Letter from our CMO, John Giere

Dear Customers,

A prominent Harvard University evolutionary biologist, Stephen Jay Gould, was once quoted as saying "The most erroneous stories are those we think we know best - and therefore never scrutinize or question." We can all, at times, find ourselves continuing on our current path of success without recognizing that the environment in which we do business is changing. Market dynamics can creep up on us gradually and stealthily. It may not be readily apparent that a major shift is about to disrupt our status quo.

By stepping back from time to time and examining where we are, we gain a new perspective and fresh competitive insights. Alexander Graham Bell, founder and father of Bell Labs, said it well: "Leave the beaten track occasionally and dive into the woods. Every time you do so you will be certain to find something that you have never seen before ... All really big discoveries are the results of thought." If we only focus on today's reality that voice and data subscription services generate 80% of current global telecom revenue, it would be easy to miss that our communications economic value chain is in the midst of a major disruption.

The spirit of this edition of Enriching Communications is to put a spotlight on these changing market dynamics and to offer thought-provoking insights into what might otherwise go too long unquestioned. New entrants are creatively capitalizing on end-user needs with personalized services; new business models are being increasingly employed to compensate for connectivity becoming a commodity. As an example, Alcatel-Lucent estimates that the shift in advertising and "sponsored" spending alone will be $48 billion USD (€31 billion) as brand managers and enterprise marketers move to new online, mobile and other interactive media. Those who effectively break the rules will prosper in the new value chain. The bottom line is that business agility and a proactive approach to meeting evolving customer demands will separate those who thrive from those who will fail to survive.

Personalized services are an imperative. Mass segmentation schemes will no longer sustain a vibrant business. Communications service providers and enterprises alike are uniquely positioned to transform their offerings by mining and carefully analyzing their end-user intelligence - an intangible asset that can be used to tailor offerings, ultimately creating a more compelling customer experience and service value.

At Alcatel-Lucent, we question the status quo every day to help our customers innovate, stay relevant and achieve successful financial results. We hope you'll find the articles from our experts and customers insightful in highlighting the important trends, strategies and technologies that will help you succeed.

As always, we welcome your feedback and hope we have sparked your thinking in creating your own New Rules.

Sincerely,

John Giere
CMO, Alcatel-Lucent