March 20, 2017 Leave a comment
- Nokia will divide up its Mobile Networks and Chief Innovation and Operating Officer units to align with the company’s ‘Rebalancing for Growth’ strategy unveiled in November 2016.
- The moves create greater visibility for Nokia’s services unit, and should lead to improved operating efficiency and strategic investment, but significant management changes give the impression of disarray.
On March 17, Nokia announced changes in its organization and leadership team, to better execute the strategy unveiled by CEO Rajeev Suri at the company’s Capital Markets Day in November 2016:
- Mobile Networks will be divided into two distinct organizations: Products & Solutions and Global Services. Marc Rouanne will assume control of the Products & Solutions unit, while current Mobile Networks President Samih Elhage will step down. Igor Leprince will continue to head up Global Services and will be added to Nokia’s Group Leadership Team (GLT), an indication of the growing importance of services.
- Despite being placed within Mobile Networks, Global Services will house all managed network services and company-wide global service delivery. The Global Services unit will also be responsible for developing a common approach for processes and tools, managing a Services Committee to coordinate services development across different groups, with a common Customer Delivery Manager responsible for managing all services for a single customer.
- Global Services will also continue to drive emerging strategic service areas such telco cloud, ‘x as a service’ (XaaS), prime integration and transformation consulting.
- The former Chief Innovation and Operating Officer (CIOO) organization will be split into three: A traditional ‘operating’ unit will focus on internal operations, while responsibility for ‘innovation’ will revert to CTO Marcus Weldon and Chief Strategy Officer Kathrin Buvac. Monika Maurer, currently COO of the fixed business, will became company COO; both Maurer and Weldon will join the GLT. (Buvac is already a member.)