NokiaOnlines - The announcement came down like a thunderclap. It was not a small change. It was a complete overhaul. Nokia is shedding its old skin. It is serious about becoming a B2B technology leader. This new strategy is a massive pivot. It touches everything. Operating models, financial goals, and even the Group Leadership Team (GLT). It is the biggest shakeup since they decided to focus entirely on network technology.

The focus is now razor-sharp. Nokia wants growth. But not just any growth. Profitable growth. They are done chasing sheer volume at low margins. The new era is about being a technology pure-play. They are targeting the enterprise market aggressively. This is where the big money is. This is where innovation pays off.

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The Strategy Pivot: A B2B Technology Powerhouse

The strategy has four core pillars. They call them the "Four Pillars." First is Lead in critical networks. This means 5G, of course, but also fixed networks and cloud-native solutions. Second is Expand into Enterprise. This is the gold rush. Private wireless, industrial automation, and specialized services. Third is Monetize Intellectual Property. The patent portfolio is a treasure chest. They plan to use it effectively. Fourth is Future Capabilities. This is about investment. Investing in R&D for the next big thing, like 6G and network slicing.

This is a fundamental shift in mindset. Nokia is now selling business outcomes, not just equipment. They are selling solutions to CEOs, not just antennas to CTOs. This requires a different kind of sales team. It requires a different kind of engineer. It requires a different culture.

New Financial Vows

The financial targets are ambitious. Very ambitious. They are moving away from short-term market reactions. They are looking long-term now. The new long-term target is for sustainable double-digit comparable operating margins. This is a crucial number. Double-digit margin shows true health. It shows efficiency.

They are also targeting faster-than-market growth in their addressable market. This means stealing market share. It means better products. It means delivering more value than the competition. The market reacted positively. This is what investors wanted to hear. Confidence. Clarity.

The new strategic Key Performance Indicators (KPIs) reflect this. They are not just tracking sales numbers anymore. They are tracking customer satisfaction in the enterprise segment. They are tracking the return on R&D investment. They are measuring success based on value creation. It is a smarter way to run a technology giant.

Operating Model Evolution: Leaner and Faster

The organizational chart is changing. The old structure was good. But it was too slow for the digital age. They are evolving the operating model to be more agile. They want to be able to pivot quickly. The market does not wait.

The new model decentralizes certain decision-making. Empowering business groups is the key. Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. These four groups now have more autonomy. They can react to their specific market needs faster. This removes bottlenecks in Helsinki. It pushes power closer to the customer.

The Group Leadership Team Shuffle

A new strategy demands a new leadership structure. The GLT changes were announced simultaneously. Certain roles were reorganized. New faces were brought in. Existing leaders shifted positions. It is all about alignment. Everyone on the GLT must be singing the same song. They must be aligned with the B2B pure-play vision.

The changes are designed to improve operational execution. Strategy is cheap. Execution is everything. New leaders are tasked with breaking down silos. They are tasked with making the four business groups work together seamlessly. Cross-selling is now critical. For example, selling a private wireless solution (Mobile Networks) combined with cloud orchestration (Cloud and Network Services). This requires coordination. The new GLT is structured for this coordination.

Nokia is not dead. It is reborn. It is a focused, ambitious technology company. The new strategy is not a promise. It is a declaration of war on inefficiency. It is a commitment to a profitable future. The market is watching closely. The comeback story is still being written. This chapter is about hard work and discipline.

Source: https://www.nokia.com/about-us/news/releases/2021/03/18/nokia-announces-new-strategy-evolution-of-its-operating-model-new-long-term-financial-target-strategic-kpis-and-changes-to-its-group-leadership-team/



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