It is a day choke full of important announcements!! We have a few already. Rajeev Suri as Nokia CEO, HERE too got a new CEO, NSN and ATD got acting heads all reporting to Rajeev. Nokia has announced 5 billion worth capital restructuring program. Read it all in our earlier article.
Now, most important question that was troubling Nokia Fans and investors alike is about the future strategy the new Nokia is going to adopt. As is clear from appointment of Michael Halbherr as CEO of HERE and Henry Tirri as Executive Vice President, and acting Head of Technologies, it is clear that Nokia is planning to ace all its three businesses, Networks, HERE and Technologies.
Consistent with the planned structural changes announced today, Networks (formerly Nokia Solutions and Networks, or NSN) and Technologies will operate under the Nokia brand. HERE will retain its distinct identity within the Nokia family and, where appropriate, will be identified as “A Nokia Company”. The NSN name will no longer be used after a short phase-out period. For financial reporting purposes, Nokia will have four reportable segments: Mobile Broadband and Global Services within Networks, HERE, and Technologies.
Read the details below from Nokia’s press release and mark the 2nd point in HERE strategy description, “2) cloud-based services for personal mobility and location intelligence, including for the growing segment of wearables and special purpose devices;“.
“Nokia’s strategy is to develop its three businesses in order to realize its vision of being a technology leader in a connected world and, in turn, create long-term shareholder value,” said Rajeev Suri. “Our goal is to optimize the company so that each business is best enabled to meet its goals. Where it makes sense to do so, we will pursue shared opportunities between the businesses, but not at the expense of focus and discipline in each.”
Nokia will target the creation of long-term shareholder value by focusing on the following three areas:
Through its Networks business (formerly Nokia Solutions and Networks, or NSN), Nokia will invest in the innovative products and services needed by telecoms operators to manage the increase in wireless data traffic which is more than doubling every year. Future investment will focus on further building on our strong position in mobile broadband and related services, and strengthening our leadership position in next-generation network technologies.Today, the Networks business serves more than 90 of the world’s 100 largest operators, is a leader in the large and dynamic mobile broadband market, and is ranked third in estimated global market share in mobile radio and second in telecommunication services. An early leader in virtualization and cloud technologies, Networks conducted trials and pre-commercial live projects with more than 50 customers in 2013. “Customers of our Networks business can have confidence that we will continue to make the investments necessary to deliver the innovation needed to help them build even stronger businesses,” said Rajeev Suri.
Through its HERE business, Nokia will invest to further develop its location cloud to make it the leading source of location intelligence and experiences across many different operating systems, platforms and screens. Given that location is an essential element of a connected world, we will target our investment in three areas: 1) technology for smart, connected cars; 2) cloud-based services for personal mobility and location intelligence, including for the growing segment of wearables and special purpose devices; and 3) location-based analytics for better business decisions.Today, HERE is the leading global provider of map content, powering four out of five in-car navigation systems. Its location platform is used by leading internet companies such as Amazon, Microsoft and Yahoo. “Our view is that only one other company has location services that come close to the depth and breadth of those from HERE – and HERE has the advantage of being independent from any operating system or single business model,” said Rajeev Suri.
Through its Technologies business, Nokia will invest in the further development of its industry-leading innovation portfolio. This will include 1) expanding our successful intellectual property licensing program; 2) helping other companies and organizations benefit from our breakthrough innovations through technology licensing; and 3) exploring new technologies for use in potential future products and services.The Technologies team includes hundreds of world-class scientists and engineers who have driven more than half of Nokia’s recent patent filings and many of whom are recognized as leading experts in fields that are essential for enabling the future connected world. These areas include low-power connected smart multi-sensor systems, distributed sensing, and intelligent interplay between various types of radio technologies.”Nokia’s industry leading intellectual property has the potential to create significant value for our licensees and our shareholders,” said Rajeev Suri. “With the strength of our Technologies team and continuing investment in advanced research and development, we can also drive new opportunities for Nokia in both business-to-business and consumer markets.”
Here is a confidence-inspiring video from the man of the moment himself. Message from Nokia group CEO, Rajeev Suri!!