Nokia "Simplify" By Splitting Smartphone & Cellphone Teams

Nokia have announced a reshuffle of their organizational structure, and while it doesn't – as speculation suggested – see Olli-Pekka Kallasvuo lose his CEO position, it does split the company's phone business up into two hardware lines and a separate sales/marketing arm.  For devices, Nokia will have a Mobile Solutions branch that deals with "high-end mobile computer and smartphone" style hardware, using both MeeGo and Symbian, together with a Mobile Phones branch that deals with mass-market Series 40 handsets.

The two branches will have their own dedicated portfolio management, including product planning, R&D and dedicated software assets.  According to Kallasvuo, while it might seem counter-intuitive to "simplify" structure by making more departments, the expectation is that it will actually see new hardware arrive on the market quicker, and generally make Nokia more responsive to market trends than it is now.  Sluggishness and an apparent reluctance to turn away from pre-decided roadmaps have been regular criticisms of the Finnish company, who have faced renewed competition from fast moving rivals.

Press Release:

Nokia simplifies its organizational structure to accelerate execution and innovation

Espoo, Finland – To increase competitiveness and deliver a stronger and more differentiated consumer experience, Nokia will introduce a simplified company structure for its devices and services business comprised of three units: Mobile Solutions, Mobile Phones and Markets. Effective July 1, 2010, the move aims to accelerate product innovation and software execution in line with the company's goals of integrating content, applications and services into its mobile computer, smartphone and mobile phone portfolio.

The new Mobile Solutions unit will concentrate on the company's high-end mobile computer and smartphone portfolio. Based on both the MeeGo and Symbian software platforms respectively, these devices will be tightly integrated with Nokia's Internet services to increase the combined value for consumers.

The renewed Mobile Phones unit will focus on maintaining Nokia's leadership in the feature-rich mobile phone market and driving the direction of Series 40, the world's largest mobile operating system. Both the Mobile Solutions and Mobile Phones units will have dedicated portfolio management, including product planning, R&D and dedicated software assets.

Markets will be responsible for Nokia's 'go-to-market' activities, including sales and marketing, management of Nokia's global supply chains and sourcing operations.

"In addition to extending our leadership in mobile phones, we are decisively moving to respond faster to growth opportunities we expect in smartphones and mobile computers," says Olli-Pekka Kallasvuo, CEO of Nokia. "Nokia's new organizational structure is designed to speed up execution and accelerate innovation, both short-term and longer-term. We believe that this will allow us to build stronger mobile solutions – a portfolio of products and integrated services that connect people and enable new ways of communicating, sharing and experiencing mobility."

To strike the right balance between business continuity, professional competencies and faster execution, this organizational realignment includes changes among Nokia's senior executives.

The Mobile Solutions unit will be headed by Anssi Vanjoki and be comprised of MeeGo Computers, led by Alberto Torres, and Symbian Smartphones, led by Jo Harlow. As part of the Mobile Solutions unit, Services – led by Tero Ojanpera – will continue to develop Ovi as an integrated service into smartphones and mobile computers, and lead the development and deployment of new services into Nokia's mobile phones. Nokia has also appointed Rich Green to the position of Chief Technology Officer, assuming responsibility for driving common technology architecture across Nokia. Green brings a wealth of experience from his time in Silicon Valley, including a number of years at Sun Microsystems. He will report to Anssi Vanjoki.

Headed by Mary McDowell, the Mobile Phones unit will work closely with Services to add value to lower-end devices through offerings such as Ovi Life Tools, Ovi Mail, Ovi Store and Nokia Money.

The Markets unit will continue to focus on Nokia's overall sales and marketing efforts, solution selling, transformation to digital marketing and consolidation and globalization of Nokia's supply chain and sourcing. Markets will be headed by Niklas Savander.

Kai Oistamo assumes the role of Chief Development Officer and head of Corporate Development.

Rick Simonson, who currently heads Mobile Phones, has decided to retire from full-time duties at Nokia. Simonson will leave the Nokia Group Executive Board effective June 30, 2010. However, he will continue as a senior advisor to Nokia, focusing on Nokia Siemens Networks, until the end of the year. Simonson will continue to serve as a member of Nokia Siemens Networks' Board of Directors after he leaves Nokia.

"Rick has made a substantial contribution and leaves behind a legacy in operational and financial leadership. I would like to thank him for his invaluable contribution," says Kallasvuo. "We will certainly miss Rick, but are pleased he will continue as a senior advisor to Nokia until the end of year, and continue as an NSN board member beyond that."

As of July 1, 2010 Nokia's Group Executive Board will consist of the following members: Olli-Pekka Kallasvuo, Esko Aho, Juha Akras, Timo Ihamuotila, Mary McDowell, Kai Oistamo, Tero Ojanpera, Niklas Savander, Alberto Torres, and Anssi Vanjoki.

A chart of the new organizational structure, valid from July 1, 2010, is available at http://www.nokia.com/A4630650?category=company