Nokia 2014 Annual Report Download - page 44

42 NOKIA IN 2014
The HERE map platform enables its location
intelligence and experiences to be distributed
in the cloud and to be used across a number
of dierent operating systems, platforms
and screens. This enables the users of the
platform to license certain parts of HERE’s
oering, including content, location services
and functionalities, such as routing and
positioning. Access to the platform also
allows users to build specic applications
for location-related services.
Automotive and other industries
We continue to see opportunities within the
automotive and other industries that require
location-based intelligence. An area of interest
is the automotive industry, where HERE’s
focus goes beyond the traditional turn-by-
turn navigation, with HERE’s oering planned
to evolve towards “Smart Guidance” –HERE’s
connected driving solutions for inside and
outside of the car– and later towards concepts
such as the “Intelligent Car” for automated
driving. As these are new areas, our success
in terms of transforming development eorts
into sales is dependent on these concepts
developing commercially and on HERE’s ability
to produce products that are appealing to
the industry.
In general, we believe there is a trend of more
and more connected things. We believe there
may be opportunities for location-based
intelligence to serve as a key dimension
in this development, and we believe HERE
is well-positioned to capture those
potential growth opportunities with its
broad oering, for example through our
business with Samsung.
As the automotive industry is a signicant
contributor to HERE’s sales, the broader
economy and its inuence on new car sales
are an important factor in HERE’s future
success. The adoption rate of in-car
navigation products and services is important
as well. In general, adoption of these types of
products has been increasing and is expected
to further increase as connectivity becomes
more pervasive in cars. The gradual move
towards an increasing number of cars being
connected also oers the possibility to
provide more value-adding services to the
automotive industry.
Targets and priorities
Nokia expects HERE’s net sales to grow on
a year-on-year basis for the full year 2015,
and HERE’s operating margin for the full year
2015 to be between 7% and 12%, excluding
special items and purchase price accounting
related items.
Nokia Technologies
Nokia Technologies pursues new business
opportunities built on Nokia’s innovations and
the Nokia brand. Nokia Technologies develops
and licenses cutting-edge innovations that
are powering the next revolution in computing
and mobility. The Nokia Technologies strategy
consists of: 1) Patent Licensing, focused on
licensing our standard-essential and other
patents to companies in the mobile devices
market, consumer electronics and beyond; 2)
Technology Licensing, focused on licensing
and transferring proprietary technologies to
enable our partners to build better products;
3) Brand Licensing, to help our customers
leverage the value of the Nokia brand in
consumer devices; and 4) Incubation, focused
on developing new ideas and prototypes;
all supported by Nokia Labs, our world-class
R&D team. For more information on the
Nokia Technologies business, refer to
“Business overview—Nokia Technologies”.
Monetization strategies of IPR
Success in the technology industry requires
signicant R&D investments, with the
resulting patents and other IPR utilized to
protect and generate a return on those
investments and related inventions. In recent
years, we have seen new entrants in the
mobile device industry, many of which do not
have licenses to our patents. Our aim is to
approach these companies by potentially
utilizing one or more means of monetization.
We believe we are well-positioned to protect,
and build on, our existing industry-leading
patent portfolio, and consequently increasing
shareholder value.
We see three main means for monetizing
our innovations: 1) Patent Licensing; 2)
Technology Licensing; and 3) Brand Licensing.
Additionally, our incubation activities may
from time to time lead to concepts that we
could consider licensing or bringing to the
market as products or services ourselves.
In Patent Licensing, the main opportunities
we are pursuing are: 1) renewal of existing
license agreements, and negotiating new
license agreements with mobile device
manufacturers; and 2) expanding the scope
of licensing activities to other industries,
in particular those that implement mobile
communication technologies. We no longer
need patent licenses for our former Devices
&Services business, enabling possibilities
toimprove the balance of inbound and
outbound patent licensing.
Principal industry trends
aecting operations continued
“We believe there may
be opportunities for
location-based
services to support
the internet of things.”
Global Service Delivery
Nokia Networks
successfully delivers
Vodafone Australia
multi-technology,
multi-vendor Managed
Services from its Global
Delivery Center in India.