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Nokia reorganizes
Posted: 20-Jun-2007 [Source: Nokia]

[Nokia announces company restructuring to include three main units: devices, services and software, and markets.]

Espoo, Finland -- Nokia today announced that it will introduce a new company structure from January 1, 2008. The move, driven by Nokia's strategy, is aimed at creating an organization aligned with the opportunities Nokia sees for future growth, and to increase efficient ways of working across the company.

"The convergence of the mobile communications and internet industries is opening up new growth opportunities for us, both in the devices business as well as in consumer internet services and enterprise solutions. Growing consumer demand for rich, mobile experiences creates an opportunity for change. Nokia will bring these capabilities to the broadest range of devices and price points. This unleashes the power of Nokia's device volumes, now coupled with new services and business solutions. This distinctive approach sets Nokia apart from point solutions vendors," said Nokia CEO Olli-Pekka Kallasvuo. "We believe this new organization can capitalize on these opportunities while allowing us to increase the effectiveness of our investments and the efficiency of our operations."

Under the new organization, Nokia's current business group and horizontal group structure in the device business will be replaced by three main units: Devices, responsible for creating the best device portfolio for the marketplace; Services & Software, reflecting Nokia's strategic emphasis on growing its offering of consumer internet services and enterprise solutions and software; and Markets, responsible for management of Nokia's supply chains, sales channels and marketing activities. In addition, Nokia will establish a Chief Development Office to optimize Nokia's strategic capabilities and growth potential and also provide operational support for integration across all these units in conjunction with the CEO.

From January 1, 2008 onwards, under the new structure, Nokia will have two reportable segments: Devices & Services, and Nokia Siemens Networks. Nokia will report on these two segments in its quarterly and annual results announcements.

The Devices unit will be headed by Kai Oistamo, currently heading the Mobile Phones Business Group; the Services & Software unit will be headed by Niklas Savander, currently heading Technology Platforms: the Markets unit will be headed by Anssi Vanjoki, currently heading the Multimedia Business Group. Mary McDowell, currently heading the Enterprise Solutions Business Group will hold the position of Chief Development Officer.

Robert Andersson, currently heading Customer and Market Operations, will be responsible for finance and strategy in Devices and Nokia-wide strategic sourcing. Tero Ojanper, currently Nokia's Chief Technology Officer, will have business responsibility for entertainment and communities services in Services & Software. Timo Ihamuotila, currently in charge of Mobile Phones' Sales and Portfolio Management, will be responsible for Nokia's global sales within the Markets unit.

Other Group Executive Board members, Simon Beresford-Wylie, Hallstein Moerk, Rick Simonson and Veli Sundbock will continue in their current positions.

Nokia expects that the new organization will allow it to manage its device portfolio with greater effectiveness, speed up time to market for new products, and increase the efficiency of its marketing and productization efforts. In addition, Nokia expects that having a new unit dedicated to consumer internet services and enterprise solutions will build on the foundations established in the existing organization to best position the company to offer its customers complete solutions.

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