Nokia's Corporate Transformation: A view from Korea
>> Nokia transforming itself to become innovative leader
Kim Yoo-chul
Korea Times
May 23 2015
koreatimes.co.kr
Nokia, the Finnish technology giant, said it has been transforming itself continuously to become an innovative leader in the tech industry. It recently marked its 150th anniversary, after starting its business as a pulp mill in the early 19th century.
Nokia's Korean subsidiary said the company has been consistent in transforming its key business structures focusing on infrastructure for telecom and licensing, and those efforts have helped it rise to global prominence.
"Nokia has set its sights on the human possibilities of today's connected world," it said in a statement.
It said what it is today was the result of two crucial decisions that were successfully materialized in recent years -- the acquisition of Siemens' shares of what was then Nokia Siemens Networks (NSN) in 2013, and the sale of its handset business to Microsoft (MS) last year.
The decisions represent Nokia's constant changes for profitability and diligence to embrace emerging technology. This has allowed Nokia to have advantages in the Internet of Things (IoT) and 5G mobile wireless tech with its telecom equipment regarded as an essential element for power network development.
Its history is about changing -- from paper to cables, rubber boots to televisions, and mobile phones to the Nokia of today, it said.
"We have actively embraced changes over the years," Nokia CEO and President Rajeev Suri said.
After such structural changes, Nokia now has three key units.
Nokia Networks enjoys a leading position in most segments where it competes including 4G wireless. In the IoT and 5G businesses, Nokia aims for a bigger share by partnering with Korean technology giants including Samsung, LG Electronics, SK Telecom, KT and LG Uplus.
It also seeks to boost its presence in mapping services and the automotive industry, which it identified as its next cash-cows.
Nokia's financial soundness is strongly backed by its indisputable position in licensing as Nokia Technologies is strong in patent portfolios, meaning Korean tech companies pay a sizable amount of money to Nokia in patent fees.
Its decision to acquire Alcatel-Lucent of France was part of its efforts to expand the corporate footprints in the global market. On April 15, this year, Nokia announced the acquisition plan with the company expecting the transaction to be finalized in the first half of next year.
"We are now prepared to create synergy among units. Nokia aims to realize what we call a ‘programmable world' with billions of sensors linking together online. Nokia's innovative technology will make a truly positive impact on people's daily life," said the statement. # # #
- Eric L - |
