10 OM DECISIONS
1. Service and product design
Nokia is one of the world's most known brands in the world. From humble beginnings
Nokia has risen to dominate the world market for mobile phones. Nokia sold more than
200 million phones in 2004. There are three strategic assets that Nokia will invest in and
prioritize:
- Brand and design
- Customer engagement and fulfilment
- Technology and architecture
Nokia has transformed innovative design into a central focus of the company's core
business strategy. This last year they affirm they have "unleashed a torrent of creativity"
that resulted in 50 new cell phone models this year alone. New technologies, such as wifi, are also a hot issue, as they try to plan their new mobile phones with these
capabilities. A commitment to the environment is part of Nokia's driving principles too.
2. Quality management
Quality is at the heart of Nokia’s brand promise, very human technology. Nokia wants
their customers to know that they are the best quality company in the industry with the
best products and services, most loyal customers and most efficient operational mode.
Quality is about meeting and exceeding customer expectations. At Nokia, quality is an
integral part of business management. The quality of products and customer
experiences depends on the quality of processes, which in turn is tied to the quality of
management.
Nokia's quality targets are:
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To be number one in customer and consumer loyalty
To be number one in product leadership
To be number one in operational excellence
The quality and reliability of their products and services are among the most important
factors driving customer satisfaction and loyalty. Designing good quality products
begins with understanding customer requirements and creating the best user experience.
The whole chain, from suppliers through to R&D, operations, sales and distribution to
customers, impacts the end-result – everybody in the chain has a role to play in
achieving quality.
Process management means finding the simplest way of operating, in order to create
customer value in a lean manner. Processes are continuously improved based on the
measures and the feedback Nokia receives from their customers.
Quality in management is vital for leveraging innovations globally and improving
productivity in general. The approach to this is platform thinking, process management
and combining fact-based management with values-based leadership. They have
developed a key framework for improvement at Nokia, which is called the 'SelfRegulating Management System'. It's about management practices that allow them to
run their business in a consistent, effective and fact-based manner.
Commitment to quality improvement is a continuous management process. It is both a
business strategy and a personal responsibility, and it is a part of their culture and
values. But at the end of the day, quality improvement is much more than something
Nokia can quantify in words or pictures. It is an attitude. By taking quality personally
they are able to deliver world-class quality to our customers. Quality is the source of
inspiration, energy and excitement.
3. Process, capacity design
Networks Technology
China
Finland
India
Customization and Logistics Centre
United States
Mobile Devices and Enhancements
Brazil
China
Finland
Germany
Great Britain
Hungary
India
Mexico
South Korea
Nokia has production units all around the world.
McDonald's has even higher quality demands for the product producers than
even what is needed by authorities. McDonald's works with partnershipprincipals in other words they make long-term customer relationships with
product producers. Each of producers are chosen carefully.
All of the routes are planned before hand to make sure that products are
kept in ideal temperature during the whole journey. Because of good route
planning, all the raw-materials arrive to restaurants fast and exactly.
Quality standards make sure that restaurants get only safe, fresh and
unmistakable. During the whole process from raw-materials to ready,
delicious McDonald's food, they have strict controls.
Each of McDonald's estimate their customer amounts per each hour and day.
That guarantees that they make about right amount of products without
throwing too many products away. As we earlier mentioned, they have strict
time limits for products. If products are not sold, they will be thrown away.
4. Location
Nokia's mobile phones can be found throughout the world, in almost every country.
Nokia's locations are divided into 5 main areas:
Nokia is constantly trying to gain new customers in new locations via their new
technologies and innovative mobile devices. The Company is committed to responsible
growth, especially in these years where the mobile sector is in continuous growth due to
the new technologies, multimedia ingredients together, such as a fantastic display,
outstanding photo and video capability and high-speed connectivity.
Nokia has a website where they can help any customer around the world, whenever it is
needed.
5.Layout Design
Layout design is quite the same all over the world. You can find the same
symbol in every country.
Packages are environmentally friendly and easy to use, but vary from model to model.
Nokia's layout is known throughout the world, with its phrase "connecting people"
which is heard in every TV advertisement, and read in every other advert. A good
layout design reduces effort from the mobile user, to recognise the company or even to
use its devices. For example, the combination of smooth software support and good
layout design makes messaging functions a strong point in any phone.
6.Human Resources and Job Design
A flat, networked organization, as well as speed and flexibility in decision-making,
characterize the Nokia Way of working. Equal opportunities and openness towards
people and new ideas are also key elements we want to nourish. Nokia provides
individuals with a platform for personal growth in a challenging environment with a
clear vision, goals and shared management principles - the Nokia Way. The Nokia Way
brings together talented individuals who share these principles, and therefore share
success. Nokia´s values are key components of the Nokia Way. Believing in these core
values and living them every day is our common bond and shared philosophy. These
values drive Nokia colleagues, wherever they are in the world. These are: Customer
Satisfaction, Respect, Achievement and Renewal.
Nokia encourages open discussion and debate. As an example, the annual globally
conducted ´Listening to You´ employee survey is a powerful way of getting feedback
from our employees on a range of important issues. Nokia listens to the views of their
employees and act on them when designing their people policies and practices.
Nokia provides employees with market competitive rewards through a flexible global
structure, which can address diverse and changing business and employment
environments, as well as specific individual preferences.
Nokia rewards employees for good performance, competence development, and for
overall company success. This creates a positive and encouraging environment with
opportunities for employees to optimize their potential and be rewarded fairly. Higher
performance and contribution will lead to higher rewards. The Nokia global market
competitive rewards structure addresses the need for flexibility, personalization,
empowerment and commitment.
The basic salary is set to meet market conditions, the demands of the job and individual
competence and performance. The variable part may consist of incentives or bonuses
and other compensation, such as overtime pay and call-out pay. Additional local
rewards and benefits are also developed to complement the global programs and to
ensure that the local market conditions are met.
Nokia cares for its employee's right throughout the cycle of their working life: from
induction and training, through development and advancement, and on to retirement.
Nokia's Work-Life balance solutions mean that health benefits and possible local
retirement benefits are tailored to individual needs according to factors such as tenure,
contribution, performance, roles and responsibilities.
7.Supply-Chain Management
Nokia requires that all products and services sold under the Nokia brand are sourced
according to practices which uphold internationally accepted standards. These sourcing
practices also need to comply legally with human rights and workplace practices
throughout the value chain. We are constantly developing our processes and overall
supply-demand network set-up to efficiently meet this growing demand. This is a
significant competitive advantage for us.
Close cooperation with customers and suppliers is one of our core development
principles. It allows end-to-end efficiency and speed – key success factors for the entire
supply chain. Openness and trust are important aspects when working together with
suppliers and driving compliance. Some suppliers have well-developed corporate
responsibility programs, while others need more support. The methods used to promote
ethical considerations among our suppliers include the Nokia Supplier Requirements,
face-to-face meetings, assessments, contractual agreements, training programs, and
supplier-focused events.
Supplier's locations:
Suppliers must:
-have a properly documented Environmental Management System and a plan for its
implementation
-have an environmental policy
-know the environmental legislation and applicable regulations, and comply with them
- have an appropriate environmental training program
-take due consideration of environmental issues during research, development,
manufacturing process design and production
-upon request, declare the raw material content of its products delivered to nokia
8. Inventory management
9. Scheduling
We recognize the diverse needs of the individuals in the different phases of their lives.
We can provide our employees with innovative solutions aiming at having positive
effects on the overall quality of life, job satisfaction and job performance. Depending on
the situation and needs, flexible working solutions can provide alternative modes of
working such as teleworking at home or at other locations (e.g. working at remote sites).
Flexi Time:
Depending on the local market conditions, employees may take advantage of flexi time
including flexible working hours and part-time working.
Time Off:
Nokia´s flexible working solutions can include unpaid time off and sabbaticals. These
solutions support Nokia´s philosophy of Employee Personal Growth and Selfmanagement and enable employees to take extented leave from work.
10. Maintenance