1. NSN Technology Management Concepts
Ossi Pöllänen

2. Table of Contents Strategy Concept Technology Management
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

3. Foundations of Strategy Concept
Weakness of
the company
Strength of
the company
Possible
restrictions
for strategy
implementation
Starting point
of strategy
work
Opportunity offered
by the environment
Possible
crisis
elements
Possible
restrictions
for strategy
implementation
Threat caused
by the environment
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)

4. Elements of Strategy Concept
Number of Elements in Strategic Planning
Era for Organizational Structure
Networking era
Kotter: Leading Change
Norton, Kaplan:
Strategic Maps
Porter:
Competitive Advantage
Network Analysis
Structure System Culture
Strategic Maps
Adjustment era
Core Competences
Resource Strategies
Competence Management Business Intelligence
Competitor Intelligence
Venturing
Minzberg, Quinn: Strategy cannot be planned formally
Generic Strategies
Scenario Planning Portfolio Analysis Competitor Analysis Industry Analysis
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
Planning era
H. Igor Ansoff:
Formal Strategic Planning
1960
1970
1980
1990
2000
2010

5. Where is NSN?

6. Basic ecosystem description for telecommunications
Other Ecosystem Stakeholders:
Regulators
Investors
Sub- contractors
New entrants
e.g. Google
Sub- contractors
xSP
Terminal vendors
Sub- contractors
SI & ISV
Subscribers
Consumers
Users
SOHO
SME
Large
MNC
NSN
Solution provider HW SW
Service
Operators
Mobile, Hybrid, Fixed, MVNO
Sub- contractors
Network Operator function
Service Operator function
Sub- contractors
Content owner
Content provider
Content aggregator

7. Applications pre-dominantly in Internet
Our market vision of 2015
Applications pre-dominantly in Internet
Applications pre-dominantly in Internet
5 Billion people connected
Multitude of business models
Broadband Everywhere

8. Trends: new player – new business models
Disruptive business models
Internet Business Models enter the Telco market
Application Service Provider
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)
Application services
Internet Service Provider
Virtual Network Operator
fixed
mobile
Cable Operator
Telco’s looking for new business
Hybrid Network Operator
Fixed Network Operator
Expand scope & reach:
MNOs enter the fixed market and vice versa
Offer application services
Establish new business models (triple/quad play)
Mobile Network Operator
Network & Connection Services
Established business models

9. Trends: My Services Anywhere
Service Mobility
Service is available from different places over various fixed and mobile networks
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
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…

10. Upcoming Device Classes
Trends: devices
End user wants the my-service-anywhere experience
New intelligent & powerful device classes already start to support this goal
Fixed Mobile Convergence driven by disruptive wireless access technologies
DATA CENTRIC
Voice/Data Convergence and CTI by leveraging Internet as Platform
Voice/Data Convergence with multimode broadband mobile access
Upcoming Device Classes
VOICE CENTRIC
Fixed Mobile Convergence driven by operators service offering innovations
low
high
mobility requirements

11. Upcoming Device Classes
Converged Devices
PCs TVs
Mobile PDAs
DATA
Upcoming Device Classes
End user wants the my-service-anywhere experience
New intelligent & powerful device classes already start to support this goal
FIXED
MOBILE
Fixed Phones
Mobile Phones
VOICE

12. 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

13. Network Transformation
Fixed Core
Fixed Access
Aggregation
IP Core
Transport
Mobile CS Core
Mobile Access
Mobile PS Core
Fixed Network
Data Network
Mobile Network
Converged Network
Operation and Business Support Systems
Multi-Access
IP Networking, Transport and Aggregation
Service Core and Applications

14. Network Architecture Vision
Operation and Business Support Systems
Service Core and Applications
Network Architecture Vision
IP Networking, Transport and Aggregation
Multi-Access

15. Technology Management

16. Generic Focus Areas for Technology Management
NSN MAIN PROCESSES
Product
Creation
Product
Delivery
Customer
Engagement
Management & Support
Technology Strategy is the cornerstone of technology management
Management of technologies
Identification of technologies
Selection of technologies
Acquisition of technologies
Exploitation of technologies
Protection of technologies
Activities
Technology
strategy
Technology Forecasts
IPR, patents, standardization
Technology Intelligence
Collaboration
strategy
Innovation
R&D
strategy
Etc. etc.

17. 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

18. 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

19. 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
Product / Tech. Pltf. of BUs
Platform Technologies
Architectures
Interfaces
Level 1
Implementation technologies
Implementation
technologies HW SW

20. Consolidation of NSN Technology Strategy
Implementation Technologies
Platform Technologies
Product Technologies
Solution Technologies
Service Technologies
Level 1
Level 2
Level 3
Level 4
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.

21. General Framework for Technology Management in NSN

22. A Strategy Map Represents How the Organization Creates Value with Intangible Assets
Long term shareholder value
Financial Perspective
Productivity strategy
Revenue Growth Strategy
Improve cost
structure
Increase asset utilization
Expand revenue opportunities
Enhance
customer value
Customer Perspective
Product / Service Attributes
Customer Value Proposition
Relationship
Image
Price
Quality
Availability
Selection
Functionality
Service
Partnership
Brand
Operations management: Produce and deliver products and services
Supply
Production
Distribution
Risk management
Customer management: Enhance customer value
Selection of customers
Acquisition
Retention
Growth
Innovation processes: Create new products and services
Opportunity identification
R&D portfolio
Design / development
Market launch
Regulatory and Social: Improve communities and the environment
Environment
Health and safety
Employment
Community
Internal Process Perspective
Human capital
Learning
And Growth Perspective
Information Capital
Organizational Capital
Culture
Leadership
Alignment
Teamwork
Source: Kaplan, R., Norton, D., Strategy Maps

23. Learnings Strategy Concept NSN Position Technology Management
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’