Nokia assumes trident formation

Finnish vendor Nokia said Wednesday it will implement a new corporate structure in the new year.

Effective January 1, 2008, three new divisions will combine to form the Devices & Services arm of Nokia, which will sit alongside Nokia Siemens Networks.

The three constituent units will be Devices, Services & Software and Markets. The re-organisation, Nokia said, is designed to align the firm with “the opportunities Nokia sees for future growth, and to increase efficient ways of working across the company”.

The Services & Software unit will manage the vendor’s enterprise software and solution activities, as well as Nokia’s consumer internet services. The Markets unit will handle supply chains, sales channels and marketing activities.

Mark Newman, chief research officer at telecoms.com’s parent, Informa Telecoms & Media, said the reorganisation would result in a much cleaner organisation than the old structure where the device business was split across three separate divisions.

“The creation of the Services and Software division is particularly interesting. It is further evidence of Nokia’s push into the services business – something that is likely to be of concern to mobile operators who are already uncomfortable with Nokia’s dominance in handsets,” he said.

“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,” said CEO Olli-Pekka Kallasvuo in a statement.

“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,” he said. “We believe this new organisation can capitalise on these opportunities while allowing us to increase the effectiveness of our investments and the efficiency of our operations.”

In addition to the new structure, the role of chief development officer will be created – and filled by Mary McDowell, currently head of the Enterprise Solutions Business Group. McDowell’s office will manage growth opportunities as well as offering support for the three units during the reorganisation. Kai Oistamo, head of the Mobile Phones Business Group, will lead the Devices unit. Technology Platforms chief Nikas Savander will head Services & Software, while Anssi Vanjoki, currently head of the Multimedia Business Group, will assume responsibility for Markets.