1. Global Applied Innovation Mike Hodgson Head of Innovation Engagement BT Innovate & Design

2. © British Telecommunications plc BT’s Innovation Process Team of 40+ innovation practitioners/consultants Discovery Global Scouting New Ideas Scheme Wakaba Research & Venturing Open Innovation Articulation Customer Experience Lab Showcases Applied Innovation and Hothouse Centre Concept demonstrators Working prototypes Hothouses User trials Validation Innovation Central 1 Pagers Rankings 10 Pagers Draft Business Cases Business Approvals Business Drivers Articulation ValidationProductise Sales & Support Customers Customer Needs Discovery Innovate within each stage and throughout the entire value chain

3. © British Telecommunications plc Global Innovation Scouting India China Taiwan Japan Korea US Israel UK 95% of activity within the US and Israel Hot buttons reports Beauty contest for RFI / ITT Hosted visit and/or UK road show for CXO teams 95% of activity within the US and Israel Hot buttons reports Beauty contest for RFI / ITT Hosted visit and/or UK road show for CXO teams +1000 start-ups per annum

4. © British Telecommunications plc BT Pulse End to End supply chain & logistics) Agile Bank The Community & Local Government Showcase The Home 2.0 & SFBB BT Showcases – Validate and Inform

5. © British Telecommunications plc Hothouse – really making it happen Customer choice and customer involvement. Customer Choice Immediate customer feedback. Feedback Brings all interested parties together. Collaboration A reduced delivery cycle. Speed A clear & common understanding of the Business problem. Common Understanding Demonstration of proposed solutions. Demonstration Prototyping (Process or Software). Prototypes A collaborative and competitive environment. Competition Achieves early realisation of result Realised Results Benefits 3 day Hothouse Story Realisation Collaboration Demo Understand Design Realisation Collaboration Demo Understand Design Realisation Collaboration Demo Understand Design Discovery Day Solution Day Resolution Day Structure and emphasis:

6. © British Telecommunications plc Showcase new ideas and concepts – 250 customer visits per annum Quick prototype, with strong user/customer focus Scan the globe for new ideas from VCs, start-ups, partners, competitors First working prototype and co-innovation with customers or internal product teams Business case assistance and validation External Innovation Capabilities and Services 6 Global Scouting Innovation Central Applied Technology Centre Customer Centre Hothouse team GenerateSort/Filter Demonstrate & Visualise Inspire & Sell Prototype & Build

7. © British Telecommunications plc CASE STUDIES

8. © British Telecommunications plc AI engine that crawls enterprise systems to ensure consistent data throughout e.g. unbilled revenue (orders match invoices and payments) – typically 5% ! Currently deployed on our broadband products and supporting systems Saving 10’s of millions £ per year…straight to the bottom line Revenue Intelligence & Recovery

9. © British Telecommunications plc ® Rapid assessment (initial audit) Scours enterprise for security breaches/vulnerabilities (firewalls, patches, etc.) Organises (Dashboard) according to severity (business risk) “If there are 5 things you do today, make it these 5 things !” Re-sold by BT Professional Services into enterprise accounts Enterprise Security Audit & Tracking

10. © British Telecommunications plc iTrader : customer centric prototype -> product Built Concept Demonstrator working alongside Product and Sales teams Used demonstrator to prove the proposition with customers and internal stakeholders Subsequently launched –Generating significant opportunities

11. © British Telecommunications plc Online and Streamed gaming Games run in the network – instant access to a vast array of the latest offerings Gamers are demanding creatures –Choice –Quality –Performance –“Nerdworked” Gaming imposes some of the hardest challenges in networking…but user trials are going well

12. © British Telecommunications plc Targetted at fixing No.1 issue faced by Cloud (data integrity/compliance) Gateway (Proxy) appliance/service sits between enterprise and cloud apps. Transparent to app – can still sort, search, etc. Could re-write legislation re off- shoring sensitive data Currently being evaluated – BT actively looking for PoC partners. Compliant Cloud Enterprise users

13. © British Telecommunications plc