Nokia 2010 Annual Report Download - page 82

Brands’ survey for 2010 in India, marking Nokia’s recognition as India’s most trusted brand for
three consecutive years.
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Supply chain, distribution and relationships. We enjoy a worldclass manufacturing and
logistics system, which is designed to deliver quality hardware and respond quickly to
customer demand. During 2010, we made over one million devices per day in our nine main
device manufacturing facilities globally. In addition, we source components from a global
network of strategic partners, the majority of whom we have long standing and deep
relationships supported by our scale and market position. Nokia has the industry’s largest
distribution network with over 650 000 points of sale globally. Compared to our competitors,
we have a substantially larger distribution and care network, particularly in China, India and
Middle East and Africa.
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Intellectual property: Success in our industry requires significant research and development
investments, with intellectual property rights filed to protect those investments and related
inventions. We believe that Nokia has built one of the strongest and broadest patent portfolios
in the industry. Since the early 1990s, we have invested approximately EUR 43 billion
cumulatively in research and development, and we now own over 10 000 patent families.
Additionally, under the planned Microsoft partnership we will have the ability to innovate and
customize on the Windows Phone platform with a view to differentiating Nokia smartphones from
those of our competitors who also use the Windows Phone platform.
On Mobile Phones, we plan to differentiate by further leveraging our strong market position,
especially in growth economies. We plan to take advantage of this by delivering the “web for the
next billion”—making people’s first web and application experience a Nokia experience in these
growth markets. We are already investing in the future, developing assets with which we can bring a
modern mobile experience—software, services and applications—to the billions of aspirational
consumers in key growth markets.
Finally, we believe that we must invest to take advantage of future technology disruptions and
trends. Through ongoing research and development, we plan to explore and lead nextgeneration
opportunities in devices, platforms and user experiences to support our industry position as well as
our ability to further differentiate over the longerterm.
Speed of Innovation, Product Development and Execution
As the mobile communications industry continues to undergo significant changes, we believe that
speed of innovation and product development are important drivers of competitive strength. For
example, a number of our competitors have been able to successfully leverage their software
expertise to continuously bring innovations to market at a rapid pace, faster than typical hardware
cycles. This has placed increasing pressure on all industry participants to continue to shorten product
creation cycles and the ability to execute in a timely, effective and consistent manner.
On February 11, 2011, Nokia outlined its new strategic direction, including changes to operational
structure, company leadership, decisionmaking, ways of working and competencies designed to
accelerate the company’s speed of execution in an intensely competitive environment. The planned
changes to our ways of working fall under six areas: globally accountable business units, revised
services mission, local empowerment, simplified decisionmaking, performancebased culture with
consistent behavior, new leadership structure and principles.
Effective April 1, 2011, our Devices & Services business will include two business units: Smart Devices
and Mobile Phones. They will focus on our key business areas: smartphones and massmarket mobile
phones. Each unit will have profitandloss responsibility and endtoend accountability for the full
consumer experience, including product development, product management and product marketing.
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