Nokia 2012 Annual Report Download - page 65

Quality
In naming quality as the second pillar of its current strategy, Nokia Siemens Networks clearly stated
that it wishes to make this area a competitive differentiator over time. The extreme intolerance of
lapses in service of most mobile broadband subscribers and operators means that quality
improvements have a direct impact on the reputation and success of network suppliers.
Nokia Siemens Networks has, over the last year, increased investment significantly in capabilities such
as testing, automation, resources and training in the area of quality. The company’s quality program is
based on:
• Defect prevention and containment, including earlier and faster detection of problems and
their causes and clear links from research and development through manufacturing to sales,
delivery and maintenance
• Customer quality management, including making effective use of customer feedback and
providing cross-functional support on specific issues
• Quality capability and maturity, including developing the skills, expertise and ability
organization-wide to support customer demands and promoting a deep quality culture
throughout all parts of the company.
Innovation
Nokia Siemens Networks employs a strategy of customer-focused innovation, which aims to deliver
better return on investment than pure technology research and to direct resources and attention to
specific challenges faced by operators.
Nokia Siemens Networks has one of the largest research and development commitments in the
telecommunications industry. The efforts of these teams result in a stream of continuous improvement,
technology breakthroughs and industry awards.
For example, the company’s Flexi Multiradio base stations have, since their first development in 2008,
been shipped to more than 200 customers and won several awards. New generations of the product
are continuously in development and launch.
Nokia Siemens Networks also focuses on innovation in the area of customer experience management
(CEM)—a term covering various tools that help operators to better meet their subscribers’ demands
and to monetize their network investments. An implementation of the ‘CEM on Demand’ suite for
leading Indonesia-based operator, Telkomsel, was the Global Telecoms Business award winner for
2012 in the ‘wireless network infrastructure innovation’ category.
With a portfolio of around 3 800 patent families, Nokia Siemens Networks is a significant holder of
intellectual property rights.
Restructuring
At the same time as it announced its new strategy, Nokia Siemens Networks also communicated plans
to undertake a far-reaching and significant restructuring aimed at reducing its annualized operating
expenses and production overheads.
A large proportion of these savings were expected to come from headcount reduction and the
company announced plans to reduce 17 000 positions, announced in conjunction with the new
strategy. A combination of this restructuring program, divestments and project exits led to a reduction
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