Nokia Corporation (NYSE: NOK) has revealed today the first phase of its new strategy, changes to its operating model and Group Leadership team. It has announced that its new strategic principles and a new operating model will be implemented on January 1, 2021. Customer demands are increasing with the new trends of automation and digitization for high-performance networks.
Nokia is also striving to improve its performance by changing its way to design, implement, manage, and sell its products and solutions. Nokia revealed that it has pinpointed the top four priorities of the company. The first priority is to focus on technology, second priority is to focus on value creation for its current customer base. The third priority is to adopt the opportunity of ‘network-as-a-service’ business models, and the fourth priority is to replace its core strategic idea with a more focused approach.
Finland-based company has also disclosed its four new business groups that are constructed to provide unique offerings to customers. The new business group includes Mobile networks, IP and Fixed Network, Cloud and Network Services, and Nokia Technologies.
Mobile networks group will focus on providing mobile access networks to customers. The Communication Equipment company will try to gain leadership in important technologies such as 5G, ORAN, and vRAN in this business group. IP and Fixed Network will deal with IP routing, Fixed networks, and Optical networks.
The Cloud and Network Services will include the existing Nokia Software business, Nokia’s enterprise solutions, etc. The fourth business group is Nokia Technologies which will not be changed and Jenni Lukander will continue its presidency in this group. Additionally, the company also announced the Customer Experience Organization which will act as the voice of customers across all business groups.
Furthermore, Nokia has also announced the four corporate functions. Four corporate functions include Finance, which will offer cross-company-shared services and is managed by CFO Marco Wirén, Legal and Compliance, which will be controlled by CLO Nassib Abou-Khalil. The third corporate function includes is People, which will engage in human resource management and controlled by CPO Stephanie Werner-Dietz.and the fourth function is Strategy and technology. This function group leader will be chosen later.
Nokia Corporation (NYSE: NOK) shares were trading down -4.48% at $4.05 during the trading session of Wednesday. Nokia Corporation’s (NOK) share price went from a low point around $2.34 to briefly over $5.14 in the past 52 weeks. NOK market cap has remained high, hitting $22.53 Billion at the time of writing