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In Tech Strategy Competition
Citation preview
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Ericsson Moves to Win in the All IP-Convergence World
VenkatramanMcGrath
March 27-29, 2009
2009: INTECH Business Case Competition
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Setting:
• Post Mobile World Congress, 2009
• Favorable industry trends– 4 billion subscribers in the
world– Mobile broadband is here– Strong growth in traffic
• Strong performance trend by Ericsson– Great recent wins in the
marketplace– Solid financial performance
SettingPost Mobile World Congress, 2009
Favorable industry trends4 billion subscribers in the world
Mobile broadband is hereStrong growth in traffic
Strong performance trend by EricssonGreat recent wins in the marketplace
Solid financial performance(c) Boston University School of Management and Ericsson, 2009
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But.. How well is Ericsson positioned for the future?
(c) Boston University School of Management and Ericsson, 2009
There is still potential growth
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(c) Boston University School of Management and Ericsson, 2009
Ericsson’s recent performance is encouraging
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(c) Boston University School of Management and Ericsson, 2009
2009: An Inflection Point
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The US Senate Appropriations Committee estimates that for every USD 1 invested in broadband networks, USD 10 are returned to society.
The returns could be even higher with mobile broadband networks as they are cheaper and faster to build than fixed networks.
(c) Boston University School of Management and Ericsson, 2009
Carl-Henric Svanberg is cautiously optimistic
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2008 Annual Report
(c) Boston University School of Management and Ericsson, 2009
Yet.. The marketplace is competitive and
complex
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Profitablegrowth?
New competitors?
Valueproposition?
Margin shifts?
(c) Boston University School of Management and Ericsson, 2009
Competitors.. Familiar and New…
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(c) Boston University School of Management and Ericsson, 2009
Listen to the CEOs of two competitors: (2) Alcatel Lucent
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(c) Boston University School of Management and Ericsson, 2009
Carl-Henric’s request to Hans Vestberg
Take a fresh look at how well Ericsson is positioned for the future
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(c) Boston University School of Management and Ericsson, 2009
Vestberg’s preliminary framing
All Communicating
world
Margin shifts to solutions
Acquisitions and alliances
Global scale& Competence
Open innovation
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Ericsson’sProfitableGrowth
(c) Boston University School of Management and Ericsson, 2009
1. All Communicating World
“A single, common IP infrastructure that can handle all network services, including fixed and mobile communications, for voice and
data services and also video services such as TV.”
What will this world look like in 2015? 2020? Can you provide better clarity of
this space?13
(c) Boston University School of Management and Ericsson, 2009
2. Margin Shifts
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Products Services &Solutions?
Is this assumption generally valid?How should Ericsson capitalize on this trend?
(c) Boston University School of Management and Ericsson, 2009
3. Acquisitions and Alliances
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?What do you see as part of the future portfolio in Ericsson? Why?
(c) Boston University School of Management and Ericsson, 2009
4. Global Scale and Competencies
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How to further leverage
Ericsson’s global scale? What can
Ericsson learn from other companies?
(c) Boston University School of Management and Ericsson, 2009
5. Open Innovation
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Is there a strategicrole for open innovationwithin Ericsson?
(c) Boston University School of Management and Ericsson, 2009
Vestberg’s preliminary framing is your starting point
All Communicating
world
Margin shifts to solutions
Acquisitions and alliances
Global scale& Competence
Open innovation
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Ericsson’sProfitableGrowth
“Issues areinterrelated”
(c) Boston University School of Management and Ericsson, 2009
Your TaskDevelop a presentation to lay out your analysis of how well Ericsson is positioned to
win in the all-IP converged worldIdentify how Ericsson can position to win along the five themes as a starting frame
but feel to free to frame the opportunities and challenges as you see themDelineate risks and vulnerabilities that you see as you analyze the marketplace and
competitive actionsProvide your well reasoned recommendations to guide Ericsson over the next decade.
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(c) Boston University School of Management and Ericsson, 2009
GuidelinesReview the attached background material as a starting point and
then embark on your search—widely and deeply!Please make reasonable assumptions when necessary and be
prepared to justify them when asked by the judgesMake the best use of the 24 hours to craft powerful and
compelling recommendations for Ericsson to win in the all-IP world.
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