1 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Research in Nokia Networks
TKK T-109.5410 Technology Management in the Telecommunications IndustryOctober 17th, 2006Yrjö RaivioPrincipal System [email protected]
2 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Outline
• Personal background & Research interests
• Research in Nokia Networks• Strategy & Technology (S&T)
• Network Systems Research (NSR)
• Nokia Siemens Networks
• Conclusions
3 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Curriculum Vitae
• Nokia Networks 1994-• Career path:
• SW engineer SDL, C
• Research Engineer Word
• Research Manager Word, PPT
• Sr Research Manager PPT, Excel
• Principal Specialist Excel
• MSc from TKK/EE 1995
• Postgraduate studies in TKK/CS from 01/2005 onwards
5 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Innovation Process – a new view: Open Innovation
6 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Demand Curve (C. Shapiro & H.R. Varian, 1999)
7 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
The Long Tail (C. Anderson, 2004)
TEOSTO
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Number of Composers
kEur
o/ye
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8 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Links
• Host Identity Protocol (HIP) – http://www.ietf.org/html.charters/hip-charter.html
• Internet Indirect Infrastructure (I3) – http://i3.cs.berkeley.edu/
• P2P - Distributed Hash Table (DHT) – http://cis.poly.edu/~ross/papers/P2PtutorialInfocom.pdf
• WEB Services - http://www.hiit.fi/fuego/fc/
• Copyright vs. copyleft - http://www.soberit.hut.fi/T-76.5753/suomi/ (in Finnish)
• Open Source Software - http://www.coss.fi/fi/
• Innovation management -http://www.tuta.hut.fi/studies/Courses_and_schedules/Isib/TU-91.2005/TU-91.2005.php
• Internet business - http://www.soberit.hut.fi/T-86/T-86.5300/
• Internationalization - http://www.sbl.tkk.fi/kv-klinikka/ (in Finnish)
• Research Seminar on Telecom Business – http://www.tml.tkk.fi/Opinnot/T-109.7510/
10 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Nokia structure
Business GroupsH
ori
zonta
l G
rou
ps
Technology Platforms
Brand and designDeveloper supportResearch and venturingBusiness infrastructure
Customer and Market Operations
Mobile Phones
MultimediaEnterprise Solutions
Networks
Corporate Functions
11 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Delivery Operations
Networks / S Beresford-WylieF&C; Strategy and Technology Unit;
Quality; Legal; HR; Communications.
Customer &Market Operations
CoreNetworks
Radio Networks Services
NorthAmerica
Latin America
APAC China CEMEA VodafoneWE
Networks organization as of 1 July 2006
12 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Strategy & Technology mission
Strategy & Technology’s mission is to add Nokia and customer value by driving
• NET strategic renewal• World-class system competence• Efficient support operations
in increasing dialogue with customers.
13 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
What do we do in Strategy & Technology?
• Run NET-wide strategies & strategy initiatives
• Ensure access to new technologies and competitive E2E-system functionalities
• Drive new business initiatives
• Provide efficient support for NET product creation and team operations
• Drive standards, regulation, IPR and environmental initiatives
Research
IPR
Standardization
14 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Research roles
NRC
•Time to market, Long Short
•Technology risk, Higher Lower
•Business risk, Higher Lower
•Weight varies due to business situation
•R-milestones, B-milestones, E-milestones
S&T NET BUs
15 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Network Systems Research – part of the S&T
NSR drives renewal through systems research in order to strengthen Nokia Network’s position in its current business, and to expand into new
business areas
NSR drives renewal through systems research in order to strengthen Nokia Network’s position in its current business, and to expand into new
business areas
Mainstream research in current
Business areas
Scouting and new research topics
16 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
What do we do in NSR?
• NSR is a part of technology unit in NET/S&T organization focusing to network systems research
• Our research is related to radio and core networks, and operation and automation
• We do scouting for new technologies, research on new and disruptive ideas, research on mainstreams technologies and create content to standardization
• We have cooperation with external organizations (universities, research institutes, operators’ R&D centers, …)
• We have close cooperation with NRC and with Nokia Business Units
• Our customers are e.g. product programs and management, road mapping, marketing, …
18 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
A new industry leader
• Creation of major “top three” telecom company• Nokia’s Networks Business Group
• Siemens’ operator/carrier related business for fixed and mobile
• Company name: Nokia Siemens Networks
• 50-50 partnership• Shared vision and values
• Appointed CEO Simon Beresford-Wylie
• Appointed CFO Peter Schönhofer
• Operational headquarters in Helsinki, Finland (registered in the Netherlands)
• Finalization of the contract and regulatory approvals expected by year-end 2006
• The financial results of Nokia Siemens Networks will be consolidated by Nokia
19 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
A new leader with scale to win
* Excludes Thales and enterprise business ** Unaudited calendarised numbers
Carrier Business, 2005 Revenues (€ Bn)
17.216.2 15.8
6.7
5.14.6 4.6
3.6
0
2
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12
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18
Alcatel &Lucent*
Ericsson &Marconi
NokiaSiemens
Networks**
Nortel Cisco NEC Motorola Huawei
20 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Some issues
• Transaction subject to clearance by antitrust authorities (from EU ~13.11.06)
• Cost synergies of primarily from • elimination of overlapping functions• consolidation and better utilization of sales and marketing organizations• reduction of overhead costs• sourcing benefits• greater efficiencies in R&D
• 10-15% adjustment estimated over the next four years out of the initial combined employee base of 60,000
21 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR
Conclusions
• Telecommunications industry has big challenges ahead• Bit pipe is becoming commodity – radical thinking needed
• Open Innovation must be taken seriously
• Customer relations are an advantage
• Research gives an excellent background for the career
• “Research career” = C, C++, Word, PPT, Excel • Do not forget post graduate studies
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