1 © 2005 nokia tkk 1095410 nokia yraivio / 2006-10-17 / yr research in nokia networks tkk...

1 © 2005 Nokia TKK 1095410 Nokia YRaivio / 2006-10-17 / YR

Research in Nokia Networks

TKK T-109.5410 Technology Management in the Telecommunications IndustryOctober 17th, 2006Yrjö RaivioPrincipal System [email protected]


Outline

• Personal background & Research interests

• Research in Nokia Networks• Strategy & Technology (S&T)

• Network Systems Research (NSR)

• Nokia Siemens Networks

• Conclusions


Curriculum Vitae

• Nokia Networks 1994-• Career path:

• SW engineer SDL, C

• Research Engineer Word

• Research Manager Word, PPT

• Sr Research Manager PPT, Excel

• Principal Specialist Excel

• MSc from TKK/EE 1995

• Postgraduate studies in TKK/CS from 01/2005 onwards


Innovation Process – a new view: Open Innovation


Demand Curve (C. Shapiro & H.R. Varian, 1999)


The Long Tail (C. Anderson, 2004)

TEOSTO

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Number of Composers

kEur

o/ye

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Links

• Host Identity Protocol (HIP) – http://www.ietf.org/html.charters/hip-charter.html

• Internet Indirect Infrastructure (I3) – http://i3.cs.berkeley.edu/

• P2P - Distributed Hash Table (DHT) – http://cis.poly.edu/~ross/papers/P2PtutorialInfocom.pdf

• WEB Services - http://www.hiit.fi/fuego/fc/

• Copyright vs. copyleft - http://www.soberit.hut.fi/T-76.5753/suomi/ (in Finnish)

• Open Source Software - http://www.coss.fi/fi/

• Innovation management -http://www.tuta.hut.fi/studies/Courses_and_schedules/Isib/TU-91.2005/TU-91.2005.php

• Internet business - http://www.soberit.hut.fi/T-86/T-86.5300/

• Internationalization - http://www.sbl.tkk.fi/kv-klinikka/ (in Finnish)

• Research Seminar on Telecom Business – http://www.tml.tkk.fi/Opinnot/T-109.7510/


Research in Nokia Networks


Nokia structure

Business GroupsH

ori

zonta

l G

rou

ps

Technology Platforms

Brand and designDeveloper supportResearch and venturingBusiness infrastructure

Customer and Market Operations

Mobile Phones

MultimediaEnterprise Solutions

Networks

Corporate Functions


Delivery Operations

Networks / S Beresford-WylieF&C; Strategy and Technology Unit;

Quality; Legal; HR; Communications.

Customer &Market Operations

CoreNetworks

Radio Networks Services

NorthAmerica

Latin America

APAC China CEMEA VodafoneWE

Networks organization as of 1 July 2006


Strategy & Technology mission

Strategy & Technology’s mission is to add Nokia and customer value by driving

• NET strategic renewal• World-class system competence• Efficient support operations

in increasing dialogue with customers.


What do we do in Strategy & Technology?

• Run NET-wide strategies & strategy initiatives

• Ensure access to new technologies and competitive E2E-system functionalities

• Drive new business initiatives

• Provide efficient support for NET product creation and team operations

• Drive standards, regulation, IPR and environmental initiatives

Research

IPR

Standardization


Research roles

NRC

•Time to market, Long Short

•Technology risk, Higher Lower

•Business risk, Higher Lower

•Weight varies due to business situation

•R-milestones, B-milestones, E-milestones

S&T NET BUs


Network Systems Research – part of the S&T

NSR drives renewal through systems research in order to strengthen Nokia Network’s position in its current business, and to expand into new

business areas

NSR drives renewal through systems research in order to strengthen Nokia Network’s position in its current business, and to expand into new

business areas

Mainstream research in current

Business areas

Scouting and new research topics


What do we do in NSR?

• NSR is a part of technology unit in NET/S&T organization focusing to network systems research

• Our research is related to radio and core networks, and operation and automation

• We do scouting for new technologies, research on new and disruptive ideas, research on mainstreams technologies and create content to standardization

• We have cooperation with external organizations (universities, research institutes, operators’ R&D centers, …)

• We have close cooperation with NRC and with Nokia Business Units

• Our customers are e.g. product programs and management, road mapping, marketing, …


Nokia Siemens Networks


A new industry leader

• Creation of major “top three” telecom company• Nokia’s Networks Business Group

• Siemens’ operator/carrier related business for fixed and mobile

• Company name: Nokia Siemens Networks

• 50-50 partnership• Shared vision and values

• Appointed CEO Simon Beresford-Wylie

• Appointed CFO Peter Schönhofer

• Operational headquarters in Helsinki, Finland (registered in the Netherlands)

• Finalization of the contract and regulatory approvals expected by year-end 2006

• The financial results of Nokia Siemens Networks will be consolidated by Nokia


A new leader with scale to win

* Excludes Thales and enterprise business ** Unaudited calendarised numbers

Carrier Business, 2005 Revenues (€ Bn)

17.216.2 15.8

6.7

5.14.6 4.6

3.6

0

2

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18

Alcatel &Lucent*

Ericsson &Marconi

NokiaSiemens

Networks**

Nortel Cisco NEC Motorola Huawei


Some issues

• Transaction subject to clearance by antitrust authorities (from EU ~13.11.06)

• Cost synergies of primarily from • elimination of overlapping functions• consolidation and better utilization of sales and marketing organizations• reduction of overhead costs• sourcing benefits• greater efficiencies in R&D

• 10-15% adjustment estimated over the next four years out of the initial combined employee base of 60,000


Conclusions

• Telecommunications industry has big challenges ahead• Bit pipe is becoming commodity – radical thinking needed

• Open Innovation must be taken seriously

• Customer relations are an advantage

• Research gives an excellent background for the career

• “Research career” = C, C++, Word, PPT, Excel • Do not forget post graduate studies


Thank You!

Any Questions?

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