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1 © Nokia Siemens Networks Presentation / Author / DateFor internal use

NSN Technology Management ConceptsOssi PöllänenSenior Specialist – Technology StrategyNSN COO/RTP/Strategy and Vision


Table of ContentsStrategy 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


Source: Arto Lahti: Yrityksen kilpailustrategia, Ekonomia sarja 85, 1981 (in Finnish)

Foundations of Strategy Concept

Starting pointof strategy

work

Possiblerestrictionsfor strategy

implementation

Possiblerestrictionsfor strategy

implementation

Possiblecrisis

elements

Opportunity offered by the environment

Threat caused by the environment

Strength of the company

Weakness of the company

In simplest strategy is organization’s approach to adjust with the changes in environment – proactively or reactively


Elements of Strategy Concept

H. Igor Ansoff:Formal Strategic Planning

Generic StrategiesScenario PlanningPortfolio AnalysisCompetitor AnalysisIndustry Analysis

Core CompetencesResource StrategiesCompetence ManagementBusiness IntelligenceCompetitor IntelligenceVenturing

Network AnalysisStructureSystemCultureStrategic Maps

Number of Elementsin Strategic Planning

1960 20101970 1980 1990 2000

Minzberg, Quinn:Strategy cannot be planned formally

Era for Organizational Structure

Networking era

Porter:Competitive Advantage

Planning era

Adjustment era

Kotter:Leading ChangeNorton, Kaplan: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


NSN Environment

This may need simplification.


Broadband everywhere

Applications predominantly in internet

Multitude of business

models

Our market vision 2015 – the World connected

5 billion people connected


Challenges and Opportunities

100x trafficgrowth

User serviceexperience

Add valuebeyond bit-pipe

Reinventing theconnected world

EnvironmentalPerformance

Internet forthe next billion

5 Bn peopleconnected


Basic ecosystem description for telecommunications

Operators

Mobile, Hybrid, Fixed, MVNOSub-contractors

Sub-contractors

SI & ISV

Sub-contractors

e.g. GoogleNewentrants

Sub-contractors

•Subscribers

•Consumers

•Users

•SOHO

•SME

•Large

•MNC

NetworkOperatorfunction

xSP

Other EcosystemStakeholders:

•Regulators

•Investors

Contentprovider

Contentaggregator

Contentowner

ServiceOperatorfunction

Sub-contractors

Terminalvendors

NSN

Solutionprovider

•HW

•SW

•Service


Technology Trends

Moore‘s law will continueContinuous advancements of price/performance ratio of microelectronics drive low cost devices and highly integrated network components (flat networks)

Speed of technology development and deployment is getting fasterE.g. the life-cycle of new end user device, like mobile phone or multimedia computer, is approximately 2-3 years only.

Advancements in transport technologies(Fiber optics, DSL and radio) drive high-speed

broadband connectivity to the end user enablingquadruple play and other emerging applications

Mainstream IT technologies revolutionize the Telco businessCommodity hardware, Enterprise IT technologies (e.g. SOA, Utility Computing), and Open Source enable new product architectures.


Network Transformation

legacy, stovepipe,monolithic

… leading to an optimized, converged network

Connectivity Domain

Service Delivery Framework

Applications

SessionControl

IdentityManagement

Application Domain

Transport and Aggregation

IntelligentIP Edge

WirelineBroadband

WirelessBroadband

Operationand

BusinessSupport


Managing end-to-end solutions on top ofmulti-vendor and multi-technology networks

Management automation in general and self-organizing in particular are the means to handle the increasing management complexity in a cost-effective way

Improving operational efficency

Supportingnew revenuestreams

Managingend-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

New application requiring personalized offerings and flexible tariffs will be enabled by a converged and customer centric charging and care


Technology Management


NSN MAIN PROCESSES

Technologystrategy

R&Dstrategy

Collaborationstrategy

TechnologyIntelligence

IPR, patents,standardization

TechnologyForecasts

Product Creation

Product Delivery

CustomerEngagement

Management & Support

Identification oftechnologies

Selection oftechnologies

Acquisition oftechnologies

Exploitation oftechnologies

Protection oftechnologies

Managementof technologies

Activities

Etc. etc.

Generic Focus Areas for Technology Management

Innovation

Technology Strategy is thecornerstone of technology management


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?

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


Implementationtechnologies

PlatformTechnologies

ProductTechnologies

SolutionTechnologies

Level 1

Level 2

Level 3

Level 4

Technology Level Technological Substance

ServiceTechnologies

Level 5

Implementation technologies

SWHW

Product / Tech. Pltf. of BUs

Architectures Interfaces

Product Portfolio of Business Units

End-to-End solutions

Lead services

Service enablers to end users

NSN Technology Hierarchy

Network functionalities

SimplifiedTechnology

Hierarchy of NSN


ProductTechnologies

Level 1 Level 2 Level 3

ImplementationTechnologies

PlatformTechnologies

Consolidation of NSN Technology Strategy

SolutionTechnologies

ServiceTechnologies

Level 4

Technology Strategy

Level 5

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.

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?


General Framework for Technology Management in NSN


A Strategy Map Represents How the Organization Creates Value with Intangible Assets

Source: Kaplan, R., Norton, D., Strategy Maps

Long term shareholder value

Productivity strategy Revenue Growth Strategy

Improve coststructure

Increase assetutilization

Expand revenueopportunities

Enhancecustomer value

Operationsmanagement:Produce and deliverproducts and services

•Supply•Production•Distribution•Risk management

Customermanagement:Enhance customervalue

•Selection of customers•Acquisition•Retention•Growth

Innovationprocesses:Create new products andservices

•Opportunity identification•R&D portfolio•Design / development•Market launch

Regulatory andSocial:Improve communities andthe environment

•Environment•Health and safety•Employment•Community

Price Quality Availability Selection Functionality Service Partnership Brand

Customer Value PropositionProduct / Service Attributes Relationship Image

FinancialPerspective

CustomerPerspective

InternalProcessPerspective

LearningAnd GrowthPerspective

Culture Leadership Alignment TeamworkOrganizational Capital

Information CapitalHuman capital


LearningsStrategy Concept

– Simple topic – complex implementation – multitude of schoolsNSN Position

– In middle of changes with a strong visionTechnology 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’

nsn technology management concepts - cse.tkk.fi · price quality availability selection...

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