| |
Tucked away in one of Europe’s most far-flung
corners, the Finnish Nokia Corporation has emerged in the past decade
from near-obscurity to become a global powerhouse in mobile communications
and a leader in the development of third-generation wireless services.
In THE NOKIA REVOLUTION: The Story of an Extraordinary Company That Transformed
an Industry (AMACOM 2001), author Dan Steinbock reveals what drives Nokia’s
strategic success:
- Bold Strategic Intent. While others debate and agonize
over first-mover strategies, Nokia boldly rushes for new opportunities
and products. Growing up as a small Finnish company with few resources
and no incumbent privileges, Nokia is accustomed to moving swiftly and
decisively to claim its share of worldwide markets - from network infrastructure
to handsets and software applications.
- Innovation through the Value Chain. Through technology
innovation and segmentation, branding, and design, Nokia makes innovation
a top priority. Like Procter & Gamble, it has shrewdly filled the shelves
with innovative new products to dominate categories. Like Coca-Cola,
it has become ubiquitous, but much more rapidly. Like Sony, it has used
its umbrella brand to sell new products and services and to create footholds
in new markets. Unlike its direct rivals (Motorola, Ericsson), Nokia’s
innovation extends from technology innovation to marketing activities.
- Flat Organization. Prior to its worldwide expansion,
Nokia extended the use of IT throughout the company. As it became a
process organization, it has shunned hierarchies and bureaucracy. Even
senior executives have been rotated from one work task to another. The
organization chart looks hierarchic, but teams and networking reigns.
- Entrepreneurial Spirit. Like the best Silicon Valley
start-ups, Nokia encourages entrepreneurialism throughout the ranks
and views failure as a learning experience, especially in its more recent
units. It has also launched a venture capital arm. Incentives, rewards,
and lifelong learning permeate the entire company. Humility is taken
seriously at Nokia because, in the tech sector, the arrogant of the
today are losers of the tomorrow.
- Collective Leadership. Instead of depending on a
single CEO or a tiny cadre of top-down bureaucrats, Nokia relies on
its executive board, with each member bringing something unique to the
table. Guided by CEO Jorma Ollila, this "collective mind" crafts and
continually refines the details of Nokia’s corporate strategy.
- Global R&D Networks. Nokia’s R&D efforts reflect
extensive collaboration with vital research institutions worldwide.
The company invests less in technology development than its direct rivals,
but often exploits new knowledge more efficiently. Through tech coalitions,
it has managed to internalize new know-how while neutralizing competitive
threats.
- Competition and Cooperation. By managing its corporate
and government relations with diplomacy and consideration, Nokia (unlike
Microsoft) has been able to avoid high profile and costly anti-trust
actions and competition policy struggles. Instead of trying to buy or
crush potential rivals, Nokia works to cooperate with suppliers, partners,
clients, even direct competitors. It knows when to compete and when
to cooperate.
- Customer Focus. The most important secret to Nokia’s
success¼and the most enduring one as well¼may well be its ability and
willingness to listen to the customer¼a fact apparent in its strategy,
structure, and resource allocation, as well as its products and services.
And due to its industry foresight, Nokia not only has its finger on
the pulse of the market¼it often knows what the customer wants, even
when the customer is not yet aware of this.
Adapted from THE NOKIA REVOLUTION: The Story of an
Extraordinary Company That Transformed an Industry (AMACOM) by Dan Steinbock.
Want to read more? Click
here to read a chapter excerpt from THE NOKIA REVOLUTION
|
|
|
