Post Acquisition What’s Nokia for You From May 1?

It seems the deep pockets of Microsoft and the leadership of Rajeev Suri has infused new blood in Nokia



Rajeev Suri, new CEO of Nokia

Post acquisition by Microsoft, Nokia has done a complete overhaul of the company and expressed how it would work in the future. And for Nokia the future starts from May 1, 2014. From the multiple communications sent out to media on 29 April, which are conspicuously long and detailed, it appears, the once-upon-a-time-leader in mobile devices and technologies, want to bury its past, and take a paradigm shift. It wants to tell the world that the last four to five years, when the company failed in many aspects, do not define Nokia which was once synonymous with mobile phones. Till a few years back, in many parts of the world a mobile phone meant Nokia and vice versa.

A successful company or to become a successful company, an entity needs three key elements – product, people and process. From what was communicated to world today by Nokia, it appears, the Finnish firm has managed to put all the three things in place, now.

The Product Portfolio

For the first time in last five years, Nokia does not appear to be confused. It behaved rationally and tell the world what business it is in and what business mean to it. In a very clear fashion, the company restructured all its businesses in to three significant units – Technologies, Networks and HERE.


Technologies will be the division of Nokia where the company works around various mobility devices like mobile phones, smartphones and tablets. The wearable devices, whenever it produces, will also be a part of it. The company said it will invest in the further development of its industry-leading innovation portfolio. This will include 1) expanding its successful intellectual property licensing program; 2) helping other companies and organizations benefit from its breakthrough innovations through technology licensing; and 3) exploring new technologies for use in potential future products and services. The unit of Nokia will also work around low-power connected smart multi-sensor systems, distributed sensing, and intelligent interplay between various types of radio technologies.


With the acquisition by Microsoft, and from May 1, 2014, Nokia Solutions and Networks will be called as Networks. Earlier it was called Nokia Solutions and Networks which, few months back, was called Nokia Siemens Networks.

“The NSN name will no longer be used after a short phase-out period,” Nokia said in a statement. “Consistent with the planned structural changes announced today, Networks (formerly Nokia Solutions and Networks, or NSN) and Technologies will operate under the Nokia brand,” it added.

While announcing the developments the company said it will invest in Networks in the innovative products and services needed by telecoms operators to manage the increase in wireless data traffic which is more than doubling every year. “Future investment will focus on further building on our strong position in mobile broadband and related services, and strengthening our leadership position in next-generation network technologies,” the statement added.

“Customers of our Networks business can have confidence that we will continue to make the investments necessary to deliver the innovation needed to help them build even stronger businesses,” said Rajeev Suri, Nokia’s newly appointed CEO.


Here is the location based services business unit of Nokia. The company aims at leveraging the potential of location services using cloud technology to the fullest. It also looks at investing heavily in this regard.

“Given that location is an essential element of a connected world, we will target our investment in three areas: 1) technology for smart, connected cars; 2) cloud-based services for personal mobility and location intelligence, including for the growing segment of wearables and special purpose devices; and 3) location-based analytics for better business decisions,” the company outlined in the statement.

Without naming its nearest competitor, Suri, the newly appointed CEO hinted at Google saying that the search engine giant is close in what Nokia does with HERE. “Our view is that only one other company has location services that come close to the depth and breadth of those from HERE – and HERE has the advantage of being independent from any operating system or single business model,” said Rajeev Suri. He was perhaps referring to Google Maps.

The People Factor

On April 25, Microsoft completed the Nokia deal and on April 29, the joint entity is ready with the big announcements. It appointed technology veteran Rajeev Suri as its President and CEO. Industry watchers say Suri is the best man that Microsoft could ever find in the industry to lead Nokia to its next goal. He is known as a master strategist. Suri has already served Nokia for more than 18 years and also headed one of its key business units – Nokia Solutions Networks or the erstwhile Nokia Siemens Networks. Both the brand names do not work anymore from May 1.

Besides Suri, the Finnish handset maker also announced some more key leadership changes.

Timo Ihamuotila has been appointed as Executive Vice President and Group Chief Financial Officer, and Michael Halbherr has been apoointed as CEO of HERE, Nokia’s location based services division. It also appointed Henry Tirri as Executive Vice President, and acting Head of Technologies, and Samih Elhage as Executive Vice President and Chief Financial and Operating Officer of Networks.

Risto Siilasmaa, Chairman of the Nokia Board of Directors, who has also been serving as an interim CEO, will return to focusing exclusively on his role as Chairman of Nokia’s Board of Directors as of May 1, 2014.

Nokia also announced the appointment of Hans-Jürgen Bill as Executive Vice President of Human Resources, Barry French as Executive Vice President of Marketing and Corporate Affairs, and Maria Varsellona as Executive Vice President and Chief Legal Officer, effective May 1, 2014.

The Process Driven Approach

From May 1 onwards Nokia said it will adopt a simple and clear governance model. All the three business units will report to the Nokia CEO, Here and Technologies will have two separate leaders who will eventually report to the CEO. Suri, the current CEO of NSN keeps the Networks unit under him.

The company also formed a Nokia Group Leadership Team which will replace the current Leadership Team, and will be main operative decision making body at the now Microsoft owned firm.

“Nokia has a strong and proven team of leaders,” said Rajeev Suri. “We intend to move fast to further refine our execution plan, build the right company culture, and institute the necessary operational governance and performance management systems.” Suri said.

It appears as if the deep pockets of Microsoft and the leadership of Rajeev Suri has infused new blood to the bleeding mobile phone maker, and now it aims at connecting the billions of devices of all kind and in all fashion. The firm now believes it has the potential to improve lives in a vast number of areas: time and availability, transportation and resource consumption, learning and work, health and wellness, and many more.

“With our three strong businesses – Networks, HERE and Technologies – and position as one of the world’s largest software companies, we are well placed to meet our goal to be a leader in the technologies for a world where everybody and everything is connected,” sums up Rajeev Suri.

Also Read

Leave a Reply

%d bloggers like this: