The Nokia Revolution

About the Author

Dan Steinbock is a renowned researcher and author with a deep understanding of global business dynamics and information technology. As an affiliate researcher at the Columbia Business School Institute for TeleInformation (CITI) and a visiting virtual professor at the Helsinki School of Economics and Business Administration, Steinbock brings a wealth of knowledge and insight into the complex world of business and technology. His works, including The Birth of Internet Marketing Communications and Triumph and Erosion in the American Media and Entertainment Industries, showcase his ability to dissect and explain intricate industry trends and developments.

Main Idea

The Nokia Revolution chronicles the extraordinary transformation of Nokia from a small pulp mill in Finland into a global leader in cellular and mobile information technology. Steinbock details the strategic decisions, innovative processes, and key factors that propelled Nokia to the forefront of a rapidly evolving industry. Through meticulous analysis, the book highlights the company's strategic intent, global focus, market-making strategies, and commitment to human resources and research and development.

Table of Contents

1. Global Focus Strategy
2. A Process-Driven Organization
3. Global Focus: Nokia Targets Niche Markets
4. Strategic Market-Making
5. "Nokians" and Human Resource Management
6. Nokia's Global R&D
7. Upstream Innovation
8. Downstream Innovation

Global Focus Strategy

Nokia's transformation began in the 1980s and 1990s when mobile communications markets were rapidly changing. The company's leadership recognized the need to evolve by developing new capabilities, building strategic advantages, and globalizing efforts. This period marked a significant shift from traditional, regulated markets to deregulated ones, where private sector customers became the primary focus.

Strategic Intent: New Customers, New Rules

The deregulation of markets brought several changes:

• Regulations: Customers were no longer driven by compliance, but by market demands.
• Orders: Integrated turnkey solutions replaced single product orders.
• Workforce: The focus shifted from technical expertise to business and marketing skills.
• Business Cycles: Predictable cycles became increasingly erratic.
• Competitive Pressures: Competition went global, necessitating faster response times and higher service levels.

Despite these challenges, Nokia thrived by embracing new opportunities, establishing strong footholds in key markets like the UK and Germany. By the late 1990s, Nokia's agility and responsiveness had become its hallmark, setting it apart from larger, less flexible competitors.

The Price of Success

Success brought its own set of challenges. By May 1996, Nokia faced significant drops in profit and operating profit due to several factors:

• A rapidly expanding workforce, with 7,000 new employees added in 1995 alone.
• Productivity issues caused by supplier and delivery problems.
• A stagnant American market due to regulatory delays.
• Price cuts by analog phone manufacturers in response to slow digital adoption.

Despite these setbacks, Nokia remained committed to its focus strategy, understanding that the logistics challenges were a byproduct of its recent reorganization and market shifts.