Transcript AT&T’s Approach to Defining Invention, Incubation, and Innovation, Processes SATM Conference, May 19, 2005 David Belanger AT&T Labs Chief Scientist, and Information & Software Systems Research.

AT&T’s Approach to Defining
Invention, Incubation, and
Innovation, Processes
SATM Conference, May 19, 2005
David Belanger
AT&T Labs Chief Scientist, and
Information & Software Systems Research V.P.
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AT&T Labs
The Innovation Engine Behind AT&T’s World-Class Technology
• 4,200 of the world’s best scientists and
engineers
• AT&T’s patent portfolio includes 2,069
U.S. issued patents and 1,162 Global
issued patents
Middletown, NJ
• 120 years of technology breakthroughs
and product/service innovation
• Over 78% of our scientists & technologists
hold a PhD or other advanced
degree
Menlo Park, CA
• Currently involved with over 50 U.S. &
international universities:
• 12 active research collaborations
• 40 informal research exchanges & collaborations
Florham Park, NJ
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Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
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CTO Process
New Services and Operations
Examples: E-Contact, Concept of 0/1, …
Technology
Strategy &
Roadmap
Combined
Processes
Business
Strategy &
Roadmap
Business Strategic
Analysis & Product
Planning
Integration of
Information by CTO
Sources of Technical
Information
Sources of
Market &
Product
Information
Sources = Customers + Suppliers + R&D + Consultants + Universities +
Start-ups + Venture Companies + Trade/Professional Relationships + …
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Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
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Product Development Cycle
 AT&T’s Core Competency is to develop products and implement them
into a production environment. Examples of our products include, but are
not limited to:
–
–
–
–
Connectivity: Voice and Data
Managed Solutions: Desktop, IP, Hosting
Local Services: Voice and Private Line
Various access networks (e.g., Cable, DSL, Fixed Wireless, Dial, PSTN, Wireless, Fiber,
PL/OC-X, ATM/FR, Ethernet and IP)
» Tools to manage these networks (e.g., Asset Management, Fault Management, Capacity
Management, Configuration Management, Performance Management, and Element Management)
 AT&T excelled in systematically bringing people, technologies and
processes together to rapidly deliver the highest-quality services. Our
approach underscores the need to not only maximize customer
satisfaction and minimize cost, but to constantly provide innovative
solutions in a dynamic market environment.
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AT&T’s PDP Process
A phased process that defines how all components for services are realized
– 6 Phases with 5 major business decision points (Decision Gates)
– 9 Service Gates (5 support Decision Gates) for technical readiness decisions
– Serial gates for managing risk of any concurrent operation
Concept: Defines a high level
view of the service idea and
associated time and cost
Needs
Request
Concept
DG-1
Feasibility: Determines the specification
of the solution for the service
SG-13
SG-14
Feasibility
Feasibility Report
DG-2
SG-11
Definition: Defines the detailed plan and
requirements needed to implement
the service
Definition
Service Gates (Can We Go Forward)
DG-3
SG-14 Start
SG-13 Start Feasibility
SG-11 Start Definition
SG-9 Start Development
Proj Plan
SG-9
Development: Creates the physical
realization that implements
the given requirements
Development
SG-5 Start Verification
SW/HW,
SG-5 Test Plans
SG-4 Start Service Test
SG-2 Start ORT
SG-1 Start Introduction
SG-0 End Introduction
Reserved SGs are not shown
SG-4
Service Test: Tests the service
against the test plan in simulated
and live environments
Service Test
SG-2
Test
Results
DG-4
SG-1
Introduction: Introduce as
required and begin Life
Cycle Management
Introduction
Decision Gates (Should We Go Forward)
DG-1 Proceed with Feasibility
DG-2 Proceed with Definition
DG-3 Proceed with Development
DG-4 Proceed with Introduction
DG-5 Proceed with Life Cycle
General Availability,
Controlled Introduction,
Market or Technical Trial – as
required
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DG-5
SG-0
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Concept-of-One/Zero Definition
High quality network and operations yield a more efficient
cost structure and improved customer experience
Process
• Consolidate
Concept-ofOne
similar
functions
across
organizations
Systems
Network
• Consolidate
• Consolidate
systems
• Create and reuse components
• Deploy
integration bus
• Retire systems
workflow,
• Scrub DBORs
auto-inventory,
e-enabled self- • Choke sources
• Deploy rules,
Concept-ofZero
service and
supply chain,
collab. Bus
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of DBOR errors
transport,
packet, voice,
and VoIP
networks
• Deploy multiservice edge,
MPLS BB
• Deploy handsfree,
intelligent,
self-healing
network
• Retire legacy
network
elements
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Concept-of-One Systems
 Concept-of-One Modular Platform  Policy-Based Configuration
 Shared Data Bases of Record,
 Web Services / Customer Control
Common Data Model
e-enabled Interfaces to
Customers, Employees
& Partners
“Concept of One” System
Customer Relationship Management
Sales & Account Mgmt
Customer
Billing and Financial Mgmt
Service Management
Fault
Management
Data Bases
of Record
Network Management
Capacity
Configuration Performance
Management Management Management
Services
Network
Element Management
Customer
Prem..
Network
Access
Global MPLS / Optical Network
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Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
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High Level Innovation Process
Prospect
Evaluate
Worth
Evaluation?
Trial /
Prototype
Select
$$$ for
Trial?
Strategic
Opportunity?
Identify new
technologies,
emerging needs,
or firms
Determine
strengths,
weaknesses,
market potential
- Research
- Product Drivers
- Academia
- Press
- Analysts
- Consultants
- Customers
- Vendors
- Partners
- VCs
- Start-Ups
- Market Size
- Fit with Core
Business /
Strategy
- Synergies
- Customer
Franchise
- Customer
Interest
- Competitive
Advantage
Introduction
Trial
Objectives
Met?
Winnow down
for further
evaluation or
investment
Validate new
technologies or
firms
Put through
GMSP or
OneProcess for
market launch
- Outline
Business,
Technical, &
Operational Term
Sheet
- Determine ITB
Expense and
Capital
Requirements
- Architecture Fit
- Clear Trial Goals
- Focused Time
Bucket
- Stage-Gate
Investment Plan
- Business Case
- Market Sensing
- Strategic Fit
- Platforms
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Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
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PIP Mission/Goal/Scope

Project Incubation Process (PIP) tracks all AT&T incubation projects in the Concept or
Feasibility stages of OneProcess life cycle. It provides a dashboard view of all projects by
organizations, technology areas, funding organizations, vendors, and business impacts.

Define portfolio of new, innovative services to incubate in alignment with strategic direction
driven by BU initiatives and customer/market needs not yet in product plans

Provides a dashboard view of all projects to SLT by organizations, technology areas,
funding organizations, vendors, and business impacts.

Manage Incubation activities across AT&T

Starting with viable ideas and proposed concepts

Escorting concepts and innovation through technical trials and feasibility validation

Ending with technology services

Identify and exploit synergies: bridge the gap between ideas and technologies emanating
from Customers, Development, Offer, Operations, Product, Research or Sales of new
services; avoid duplication & share
resources, experiences and expertise

Reduce new technology introduction cycle
into AT&T and accelerate Time-to-Market and
Time-to-Volume
Technologies
Market
Incubation
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Offers
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Process Flow
PIP
Incubation
Tracking
Reports
, KPI
Vendor
Track
Foundation
Arch
Updates
Vendors,
VCs, SCP,
…
Internal
(E-enabled
Channels)
External
Prioritize,
Filter,
Select
Product,
Business,
SLT, …
Management
Data
Incubate,
Manage
Incubation
Incubation
Management
Team, SLT
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Arch, Eng,
Develop,
CTO/RFX,
SMD
Drop
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PIP Report – Default View
Last ,First
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AT&T InfoLab
The objective of the InfoLab is to revolutionize
the way AT&T uses information to operate
and compete.
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AT&T Data Mining Approach
NETWORK
Efficient, Reliable,
Secure Data
Transport
Application Specific Knowledge
DATA
MANAGEMENT
Storage and
processing architectures
That operate at scale,
and in real time
DATA
Semi Structured Data
- WEB
Unstructured Data
Fraud, Customer Focused Operations,
AT&T Switched Network, Frame Relay,
Retail Marketing, . . .
DATA
ANALYSIS
Industry leading
Information Mining
Technology for
Transactional Data
INFORMATION
VISUALIZATION
Text
Structured
Data - RDBMS
Data Spectrum
The most effective
ways to deliver
Information & Alerts
to decision makers?
Speech
Image
Sensors
Video
Packet Nets
Collectors
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AT&T InfoLab End-to-End Data Mining
Input
(Raw
Data)
Collection
Cleaning,
Validation &
Transformation
&
Augmentation
Storage &
DB
Management
Mining &
Analysis
Interpretation
&
Presentation
Output
Serialization
Pzip’d
Call
Detail
Collector
450
Switches
InfoLab
Databases
Fixed-format
Call Records
Collector
Vetter
Collector
Collector
AMA
Processor
Call
Detail
Power
Wall
SWIFT
Billing
Learning
and
New Questions
Analysts
Cases
Global
Fraud
Mgmt
System
Streamer
Alerts
Hancock
Reports
Fraud
Case
Managers
Strategic
DecisionMaking
Signatures
SCAMP
COI
Analysis
Operationalization:
-Procedural
-Automated
Analysts
COI
Displays
AMA Data
from switches
-350M calls/day
-60 Gb data/day
-150 bytes/record
Data
Barn
2 minutes
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Further Investigation
(Queries)
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A Proven Model for Technology Transition
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Operations
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Background
 Bridging research prototypes and tools into production
systems provides competitive advantage for AT&T
 In 2000, a formal incubation process was established for
Information Mining
 The result is over 10 production systems have successfully
been incubated and deployed.
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Rapid* Incubation Process
Project Management
Customer Presentations
Documentation
Testing
Research
Developed
Technology/
Prototype
User Support
Help Desk
User Admin
Training
Production level environment
Stable/scalable code
Stable/redundant physical architecture
Release Management
Production controls/alerts/audits
Data security/privacy
* New technology incubated, hardened and deployed commercially in 2 -5 months
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Rapid Technology Infusion and Productization
Research
Production Systems
Business Impact
•Smart Sampling
•Deployed in TAS
•TAS: Revenue and
retention for key customers
•Streamer, COI,
Daytona
•Utilized in GFMS, XRICS,
Government projects, TAS.
Planned for OCDD
rearchiatecture
•GFMS: World class fraud
rate of under 1% plus averted
losses measured in tens of
millions
•XRICS: $NN millions
savings per year
•MVS2PC
•Planned for several major
billing system re platforms
•OCDD: Savings of $NN m
•Per Billing System: Savings
estimated to be $NN millions
per year.
•VIT/VIP: Savings of $NN m
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Rapid - Seamless Technology Infusion
Phase
Projects
Technology
Market Launch
Internet Protect/Storm/Flood
Traffic Analysis Service
Daytona
Daytona, Smart Sampling/Gigascope
Pre Sales-Internal
RAMP replatform
CPP Replatform
Universal Biller Replatform
MVS2PC, Daytona, XML transforms
MVS2PC
MVS2PC
Pre Sales- External
Government (2 classified, 2 non classified)
Daytona, streamer, IP, COI, Visualization
Delivery - Internal
XRICS
OCDD
GFMS
Access Abuse Detection System
IPSS: Streaming Video
Employee Abuse System
Profit
VIT/VIP
Daytona, Streamer, YOIX, PZIP
Daytona, Streamer, YOIX, Seecalls
Daytona, Streamer, YOIX, COI, HTN
Daytona, Streamer, YOIX, HTN
Video Compression
Daytona, Streamer, YOIX, HTN
Customer scoring models
Intelligent Caching
Delivery - External
AWS Network Diagnostics
Governement (2 classified)
EMN
American Idol
Daytona, streamer
Daytona, streamer, COI, pzip, Bellman
EMN
Streamer, Daytona, Visualization
Incubation
Gigascope/Edge
CVE
Gigascope, Daytona
Ningaui, Streamer
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Challenges for R to D for Information
Systems
 Prototypes or Proof of Concepts have hurdles to overcome to go directly
into a development process






Need to have Operations Plan developed
Need Performance Mgmt/Controls to be implemented
Limited or no documentation exist in the PoC phase
Need production level hardware and software architecture
Need testing plans, environments and test cases
Need integrated security plan developed and implemented
 Many of these systems utilize niche products due to the size and speed of
the information management needed to support the business. Transition
and training to the development group needs to be done
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Process for R to D for Information Systems
Proof of
Concept
Development
Transitioned
Incubate
Operations
Transitioned
Output: PoC
complete, PoC
confirmed that
the technology
works and PoC
meets the
business needs.
Output: System on
production HW,
Documentation
complete, OTP
complete, Test plan
and system
complete, ETE
performance
controls in place
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Output: System
Operation fully
transitioned to
new organization,
team trained,
documentation
provided.
Output:
Development
fully transitioned
to new
organization,
team trained,
documentation
provided.
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Outline
• A Strategic Process
• Product Development Process (One-Process)
• Innovation Process
• Incubation Processes
• Summary
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The Innovation Process Fits Within a
Broader Context
Segment
Marketing
Foundation
Architecture
Cost and
Capital
Reduction
CFO /
Budgeting
Public /
Analyst
Relations
Corporate
Strategy
Innovation
Process
Current
Service
Extension
ABS
Strategy
Strategic
Go-To-Market
Alliances
Marketing
Comms
Sales
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One-Off
Deals
GMSP
Process
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Summary
• One Process – For Well Understood Processes
• Iteration – For the Innovation Process
• Model Transfer – Incubation Processes
• Measurement – The Key to Controlled and Optimized Processes
• Feedback Control – No Process Should Run Open Loop
• Scale – Of Services, Of Processes
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