NSN Technology Management Concepts
Ossi Pöllänen
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Table of Contents
Strategy 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
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Foundations of Strategy Concept
Weakness of Strength
the company of
the
company
Opportunity
offered
by the
environment
Threat caused
by the
environment
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)
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Elements of Strategy Concept
Era for
Organizational
Structure
Number of Elements
in Strategic Planning
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
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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
Where is NSN?
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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
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SI & ISV
•SW
•Service
Content
aggregator
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Network
Operator
function
Service
Operator
function
•SOHO
•SME
•Large
•MNC
Our market vision of 2015
Applications
pre-dominantly
Applications
in Internet
pre-dominantly
in Internet
5 Billion
people
connected
Multitude
of business
models
Broadband
Everywhere
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Trends: new player – new business models
Disruptive business models
Internet Business Models
enter the Telco market
Application
services
• 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 new
business
Network &
Connection
Services
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Established
business
models
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Expand scope & reach:
• MNOs enter the fixed
market and vice versa
• Offer application services
• Establish new business
models (triple/quad play)
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…
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Flexible
Business 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
Trends: devices
• End user wants the my-service-anywhere experience
DATA CENTRIC
• New intelligent & powerful device classes already start to support this goal
Fixed Mobile Convergence
driven by disruptive wireless
access technologies
VOICE CENTRIC
Voice/Data
Convergence and CTI
by leveraging Internet as
Platform
Upcoming
Device Classes
Voice/Data
Convergence with multimode
broadband mobile access
Fixed Mobile Convergence
driven by operators service
offering innovations
low
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mobility requirements
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high
Converged Devices
PCs
TVs
FIXED
DATA
Upcoming
Device
Classes
Fixed
Phones
MOBILE
Mobile
Phones
VOICE
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Mobile
PDAs
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• End user wants
the my-serviceanywhere
experience
• New intelligent &
powerful device
classes already
start to support
this goal
Two opportunities emerging to operators
Applications
Digital Distribution & services
Internet is the key source of service
and business model innovations
• Fierce competition
• 3rd party revenue models
• Premium content and communities have value
Connectivity
with 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
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Network Transformation
Fixed Core
Transport
Mobile CS Core
Fixed
Access
Mobile
Access
IP Core
Aggregation
Mobile PS Core
Data Network
Fixed Network
Mobile Network
Converged Network
Operation and Business Support Systems
Multi-Access
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IP Networking, Transport
and Aggregation
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Service Core and
Applications
Network Architecture Vision
Operation and Business Support Systems
Service Core and
Applications
Network Architecture Vision
IP Networking, Transport
and Aggregation
Multi-Access
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Technology Management
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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
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Technology
Intelligence
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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 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?
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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
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NSN Technology Hierarchy
Simplified
Technology
Hierarchy of NSN
Technology Level
Technological Substance
Level 5
Service enablers to end users
Service
Technologies
Level 4
End-to-End
solutions
Network
functionalities
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
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Interfaces
Implementation technologies
HW
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SW
Consolidation of NSN Technology Strategy
Implementation
Technologies
Level 1
Product
Technologies
Platform
Technologies
Level 2
Level 3
Solution
Technologies
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.
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General Framework for Technology
Management in NSN
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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
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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’
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