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NSN Technology Management Concepts

NSN Technology Management Concepts. Ossi Pöllänen. 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

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NSN Technology Management Concepts

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  1. NSN Technology Management Concepts Ossi Pöllänen

  2. 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

  3. Foundations of Strategy Concept • In simplest strategy is organization’s approach to adjust with the changes in environment – proactively or reactively 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 Source: Arto Lahti: Yrityksen kilpailustrategia, Ekonomia sarja 85, 1981 (in Finnish)

  4. Elements of Strategy Concept Networking era Number of Elementsin Strategic Planning Era for Organizational Structure Kotter:Leading Change Norton, Kaplan: Strategic Maps Porter: Competitive Advantage Network Analysis StructureSystemCulture Strategic Maps Adjustment era Core Competences Resource Strategies Competence ManagementBusiness Intelligence Competitor Intelligence Venturing Minzberg, Quinn:Strategy cannot be planned formally Generic Strategies Scenario PlanningPortfolio AnalysisCompetitor AnalysisIndustry 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 EcosystemStakeholders: • Regulators • Investors e.g. Google Sub-contractors Newentrants Sub-contractors xSP Terminalvendors • Subscribers • Consumers • Users • SOHO • SME • Large • MNC SI & ISV Sub-contractors Operators Mobile, Hybrid, Fixed, MVNO • NSN • Solutionprovider • HW • SW • Service Sub-contractors ServiceOperatorfunction NetworkOperatorfunction Sub-contractors Contentowner Contentprovider Contentaggregator

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

  8. ApplicationServiceProvider HybridNetworkOperator CableOperator FixedNetworkOperator MobileNetworkOperator Trends: new player – new business models Disruptive business models 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) Applicationservices InternetServiceProvider VirtualNetworkOperator fixed mobile Telco’s looking for newbusiness • Expand scope & reach: • MNOs enter the fixedmarket and vice versa • Offer application services • Establish new business models (triple/quad play) Network &ConnectionServices Establishedbusinessmodels

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

  10. 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/DataConvergence and CTIby leveraging Internet as Platform Voice/DataConvergence with multimodebroadband mobile access UpcomingDevice Classes VOICE CENTRIC Fixed Mobile Convergence driven by operators service offering innovations high low mobility requirements

  11. MobilePDAs PCsTVs UpcomingDeviceClasses • End user wants the my-service-anywhere experience • New intelligent & powerful device classes already start to support this goal FixedPhones MobilePhones Converged Devices DATA FIXED MOBILE VOICE

  12. 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 Two opportunities emerging to operators 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

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

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

  15. Technology Management

  16. Generic Focus Areas for Technology Management NSN MAIN PROCESSES Product Creation Product Delivery Customer Engagement Management & Support Technology Strategy is thecornerstone of technology management Managementof technologies Identification oftechnologies Exploitation oftechnologies Protection oftechnologies Acquisition oftechnologies Selection oftechnologies Activities Technology strategy TechnologyForecasts IPR, patents,standardization TechnologyIntelligence 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. Corporate Business Unit Operational 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

  19. NSN Technology Hierarchy • SimplifiedTechnologyHierarchy of NSN Technological Substance Technology Level Level 5 Service enablers to end users ServiceTechnologies Level 4 Network functionalities End-to-End solutions Lead services SolutionTechnologies Level 3 Product Portfolio of Business Units Product Technologies Level 2 Product / Tech. Pltf. of BUs PlatformTechnologies Architectures Interfaces Level 1 Implementation technologies Implementation technologies HW SW

  20. Consolidation of NSN Technology Strategy ServiceTechnologies ProductTechnologies SolutionTechnologies PlatformTechnologies ImplementationTechnologies 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 Revenue Growth Strategy Productivity strategy FinancialPerspective Improve cost structure Increase assetutilization Expand revenueopportunities Enhance customer value Relationship Customer Value Proposition CustomerPerspective Product / Service Attributes Image Price Quality Selection Availability Partnership Brand Functionality Service • Customermanagement:Enhance customervalue • Selection of customers • Acquisition • Retention • Growth • Operationsmanagement:Produce and deliverproducts and services • Supply • Production • Distribution • Risk management • Regulatory andSocial:Improve communities andthe environment • Environment • Health and safety • Employment • Community • Innovationprocesses:Create new products andservices • Opportunity identification • R&D portfolio • Design / development • Market launch InternalProcessPerspective Human capital Learning And GrowthPerspective Information Capital Organizational Capital Culture Leadership Alignment Teamwork Source: Kaplan, R., Norton, D., Strategy Maps

  23. 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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