Innovation
PIONEERING
SOLUTIONS
AND SERVICES
Our innovative DNA has been an
integral part of the Group’s culture
since inception.
We have been growing in the market for 60 years because we have never rested on our laurels. This is due to our innovative DNA, an integral part of the Group’s culture since inception. We were the first to develop and launch countless solutions and services in Brazil; however, our foremost contribution to the development of technology in Brazil is the way we interact with the production chain.
Since 2012, our innovation strategy has been fairly consistent with our recent moves worldwide, i.e., building synergies with companies, development agencies, universities, clients, suppliers, associates and shareholders.
We currently have two departments
focusing on innovation.
The Innovation Management Office (IMO)
Is responsible for managing innovation throughout the organization. It undertakes initiatives to strengthen
our innovation culture, organizes ongoing training activities, and fosters the development of new ideas and prototypes.
The Innovation and Development Advisory Committee (AID)
Is responsible for P&D (research and development) activities. At the forefront of technology, it conducts research jointly with universities, research centers and suppliers to promote technological development that supports the Company’s business and, consequently, allows us to provide a better service for our clients.
The Company’s approach to innovation in recent years brought in about R$26.8 million, in connection with P&D, in 2014. This stresses the importance of innovation to make the Company more competitive.
Another achievement was the creation of Espaço Inovação [Innovation Space], located in our Administrative Center in Uberlândia, Minas Gerais State, to foster creativity and intrapreneurship among associates.
One of the main projects launched in 2014 by the innovation management team was Atalaia_i9. This project consists in a collaborative competitive intelligence method designed to detect in advance global trends in innovation and technology by sharing information from a diverse network of contacts. The purpose is to offer the community a consolidated annual report with the most relevant information. On the internal level, this project helps us identify new business trends and opportunities.
In early 2015, we updated our innovation processes, in place since 2003, by redesigning our idea management platform and reviewing our internal policies to engage all the Organization’s departments in innovation activities. We are planning to train all our associates in innovative methods and tools by 2016, as well as create spaces dedicated to innovation in our main branches and at universities.
Innovation Lab
The Innovation Lab was created at UniAlgar in 2014 to develop and validate new ideas and solutions for real problems. It is meant to promote collaborative creation both internally and externally; be a reference for start-up entrepreneurs, researchers, inventors and other innovative centers; identify new business opportunities and innovative solutions; and disseminate the innovative methodologies used by the Algar Group (Innovatrix, Canvas and Design Thinking among others).
Innovation Figures
24
classes trained in innovation
tools = 569 associates
12
projects approved in the
Inova Telecom public notice = R$150 million, R$22
million of which in
non-refundable funds
32
prototypes in the
development phase
About
1.3%
of net revenue invested in
innovation
300
ideas in PGI (Programa de Geração de Ideias, or Idea Generation Program)
14
projects of the portfolio managed by the PMO
considered innovative
38
projects submitted
to RePNBL
(tax
suspension = R$9.8
thousand)
Revenue from innovative
products equivalent to
20.2%
of gross revenue
Latest Developments
Algar OCS (Online Charging
System) Project:
This is a convergent platform for clients of prepaid landline and mobile phone services (VPN – Virtual Private Network). Processing voice, data, SMS and MMS services, it is the first platform of this size in the whole Southern Hemisphere.
URA (Unidades de Resposta Audível, or Audible Response Unit) Automation Project:
Based on technology developed by
Algar Telecom, URAs have allowed us to automate 64% of all client calls to our call center (contact center). These URAs allow clients quicker access to our services in a more practical manner; in addition, we reduced client service costs significantly.
Algar NPP (Number
Portability Project):
This is another technology developed in Brazil. The Number Portability technology developed by Algar Telecom is also unique in the whole Southern Hemisphere. This solution handles the Number Portability service to Algar Telecom’s landline and mobile phone network. It was integrated into Cassandra (a database technology developed and used by Facebook) to expand the computing power of the solution developed by Algar Telecom, high enough to process all the calls on Planet Earth if necessary.
Algar SMSC (Short Message Service Center) Project:
This is a solution for processing Short Messages to the mobile phone network. Short-message applications need the SMSC to deliver messages to mobile phone networks. Thus, this project has allowed us to develop the first Brazilian SMSC platform and integrate it to Algar Telecom’s mobile phone network, with significant gains in terms of CAPEX and OPEX.
PMO
Since 2009, Algar Telecom has had a PMO (Project Management Office), and attributes its above-average growth in recent years to the methodology applied. The PMO currently monitors 52 projects, which are improved or discarded depending on performance. Pre-established indicators and strict monitoring allow PMO to explain its market decisions to senior management easily.
IMO
Focused on innovation, the IMO (Corporate Innovation Management Office) is a
key innovative monitoring structure that drives the organization. In 2014, it started coordinating projects that have yet to be incorporated into PMO–because they are still being assessed for feasibility–, such as prototypes or even ideas. Always alert to potential new products and services, IMO has also introduced a system able to revisit all 3,500 innovative ideas submitted to the Company since 2003 to find out whether there have been any changes that have made them feasible. IMO also seeks funding strategies and sources to develop these projects. In 2014 alone, it obtained over R$150 million in public notices and from development agencies.
OCM
Organizational Change Management (OCM) is another key element of our operational structure. In a short time, it managed to introduce structural changes within the organization, thus fostering a better understanding of our strategy and each associate’s role in executing our plans and achieving targets.
Estratégia em Execução [Strategy under Execution]
We created the Estratégia em Execução [Strategy under Execution] program, focused on communication with associates, to facilitate this communication. It allows everyone to learn about our main projects step by step and their direct impact on the Company’s financial results and operating performance. Our Intranet and leaders are the most important communication tools for the program.
