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INNOVATION

Our intrapeneurship platform

Telefonica I+D coordinates the global strategy of digital innovation across the group. Innovation pursues the efficient creation of future business of Telefonica in a timescale between one to five years.

We manage innovation as a portfolio of internal start-ups. Every project is led by an intrapreneur who has to fight for the budget in a series of financing rounds. Available resources are allocated according to a portfolio strategy to the most promising start-ups at any moment.

Lean Elephants Innovation Framework

A central ingredient in this way of working is the utilisation of the Lean Startup methodology. In fact, Telefónica has been a worldwide pioneer in the application of the Lean Startup methodology in a large corporation.

In 2012 Telefónica I+D began to apply this methodology to innovation projects. Lean Startup has allowed us to speed up the innovation process and do more with less, with a clear focus on market and customers.

Read our whitepaper: Lean Elephants

We split our process into 4 phases

to ensure a sustained delivery of future new businesses with high probabilities of success

Phase 1

PRE_IDEATION

Phase 2

IDEATION

Phase 3

STAGE_GATING

Phase 4

DELIVERY

Phase 1

PRE_IDEATION

Open innovation
Scientific research
Start-up
Learnings from previous projects
User research
People & tech trends
Strategy
Input, Insights
& Inspiration
The innovation is fuelled by ideas collected during periodic calls. These innovation calls are open to every Telefónica employee who can submit its idea and become the leader of the innovation project. A relevant part of the ideas come from the systematic work of experts like scientific researchers, trend spotters, UX designers, ethnographers, psychologists, and business consultants.
Towards project proposal

Phase 2

Ideation

Open Questions Plan
Risks
Challenges
Assumptioms
Hypothesis
Basic Viable Proposition
Ideas become projects
Small teams with a variety of skills are formed to better define the best ideas. During this period the intraprenuers are allowed to work full time in their proposals. If the idea doesn’t clear the phase, the team return to their day job that has remained open for them.
Decision point
Proposal gets funding?
Yes
No
Learning for
future projects

Phase 3

Stage gating

Validate that the
solution solves the
customer's problem
The most promising ideas are financed and become part of the stage gating process. Execution determines how successful and impactful a project can be. Innovation projects are executed according to lean startup methodologies. The philosophy is to get early customer feedback to push the project to the next iteration: adapt, change or even halt.
Decision point
After 2 to 6 cycles
Yes
No
Learning for
future projects

Phase 4

Delivery

Spin Off
Operating Business
Internal Start-up
Project is
delivered
to market
Innovation is invention plus commercialization. When projects have gathered enough evidence and have validated a sustainable and repeatable business model it is time to ramp up with focus on sales. Three different mechanisms are in place to cover this stage: commercialization through OBs as Telefonica Products, Internal Startups when time is not yet ripe for the regular channel and SpinOff if Telefónica decides not to action the project.