Innovation governance
Innovation cycles are getting shorter and shorter. As a result, we must be agile and flexible in how we manage and budget our innovation projects. We orient ourselves toward the best-practice approaches used by innovative start-ups and successful companies, and to the latest findings from research and academia. Investment decisions regarding our multi-year innovation priorities are based directly on the recommendations of an internal venture capitalist. Funding is allocated according to success, similar to the approach used for start-ups and among venture capital investors, whereby new funding from capital investors is made available dependent on the venture’s performance. This gives us the flexibility we need when developing innovation topics and focuses efforts on success. Funding is made available for the next project phase only when specific outcomes that are relevant to our customers are achieved.
Corporate Innovation Fund (CIF)
Similar to a venture capital approach, the CIF offers all business and product ideas generated within the Group a flexible and results-oriented form of funding for a specific project phase. The provision of an innovation budget allows us, for example, to fund new innovation projects at short notice and with little red tape. Such financing is granted independently of annual planning periods, and therefore intensifies our focus on market and customer requirements. For new business and product ideas to qualify for CIF funding, they must solve pertinent customer problems, be implemented jointly with the business areas, and support our strategy.
Deutsche Telekom Capital Partners
The investment management group Deutsche Telekom Capital Partners invests on behalf of Deutsche Telekom and other investors. DTCP invests in venture and growth capital and acquires companies in Europe, the United States, and Israel. Its investments are both financially and strategically motivated. DTCP also plays an active role in establishing business relations between the innovative portfolio companies, Deutsche Telekom, and other partner corporations, in order to create added value for all sides.
Advised by the T-Capital business area at Deutsche Telekom Capital Partners, Deutsche Telekom – through the strategic investment fund Telekom Innovation Pool (TIP) – invests in and promotes business start-ups that have a strategic focus and support the Group’s long-term targets through collaboration with the respective business areas. The goal is to actively pursue long-term innovations for the Group, particularly in the areas of wireless infrastructure, decentralized services, Internet of Things, digital transformation, artificial intelligence, and ESG. In 2023, TIP made five new corporate investments: Airalo (eSIM store for global roaming solutions), Mento (Web3 digital asset solutions-as-a-service), Desquared (Magenta App development and hosting), Pachama (carbon offset provider), and Meridian (merchant payment solution for shop.telekom.de).