Nokia 2004 Annual Report Download - page 29

4. markets where the need for network capacity is growing because operators are
promoting the replacement of fixed networks with mobile ones and the migration of users
to mobile devices.
As we continue to focus on the voice market, we aim to capitalize on our strengths in
execution, demand-supply network management and innovation.
•Drive consumer mobile multimedia: Our strategy is to develop connected mobile
multimedia devices, applications and solutions together with our operator customers and
other key industry collaborators to offer compelling multimedia experiences to consumers.
In the short term, we believe the most significant opportunities are in mobile imaging and
smartphones. Our long-term focus areas and business opportunities include music, mobile
games and mobile TV.
•Bring extended mobility to enterprises: Our goal is to capture profitable segments of the
enterprise market by offering products and services designed to benefit companies and
individual business people. We aim to offer a diverse mobile device range, mobile
applications and security, as well as service and support. As we do this, we intend to
capitalize on companies’ needs for mobility and seamless mobile connectivity in their
operations, and we also expect to collaborate with leading technology and systems
integration companies.
We believe that our three main strategies will position our business favorably as different digital
technologies and industries converge. In connection with this, we have three key focus areas:
Customer, Execution and Product. Our approach is to create mutually beneficial solutions with our
operator customers, as well as to listen to and focus on the needs of consumers and enterprise
customers.
We also aim to drive open standards and interoperability for the purpose of ensuring the
introduction and growth of mobile services worldwide. This is expected to boost innovation by
independent software producers as well as provide consumers with a wide and varied selection of
competitive, yet interoperable products and services. We work together with customers, suppliers
and industry participants in the Open Mobile Alliance and other industry forums, and focus on
end-to-end solutions in all our development activities.
In line with our strategy, we have identified five medium-term priorities for the next two to three
years.
•Product Competitiveness—We intend to continue to broaden and enrich our product
offering by launching more devices designed to enhance the user experience with features
such as cameras, multimedia and enterprise applications and support for WCDMA 3G
technology, and by offering a variety of designs including clamshells, slides and other
non-monoblock models that we believe should meet customer needs and preferences.
•Customer Satisfaction—We are committed to meeting customer needs in mobile devices
and mobile infrastructure and believe that customization and product quality are important
elements to gaining greater operator customer satisfaction. We are collaborating with
operators on product planning as well as accelerating product hardware and software
customization programs.
•Research and Development, or R&D, Effectiveness — We are reviewing our R&D activities
in order to get the most compelling products to market at the right time, and we are
aiming to lower our R&D expenses/net sales ratio while remaining effective and focused in
our efforts. This will require focused R&D spend and a re-engineered product creation
process intended to reduce product development cycle times.
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