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Technology Stocks : Ericsson overlook?
ERIC 9.395+1.1%Nov 21 9:30 AM EST

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To: Mika Kukkanen who wrote (2231)11/3/1998 4:47:00 AM
From: Mika Kukkanen   of 5390
 
Ericsson focuses on the enterprise for long-term growth and outlines its Enterprise Solutions strategy

In line with the recent corporate statement of direction, Ericsson has unveiled its new strategy for focusing on the enterprise segment. It believes the enterprise is the main driver for the New Telecoms World as business users are stimulating the development of new information services and new business propositions based on converged communications.

Ericsson's focus on the enterprise means that it will use its experience as a leading provider of communications systems to help organisations exploit innovative technologies in order to provide better services cost effectively and to gain a competitive advantage.

"Enterprises are significant users of communications services accounting for between 45% and 53% of today's operators' revenues. This is why we have formed a new business segment," explained Haijo Pietersma, the newly appointed Executive Vice-President, Enterprise Solutions. "Our aim is to achieve overall growth in this segment of more than 10-15% long term. This will be achieved through developing Professional Services to provide consultancy underpinned by access to the full Ericsson product portfolio encompassing data, voice, mobile, fixed, public and private systems."

The Changing Enterprise Environment
This focus has come about in recognition of the major driving forces affecting organisations today.

They are no longer defined by where they are located or the building where they reside. They are more likely defined by information skills and knowledge and how that knowledge is applied as part of a team. This impacts both internal communications and external communications reaching out to customers.

Communications is both driving and supporting these changes. As Haijo Pietersma continued, "Knowledge is only a strategic advantage to business if it is applied. The challenge is how to continually make that knowledge of greater use to the enterprise overall, as well as to employees, customers, partners and suppliers."

Ericsson's Enterprise Solutions Strategy
In order to address these challenges, Enterprise Solutions four key strategies are:

to expand and migrate the PBX base to IP infrastructure to become a major value added service player
to be the number one wireless office solutions provider exploiting the existing leadership position in cellular
to combine Ericsson's expertise in innovation with its customers' business knowledge to help them enhance customer relationships.

Enterprise Solutions combines the strength of: global presence and experience of local implementation; leadership in wireless technology; close working relationships with service providers; a growing capability in data and IP; and experience of providing professional consultancy.

Enterprise Solutions Portfolio

The portfolio will include:

Enterprise Services - combining our existing enterprise professional services consultants and IP experts to create a new professional services team providing systems integration, business consulting and managed services. Business Innovation Solutions - to meet the demands for creating new ways of doing business by focusing on innovative solutions for reaching out to customers.
Wireless Enterprise Solutions - providing communications to business users wherever and whenever they are available to conduct business by utilizing the full wireless portfolio of Ericsson.

Enterprise Systems Solutions - we will be continuously developing new and innovative solutions to ensure that we grow and enhance our installed customer base and migrate that base to new IP and data platforms.

Additionally it will be enhancing its capability in the future through further strategic alliances and acquisitions in order to secure the effective execution of its strategy.

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with the freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over.

Please visit Ericsson's Press Room at: ericsson.se

FOR FURTHER INFORMATION, PLEASE CONTACT

Paul Collinge,Director, Business Development Ericsson Enterprise Networks
Phone: +46 8 422 0108

Caroline Freudenthal, Press Relations Manager Ericsson Enterprise Networks
Phone: +46 8 422 2089

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