conferencia creaciÓn de valor para el cliente introductor d. prof. david allen profesor y director...

Conferencia

CREACIÓN DE VALOR PARA EL CLIENTE

INTRODUCTOR

D. Prof. David AllenProfesor y Director del Área de Estrategia del IE

“Creating Value for the Client”:

Carl Henric Svanberg, CEO and PresidentEricsson

Value is created by those who create competitive advantage

Competitive Advantage Formula

ClientClient = x Price + y Differentiation + z Reputation + E

FirmFirm = x Coste + y Capacidades + z Identidad + E

© Copyright Telefon AB LM Ericsson 2005. All rights reserved

Carl-Henric SvanbergPresident and CEOEricsson – the turnaround and way forward


The Lars Magnus Ericsson story

Communication is a basic human need

Once upon a time...


Ericsson history 129 years of leadership

1876 Ericsson founded

1880 First switch launched

1881-1897 Sales to Russia/China/US begin

1897 Manufacturing in Russia

1905 Operator in Mexico

1922 Ericsson established in Spain

1991 GSM introduced

2001 UMTS introduced

2005 Mobile broadband with HSDPA


Solid industry momentum

2 billion mobile subscribers – 3 billion within 5 years– Communication a basic human need– Mobile best technology to serve this need

Mobile voice and data, broadband – key drivers– New services and increased minutes of use– Strong momentum in emerging markets

Convergence on everyone’s agenda– Mobile and fixed broadband, triple play

2 billion mobile subscribers – industry milestone


Mobile subscribers globally

0

500

1000

1500

2000

2500

3000

3500

2003 2004 2005 2006 2007 2008 2009 2010

acti

ve s

ub

scri

pti

on

s/lin

es (

mill

ion

s)


Mobile Voice Traffic Development Total Minutes of Use (03-10)

Source: Internal Ericsson

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010

APAC

Western Europe

CEMA

Latin America

North America


The telecom market is redefining itself- enriched communication with 3G

Voice

Lifestyle

Mobile offíce

MMS(images)

Broadband

VoiceMail

SMS(text)

Voice


The reality and the task

60% market decline Dramatic reductions ahead Risk losing customers and further sales

Company survival at stake


From crisis to successAgenda for turnaround

Save the company Cut deep enough

but

keep focus on vision and strategy Execute and perform

We would only get one chance


What brought us here will not keep us here


Factors driving success

High profitability - trustworthiness, mandate to act, control of destiny Well anchored strategic direction including common culture and values Professional sales and marketing including “a clear value proposition” A clear management structure and an efficient decision process

Open and critical discussions for decision quality - unity to create power Simple organization - measurable units - delegation of responsibilities Lean, professional staff supporting field and business

Leading R&D based on true customer needs World class processes - simplicity - no duplication - responsibility Frequent and efficient communication

Simplify - don’t complicate


High profitability – trustworthiness, mandate to act, control of

destiny Well anchored strategic direction including common culture

and values Professional sales and marketing including “a clear value

proposition” A clear management structure and an efficient decision

process- Open and critical discussions for decision quality –

unity to create power

- Simple organization – measurable units – delegation of responsibilities

- Lean, professional staff supporting field and business Leading R&D based on true customer needs World class processes – simplicity – no duplication Frequent and efficient communication

4,4

Ericsson Competitor

5,8

1,9

4,6

5,3

3,4

Scale 1-10

3,47,3

7,1

8,2

7,4

7,1

7,7

7,3



4,3

Ericsson Competitor

5,4

1,9 1,4

4,6 4,8

5,3 6,3

3,4 4,8

Scale 1-10

3,47,0

7,4

8,2 8,6

7,4 8,4

7,1 9,0

7,7 8,4

9,0

Int Ext Int Ext


High profitability – trustworthiness, mandate to act, control of destiny

Well anchored strategic direction including common culture and values

Professional sales and marketing including “a clear value proposition”

A clear management structure and an efficient decision process

- Open and critical discussions for decision quality – unity to create power

- Simple organization – measurable units – delegation of responsibilities

- Lean, professional staff supporting field and business Leading R&D based on true customer needs World class processes – simplicity – no duplication Frequent and efficient communication

4,4

5,8

3,47,3

7,1

7,3


Our way to success

True world leadership

Profit to drive destiny

Operational excellence

The prime driver in an all-communicating world


How to drive operational excellence Step-by-step

Straighter and simpler work processes

Increased quality – first time right

Shorter lead-times – declining costs

Inspired employees taking responsibility

Increased profitability

Exceeding customer expectations

Simpler organisation with clear goals

Operational e

xcellence True leadership


Culture will defeat strategy every time


Agreed on our roadmap for change

Structure

Management philosophiesHow we lead

OrganizationSimplicity, clarity, responsibility

Execution on all levelsTo gain true leadership

Business strategyAlignment to drive energy

Right sizing Profit to drive destiny

Culture

Core values Who we are

Our people committmentHow we see each other

Principles in businessHow we meet our customers


Our core values

Our visionThe prime driver in an all-communicating world

ProfessionalismListen – lead through innovation Keep commitments – be responsiveSeek the truth – know your numbers

RespectBuild strength through a shared visionQualify everyday – generate energy Diversity as a strength – equal opportunities

PerseveranceLead change – shape the future

Always deliver – walk the extra mile Trusted global partner for more than a century!


Understand and act on user needs and operator opportunities

The prime driver in anall-communicating world

Our strategy in summary

Customer passion - technology leadership - operational excellence

Leadwirelessevolutionin 2G, 3Gand B3G

Drivemultimedia

servicesthrough

E2E solutions

Expandprofessional

services

Innovateand invest

in new business

opportunities

Createnext

generation converging

IP - networks


When we were through we had

Cut EUR 50 million/week in 100 weeks Reduced staff from 110,000 to 50,000 An organisation geared for

simplicity, clarity and responsibility A well anchored vision and strategy


Alcatel

0

5

10

15

20

25

30

35

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04

BE

UR

0,0%

5,0%

10,0%

15,0%

20,0%

Sales EBIT

Lucent

0

5

10

15

20

25

30

35

40

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04

BU

SD

0,0%

5,0%

10,0%

15,0%

20,0%

Sales EBIT

Nokia

0

5

10

15

20

25

30

35

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04

BE

UR

0,0%

5,0%

10,0%

15,0%

20,0%

Sales EBIT

Nortel

0

5

10

15

20

25

30

35

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04

BU

SD

0,0%

5,0%

10,0%

15,0%

20,0%

Sales EBIT

Ericsson

0

50

100

150

200

250

300

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04

BS

EK

0,0%

5,0%

10,0%

15,0%

20,0%

Sales EBIT

Siemens Telecom

0

5

10

15

20

25

30

-93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04

BE

UR

0,0%

5,0%

10,0%

15,0%

20,0%

Sales EBIT

Our competitors also recover- but so far slower Growth 2004/2003

+7% -4%

+18%Currency adjusted





Summary

Confidence has returned to the industry– Focus on strategic issues and business development

Communication a basic human need– Adds to quality of life and drives productivity in society

Ericsson maybe stronger than ever– A true partner for progress

The prime driver in an all-communicating world

conferencia creaciÓn de valor para el cliente introductor d. prof. david allen profesor y director...

Documents

president ericsson slide

internal ericsson slide

ceo ericsson

stake slide

hsdpa slide

cliente slide

chance slide

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