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

Voice&Data - - NSN STRATEGY -

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

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