Stephen Elop, Nokia:
New Strategy at Critical Juncture
February 11, 2011
Nokia today outlined its new strategic direction, including changes in
leadership and operational structure to accelerate the company's speed
of execution in a dynamic competitive environment.
Elop, President and CEO of Nokia
Major elements of the new strategy include:
- Plans for a broad strategic partnership with Microsoft to build a new
global mobile ecosystem; Windows Phone would serve as Nokia's primary
- A renewed approach to capture volume and value growth to connect "the
next billion" to the Internet in developing growth markets
- Focused investments in next-generation disruptive technologies
- A new leadership team and organizational structure with a clear focus
on speed, results and accountability
"Nokia is at a critical juncture, where significant change is necessary
and inevitable in our journey forward," said Stephen Elop, Nokia
President and CEO. "Today, we are accelerating that change through a new
path, aimed at regaining our smartphone leadership, reinforcing our
mobile device platform and realizing our investments in the future."
Nokia plans to form a strategic partnership with Microsoft to build a
global mobile ecosystem based on highly complementary assets. The
Nokia-Microsoft ecosystem targets to deliver differentiated and
innovative products and have unrivalled scale, product breadth,
geographical reach, and brand identity. With Windows Phone as its
primary smartphone platform, Nokia would help drive the future of the
platform by leveraging its expertise on hardware optimization, software
customization, language support and scale. Nokia and Microsoft would
also combine services assets to drive innovation. Nokia Maps, for
example, would be at the heart of key Microsoft assets like Bing and
AdCenter, and Nokia's application and content store would be integrated
into Microsoft Marketplace. Under the proposed partnership, Microsoft
would provide developer tools, making it easier for application
developers to leverage Nokia's global scale.
With Nokia's planned move to Windows Phone as its primary smartphone
platform, Symbian becomes a franchise platform, leveraging previous
investments to harvest additional value. This strategy recognizes the
opportunity to retain and transition the installed base of 200 million
Symbian owners. Nokia expects to sell approximately 150 million more
Symbian devices in the years to come.
Under the new strategy, MeeGo becomes an open-source, mobile operating
system project. MeeGo will place increased emphasis on longer-term
market exploration of next-generation devices, platforms and user
experiences. Nokia still plans to ship a MeeGo-related product later
In feature phones, Nokia unveiled a renewed strategy to leverage its
innovation and strength in growth markets to connect the next billion
people to their first Internet and application experience.
New leadership team, operational structure
This new strategy is supported by
significant changes in Nokia's leadership, operational structure and
approach. Effective today, Nokia has a new leadership team with the
commitment, competencies and innovative thinking needed in today's
The Nokia Leadership Team, previously the Group Executive Board, will
consist of the following members: Stephen Elop, Esko Aho, Juha Akras,
Jerri DeVard, Colin Giles, Rich Green, Jo Harlow, Timo Ihamuotila, Mary
McDowell, Kai Oistamo, Tero Ojanpera, Louise Pentland and Niklas
Alberto Torres has stepped down from the management team, effective
February 10 to pursue other interests outside the company.
The renewed governance will expedite decision-making and improve
time-to-market of products and innovations, placing a heavy focus on
results, speed and accountability. The new strategy and operational
structure are expected to have significant impact to Nokia operations
New company structure
of April 1, Nokia will have a new company structure, which features two
distinct business units: Smart Devices and Mobile Phones. They will
focus on Nokia's key business areas: high-end smartphones and
mass-market mobile phones. Each unit will have profit-and-loss
responsibility and end-to-end accountability for the full consumer
experience, including product development, product management and
Smart Devices will be responsible for building Nokia's leadership in
smartphones and will be led by Jo Harlow. The following sub-units now in
Mobile Solutions will move under Smart Devices:
- Symbian Smartphones
- MeeGo Computers
- Strategic Business Operations
To support the planned new partnership with Microsoft, Smart Devices
will be responsible for creating a winning Windows Phone portfolio.
Mobile Phones will drive Nokia's "web for the next billion" strategy.
Mobile Phones will leverage its innovation and strength in growth
markets to connect the next billion people and bring them affordable
access to the Internet and applications. The Mobile Phones unit will be
led by Mary McDowell.
Markets will be responsible for selling products, executing compelling
marketing and communications, creating a competitive local ecosystem,
sourcing, customer care, manufacturing, IT and logistics across all
Nokia products. It will be headed by Niklas Savander.
Services and Developer Experience will be responsible for Nokia's global
services portfolio, developer offering, developer relations and
integration of partner service offerings. Tero Ojanpera will lead the
Services and Developer Experience unit in an acting capacity.
NAVTEQ, an integral part of Nokia's location and advertising business,
will be headed by Larry Kaplan, and continue as a separate reporting
The CTO Office will be responsible for Nokia's technology strategy and
forward-looking technology activities, including Nokia Research Center.
It will be headed by Rich Green.
Design, responsible for Nokia product and user experience design, will
be led by Marko Ahtisaari.
The CFO Office, responsible for all financial activity, will be headed
by Timo Ihamuotila.
Corporate Development, responsible for driving implementation of Nokia's
ecosystem strategy and strategic partnerships, will be headed by Kai
Corporate Relations & Responsibility, responsible for Nokia's government
and public affairs, sustainable development and social responsibility,
will be led by Esko Aho.
Human Resources will be led by Juha Akras.
Legal and Intellectual Property will be led by Louise Pentland.
Nokia Siemens Networks continues in the Nokia Group as a separate