Nokia restructures for the converging marketplace

Nokia has announced a new company structure from 1 January 2008. Three new business units replace the current structure – Services & Software, Markets (responsible for supply chains, sales channels and marketing activities), and Devices.

The last of those is the crucial strategic move, for it brings together consumer internet and enterprise devices. “he convergence of the mobile communications and internet industries is opening up new growth opportunities for us … Growing consumer demand for rich, mobile experiences creates an opportunity for change”.

Nokia says it expects that the new organization will allow it to manage its device portfolio with greater effectiveness, speed up time to market for new products, and “increase the efficiency of its marketing and productization (sic) efforts”.

In addition, Nokia expects that having a new unit dedicated to consumer internet services and enterprise solutions will build on the foundations established in the existing organization to best position the company to offer its customers complete solutions.
 This looks like a sound move.

Customer expectations about handset features have been rising fast, and Nokia has been adding a good collection of boundary-stretching extras to its high-end phones – satnav, WiFi, VoIP, access to Web 2.0 applications from players like Google.

With flat rate data pricing from the networks and more mobile-oriented web-based apps appearing on the scene; we will not have to wait long to see demand for such features in the midrange segment; and Nokia wants to be well placed to satisfy it.

Nokia said that it plans to enable a rich mobile experience “on the broadest range of devices and price points”. To do that in the most efficient way, it needs to bring its various device units together.