Roundtable_BTID by dandanhuanghuang

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									     BT Innovate & Design
Industry analyst roundtable

     Hosted by Clive Selley, CEO
Agenda

• BTID: The engine room of BT
• Where we are today: delivering the enablers for growth
• Our transformation: getting from good to great
• Our transformation: IT platforms
• Our transformation: Network platforms
• Research & Innovation
• Q&A
Where BTID fits in


                                    Customers

 BT Group             BT                BT Global        BT                Openreach
 Ian Livingston      Retail             Services       Wholesale
      CEO
                  Gavin Patterson         Jeff Kelly    Sally Davis        Steve Robertson
                       CEO                  CEO            CEO                  CEO
Tony Chanmugan
      CFO

  Alex Wilson
  Group HR                BT Innovate & Design                    BT Operate
    Director                   Clive Selley                      Roel Louwhoff
                            CEO/Group CIO                             CEO



            Market facing units manage all customer interactions.
     BT Innovate & Design researches, innovates, designs and develops.
           BT Operate manages all systems and networks in life.
Our organisation structure
 Innovation,                      Service
 design and                     Design Units
development                      (vertical)
   teams
 (horizontal)




                Karl Penaluna


                     (acting)
BT Innovate & Design: the engine room of BT

How we work                              Business outcomes

 • Platform-based structure              • Increased right first time for
 • One way of working                      customers
    • The BT Operating Model
                                         • Significantly lower operating
 • Underpinned by:                         costs
    •   Enterprise programmes
    •   Automation                       • Faster speed to market
    •   Reuse and SDKs
    •   Process re-engineering
    •   System/network rationalisation   • Higher volume, better quality
    •   CIT                                output
    •   Virtualisation
                                         • Rationalised logical IT platforms
 • Measured by:
    • Function points                    • A 21C IP core network
BT Innovate & Design: delivering the enablers
for growth
• Enabling the delivery of broadband based consumer services
  through fibre
• Delivering the capability for BT to be the brand for business
  in the SME market
• Helping GS become a genuine global leader
• Supporting BT Wholesale in becoming the Wholesaler of choice
• Being the best network provider




              Creating a world class cost base
Wholesale service design underpins
Wholesale success
                           Get things ‘Right First Time’ to be
                           number one for customer service
                           Partner of choice for managed network
                           services and IP platforms for
                           Communications Providers globally
BTID is underpinning
Wholesale’s key            Operate in key markets with global
strategic priorities for   connectivity and presence
2010/11 and beyond
                           Offer advanced software-driven
                           platforms and services that exchange
                           traditional and IP traffic

                           Delivering ‘content-rich’ broadband and
                           ‘communications-rich’ services

                           Delivering sustainable, profitable future
                           growth
Openreach service design underpins
Openreach success
                           Get things ‘Right First Time’ to be
                           number one for customer service

                           Maximise our Copper network
BTID is underpinning       by continuing to standardise,
Openreach’s key            simplify and automate
strategic priorities for
2010/11 and beyond         Deliver NGA to 4 million homes
                           by December 2010

                           Reinforce core voice and
                           broadband through differentiation

                           Deliver a new generation
                           of communications services
                           to our customers
Portfolio & service design underpins
GS success
                        Get things ‘Right First Time’ to be
                        number one for customer service

BTID is enabling
                        having a world class portfolio
BTGS to become a
world leader in
                        and customer solutions
managed networked IT    with global reach
services and generate
cash flow by:
                        underpinned with least cost network



                        and delivering greater productivity,
                        efficiency and cost reductions
Retail service design underpins Retail success

                         Get things ‘Right First Time’ to be
                         number one for customer service

                         Standardise, simplify and
BTID is underpinning     automate to cut costs
Retail’s key strategic
priorities for 2010/11   Build a scale TV business
and beyond               exploiting BT’s broadband network

                         Reinforce core voice and
                         broadband through differentiation

                         Build our SME IT business
                         by enhancing our capabilities
Some examples of what we deliver
Building a scale TV & content business
BTID is supporting BT Retail in building a scale TV & content
business which will exploit BT’s broadband network
           •   Building HD capabilities in our national fibre network
           •   Wholesale Content Connect, a nationwide CDN, will
How?
               improve the cost and quality of TV and video content for
               all UK broadband customers (not just BT’s)
           •   Through Project Canvas, working with broadcasters and
               telcos to re-define the next generation of free-to-air TV



           •   TV & content services enable us to deepen our
Why?           relationship with customers, driving retention and ARPU
           •   Gives the customer a choice of bundled calls, broadband
               and TV from a single trusted supplier
Consumer TV propositions
BTID is supporting BT Retail in building a scale TV & content
business which will exploit BT’s broadband network

             • Launched Sky Sports 1 and 2 on Vision in time
Achieved       for Premiership Football season
already...

             • Canvas
                – Horizontal market proposition – new model for IPTV
More to      • Linear TV
come...
                – Making use of fibre investments to deliver improved
                  content to customers
             • Gaming – Onlive
                – Using broadband infrastructure and cloud
                  capabilities to enter £2bn market
Transformation: Getting from good to great
Our transformation journey
     Gain control      Increase standardisation   Continuous improvement


        Past                  Present                   Future

• Formation of BT       • Increase levels of   • Global springboard
  Innovate & Design       standardisation,       for innovation
  and BT Operate          automation and reuse
                                               • Global development
                          to drive consistent
• Strategic decision to                          and operations
                          customer experience
  converge networks                              centres based on
  and IT                • Invest in future       standard global
                          platforms              platforms,
• Control development
                                                 automation and self
  and support costs
                                                 service
                         Our transformation journey: people

                         45,000                                                     Right skills
                                                          27% over 2 years          •   Up-skill programmes to
                         40,000
                                                                                        convert from legacy skills
                         35,000
                                                                                    Right people
 Total labour resource




                         30,000                                                     •   Vendor management
                                                                                    •   Outsourcing where
                         25,000
                                                                                        appropriate
                         20,000
                                                                UK sub-con          •   Focus on core work
                                                                Agency
                         15,000                                                     Right places
                                                                Off-shore sub-con
                                                                                    •   Consolidating from 240
                         10,000                                 Direct
                                                                                        to 20-30 global service
                                                                                        centres
                          5,000
                                                                                    •   Creation of 5
                             0                                                          development centres
                                  2007/08   2008/09   2009/10




16
Our transformation journey: process

               Innovate and    Design and                          In-life
                                                   Deploy
                  decide        develop                          management




All BT’s                                                            Plan, build
products,      Strict demand      Agile process,    Error free      and deliver
services and   management         software reuse    deployment      customer
contracts                                                           orders




Driving                                        On-time/cost/
                 Viable                                          ‘Right First
improvement     business
                               Cost/quality/      quality/
                                                                   Time’/
through                          speed           scope at
measures          case                                            Reliability
                                                  launch
Our transformation journey: IT platforms
       Past                Present                Future

• Thousands of        • 24 standard global • Fewer platforms
  systems               platforms            using standard
• Hundreds of vendors • 8 strategic vendor   software modules
• Few measures          partnerships       • Continued YoY
                      • Produced 30% more    efficiency
• Complex models
                        software for the     improvements
                        same cost          • Automated, lean
                      • Launched over 500    processes to reduce
                        reusable modules     failure
                        (SDK)



     Continual improvement of our systems estate
Our transformation journey: networks
        Past                 Present                  Future

• Multiple, disparate   • Delivered and        • Single global
  networks in UK and      exploited the core     IP/MPLS network
  across the globe        IP/MPLS UK network   • Closing down legacy
• Up to 8Mbps           • Ethernet - biggest     networks
  broadband               UK footprint         • Super-fast fibre
• High-cost access      • High-speed             broadband to 2/3 of
  solutions               broadband roll-out     the UK population
                        • Lower cost global    • Content distribution
                          access                 network to support
                                                 media



     Continual improvement of our global networks
Transformation: IT platforms
Transformation of IT systems
Platform approach: becoming a platform-based company is central to BT’s strategy

                                                                 • Delivery hubs for each
                                                                   LOB manage 90-day
                                                                   releases to the
                                                                   business

                                                                 • Efficiency is managed
                                                                   by quantity and quality
                                                                   of output

                                                                 • The metric is £ per
                                                                   function point and bug
                                                                   per function point

                                                                 • Efficiency has been
                                                                   achieved by reuse
Case study: Reuse and 70:20:10
The issue
• Existing marketing, billing and order journeys meant BT found it difficult to offer
   “bundled” propositions to its customers.
The solution:
• Maximise the reuse of existing functionality
• Enable the consumer channel to choose from a pre-defined set of building blocks
   (services, discounts, contracts, equipment, “bolt-ons”) which enables them to price
   for specific bundles
The benefit to BT Retail:
• Agility in the market - Consumer now on an equivalent footing with major
   competitors in the consumer services space
• Greater retention capabilities for existing customers (one contract for all services
   means customers are less likely to leave)
• Converged order journey’s and communications with the customer about their
   multi-service order
• Single line on the bill is easier for customer to understand
What does this mean for BTID?
• Frees up resource to focus on “new” work and building new capabilities
• Reduced cost of portfolio management (as Retail stick together pre-defined
   building blocks in different combinations).
• New services will slot easily into bundles framework (already proved
   with Fibre).
Platform Maturity - definition




                                 V2   23
What we are delivering today

Improved customer experience
• Focus on RFT in retail has reduced failure by c.60%
  over 2 years
Cost reduction
• £700m reduction in cost base over the past 2 years
Out put
• 37 % improvement in development unit cost over 2 years
• 31% reduction in cost per test point over 2 years
• 28% increase in software volumes in the past year
Quality
• IT incidents reduced by 33%
• Network incidents reduced by 23%
• Average weighted outage impact reduced by 67%
• Order lead times reduced by as much as 50%
The future - becoming a world class business
• Platforms productivity currency: £/Function Point
• Acknowledgement that we have improved but have some way to go
• Our enhanced efficiency and platform maturity completion plans will
  take us to:
  – peer average within a year
  – first quartile within two years
  – further opportunities (2 years and over)
    driving to end-state
    will take us beyond                                               GP vs Peer 1
                                                     2 year target
    the first quartile               1600
                                                                                         10/11 target
                                             1400
                                             1200
                                             1000
                                      £/FP




                                             800
                                             600
                                             400
                                             200
                                                    1009              1093      1103            1255     1378
                                               0
                                                    P1 Q1            GP 10/11   P1 Avg         P1 Q3    GP 09/10
                                                                      Target                             Actual


                                  Source: Gartner benchmarking Q3 09/10, GP 10/11 target adjusted for 09/10 organisation
Benchmarking BT’s billing capability
             2008/09 (from report)                                                                      Latest view
              Integrated OpEx / Revenue [%]                                                       Integrated OpEx / Revenue [%]


      0.7%                                                                                 0.7%


      0.6%                                                                                 0.6%

                                0.2%                                                                                0.2%
      0.5%                                                                                 0.5%

BT    0.4%      0.4%                                                                       0.4%




                                                                                                                                                                    Oliver Wyman Report
                                                                                           0.3%
      0.3%

      0.2%                      0.4%
                                                  0.1%
                                                                                    BT     0.2%
                                                                                                   0.3%
                                                                                                                    0.4%
                                                                                                                                      0.1%



                                                                                           0.1%                                       0.2%
      0.1%      0.2%                              0.2%
                                                                                                    0.1%
                                                                                           0.0%
      0.0%
                                                                                                     Y          Average Peers      Peers Best
                  Y         Average Peers     Peers Best

                                                                                                  OpEx Efficiency Parameter Unit             Y data
              OpEx Efficiency Parameter Unit             Y data
                                                                                                  IT - Billing & Offer
              IT - Billing & Offer
                                                                                          Num.    Management OpEx           £M                     48
     Num.     Management OpEx           £M                     78
     Den.     Total Revenue             £M                13,033
                                                                                          Den.    Total Revenue             £M                13,033


             2010/11 (forecast)                                                                    2011/12 (forecast)
             Inte grate d OpEx / Re v e nue [%]                       Dev.                        Integrated OpEx / Revenue [%]                         Dev.
      0.7%
                                                                      Cost 18%             0.7%
                                                                                                                                                        Cost 27%
      0.6%                                                                                 0.6%

                               0.2%                                                                               0.2%
      0.5%                                                                                 0.5%


      0.4%                                                                                 0.4%


      0.3%                                                            Revenue Billed       0.3%
                                                                                                                                                        Revenue Billed
                                              0.1%
                                                                      through platform
                                                                                                                                  0.1%                  through platform
      0.2%      0.2%           0.4%                                                        0.2%                   0.4%

                                                                      6%
                                                                                                   0.2%
                                                                                                                                                        4.5%
BT
                                                                                           0.1%                                   0.2%
      0.1%                                    0.2%


      0.0%
                0.1%
                                                                                     BT    0.0%
                                                                                                   0.1

                                                                                                    Y
                                                                                                      %

                                                                                                              Average Peers     Peers Best
                 Y         Average Peers    Peers Best


                OpEx Efficiency Parameter Unit                    Y data                           OpEx Efficiency Parameter Unit                Y data
                IT - Billing & Offer                                                               IT - Billing & Offer
     Num.       Management OpEx           £M                          42.5                Num.     Management OpEx           £M                        37
     Den.       Total Revenue             £M                       13,740                 Den.     Total Revenue             £M                   14,360
Case study:
Reducing call volumes through bill redesign
Completed and implemented Q3 FY09/10
                                 Basket of Calls Volume for Bill Re-design

                90,000

                80,000

                70,000

                60,000
  Total Calls




                50,000

                40,000

                30,000

                20,000

                10,000

                    0
                         1   3   5    7   9   11   13   15   17   19   21   23   25   27   29   31
                                                        Week



4 week rolling average: call volume fell from 77.5k to 44.5k over seven months
Case study: Contracts SDK - driving standardisation
in BTGS
Contracts SDK enables improve-                         Current state
ments across the contract lifecycle

        New Business                                     We are investing £20m to uplift our core
                                                         platforms to best practice and to drive
•        Reduce the cost variance on new bids            standardisation. 70:20:10
•        Provide solutions to provide managed
         network services
                                                         We are leveraging this investment on over
        Transitioning Customers                          50 of our largest accounts
•        Implementation of tooling and processes to
                                                         We are taking advantage of standardisation
         ensure customer take-on is successful
                                                         globally
        Transforming Customers
                                                         A movement to standard tooling will reduce
    •     Implementation of a dramatically improved      our cost to serve existing customers
          Account Startup Process
    •     Configure – don’t build solutions onto our
          standard solutions stack                       Significant reduction in the cost to
                                                         implement our core systems estate for large
        Customer Operations                              & complex deals
    •     Improvements in contract and commercial
          inventory and data
                                                         This is real! We have delivered eight
    •     Lower cost operations environment achieved     releases of functionality since November-09
          through automation and standardisation
Case study: supporting delivery
of the KCOM contract
•   In June 2009 KCOM Group PLC (KCOM.L) announced it had
    signed a strategic agreement with BT Group. The contract is
    valued at £960 million over ten years
•   What will it provide?
     –   It will provide an extension of the KCOM network reach through access
         to BT's national network and outsourcing the management of its           “This agreement is
         network assets to BT‘s Wholesale division                                an important step in
                                                                                   the transformation
     –   A full range of 20C data and voice products are being transformed into
                                                                                      of the KCOM
         21C futures products and services
                                                                                         Group.”
•   What BTID is delivering for the contract                                          Bill Halbert,
     –   reducing the ongoing fixed costs and capital expenditure associated         Deputy Executive
                                                                                        Chairman
         with the management of KCOM’s network infrastructure
     –   retaining KCOM’s existing fibre access network, coupled with access to
         BT's network scale and service capability
     –   Phased and controlled outsource of the management of KCOM's UK
         network operations to BT over the next few years
     –   management, maintenance and enhancement of network operations
     –   network management and vendor management on KCOM's behalf

         Allowing KCOM to focus on meeting the needs of its customers
Platform maturity – where next?
Enough opportunity headroom for a world-class cost base:
• Earlier requirements alignment to identify reuse
• Reuse and SDKs
• Automation: build and test
• System rationalisation
• Pan-BT single instances
• Oracle migration and uptake
• Continuous Integration Testing
Transformation: Network platforms

 George Nazi, president 21CN, global networks and
                          computing infrastructure
Let’s talk about:

• Our networks transformation
• Extending our global reach
• DHL – global contract example
• Faster speeds and greater access for the UK – our next
  generation access and super -fast broadband programme
• Fibre voice access
Our networks transformation
        Past                 Present                  Future

• Multiple, disparate   • Delivered and        • Single global
  networks in UK and      exploited the core     IP/MPLS network
  across the globe        IP/MPLS UK network   • Closing down legacy
• Up to 8Mbps           • Ethernet - biggest     networks
  broadband               UK footprint         • Super-fast fibre
• High-cost access      • High-speed             broadband to 2/3 of
  solutions               broadband roll-out     the UK population
                        • Lower cost global    • Content distribution
                          access                 network to support
                                                 media



     Continual improvement of our global networks
Extending our global reach

• Global demand for managed network services and unified
  communications
• Asia Pacific – important for us, important for our customers



                         Network partnering - extending BT’s
                         global reach through selective partnering:

                         • creating revenue opportunities through
                           new geographic markets - helping us
                           to deliver US and Asia-Pacific network
                           solutions in particular
                         • minimising cost of market entry
                           through network-to-network
                           interconnections (NNIs)
Case study: DHL – a global contract example

• Five-year contract to consolidate DHL’s communications
  from multiple service providers to BT
• Managed services solution in 15 countries, over 1,000
  sites across Asia Pacific
• BTID has begun the migration of existing voice, data,
  optimisation and security services to MPLS
‘The mixed economy’- progress
                                                                          Super-fast broadband (Fibre)

                     Early summer                                          Fast broadband (ADSL2+)
                    1.5m homes and
                       businesses                                                   Ethernet
                         passed

  820 nodes                                                           By London2012
                               Late summer     Spring 2011
   deployed                                                           10m homes and
                               2.5m homes     180 new nodes
 across the UK                                                          businesses
                                    and         deployed                  passed
                                businesses
                                  passed



 July 2010                    2010            2011                    2012                     2015



                           End of 2010 4m          Spring 2011
 55% of UK homes             homes and           20m homes and                        End of 2015 two-
   and businesses            businesses      businesses passed (75%                   thirds of homes
       passed                  passed                of UK)                           and businesses
  (815 exchanges)                             (312 more exchanges)                         passed



                           ADSL broadband available to 99% of UK
                                                      NOTE: Dates are indicative and subject to change
Super-fast fibre access network
•    Install c.30,000 cabinets
•    Lay over 50,000km of fibre
•    Train & up-skill c.4,000 people
•    Enable over 1,000 exchange areas



      “ I used to spend a lot of time just drumming my fingers. With FTTC, the queue of files just
          evaporates. I reckon I’m releasing 20 per cent more time every day for productive work.
                           Sam Mably, Bluequest Media Marketing & Design Agency, London

    1.5m premises            4m premises              10m premises             2/3 of UK
    passed by early          passed by end            passed by                premises passed
    summer 2010              of 2010                  2012                     by 2015




    BTID has delivered      BTID is providing        BTID is developing        BTID is helping to
    20 major system         Openreach’s control      the systems &             develop TV,
    releases in last year   network to over 340      processes for the         Content and future
                            exchange sites           launch of FTTP            Voice services
How do we compare in the provision of super-
fast fibre access?                                                                                    Households in Operator Network Footprint
                                                          60                                          (M) (Millions)

• Asia has the highest penetration                        40

 – NTT currently has 13.8m customers: 31%                 20
   penetration
                                                              0
 – KT currently has almost 7.2m customers: 42%                                                        Penetration of Households in NGA Target Footprint
   penetration (this uses new data which lists ‘up to    30
                                                         %
   50Mbps’ and up to ‘100Mbps’ products, however         20
   FTTB customers on an ‘up to 50Mbps’ historically      %
                                                         10
   may only have got around 20mbps)                      %
                                                          0

• US penetration rates are growing                        %                                     Penetration of Households in NGA Current Deployment Footprint
                                                         30%
 – AT&T currently has 2.6m customers: just over 10%
   penetration                                           20%

 – Verizon currently has 3.8m FiOS internet customers:   10%
   almost 24% penetration                                0%
                                                                                        NTT       AT&T     Verizon FT/Orange KT     KPN    Belgacom Swisscom


• European deployments appear to be                                                                         Penetration Rate over Time
  following the Asia/US trend                                                                                                                       NTT




                                                         Penetration within Deployed
                                                                                                                                                    AT&T
 – NB some players do not publish coverage or take-up                             30%                                                               Verizon
                                                                                                                                                    FT/Orange
   data for NGA, e.g. DT                                                                                                                            KT



                                                                  Footprint
                                                                                                                                                    Belgacom
                                                                                  20%                                                               Swisscom
                                                                                                                                                    KPN


                                                                                  10%
                                                                                                                                                   Approx’ take-
                                                                                                                                                   up rate trend
                                                                                                               

                                                                                       0%
                                                                                            0     5      10     15     20     25    30      35    40
                                                                                                       Number of Quarters of Deployment to Date
Case study: Fibre voice access (FVA)
• Fibre Voice Access is unique to
  Openreach and will support voice
  service delivery in a fibre world
• It builds on common SIP (Session
  Initiation Protocol) and IMS models
• Optical Network Termination units
  supplied by Openreach will include
  Analogue Telephony Adapters.
• The Analogue Telephony Adapters
                                          FVA on the premises
  may be controlled and accessed by
  Communication Providers (CPs)
• Integrated to CP’s call servers via
  industry standard protocols based
  on SIP
• Will permit voice service and feature
  innovation on the part of the
  Communication Providers
Case study: Ethernet
                          Today 840 live Ethernet nodes
BTID is rebuilding     • 90% of businesses are already within 5km of one
Ethernet delivery       of our Ethernet nodes today
across its strategic
systems
                       • Additional 180 Ethernet nodes to be deployed by
                         Spring 2011
BTID has created an
industry engagement    • Openreach has a range of Ethernet access
programme for            products to control costs and increase
Ethernet                 efficiency: Ethernet Access Direct (EAD), Aggregation,
                         Optical Spectrum, Access/Optical Spectrum,
                         Extended Access and Ethernet backhaul products
BTID is building a
centre of excellence
                       • Backbone Connect Limited (BCL) is a young
for Ethernet
                         aggressive entrant to the Ethernet market. David
                         McLeod, director of marketing, BCL said:
                       “We are confident that EAD will help us secure more
BTID is using a          business . We expect to grow our clients by 20%
‘model office’
approach for             as a direct result of EAD”
Ethernet
                                      Innovation

Mike Galvin, MD research, 21CE and technology strategy
Open innovation
Aim is to exploit innovation globally for the benefit of customers and shareholders

 Innovate within each stage and through the entire value chain                          Revenue
                                                                                        Customer
                                                                                        experience
                                                                                        Cost
                                                                                        reduction
 Invent   Architect     Validate  Operate   Productise Channels      People Customers
                      & Implement                                 & Organisation

    Customers                 Universities             Government                Partners &
                                                                                  Startups




                 Using innovation to gain advantage
Technology innovation supports our future
    Benefitting our                                                         Commercial
                                    Protecting our future
      business                                                               advantage
•   80% of research             •    Continuing strong              •   New opportunities e.g.
    directly supports our            record of patented                 • technology for BT’s Wi-Fi
    customer-facing                  invention e.g.                       products and services
    businesses
                                     •   techniques to deploy           • network optimisation
•   20% of research                      fibre at low cost and at         technology that improves
    underpins future                     scale                            bid win prospects
    strategic options for
    BT Group                    •    Portfolio of 6,400+
                                     patents
•   Measurement:
    • contribution to revenue
      generation, cost
      reduction and customer
      experience
    • delivery to time
    • patents filed
    • external awards



                Using innovation to gain advantage
We contribute to BT’s current portfolio

 BT Vision                     Cloud

 • Perceptual quality          Delivered four prototypes:
   analysis (PQoS) tools       • Cloud brokering
 • Perceptual QoS              • Bursting
   monitoring techniques for   • ISV on-boarding
   Vision, Canvas and          • Cloud billing
   beyond
 • Personalised content
   recommendation trial
   with 100,000 customers -
   increases ARPU
Case study: Blown Fibre

• Our work in this area has been key to
  making the business case for super-fast
  broadband viable
• Move from two-man to single-man
  installation means almost 50%
  reduction in installation costs              Two-man compressor (left) and
• Up to 1km of fibre cable can be              single-man compressor (right)
  installed in one operation
• Overhead blown fibre deployment avoids
  new trenching where underground duct is
  not available, significantly reducing cost
  and inconvenience
• Licensed to seven companies


            Using innovation to gain advantage
Case study: BT NetDesign

• Automated design tool for complex
  design problems
• Optimised solutions typically deliver
  10-20% CAPEX reduction
• evaluating one solution manually
  took one month, evaluating several
  thousand with the tool to find the
  optimum solution took three-four
  hours
• Providing automated in-venue high
  level design for the 2012 Olympics
  venues
• Two patents filed and covered by a
  number of trade secrets

            Using innovation to gain advantage
Case study: BT WAN Optimisation Service

• BT WAN service is part of the GS Applications Assured
  Infrastructure portfolio
• Reduces cost of providing/upgrading leased network links in
  territories where BT does not own a network by reducing the
  effective bandwidth of network traffic
• Improves bandwidth utilisation by 30-60% and application
  performance by x2-x50
• Includes a customer experience model to analyse the degree
  of benefit (cost reduction and improved customer experience)
  that could be realised in each case
• Launched in Global Services in early 2009, new revenue
  pipeline now in excess of many tens of £m


           Using innovation to gain advantage
Our research is recognised by the industry
       British                        Global Telecoms                   Global Telecoms
                                      Business Awards                   Business Awards
                                      2009                              2010
 Technology
 Excellence – R&D
 Achievement                                            IT Service Innovation award:
 of the Year:          Local Optical Service            WAN Optimisation Service
 Winner                Innovation                       with Riverbed
 Autonomic Fault       Primary voice service for
 Prediction and        Ebbsfleet FTTP (BT and           Business Migration Innovation
 Resolution            2Wire)                           award:
                                                        Optimising & Accelerating
                       Local optical network            Product & System Migration
                       Fibre to the cabinet:            with Ontology systems
                       Openreach and Huawei

                       Managed services
                       Legacy network
                       transformation: BT Global
                       Services and Alcatel-Lucent
                                                                              The IET
Business Excellence    Billing services innovation
Award for Innovation                                                          Innovation
                       Revenue assurance project
2010                   (BT and cVidya)                                        Awards 2009
Optimising &
accelerating product                                    Best Innovation for
                       New media innovation             Telecommunications
and system             Shape-shifting media (BT and
migration with                                          I-Plate
                       Real Time content)
ontology system
Final thoughts

      Clive Selley
BT Innovate & Design: the engine room of BT
What we deliver:                       How we deliver:
•   Improving productivity             •   The BT Operating Model
     – 37% improvement in                   – Agile development
       development unit cost                – Reuse
                                            – Continuous integration testing
•   Improving quality
                                       •   Platform strategy
     – 86% reduction in outage hours
                                            – Platform maturity
•   Reducing cost                           – Systems reliability

     – 21% (£700m) cost reduction           – SDK
       over 2 years                    •   Network strategy
                                            – Single global IP/MPLS network
                                            –   Close down legacy
                                            –   Super-fast to 2/3 of the UK
                                       •   Right people, right skills, right
                                           locations


                Improving delivery of our future
Q&A

								
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