NSN: Moving on the Right Track
NSN is restructuring and needs to focus on increasing profitable orders apart from divesting non-core activities and workforce reduction
It is almost 10 months since Nokia Siemens Networks (NSN) announced its global restructuring program. The company is doing well on divesting its non-core activities and workforce reduction but the focus needs to be more on increasing profitable orders in broadbandH 3GH and LTN. This is not an easy task considering the fact that the wireless infrastructure market is forecasted for a flat growth in 2012.
The company needs to focus on innovation and come up with some great products apart from Single RAN AdvancedH CNM (customer experience management)H and Liquid Net which can revolutioniYe the market and help NSN to increase its market share in mobile broadband and services. Not an easy task considering the fact that Alcatel-Lucent and Chinese companies Huawei and RTN have realigned their business towards mobile broadband and are doing well.
In November last yearH NSN launched an extensive global restructuring program focusing on 3 key strategies—end-toend mobile network infrastructure and services with emphasis on mobile broadband and services; significant operating expense and production overhead savings; and global workforce reduction of approximately 17H000.
The company plans to realign its business to focus on mobile broadband (including optical)H customer experience managementH and services. Focus was to reduce its annualiYed operating expenses and production overheads by Nuro 1 bn by the end of 2013H compared to the end of 2011.
The savings for NSN are to come largely from organiYational streamlining but the company will also target areas such as real estateH information technologyH product and service procurement costsH overall general and administrative expensesH and a significant reduction of suppliers in order to further lower costs and improve quality.
Focus was also on reducing its global