Nokia creativity

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A report to workout the shortcomings and recommendations for Nokia to enhance their creativity.

Transcript of Nokia creativity

  • 1. Name / ID # : Tugce Guner / 630052291 Azar Hasanov / 620036032 Alibay Alibayli / 590066639 Ayush Agrawal / 630058475 Module Name : BEMM162 The Creative Organisation Assignment # : Assignment 3 Topic : Nokia Company Organizational Creativity Report Module Convenor : Dr. Varuni Wimalasiri Number of Pages (including this one): 18

2. Table of Contents Executive Summary............................................................................................................................ 2 Introduction............................................................................................................................................ 3 Aim ............................................................................................................................................................. 4 Investigation Methods........................................................................................................................ 4 Literature Review ................................................................................................................................. 4 Findings ................................................................................................................................................... 6 External Factors ...............................................................................................................................................6 Recruitment and diversity............................................................................................................................6 Organizational environment........................................................................................................................8 Crowdsourcing..................................................................................................................................................9 Conclusion............................................................................................................................................10 Recommendations.............................................................................................................................11 Methods of evaluating creativity............................................................................................................ 11 Different disciplines drawn to generate solutions ......................................................................... 12 Diverse Recruitment.................................................................................................................................... 12 Structure........................................................................................................................................................... 13 Cultural Adjustments .................................................................................................................................. 13 References............................................................................................................................................14 3. BEMM162 THE CREATIVE ORGANISATION Nokia Company Organizational Creativity Report 2 Executive Summary Nokia is a Finnish company operating in the fields of network infrastructure, location- based technologies and advanced technologies and is headquartered in Espoo, Finland (NOKIA, 2014a). Nokia was the dominant player in the mobile telecommunications sector for more than a decade (Lee, 2013). It was not the first company releasing a mobile phone, but the thing making Nokia get to top was to do this well by reaching the true mass appeal (Lee, 2013). Ben Wood, who is an analyst at CCS Insight, indicated that people would not talk about the brand names while they were talking about the phone they have, they would only say the numbers like 3310 or whatever they had; because there were no mobile phone brands as big as Nokia (Lee, 2013). This is a fact that Nokia first fell behind Apple by the year 2007, when the so-called revolutionary mobile phone, iPhone was introduced by Steve Jobs. Then Samsung started rising in the mobile communications sector. While these two mobile giants were leading the sector, Nokia fell behind step by step. Blaming only one reason would be unfair for the sudden fall of Nokia; however, the first reason behind this fall was the operating system that Nokia was using on their mobile phones. Nokia was still making great phones, but the time that iPhone was introduced they were using Symbian systems for their phones and Symbian have quickly been out- dated; as Ben Wood indicated that Nokia missed the importance of software (Lee, 2013). In addition to this, the timing of changing to the Microsoft operating systems can be considered as late; since Apple and Samsung have already taken over the dominance in the market and left Nokia behind. There is one more fact that should not be missed out, which is that, Microsofts Windows Phone system was the only choice left for Nokia to survive and differentiate. Another reason was that Nokia could not respond to the trends in mobile market quickly. They waited a year after iPhone to unveil their fist touchscreen phone which was less 4. BEMM162 THE CREATIVE ORGANISATION Nokia Company Organizational Creativity Report 3 than a smartphone but more a handset optimized to play music (Cheng, 2014). In the late 2012, a research conducted by Roger Cheng, who had the chance to talk to former and current employees of Nokia that time, resulted that to many of the employees of Nokia, it wasn't just arrogance that kept them rooted in Symbian, but the inability to take risks (Cheng, 2014). By the end of 2013, Nokia's market share was still 15 percent, which was basically a result of their cheaper basic phones, according to data compiled by Strategy Analytics; however, smartphone market share of Nokia was in the low single-digits (Cheng, 2014). Microsoft bought Nokias handsets production on April 25th ; therefore, the question for Nokia is now whether or not the Nokia and Lumia branding will dissolve (Struble, 2014). Stephen Elop, who is the former CEO of Nokia and now heading the Microsofts devices division, hinted that the Nokia brand may disappear in the future along with the Lumia range. He spoke to TechRadar and said: What we have to decide is what the brand will be. Because we have not decided what brand will be dominant for smartphones, thats work thats still ahead. And of course the way well go through that process is to assess with consumers what they respond most positively to, what conveys the best message and the best hopes of success. (Smith, 2014). Introduction Before taking further steps, it is useful to understand what creativity is. Creativity is defined as the use of imagination or original ideas to create something; inventiveness (Oxford Dictionaries). It is a concept that is very useful for the companies to differentiate themselves from their competitors, therefore theres a need to apply it in the organizational framework successfully. Shalley and Gilson define organizational creativity as the development of ideas about practices, procedures, products or services that are potentially useful to an organization (Shalley & Gilson, 2004). In the case of Nokia, the level of creativity also needs to be considered on the cultural level. Nokias code of conduct is striving for the highest degree of ethical conduct in 5. BEMM162 THE CREATIVE ORGANISATION Nokia Company Organizational Creativity Report 4 every action they take as indicated in their corporate website (NOKIA, 2014b).This is based on the Finnish culture of the company. Focusing on ethics and risk management, Nokia missed out the importance of organizational creativity in their corporate governance structure. The cohesive Finnish culture affected Nokias decision of not embracing creative ideas, consequently not taking risks (Beckett, 2011). Aim The aim of this report is to evaluate the level and processes of creativity at Nokia by analyzing the factors by looking at the historical facts that left the company behind its competitors. By the time the writers of this report decided to make their research about Nokia, the basic aim was to make assumptions for the future of the company. Meanwhile, it was announced that Nokia would be acquisited by Microsoft Company who was in partnership with Nokia on producing Windows operated Lumia smartphones. The acquisition of Nokia by Microsoft is now confirmed and the deal, announced last fall, is worth more than $7 billion (Molina, 2014). Therefore, this report focuses on the reasons of the fall of the company by pointing out the lack of creativity processes in their organizational structure. We hope to identify the core differences in the company structure with main competitors like Apple and Samsung to find an answer to this particular question: Why Nokia stayed behind in the race of innovation on mobile phone and tablet PC industry? Investigation Methods The information to be used in this research project is going to be provided by mainly looking at the company reports and press releases. Literature Review Progressively, creativity has become appreciated and esteemed across a multiplicity of responsibilities, professions, and businesses (Nonaka, 1994). In the present days fast- 6. BEMM162 THE CREATIVE ORGANISATION Nokia Company Organizational Creativity Report 5 paced vibrant work setting, supervisors and administrators go on to apprehend that to keep on being competitive they require their workforces to be enthusiastically involved in their work and putting an effort to produce original and fitting merchandises, practices, and methods. Granting the level of creativity needed and the significance of creativity can vary contingent on the jobs or profession in hand, a great deal of supervisors would approve that there is a possibility, in virtually every job, for personnel to be extra creati