Nokia has undergone a major management shake-up as it unveiled new strategic direction today (11 February).
The manufacturer’s new strategy includes plans for a broad strategic partnership with Microsoft with Windows Phone serving as Nokia's primary smartphone platform.
The manufacturer will also launch a renewed approach to capture volume and value growth to connect ‘the next billion’ to the internet in developing growth markets.
The company will increase focused investments in next-generation disruptive technologies, while a new leadership team and organisational structure will focus on ‘speed, results and accountability’, Nokia said.
Nokia CEO Stephen Elop said: ‘Nokia is at a critical juncture, where significant change is necessary and inevitable in our journey forward. Today, we are accelerating that change through a new path, aimed at regaining our smartphone leadership, reinforcing our mobile device platform and realizing our investments in the future.’
Effective from today, Nokia has a new leadership team.
The Nokia Leadership Team, previously the Group Executive Board, will consist: Stephen Elop, Esko Aho, Juha Akras, Jerri DeVard, Colin Giles, Rich Green, Jo Harlow, Timo Ihamuotila, Mary McDowell, Kai Oistamo, Tero Ojanpera, Louise Pentland and Niklas Savander.
Alberto Torres has stepped down from the management team, effective February 10 to ‘pursue other interests outside the company’.
Nokia said the renewed governance will ‘expedite decision-making’ and ‘improve time-to-market of products and innovations’, placing a heavy focus on results, speed and accountability. The new strategy and operational structure are expected to have significant impact to Nokia operations and personnel.
As of April 1, Nokia will have a new company structure, with two distinct business units: Smart Devices and Mobile Phones.
They will focus on Nokia's key business areas: high-end smartphones and mass-market mobile phones. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing.
Smart Devices will be responsible for building Nokia's leadership in smartphones and will be led by Jo Harlow. The following sub-units now in Mobile Solutions will move under Smart Devices: Symbian Smartphones MeeGo Computers Strategic Business Operations
To support the planned new partnership with Microsoft, Smart Devices will be responsible for creating a winning Windows Phone portfolio.
Meanwhile, Mobile Phones will drive Nokia's ‘web for the next billion’ strategy. It will be led by Mary McDowell.
Markets will be responsible for selling products, executing compelling marketing and communications, creating a competitive local ecosystem, sourcing, customer care, manufacturing, IT and logistics across all Nokia products. It will be headed by Niklas Savander.
Services and Developer Experience will be responsible for Nokia's global services portfolio, developer offering, developer relations and integration of partner service offerings. Tero Ojanpera will lead the unit in an acting capacity.
NAVTEQ, an integral part of Nokia's location and advertising business, will be headed by Larry Kaplan, and continue as a separate reporting entity.
The CTO Office will be responsible for Nokia's technology strategy and forward-looking technology activities, including Nokia Research Center. It will be headed by Rich Green.
Design, responsible for Nokia product and user experience design, will be led by Marko Ahtisaari.
The CFO Office, responsible for all financial activity, will be headed by Timo Ihamuotila.
Legal and Intellectual Property will be led by Louise Pentland.
Nokia Siemens Networks continues in the Nokia Group as a separate reporting entity.