Nokia' s reorganization

Nokia has announced a new organization, which goes into effect next Jan. 1. The goal is to capitalize on the new opportunities presented by convergence and boost efficiency of its operations and time to market. Nokia will have two reportable segments: Nokia Siemens Networks and devices and services. This latter will be reorganized into three units: devices, services and software, and markets. The goal of the devices unit is obvious: develop handsets. The services and software unit emphasizes consumer Internet services on mobile phones, but includes also enterprise solutions. The markets unit will focus on supply chains, sales channels and marketing. What does this reorganization means? A strong desire to shift from a device manufacturing role to a focus on content and services. It seems clear that Nokia has identified three main focus: provide complete solutions; more software and services; be closer from customers. Competitors should ask themselves if they are not the directions the mobile industry has been taking in recent years. Once again, Nokia gives the tempo to the mobile industry. Top management will be unchanged: CEO Olli-Pekka Kallasvuo and Chief Financial Officer Rick Simonson will stay. Kai Oistamo will now lead the new devices unit, while Niklas Savander will lead the services-and-software division, and Anssi Vanjoki, will run the new markets unit. Mary McDowell, leader of the enterprise solutions business group, will become chief development officer at the corporation.