Nokia 2004 Annual Report Download - page 30

•Demand-supply network alignment — Our demand-supply network management has
traditionally been a core competence. In order to better respond to and benefit from
high-demand situations, we intend to focus on strengthening our global processes such as
demand-supply planning and capacity management. We also aim to take advantage of the
flexibility in our demand-supply network across all product categories, in order to enable
efficient operator customization.
•End-to-end capability — We intend to systematically strengthen our capability to offer
tailored solutions that combine mobile devices, applications, infrastructure and our
customer interface. We believe that this capability is already an advantage for Nokia, which
we have demonstrated with such solutions as the Push to talk over Cellular offering of
mobile devices, application software and network solutions, which provide walkie-
talkie-like communications.
Organizational Structure
As described above, during the 1990s, our organizational structure had evolved to consist of two
main business groups, Nokia Mobile Phones and Nokia Networks. A venturing arm, called Nokia
Ventures Organization, also existed to foster new businesses. On January 1, 2004, Nokia
reorganized its structure to further align the company’s overall structure with its strategy, to
better position each business group to meet the specific needs of diverse market segments, and to
increase Nokia’s operational efficiency and maintain our economies of scale. The structure includes
four business groups: Mobile Phones, Multimedia, Enterprise Solutions and Networks.
Business Groups
Mobile Phones continues the development of the mobile phones based mainly on GSM, CDMA and
WCDMA technologies. Mobile Phones consists of six business units: Broad Appeal, Focused Appeal,
Entry, CDMA, TDMA and Vertu. Mobile Phones is made up of four of the nine business units from
the former Nokia Mobile Phones: Mobile Phones, Mobile Entry Products, CDMA and TDMA. The
remaining five business units from the former Nokia Mobile Phones were transferred to other
business groups in the reorganization, as described below.
Multimedia focuses on bringing connected mobile multimedia to consumers in the form of
advanced mobile devices, including 3G WCDMA mobile devices, and solutions. There are four units
in Multimedia: Imaging, Entertainment, Enhancements and Convergence Products. Multimedia
combines four business units from the former Nokia Mobile Phones: Imaging, Entertainment and
Media, Mobile Enhancements and Mobile Services.
Enterprise Solutions aims to help businesses and institutions extend their use of mobility from
mobile devices for voice and basic data to secure mobile access, content and applications. Our
solutions range from business-optimized mobile devices for end users to a broad portfolio of IP
network perimeter security gateways and mobile connectivity offerings. It combines the Business
Applications business unit from the former Nokia Mobile Phones with Nokia Internet
Communications and Nokia One, formerly units located within Nokia Ventures Organization.
Networks is a leading provider of network infrastructure, communications and networks service
platforms and professional services to operators and service providers. Networks focuses on the
GSM family of radio technologies and aims at leadership in GSM, EDGE and WCDMA networks, core
networks with increasing IP and multi-access capabilities, and services. Networks carries on the
business of the former Nokia Networks.
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