the decline and fall of nokia
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The Decline and Fall of NokiaTRANSCRIPT
The Decline and Fall of Nokia
Not just a company
DeclineandFallofNokia.com
Nokia was headquartered in a building called
Nokia House.
They had to sell Nokia House
when they ran low on money.
Microsoft is now in Nokia House.
Nokia moved away.
People used to call Nokia House the PowerPoint
Palace.
You can tell a story using
PowerPoint.
DeclineandFallofNokia.com
DeclineandFallofNokia.com
Nokia is a very old company
They began operations in 1865
as a paper mill.
They used to make rubber boots.
Sometimes you can find an old Nokia television at yard
sales.
Nokia has had many CEOs.
Kari Kairamo was CEO of Nokia 1977-1988
DeclineandFallofNokia.com
He used to be a paper machinery
salesman.
• Nokia used to be in the paper business.
He wanted Nokia to expand into high
technology.
• Nokia is still in high technology.
Kari Kairamo said: “We are all the time selling bits, buying bits, making joint
ventures. Nothing is holy inside Nokia.”
• Even mobile phones are not holy.
Just a company?
His children did not come to see him at
Christmas
But he said he neglected everything
else in his life for it
One executive said Nokia was
”just a company”
DeclineandFallofNokia.com
Just a company?
DeclineandFallofNokia.com
Kari Kairamo killed himself when he was
CEO
He liked to play bandy.
His wife was a concert pianist.
He was from a family of
famous artists.
Jorma Ollila changed Nokia
DeclineandFallofNokia.com
Jorma Ollila became CEO
in 1992He knew mobile communications
would be big
Ollila sold off the old industrial divisions
Mobile communications became big
Nokia made a lot of money
The good times were very good
DeclineandFallofNokia.com
2003 2004 2005 2006 200720000
25000
30000
35000
40000
45000
50000
55000
People like to remember good times
DeclineandFallofNokia.com
Those were fun days. The sky was the limit.
There was not one company in the world with that freedom and
responsibility. The Google and Apple of today aren’t
good examples. There was nothing like it.
I have so many fond memories.
Throughout the years we had great events with such a great team spirit. Nokia always had the best events.
But nothing stays the same forever
DeclineandFallofNokia.com
DeclineandFallofNokia.com
• Inward-looking• Arrogant• Complacent
• Ultra-segmented market• Prioritise existing
businesses• Cost control > value
creation
• Autonomy disappeared
• Matrix management
• Autocracy
• Confusion• Bureaucracy• Meetings• Procedures• Processes
Complexity increased
The organisation
changed
The culture devolved
Strategy and tactics altered
Acedia noun. MEORIGIN Latin accidia from Greek ἀκηδία, negligence
Spiritual or mental sloth; apathy.
DeclineandFallofNokia.com
DeclineandFallofNokia.com
”I don't even know where to start the hate parade I want to unleash on S60 5th edition… when legacy (sorry, mature)
software runs into a crappy half-assed UI, it's a steaming pile of suck on a slab of garbage toast.”
“Its visual feel is dated and worn, like
someone dragged 2003 into the present tied to the back of a battered and rusted
pickup truck.”
”Inconsistency seems to be the rule. Some stuff you double tap
to activate, other stuff you single tap… There's no flick
scrolling, except for when there is, like in
the Ovi Store.”
“Ovi Store manages to have the worst mobile
app store interface I've seen yet.”
DeclineandFallofNokia.com
DeclineandFallofNokia.com
0
10
20
30
40
50
60
Nokia Smartphone Market Share 2007-2014
DeclineandFallofNokia.com
Nokia’s survival was doubtful
They sold Devices & Services to Microsoft
They moved to Windows PhoneThe situation became critical
Nokia struggledStephen Elop was hired
I called Anssi Vanjoki after the announcement.
He avoided the words ”sale” and ”divestment.” They were like names of demons he was fearful to invoke.
I felt horrible for bothering him, for being an incosiderate bloodsucking bastard.
Yet he is still polite to me.
I’m sorry, Anssi. I really am.
DeclineandFallofNokia.com
Ways Nokia’s mobile device business can be remembered
DeclineandFallofNokia.com
Bad Good
Pride
Nostalgia
Valuable lessons
Happiness
Bitterness
Shame
Anger
”Why did we do it? Connecting people. There is something very genuine in that slogan.”
”I have teenage kids now, and I sit and watch them tapping away on their phones, and I realise they are communicating completely differently now because of what we did.”
”Connecting people. A better mission statement I have never heard.”
DeclineandFallofNokia.com
DeclineandFallofNokia.com