NSN Technology Management Concepts
Ossi Pöllänen
Senior Specialist – Technology Strategy
NSN COO/RTP/Strategy and Vision
For internal use
1
© Nokia Siemens Networks
Presentation / Author / Date
Table of Contents
Strategy Concept
– Foundations of Strategy Concept
– Elements of Strategy Concept
NSN Environment
– Vision
– Challenges and Opportunities
– Basic Ecosystem Description
– Technology Trends
– Network Transformation
– Managing End-to-end Solutions
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
For internal use
2
© Nokia Siemens Networks
Presentation / Author / Date
Foundations of Strategy Concept
Weakness of
the company
Opportunity
offered
by the environment
Threat caused
by the
environment
Strength of
the
company
Possible
Starting point
restrictions
of strategy
for strategy
work
implementation
Possible
crisis
elements
Possible
restrictions
for strategy
implementation
In simplest strategy is organization’s approach to adjust with the
changes in environment – proactively or reactively
Source: Arto Lahti: Yrityksen kilpailustrategia, Ekonomia sarja 85, 1981 (in Finnish)
For internal use
3
© Nokia Siemens Networks
Presentation / Author / Date
Elements of Strategy Concept
Number of Elements
in Strategic Planning
Era for
Organizational
Structure
Porter:
Competitive
Advantage
Adjustment era
Minzberg,
Quinn:
Strategy cannot
be planned
formally
Planning era
Core Competences
Resource Strategies
Competence Management
Business Intelligence
Competitor Intelligence
Venturing
Generic Strategies
Scenario Planning
Portfolio Analysis
Competitor Analysis
Industry Analysis
H. Igor Ansoff:
Formal Strategic Planning
1960
For internal use
4
© Nokia Siemens Networks
1970
1980
Presentation / Author / Date
Networking era
Kotter:
Leading Change
Norton, Kaplan:
Strategic Maps
Network Analysis
Structure
System
Culture
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
1990
2000
2010
NSN Environment
This may need simplification.
For internal use
5
© Nokia Siemens Networks
Presentation / Author / Date
Our market vision 2015 – the World connected
Applications
predominantly
in internet
Multitude of
business
models
5 billion people
connected
Broadband
everywhere
For internal use
6
© Nokia Siemens Networks
Presentation / Author / Date
Challenges and Opportunities
Reinventing the
connected world
Add value
beyond bit-pipe
100x traffic
growth
User service
experience
Internet for
the next billion
5 Bn people
connected
Environmental
Performance
For internal use
7
© Nokia Siemens Networks
Presentation / Author / Date
Basic ecosystem description for telecommunications
Other
Ecosystem
Stakeholders:
New
entrants
Subcontractors
•Regulators
e.g. Google
Subcontractors
•Investors
Terminal
vendors
xSP
Subcontractors
Subcontractors
NSN
Operators
•Subscribers
Mobile, Hybrid, Fixed, MVNO
•Consumers
•Users
Solution
provider
•HW
Subcontractors
Content
owner
Content
provider
For internal use
8
© Nokia Siemens Networks
SI & ISV
•SW
•Service
Content
aggregator
Presentation / Author / Date
Network
Operator
function
Service
Operator
function
•SOHO
•SME
•Large
•MNC
Technology Trends
Speed of technology development and deployment is getting faster
E.g. the life-cycle of new end user device, like mobile phone or multimedia
computer, is approximately 2-3 years only.
Moore‘s law will continue
Continuous advancements of price/performance ratio
of microelectronics drive low cost devices and highly
integrated network components (flat networks)
Advancements in transport technologies
(Fiber optics, DSL and radio) drive high-speed
broadband connectivity to the end user enabling
quadruple play and other emerging applications
Mainstream IT technologies revolutionize the Telco business
Commodity hardware, Enterprise IT technologies (e.g. SOA, Utility Computing),
and Open Source enable new product architectures.
For internal use
9
© Nokia Siemens Networks
Presentation / Author / Date
Network Transformation
legacy, stovepipe,
monolithic
Application Domain
Applications
Service Delivery Framework
Session
Control
Operation
and
Business
Support
Intelligent
Identity
IP Edge Management
Transport and Aggregation
Wireline
Broadband
Wireless
Broadband
Connectivity Domain
… leading to an optimized, converged network
For internal use
10
© Nokia Siemens Networks
Presentation / Author / Date
Managing end-to-end solutions on top of
multi-vendor and multi-technology networks
Improving
operational
efficency
For internal use
11
© Nokia Siemens Networks
Management automation in general and
self-organizing in particular are the means
to handle the increasing management
complexity in a cost-effective way
Managing
end-user
experience
Management of a large device and
software variety is an essential element
for seamless end-user experience but
also a large cost factor for the operator
Supporting
new revenue
streams
New application requiring personalized
offerings and flexible tariffs will be
enabled by a converged and customer
centric charging and care
Presentation / Author / Date
Technology Management
For internal use
12
© Nokia Siemens Networks
Presentation / Author / Date
Generic Focus Areas for Technology Management
NSN MAIN PROCESSES
Product
Creation
Product
Delivery
Customer
Engagement
Management & Support
Technology Strategy is the
Management
cornerstone of technology managementof technologies
Identification of
technologies
Selection of
technologies
Acquisition of
technologies
Exploitation of
technologies
Protection of
technologies
Activities
Technology
strategy
Technology IPR, patents,
Forecasts standardization
For internal use
13
© Nokia Siemens Networks
Technology
Intelligence
Presentation / Author / Date
Collaboration
strategy
Innovation
R&D
strategy
Etc. etc.
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 environme ntal ?
• 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?
For internal use
14
© Nokia Siemens Networks
Presentation / Author / Date
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
For internal use
15
© Nokia Siemens Networks
Presentation / Author / Date
NSN Technology Hierarchy
Simplified
Technology
Hierarchy of NSN
Technology Level
Technological Substance
Level 5
Service enablers to end users
Service
Technologies
Level 4
Network
functionalities
End-to-End
solutions
Lead
services
Solution
Technologies
Level 3
Product Portfolio of Business Units
Product
Technologies
Level 2
Platform
Technologies
Product / Tech. Pltf. of BUs
Architectures
Level 1
Implementation
technologies
For internal use
16
© Nokia Siemens Networks
Interfaces
Implementation technologies
HW
Presentation / Author / Date
SW
Consolidation of NSN Technology Strategy
Implementation
Technologies
Level 1
Platform
Technologies
Product
Technologies
Level 2
Solution
Technologies
Level 3
Level 4
Service
Technologies
Level 5
Technology Strategy
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?
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.
For internal use
17
© Nokia Siemens Networks
Presentation / Author / Date
General Framework for Technology
Management in NSN
For internal use
18
© Nokia Siemens Networks
Presentation / Author / Date
A Strategy Map Represents How the Organization
Creates Value with Intangible Assets
Long term shareholder value
Improve cost
structure
Customer
Perspective
Internal
Process
Perspective
Revenue Growth Strategy
Productivity strategy
Financial
Perspective
Increase asset
utilization
Customer Value Proposition
Product / Service Attributes
Price
Quality
Expand revenue
opportunities
Availability
Selection Functionality
Enhance
customer value
Relationship
Image
Service Partnership
Brand
Operations
management:
Produce and deliver
products and services
Customer
management:
Enhance customer
value
Innovation
processes:
Create new products and
services
Regulatory and
Social:
Improve communities and
the environment
•Supply
•Production
•Distribution
•Risk management
•Selection of customers
•Acquisition
•Retention
•Growth
•Opportunity identification
•R&D portfolio
•Design / development
•Market launch
•Environment
•Health and safety
•Employment
•Community
Human capital
Information Capital
Learning
And Growth
Perspective
Culture
For internal use
19
© Nokia Siemens Networks
Presentation / Author / Date
Source: Kaplan, R., Norton, D., Strategy Maps
Organizational Capital
Leadership
Alignment
Teamwork
Learnings
Strategy Concept
– Simple topic – complex implementation – multitude of schools
NSN Position
– In middle of changes with a strong vision
Technology 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’ ’Just Do it’
For internal use
20
© Nokia Siemens Networks
Presentation / Author / Date