Degree: Master of Science in Degree: Master of Science in

TelecommunicationsTelecommunications– Data Networking, Wireless TechnologiesData Networking, Wireless Technologies– Strategic Planning, Business Plan PreparationStrategic Planning, Business Plan Preparation– Law and RegulationLaw and Regulation

• Teaching Assistant: Data CommunicationsTeaching Assistant: Data Communications

2002: Extracurricular2002: Extracurricular

• International FestivalInternational Festival– 28 countries, 3500 participants28 countries, 3500 participants– Food samples, entertainment, boothsFood samples, entertainment, booths– Budget: $20,000, 25 student volunteersBudget: $20,000, 25 student volunteers– Chair of Festival, treasurerChair of Festival, treasurer

• Business Analyst: Wireless LANBusiness Analyst: Wireless LAN– MindCommerce Publishing LLC, DenverMindCommerce Publishing LLC, Denver– Report: “Capitalizing on Wireless LANs”Report: “Capitalizing on Wireless LANs”

leadersleadershiphip

Motivation, DelegationMotivation, Delegation

2002-03: Infineon, USA2002-03: Infineon, USA

• Fiber Optic R&D Center, Longmont, Fiber Optic R&D Center, Longmont, COCO– Transceiver developmentTransceiver development

• Assistant to director of R&D NAAssistant to director of R&D NA– Market studies, prepare decisionsMarket studies, prepare decisions– Roll-out of eRoom DMSRoll-out of eRoom DMS

• Logistics planning for pilot lineLogistics planning for pilot line– Forecast demand, track usageForecast demand, track usage– Interact with 15+ vendorsInteract with 15+ vendors

leadershileadershipp

ImpatienceImpatience

2003/04: Infineon, 2003/04: Infineon, Berlin, GERBerlin, GER

• Transceiver MarketingTransceiver Marketing– Specification sheets, use casesSpecification sheets, use cases– OEM manufacturing coordinationOEM manufacturing coordination

• Test setup for first 4Gbps Test setup for first 4Gbps transceivertransceiver

• Preparation for PhD work in Preparation for PhD work in GermanyGermany

OptimismOptimism

2004-08: PhD Research 2004-08: PhD Research Years IYears I

• External PhD student in IlmenauExternal PhD student in Ilmenau• All research work in Boulder, USAll research work in Boulder, US• Communication with unmanned Communication with unmanned

aircraftaircraft– Delay-Tolerant Networks (DTN)Delay-Tolerant Networks (DTN)– Wireless radios, routing strategiesWireless radios, routing strategies– Plane swarming algorithmsPlane swarming algorithms

2004-08: PhD Research 2004-08: PhD Research Years IIYears II

• Class: Class: R&D and Portfolio ManagementR&D and Portfolio Management– Product selection and stage-gate Product selection and stage-gate

processesprocesses– Portfolio development for Alcatel-LucentPortfolio development for Alcatel-Lucent

• Class: Class: Project ManagementProject Management– Knowledge areas in-depth, real-world Knowledge areas in-depth, real-world

projectproject– PMI member, will certify in June ‘08PMI member, will certify in June ‘08

DeTeCon: Future DeTeCon: Future PossibilitiesPossibilities

• Short-termShort-term– Leverage technical/business expertise in daily Leverage technical/business expertise in daily

projectsprojects– Find mentors and build connectionsFind mentors and build connections

• Medium-termMedium-term– Work with in-house experts (technology, Work with in-house experts (technology,

processes)processes)– Knowledge buildingKnowledge building: articles, talks, conferences: articles, talks, conferences

• Long-termLong-term– Develop new business models for telcos and Develop new business models for telcos and

cellcoscellcos– Enter developing markets and “connect the world”Enter developing markets and “connect the world”– Build/maintain strategic client relationshipsBuild/maintain strategic client relationships

ConclusionConclusion

MeMe DeTeConDeTeCon

Loves Loves travelling/relocatingtravelling/relocating

GlobalGlobal

Technical, analytic Technical, analytic abilitiesabilities

Telecom solutionsTelecom solutions

Business Business backgroundbackground

Strategy ConsultingStrategy Consulting

Open, social Open, social personalitypersonality

Client focusedClient focused

Thank You for your Thank You for your patience!patience!

Backup SlidesBackup Slides

Vision – Mission - ValuesVision: To enrich people’s lives by transforming the way the world communicates

Customers FirstInnovation

Teamwork

RespectAccountability

Ensuring that our custo-mers thrive, our business grows, and people’s per-sonal communications experience gets enriched.

Mission Values

Research Strategy & Focus

Bell Labs main R&D facility• Develop technically advanced products• Conduct fundamental research• Create innovations for ALU’s new productsCurrent focus• Wireless network modeling• WiMAX technology• Next generation cellular networks

ALU SWOT AnalysisWeaknessesStrengths

ThreatsOpportunities

• Worldwide presence• IP portfolio• Innovation capability• WiMAX leader

• Financial situation• Merger integration• Product line confusion

• Wireless broadband• All-IP networks• Emerging markets

• Few big customers• FCC regulation• Fast technology pace• Strong competitors

FinancialsShares down 47% YoY

• Q3’07: op.margin 1.6%, net income €-258M

• €12.36B market cap

Markets & CustomersMarket segments along wireless network lines

• 2G voice – CDMA, GSM• 3G voice and data – WCDMA, EV-DO• 4G all-IP – LTE, WiMAX• Fund/Platform – CR, SDR

Main customers in cellular network industry• Verizon Wireless• Deutsche Telekom• China Telecom

Opportunities in WISP market

CompetitorsStrong worldwide competition

Company Symbol Price/$ Market Cap P/ECisco Systems, Inc. CSCO 27.45 166.54B 21.8Nokia Corp. NOK 39.49 151.39B 16.12QUALCOMM Inc. QCOM 40.12 65.66B 20.56LM Ericsson Telephone Co. ERIC 24.93 39.62B 9.85Motorola Inc. MOT 16.3 37.23B 81.09Alcatel-Lucent ALU 8.08 18.25B N/ANortel Networks Corp. NT 16.92 7.39B N/A

Asian players are growing fast

Project Selection Methodology

New Project Sources

• Customer input

• Employee idea process

• Alcatel-Lucent Venture

• University Cooperation

Value Scorecard

Criteria – scale {0, 4, 7, 10}

• Option Value (3)

• Strategic Fit (9)

• Innovation Content (7)

• Prob. of technical success (5)

• Prob. of commercial success (6)

• Core Competency (4)

Resource Limitations

Estimated €2.2bn R&D budget (total)

• At disposal now: €360 million (wireless)

• 2G (10%): €36m, 3G (25%): €90m

• 4G (40%): €144m, F/P (25%): €90m

Full Time Employees

• Not the bottleneck

Portfolio Findings29 projects evaluated – c:11, o:10, d:8

17 projects funded – c:7, o:8, d:2

2G 3G - HTC handset venture - LBS for HSDPA network - GSM base station redesign - US-F inter-cultural training - Stop CDMA v1 BS - Phase out Alcatel WCDMA

4G Fundamental/Platform - WiMAX for WISP market - Cognitive Radio research - LTE standards activities - Enhance SDR platform - Exit UMB market - Stop DTN research

Balance Example PlotVisual Balance - 2G Bucket

A-Lteam-o

LMDS-d CDMA1-d

GRedes-o

CDMAsec-o

Gconf-c

$(10)

$(5)

$-

$5

$10

$15

$20

$25

$30

$35

-1 0 1 2 3 4

Overall Risk / [0...10]

Op

tio

n V

alu

e /

$M

X – Risk Y – Value Size – Strategic Fit

Innovation Content: High Medium Low

Summary & Outlook• Alcatel-Lucent strong innovator, but

distracted by merger integration• Tailored project selection methodology

supports financial and subjective criteria• Currently 17 out of 29 projects funded• €328M spent, 32M contingency• Portfolio: strategic fit, optimal value and

balance• Strong performance expected in 2009

Portfolio Findings29 projects evaluated – c:11, o:10, d:8

17 projects funded – c:7, o:8, d:2

2G 3G - HTC handset venture - LBS for HSDPA network - GSM base station redesign - US-F inter-cultural training - Stop CDMA v1 BS - Phase out Alcatel WCDMA

4G Fundamental/Platform - WiMAX for WISP market - Cognitive Radio research - LTE standards activities - Enhance SDR platform - Exit UMB market - Stop DTN research