In Tech Strategy Competition

1. Ericsson Moves to Win in the All IP-Convergence World Venkatraman McGrath March 27-29, 2009 1 2009: INTECH Business Case Competition

2. Setting: Post Mobile World Congress, 2009 Favorable industry trends 4 billion subscribers in the world Mobile broadband is here Strong growth in traffic Strong performance trend by Ericsson Great recent wins in the marketplace Solid financial performance 2

3. Setting Post Mobile World Congress, 2009 Favorable industry trends 4 billion subscribers in the world Mobile broadband is here Strong growth in traffic Strong performance trend by Ericsson Great recent wins in the marketplace Solid financial performance (c) Boston University School of Management and Ericsson, 2009 But.. How well is Ericsson positioned for the future? 3

4. There is still potential growth (c) Boston University School of Management and Ericsson, 2009 4

5. Ericsson’s recent performance is encouraging (c) Boston University School of Management and Ericsson, 2009 5

6. 2009: An Inflection Point (c) Boston University School of Management and Ericsson, 2009 The US Senate Appropriations Committee estimates that for every USD 1 invested in broadband networks, USD 10 are returned to society. The returns could be even higher with mobile broadband networks as they are cheaper and faster to build than fixed networks. 6

7. Carl-HenricSvanberg is cautiously optimistic (c) Boston University School of Management and Ericsson, 2009 2008 Annual Report 7

8. Yet.. The marketplace is competitive and complex (c) Boston University School of Management and Ericsson, 2009 New competitors? Profitablegrowth? Margin shifts? Valueproposition? 8

9. Competitors.. Familiar and New… (c) Boston University School of Management and Ericsson, 2009 9

10. Listen to the CEOs of two competitors: (2) Alcatel Lucent (c) Boston University School of Management and Ericsson, 2009 10

11. Carl-Henric’s request to Hans Vestberg Take a fresh look at how well Ericsson is positioned for the future (c) Boston University School of Management and Ericsson, 2009 11

12. Vestberg’s preliminary framing (c) Boston University School of Management and Ericsson, 2009 Ericsson’sProfitableGrowth 12

13. 1. All Communicating World “A single, common IP infrastructure that can handle all network services, including fixed and mobile communications, for voice and data services and also video services such as TV.” What will this world look like in 2015? 2020? Can you provide better clarity of this space? (c) Boston University School of Management and Ericsson, 2009 13

14. 2. Margin Shifts (c) Boston University School of Management and Ericsson, 2009 Products Services &Solutions ? Is this assumption generally valid? How should Ericsson capitalize on this trend? 14

15. 3. Acquisitions and Alliances (c) Boston University School of Management and Ericsson, 2009 What do you see as part of the future portfolio in Ericsson? Why? ? 15

16. 4. Global Scale and Competencies (c) Boston University School of Management and Ericsson, 2009 How to further leverage Ericsson’s global scale? What can Ericsson learn from other companies? 16

17. 5. Open Innovation (c) Boston University School of Management and Ericsson, 2009 Is there a strategicrole for open innovationwithin Ericsson? 17

18. Vestberg’s preliminary framing is your starting point (c) Boston University School of Management and Ericsson, 2009 Ericsson’sProfitableGrowth “Issues areinterrelated” 18

19. Your Task Develop a presentation to lay out your analysis of how well Ericsson is positioned to win in the all-IP converged world Identify how Ericsson can position to win along the five themes as a starting frame but feel to free to frame the opportunities and challenges as you see them Delineate risks and vulnerabilities that you see as you analyze the marketplace and competitive actions Provide your well reasoned recommendations to guide Ericsson over the next decade. (c) Boston University School of Management and Ericsson, 2009 19

20. Guidelines Review the attached background material as a starting point and then embark on your search—widely and deeply! Please make reasonable assumptions when necessary and be prepared to justify them when asked by the judges Make the best use of the 24 hours to craft powerful and compelling recommendations for Ericsson to win in the all-IP world. (c) Boston University School of Management and Ericsson, 2009 20