1© Nokia Siemens Networks Presentation / Author / Date For internal use NSN Technology Management...

1 © Nokia Siemens Networks Presentation / Author / DateFor internal use

NSN Technology Management ConceptsOssi Pöllänen


Table of ContentsStrategy Concept

– Foundations of strategy concept– Elements of strategy concept– Where is NSN

▪ Ecosystem▪ Vision▪ Trends▪ Opportunities▪ Drivers▪ NSN Vision

Technology Management– Generic Areas for Technology Management– Questions Technology Strategy Should Answer– Description of the Working Environment for Technology Management in NSN– NSN Technology Hierarchy

Generic Technology Management Framework for NSN Learnings


Source: Arto Lahti: Yrityksen kilpailustrategia, Ekonomia sarja 85, 1981 (in Finnish)

Foundations of Strategy Concept

Starting pointof strategy

work

Possiblerestrictionsfor strategy

implementation

Possiblerestrictionsfor strategy

implementation

Possiblecrisis

elements

Opportunity offered by the environment

Threat caused by the environment

Strength of the company

Weakness of the

company

In simplest strategy is organization’s approach to adjust with the changes in environment – proactively or reactively


Elements of Strategy Concept

H. Igor Ansoff:Formal Strategic Planning

Generic StrategiesScenario PlanningPortfolio AnalysisCompetitor AnalysisIndustry Analysis

Core CompetencesResource StrategiesCompetence ManagementBusiness IntelligenceCompetitor IntelligenceVenturing

Network AnalysisStructureSystemCultureStrategic Maps

Number of Elementsin Strategic Planning

1960 20101970 1980 1990 2000

Minzberg, Quinn:Strategy cannot be planned formally

Era for Organizational Structure

Networking era

Porter:Competitive Advantage

Planning era

Adjustment era

Kotter:Leading ChangeNorton, Kaplan:Strategic Maps

Strategy is young subject for academic research – there are multiple schools – there are many unproven hypothesis –

100% right answer for success does not exist – many ways to implement


Where is NSN?


Basic ecosystem description for telecommunications

Operators

Mobile, Hybrid, Fixed, MVNOSub-contractors

Sub-contractors

SI & ISV

Sub-contractors

e.g. GoogleNewentrants

Sub-contractors

•Subscribers

•Consumers

•Users

•SOHO

•SME

•Large

•MNC

NetworkOperatorfunction

xSP

Other EcosystemStakeholders:

•Regulators

•Investors

Contentprovider

Contentaggregator

Contentowner

ServiceOperatorfunction

Sub-contractors

Terminalvendors

NSN

Solutionprovider

•HW

•SW

•Service


Our market vision of 2015

Applications pre-dominantly

in Internet

Applications pre-dominantly

in Internet

Broadband Everywhere

5 Billion people

connected

Multitude of business models


Trends: new player – new business models

InternetService

Provider

ApplicationService

Provider

Establishedbusinessmodels

Network &Connection

Services

Applicationservices

Disruptive business models

fixedmobile

Internet Business Modelsenter the Telco market• New players create very fast

huge communities offering cool services for free (Skype, YouTube) w/ relatively little investment.

• Different revenue models based on advertising, subscription, and transaction

• They expand scope and reach (mobile services)

Telco’s looking for newbusinessExpand scope & reach:• MNOs enter the fixed

market and vice versa• Offer application services• Establish new business

models (triple/quad play)

VirtualNetworkOperator

FixedNetworkOperator

CableOperator Hybrid

NetworkOperator Mobile

NetworkOperator


Trends: My Services Anywhere

Service Mobility

Service is available from different places over various fixed and mobile networks

Terminal Mobility

Any device connecting easily to various access networks and moving between (rooming)

User Mobility

The same services available via various devices such as PC clients, mobile devices, phones…

FlexibleBusiness Models

Delicery of service can vary from via own fixed and mobile access networks, partner’s access networks, intranet/Internet, own services, business partner services, subscriber services, or services from unknown parties over the internet


• End user wants the my-service-anywhere experience

• New intelligent & powerful device classes already start to support this goal

Voice/DataConvergence and CTI

by leveraging Internet as Platform

Voice/DataConvergence with multimode

broadband mobile access

Fixed Mobile Convergence driven by operators service

offering innovations

Fixed Mobile Convergence driven by disruptive wireless

access technologies

DA

TA

CE

NT

RIC

VO

ICE

CE

NT

RIC

mobility requirementslow high

UpcomingDevice Classes

Trends: devices


• End user wants the my-service-anywhere experience

• New intelligent & powerful device classes already start to support this goal

Converged Devices

PCsTVs

MobilePDAs

FixedPhones

MobilePhones

FIXED

VOICE

MOBILE

DATA

UpcomingDevice

Classes


Connectivitywith a few key applications

More and more connections and network capacity needed

• Anywhere, anytime connectivity

• Capital intensive, high entry barrier

• Connection fee based business model

Two opportunities emerging to operators

ApplicationsDigital Distribution & services

Internet is the key source of serviceand business model innovations

• Fierce competition

• 3rd party revenue models

• Premium content and communities have value


Fixed Network

Fixed CoreFixedAccess

Aggregation

Converged NetworkOperation and Business Support

Systems

Network Transformation

Mobile Network

Mobile CS CoreMobile

Access

Mobile PS Core

Data Network

IP Core

Transport

Multi-Access IP Networking, Transportand Aggregation

Service Core andApplications


Network Architecture Vision

Multi-Access

IP Networking, Transportand Aggregation

Service Core andApplications

Op

erat

ion

an

d B

usi

nes

s S

up

po

rt S

yste

ms Network Architecture Vision


Technology Management


NSN MAIN PROCESSES

Technologystrategy

R&Dstrategy

Collaborationstrategy

TechnologyIntelligence

IPR, patents,standardization

TechnologyForecasts

Product Creation

Product Delivery

CustomerEngagement

Management & Support

Identification oftechnologies

Selection oftechnologies

Acquisition oftechnologies

Exploitation oftechnologies

Protection oftechnologies

Managementof technologies

Activities

Etc. etc.

Generic Focus Areas for Technology Management

Innovation

Technology Strategy is thecornerstone of technology management


Questions Technology Strategy Should Answer

Six key Dimensions:• Which distinctive technological competences and capabilities are necessary to establish and

maintain competitive advantage?

• Which Technology position we have and which one we want to achieve – leadership, followership?

• Which future scenarios are possible in case of uncertain long term developments ?

• Which technologies should be used to implement product and service concepts and how should these technologies be embodied in products or services?

• What should be the level and timing of investment in technology development?

• Should technologies be sourced internally or externally?

• Should the technology be public, NSN proprietary or Stakeholder proprietary?

• Are there strategic partners visible in the technology environmental ?

• When, how and where should new technology be introduced to the market?

• Which market countries will be covered by the technology (trade restrictions, patent protection)

• Is it necessary to support the technology by official lobbying work

• How should technology and innovation be organized and managed?

Source: Burgelman, Strategic Management of Technology and Innovation


Description of the Working Environment for Technology Management in NSN

Technology Vision and Strategy is formulated in two different hierarchies

NSN Strategy Hierarchy NSN Technology Hierarchy

Corporate

Business Unit

Operational


Implementationtechnologies

PlatformTechnologies

ProductTechnologies

SolutionTechnologies

Level 1

Level 2

Level 3

Level 4

Technology Level Technological Substance

ServiceTechnologies

Level 5

Implementation technologies

SWHW

Product / Tech. Pltf. of BUs

Architectures Interfaces

Product Portfolio of Business Units

End-to-End solutions

Lead services

Service enablers to end users

NSN Technology Hierarchy

Network functionalities

SimplifiedTechnology

Hierarchy of NSN


ProductTechnologies

Level 1 Level 2 Level 3

ImplementationTechnologies

PlatformTechnologies

Consolidation of NSN Technology Strategy

SolutionTechnologies

ServiceTechnologies

Level 4

Technology Strategy

Level 5

Consolidation of NSN Technology Strategy covers the whole value chain including analysis on positioning, forces, organizational dynamics and technology roadmaps with the weight necessary to realize the NSN vision and Network Vision.

Positioning – Where are We?

Forces – What are the forces in our environment?

Organizational Dynamics – Who are We?

Technology Roadmaps – How do we Answer to six questions - How Do We Create Value?


General Framework for Technology Management in NSN


A Strategy Map Represents How the Organization Creates Value with Intangible Assets

Source: Kaplan, R., Norton, D., Strategy Maps

Long term shareholder value

Productivity strategy Revenue Growth Strategy

Improve coststructure

Increase assetutilization

Expand revenueopportunities

Enhancecustomer value

Operationsmanagement:Produce and deliverproducts and services

•Supply•Production•Distribution•Risk management

Customermanagement:Enhance customervalue

•Selection of customers•Acquisition•Retention•Growth

Innovationprocesses:Create new products andservices

•Opportunity identification•R&D portfolio•Design / development•Market launch

Regulatory andSocial:Improve communities andthe environment

•Environment•Health and safety•Employment•Community

Price Quality Availability Selection Functionality Service Partnership Brand

Customer Value PropositionProduct / Service Attributes Relationship Image

FinancialPerspective

CustomerPerspective

InternalProcessPerspective

LearningAnd GrowthPerspective

Culture Leadership Alignment TeamworkOrganizational Capital

Information Capital

Human capital


LearningsStrategy Concept

– Simple topic – complex implementation – multitude of schoolsNSN Position

– In middle of changes with a strong visionTechnology Management

– Key tool is technology strategy– Coverage area vast: innovation, environmental scanning, IPR, R&D, intelligence, collaboration– Understanding value networks helps– Good ol’ Porter helps, nothing beats position and competitive advantage except superior execution ;)

Consolidation of technology strategy– Map position, forces, organizational dynamics and technology roadmaps to understand the

dynamics of change– Focus on the essential, value points. Create scenarios, analyze risks, plan– Create a vision, Innovate, roadmap, execute, measure, control, correct– Strategic mapping can help but complexity of the map can be a show stopper

Simple is beautiful– Best mission is a statement that everybody understands– ‘Coke adds life’ ‘Connecting People’ ‘Failure is not an option’ ‘Shrink the radios’ ‘5 billion people

connected’

1© Nokia Siemens Networks Presentation / Author / Date For internal use NSN Technology Management...

Documents

Transcript of 1© Nokia Siemens Networks Presentation / Author / Date For internal use NSN Technology Management...