Global Supply Chain Management of NOKIA

Jayshree Verma [29] Baljit Singh [ Nitin Chiddar [

Submitted as
Assignment for Supply Chain Management [Module 3]

3/24/2012

Table of Contents
Table of Contents....................................................................................................... 2 Introduction................................................................................................................ 3 Nokia Supply Chain Management...............................................................................3 Nokia distribution structure GSM.............................................................................4 Distributor............................................................................................................... 5 Retailers/ Dealers.................................................................................................... 5 Nokia distribution structure CDMA...........................................................................6 Sourcing Sustainability:..............................................................................................6 Supplier diversity.....................................................................................................7 Nokia Suppliers Requirements....................................................................................7 Suppliers Performance................................................................................................7 Training and Building Capability.................................................................................8 Internal training.......................................................................................................8 Supplier cooperation & development programs......................................................9 A Supplier's view.....................................................................................................9 Sourcing materials......................................................................................................9 EU REACH Regulation............................................................................................10 How far does Nokias responsibility go down the supply chain?............................10 Industry Collaboration..............................................................................................10 Shared Audits........................................................................................................11 Learning & Capability Building..............................................................................11 Extractives.............................................................................................................11 RosettaNet............................................................................................................12 Tie up with Sify Technology......................................................................................12 Pricing Strategy for NOKIA........................................................................................16

Introduction
Finland-based Nokia Corporation (Nokia) is the world's leading manufacturer of mobile devices. Analysts attributed Nokia's success to its supply chain management practices. The company had an integrated supply chain which inter-linked suppliers, manufacturing plants, contract manufacturers, sales, logistics service providers, and the consumers. It entered into a long-term relationship with its suppliers and also supported them in improving their processes, which in turn helped the company. Nokia was able to keep its costs low because of its efficient manufacturing systems and processes. The company adopted a hybrid manufacturing system which was a combination of in-house manufacturing and outsourcing. It also adopted the Smart manufacturing technique so as to enhance the competitiveness of its manufacturing facilities. The company had a wide distribution network which helped it to effectively reach the end customers. The project highlights the unique supply chain management practices of Nokia. The case examines how the company is making its supply chain efficient to counter the impact of reduced demand of mobile handsets. In May 2009, Finland-based Nokia Corporation (Nokia), the world's leading manufacturer of mobile devices, was placed sixth in the list of top 25 companies in global supply chain management, announced by AMR Research. According to AMR Research, "Nokia continues to stay ahead of the curve on everything from regional sourcing and deep supplier collaboration to an organizational design based on true value chain principles." AMR Research selected the manufacturing and retail companies from Fortune's Global 500 ranking. Founded in 1865 as a paper mill, Nokia started producing phones in 1982. The company had interests in several businesses including telecommunications, consumer electronics, rubber, and cable. In 1992, Nokia took a strategic decision to focus only on the telecommunications business and to close down its other businesses. And this decision paid off. Its focus on the telecommunications business had turned Nokia into a global leader by the year 1998. According to industry experts, Nokia's supply chain management was the key factor for the success of the company. The company maintained a long-term relationship with its suppliers and helped them in improving their processes.

Nokia Supply Chain Management

Nokia manufactures its mobile in 15 manufacturing plants located across 9 countries globally- Brazil, China, Finland, Great Britain, Hungary, India, Mexico, Romania and South Korea. Then it transfers to Nokias mother depot which is located in Gurgaon. They also provide assistance in selection of channel partners like redistributors, Dealers, Franchisees, etc. Besides this they provide monetary

assistance in Store development for Nokia Priority dealers, help in promotion of products on mass scale as well as in store and training of the sales force of partners at every level. With an extremely complex supply chain that handles 100 billion components, 60 strategic suppliers, and 10 factories worldwide, Nokia had to be extremely focused in their transformation efforts. New product introductions and variations are also intense 1 phone can represent 170 handset variations and 250 sales package variants. To support this complexity, the operations philosophy has been: think globally, act locally, and i.e. balancing localized decision-making with global planning. Nokia started their SCM transformation in 1995 with the strategy of replacing inventory with information and creating a pull-driven supply chain with end-to end integration linking suppliers, factories, telecom operators, channel partners, contract manufacturers, banks, sales, iHubs, and logistics service provider tothe consumer. Their approach was to create the most efficient supplier network to offer the best solutions to meet customer expectations. Fundamentals for success included creating a value-based partnership with suppliers, based upon factual information, leadership, flexibility and trust - Making the impossible possible through collaboration. Based on this approach, the supplier network is now considered the central point for reaching their corporate objectives: Great products, Operational excellence, and Customer satisfaction. The results of their transformation have been impressive with increased sales and reduced component inventories not only within Nokia, but also reduced inventories throughout the pipeline, including supplier and customer inventories. Sourcing excellence is a key ingredient for Nokias business model transformation. Benefits include time-to-market, risk management, agility and financial model flexibility. Nokia believes two critical factors were instrumental to their transformation success: leadership and the communication of the vision. The leadership philosophy relies on four equally important elements: head, heart, hands, and guts. These leadership attributes are exemplified through energy and passion, trust as the base for business, focus and drive, active communication and finally, flawless execution.

Nokia distribution structure GSM

Nokia rarely does divulge any kind of internal data in public domain. It makes it hard to get much detail about the exact details of the distribution structure of Nokia mobile phones. Nokia has been market leader in mobile phones market not just in terms of sales by volume and value, but also in terms of setting best practices and examples in supplier selection. Nokia manages one of the largest distribution networks among mobile companies globally. It ranges from small village on island of some remote south-east Asia like Tahiti to advanced market like US and western European countries. Its mobiles are available at stores measuring barely 15sq. ft. in remote villages to super-sized Nokia Concept stores on high streets. When it comes to distribution, Nokia's lead is clear. Today, India has some 110,000 outlets that sell mobile phones. Out of these, according to companies own conservative estimates, 50,000 stores have only one brand available Nokia. In India, Nokia started distributing its phones through a partnership with HCLI (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products. Recently, Nokia has decided to supplement that with its own distribution efforts. Nokia believed that there was a tremendous growth opportunity and it was best exploited when the resources utilization of both companies was optimized.

In recent years, Nokia has started an initiative to allow customers to drop their used old mobiles in Nokia drop boxes for safe disposal. This has necessitated a reverse flow of handsets also.

Distributor
HCLI Info has been handling distribution of Nokia phones in India for 10 years. Nokia follows similar pattern in different global markets of having tie-ups with companies with established network for the distribution of their mobile phones. In September this year Brightstar Europe today announced a distribution agreement with Nokia. The agreement will focus mainly on the IT reseller market, Value-Added Resellers (VARs) and the B2B sector in France. These distributors perform multiple roles within the supply chain. They act as resellers for the GSM phones.

Retailers/ Dealers
Nokia Priority dealers, Multi brand and individual dealers in any specified region are all served by designated RDSS. Dealers are explained the features of every new launch mobiles, different schemes and offers by Nokias representatives. Resupplies are always just a phone call away and the delivery is made within a few hours. Besides, Nokia assists most dealers in the region in the store set-up and design. The price points sometimes dictate the type of outlet. Stock norms define that for how many days worth of stock does any level in the supply chain should have. These norms are defined by Nokia only. Given below are the stock norms: The expected target to be fulfilled by the particular level is determined by the following formula:

Expected target = (30 / No. of working days) * Stock Norm for that level

Nokia distribution structure CDMA

The distribution system for CDMA phones of Nokia globally is little different from that for the GSM phones. In CDMA mobiles the mobile network operators need to have the mobiles supplied to them before they are sent out in the market so that they can fuse the SIM cards inside the phones. The CDMA handsets are manufactured and send to Nokias mother warehouse, same as in the case of GSM mobiles. From there they are directly delivered to the local mobile network operators in the region. The mobile network operators assemble their respective mobiles with the networks SIM card. They then send it to its own associate outlets and large distributors. The large distributors further transfer the handsets to agents, chain of stores, etc. for retail selling. Nokia doesnt sell its cell phones directly to individuals, they sell them through operators such (Bouygues, SFR, Maroc Telecom) and to distributors (Cora, Auchan, Carrefour) also to traders who are intermediate who are responsible for the marketing of Nokia products with the small distributors. In India Nokia has a tie-up with TATA Indicom and Reliance network for its CDMA handsets. Structure of Nokia CDMA mobile distribution is as following:

Sourcing Sustainability:
Nokia sources components, materials and services from suppliers all over the world. Our sourcing activities can be divided into two categories:

Direct sourcing - taking care of the material supply for Nokia products, such as components, parts, packaging, software development and research and development. Indirect sourcing - covering equipment such as office furniture and computers. It also includes services like catering, IT consultancy, and marketing which purchase for our own use.

As a global company Nokia has suppliers located all around the world. The main countries and regions for our supplier locations are: Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Morocco, Netherlands, Philippines, Poland, Portugal, Singapore, Slovakia, S Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Ukraine, UK, USA and Vietnam.

Supplier diversity
Supplier diversity is highest on the corporate responsibility agenda in the US. Nokia recognize that their spending with suppliers there can have a significant impact on economic development. We have developed a comprehensive set of global Nokia Supplier Requirements (NSR), which include specified environmental and social requirements. These requirements are based on international standards ISO 14001, SA 8000, OHSAS18001, PCMM and ILO, and UN conventions.

Nokia Suppliers Requirements

Nokia has developed environmental requirements for the products, components and parts that it source. New suppliers (like our existing suppliers) must commit to meeting their requirements (e.g. NSR and environmental product requirements) as part of the contractual agreement.

Suppliers Performance
Supplier assessments are used to understand a suppliers performance level and compliance to Nokias requirements. Trained Nokia assessors conduct the majority

of its supplier assessments so that Nokia is involved first hand. Nokia believe it is important for Nokia assessors to see the factories for them, to understand the problems and to work directly with suppliers to drive improvements. This hands-on approach means that both Nokia and its suppliers take their performance very seriously. Occasionally, Nokia work with third parties for specific expertise or investigations, or as part of joint industry assessments. Nokia do, however, invite its suppliers to use NGOs or similar parties to assure the effectiveness of its own labor standards and environmental practices. To drive sustainable change Nokia often need to combine assessments with other tools and approaches including face-toface meetings, performance metrics and targets, development programs, trainings and supplier-focused events.

Training and Building Capability

Nokia help suppliers improve their management of corporate responsibility (CR) issues by meeting with them and providing training, sharing examples of best practice from Nokias own operations or from other case studies. Nokia help suppliers develop their own internal CR organization and embed CR within their business starting with a commitment from the top. Nokia also work with Tier One suppliers to help them manage their own supply chains. It is becoming increasingly apparent that training and capacity building amongst companies in the supply chain are important for driving sustainable improvements to support monitoring programs. Therefore, as part of the Global e-Sustainability Initiative (GeSI) Supply Chain Working Group (SCWG), Nokia actively participate in the Learning & Capability Building sub work group.

Internal training
Before Nokias suppliers can be expected to meet our requirements, it is first important that own sourcing personnel are familiar with the requirements and commitments so that they can support implementation and ensure consistent messaging. Internal training is provided to new sourcing personnel and existing personnel receive training and information sessions on new requirements. Supplier training Supplier training helps: New suppliers to understand our expectations (e.g. NSR, Environmental Requirements for Nokia products) Existing suppliers to understand and implement new requirements (e.g. new material restrictions, updates to NSR), and Existing suppliers to build competences to meet existing requirements (e.g. address non-conformances from on-site assessments). Nokias trainings focus on the Nokia Supplier Requirements, labor conditions, health and safety in the work place, design for the environment, and substance management.

Supplier cooperation & development programs

In order for any company to systematically drive social and environmental improvements, it is necessary to have both management support and an effective management system in place. One of the ways in which Nokia help to build suppliers Social and Environmental Responsibility (SER) capabilities is to work with them to develop their own internal Corporate Responsibility (CR) organization and embed CR within their business starting with a commitment from the top. Nokia do this by meeting on a regular basis, helping to get management support and sharing examples of best practice from Nokias own operations or from other case studies. In 2007 Nokia initiated a cross-commodity development program with Foxconn, a global contract manufacturer and component supplier based in Taiwan. They helped the company set up a corporate CR structure connected to business units, and to define a corporate CR commitment. Nokia has been working with Foxconn for a number of years, meeting regularly to share best practice. Since 2007 Nokia have expanded this work and for the latest information please refer to Progress and targets. Although the suppliers are at different levels in their CR journey and organized in different ways, the objectives have been similar; to ensure they commit to and implement effective CR programs, targets, monitoring practices and reporting.

A Supplier's view
"In 2007, Foxconn was advised by Nokias customer to adopt industry best practice and set up an internal Global Social and Environmental Committee. That advice has helped them plan and manage social and environmental issues in a systematic, responsive and effective manner similar to the business value propositions it deliver to customers with our products and services. The Committee holds regular meetings to bring in new improvement agendas. For example, new initiatives in 2007 included energy efficiency, air quality control and power saving. Through the guidance of our customer and Nokias internal organizational change, Foxconn has made progress in social and environmental responsibility, developing a Code of Conduct in 2007, improving employee benefits, and ensuring cleaner, safer and more enjoyable working conditions. Foxconn embarked on its journey of corporate social and environmental responsibility (SER) in 2004, but without Nokias help this quantum leap and significant progress wouldnt have been possible. This is genuinely a realization of supply chain collaboration and partnered actions."

Sourcing materials
Nokia is an industry leader in substance management. Their main objective is that they know all the materials in our products, not just those that raise concerns, and that they are safe for people and the environment when used in the proper way. Their sourcing organization and suppliers play a key role in ensuring our components and parts are safe and compliant with the Nokia Substance List (NSL). The NSL identifies substances that Nokia has banned, restricted, or targeted for reduction with the aim of phasing out their use in Nokia products. Nokia also require suppliers to have a record of the raw material content of products supplied to them and, if needed, to provide end-of-life treatment recommendations.

EU REACH Regulation
In June 2007, the EU regulations on the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) came into force. According to this regulation, companies have obligations to ensure that the chemical substances they manufacture, import or found in articles considered as substances of very high concern, are registered, authorized or notified according to legal requirements. To support Nokias suppliers they provided information to them and have ongoing discussions to ensure they are aware of the REACH regulations, understand the requirements and are taking responsibility for compliance to ensure uninterrupted supply.

How far does Nokias responsibility go down the supply chain?

Nokias primary focus is on those suppliers with who company contract and work with directly. Their suppliers are required to meet Nokia Supplier Requirements and product environmental requirements that define expectations for their suppliers, the components, parts and services they supply. Nokia Supplier Requirements request that their suppliers in turn set environmental, labor and health & safety requirements, and monitor the performance of their suppliers. Nokia believe each tier of the supply chain must take responsibility for managing its own suppliers to achieve positive, sustainable improvements throughout the entire supply chain. If concerns arise regarding the performance of 2nd/3rd tier suppliers, Nokia works deeper down the supply chain to investigate and address any concerns. For certain materials of concern or alternative new materials, Nokia works with suppliers to evaluate and promote environmental and social improvements further down the supply chain. This work involves increasing the transparency of the supply chains of these materials, understanding the commitments of each tier, working at an industry level and with stakeholders. Nokia efforts with Tantalum are one example of work to tackle materials of concern, and biomaterials are an example of alternative new material.

Industry Collaboration

Global e-Sustainability Initiative (GeSI) Nokia became a full member of the Global eSustainability Initiative (GeSI ) in 2007. They have been a member of the GeSI Supply Chain Working Group (SCWG) since 2004. This Group works closely with the Electronics Industry Citizenship Coalition (EICC). The main aims of this collaborative effort are to promote good conduct and to develop and deploy a consistent set of tools and processes to measure, monitor and improve CR performance across the ICT sector supply chain. As part of their membership of the GeSI SCWG, they actively participate in the Learning and Capability Building, Shared Auditing and Extractives sub-groups working together with EICC.

Shared Audits
Industry shares many of the same suppliers and Nokias networked supply chain means that many of them are customers and suppliers of each other. As a result, one focus of the GeSI SCWG has been to develop a shared auditing process together with the EICC, which means a single audit of a supplier facility can be shared across customers. In doing so, the work group aims to reduce the burden of duplicate audits on suppliers and allow them to focus resources on addressing issues and improving conditions During 2008 Nokia participated within the shared audit work group, helping to develop the shared auditing process and in the actual audit pilots.

Learning & Capability Building

Recognizing that simply assessing suppliers for compliance does not create sustainable change, GeSI SCWG and EICC formed the Learning & Capability building work group, to which Nokia is an active member. During 2008, this work group hosted a supplier forum in China, concluded the pilot studies that emerged from the multi-stakeholder capability-building project for the ICT sector in China (in collaboration with BSR and the Foreign Investment Advisory Service (FIAS)) and, began developing a series of web-based e-learning modules.

Extractives

GeSI and EICC formed the Extractives Workgroup to enhance members understanding of social and environmental conditions at the mine level and to determine if and how Nokia could act collectively or individually to improve these conditions. With this aim, the Workgroup commissioned an industry research project to understand: How six key metals (aluminum, cobalt, copper, gold, palladium, and tin) are mined, recycled, purchased and used within the electronics industry, How members of the GeSI and EICC can effectively influence social and environmental issues associated with the mining of metals used in electronics products. The research, published in June 2008, helped raise awareness of the key facts and challenges surrounding the supply of metals, the ability to trace the sources of metal used in electronic products and the industrys ability to include conditions. After this research the work group coordinated stakeholder forums to gather feedback and define the groups priorities moving forward.

RosettaNet
RosettaNet is a voluntary initiative of over 500 major information technology and electronics manufacturers that is committed to developing solutions for the standardized exchange of information. As part of its supplier cooperation development, Nokia is using the web-based RosettaNet information exchange solution in its product information exchange with suppliers, including information on material content.

Tie up with Sify Technology

Nokia India on Monday announced its tie up with Sify Technologies to deploy Nokia Tej, the firms supply chain management solution on mobile. Sify will integrate the product with its existing suite of solutions such as Forum and will customize it for individual customers. Nokia Tej launched in April is a pay-per-use service available on Nokia handsets targeted at enterprises and small and medium customers. It takes care of order, distribution and sales management processes. The service comes at Rs 1,250 and an additional Rs 550 per user per month. Sify will charge a professional fee for customization. The service can be integrated to any existing IT applications used at the customer end. Since its commercial launch, over 50 customers across verticals including consumer durables, FMCG and pharma have signed up for the service to e-enable their sales force and distribution channels. Given the cutthroat competition in the telecom segment, service providers are focusing on services such as business applications beyond voice offerings. Our association with Sify will help us leverage their widespread distribution network. Sify also has a strong presence in the verticals relevant to us, said Chand Malu, business head of Nokia Tej.

The mobile phone supply chain is complex with perishable and substitutable products.

Accurate demand forecasting is key to minimizing channel inventory and lost sales.

There are two types of product forecasts; each driving different decisions

Short term forecast is driven by a robust Sales & Operations Planning process.

Quantitative analysis is used to improve the quality of the S&OP process.

Pricing Strategy for NOKIA

Skimming Pricing Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price. Price skimming is sometimes referred to as riding down the demand curve. The objective of a price skimming strategy is to capture the consumer surplus. If this is done successfully, then theoretically no customer will pay less for the product than the maximum they are willing to pay. In practice it is impossible for a firm to capture all of this surplus.

Demand Curve

Price elasticity of demand

1. Inelastic Demand

2. Elastic Demand

Nokias Skimming price strategy

Penetration Pricing
Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term. Now if Nokia would have adopted this policy then the prices of the new high technology and high quality sets would have been low in the starting which would have led long term profit

Plan for supply chain agility at Nokia

The building of cellular networks (e.g. GSM/EDGE or WCDMA networks) is a quite original business. By its nature it is typically a project business, which requires a very structured approach for planning and control, standard procedures and good day-to-day management skills to run the project implementation. Thus, it clearly has many similarities with the traditional construction industry. However, there are some fundamental differences that make the environment much more complex. First, the products are all hi-tech equipment, which are characterized by high product value, extremely short lifecycles and a large amount of embedded software. Furthermore, individual products need to be integrated seamlessly together into a complex system that has to work reliably and securely in all kinds of circumstances. Second, a cellular network forms a multi-site delivery environment, as network elements are located around the country. An average-sized GSM network includes several thousands base station sites, each of which has its specific location, design and function in the network. Our experiences show that the site implementation process of individual network elements encompasses the customers demand formation process. For instance, for base stations, the process begins with planning the cellular network and sites of base stations. The next phase is site acquisition, which is to get site permissions for base stations from authorities and make lease agreements with landlords. The process continues with construction works when a particular site is physically built and technical specifications for equipment frozen. After this point, the base station can be delivered to the site. Next, the base station is installed and final commissioning is done at the site. The site implementation process ends when the base station is integrated to the network. Only at this point the investment eventually starts making money for the operator. Therefore, projects aim primarily is to provide customers fastest time to profit with the investment. This implies that the supply chain should be very agile and equipment deliveries fast and reliable. By nature, the behavior of market demand is cyclic with some elements of seasonal peaks, typically at year-ends. Although the mobile networks are normally built and expanded as well-planned implementation projects, the accuracy of demand planning can be very lousy. In addition to project internal turbulences due to complexity in

business environment, there are also many external (e.g. technical, geographical or political) factors that may radically influence on the demand. The level of aggregation and planning time horizon depends very much on products, i.e. the network elements. For instance, for base stations a planning item typically equals to a delivery item and main focus is on a short-term time horizon. Whereas, for mobile switches planning can be done on system capacity level (e.g. number of air channels) and time horizon is typically more long-term. Demand planning is primarily based on the judgment method in separate customer account teams, as sales-forces give best estimates based on information from their own customers. After the demand is consolidated to a global level, some demand adjustments can be made based on executive opinions. Also some quantitative forecasting techniques, like exponential smoothing, are complementarily used for certain products. Nokias integrated project management Successful network deployment and expansion is about continuously understanding customer milestones. It typically requires fast mobilization of a network of people and companies to perform all the activities, deploying a fast and flexible delivery chain, managing an increasingly complex network of suppliers, monitoring effectively and sharing transparently the status of the operations. Integrating all these in a costeffective and efficient system of activities, processes and tools is the way to meet those milestones. Nokias IPM is all about this. IPM is a strategic execution program to implement a truly customer-focused delivery process in Nokia Networks. Target is to provide customers with more speed, efficient and cost effective deliveries by better orchestrating the end-to-end supply chain. Idea is to seat the customer itself onto the driving seat of the whole delivery machine. Customers network rollout needs are cooperatively collected as a part of continuous planning process and supply capacity is reserved accordingly to meet project targets. Market responsive supply chain with regional delivery hubs is designed to tackle project uncertainties and to provide highstandard service levels to project implementation teams in all circumstances. Sitebased ordering model enables short lead times and allows win-win asset management in the supply chain, as equipment deliveries are triggered based on mutually agreed milestones in the site process. Figure 1 shows the model how this IPM allows fast, flexible and efficient supply chain all the way to final implementation sites. The program started with creating of key business capabilities through a selected customer pilots. Based on the first pilots following four items were formed and agreed as the IPM capabilities to be deployed for selected customers: (1) collaborative demand planning with a customer; (2) site-based ordering by project progress; (3) professional cost management; and (4) performance metrics with integrated platform. IPM implementation consists of deploying or fine-tuning the key business capabilities for IPM in selected customer account teams. Typical implementation per customer takes around half a year during which standard processes and tools with appropriate performance metrics are put in place. Quality in all we do is a common ground for all the initiatives taken under Nokia IPM umbrella. IPM business capability that we merely focus now is the collaborative demand planning with a customer. Here, the core idea is to build an agile and responsive supply chain that is fully driven from the customer project front line. During the network implementation project there is one clear

interface towards the customer for all operational issues with easier communication and faster reaction. The customers project rollout plan is primarily used a basis for Nokia internal demand plans. Correspondingly, Nokia ensures high product availability, short lead times and reliable deliveries directly to installation sites. Monetary savings to the whole customers project are mainly expected to materialize through improved asset efficiency and reduced non-quality costs when building the mobile network.

Integrated IT tools enabling transparency

Integrated IT platform, Nokia IPM Suite, provides a common control room for all stakeholders in customer projects. It is a fully integrated platform to manage the progress of site implementations and support full cooperation among stakeholders. The IPM Suite allows customers to plug and play operations in projects start-up conditions and new project phases, enables integrated management of all the different project activities, provides a common tool for tracking the activities of different stakeholders, helps project progress monitoring by providing a joint virtual control room for all performing organization. The integrated IT tools include different modules like rollout planning, rollout tracking, quality tracking, site database and documentations management. The suite is also linked to the backbone logistics systems providing necessary basis for supply chain agility. Transparency to the information for all relevant project stakeholders (e.g. customer, subcontractors, and partners) is guaranteed through eproject management portal. Full details on each site activity and real time update of the project status are visible online. Also project progress, site quality, and activity tracking are all available online. Documentation exchange and proper management of thousands of site folders is likewise possible in the system. The tools provide needed transparency to the information for all parties. It is especially important upstream for planning purposes when creating agility into operations. However, it is still good to remind that the tools do not improve the quality of demand information but only can automate data handling and sharing.

Nokia Incorporating E-learning for Business

Increased product complexity requires different educational model E-learning integral part of B2B model and process Examples of B2B e-learning in Nokia: Phone distributors/dealers: elearning content for every new Nokia phone (multiple languages globally) Telcos: Self-study packages with access to Nokia experts and virtual classroom Phone repair centers: Streaming video packages for repair center Everyone who purchases a device wants to learn how to use it but customers also have learning needs at each stage of the customer promise E-learning for Nokia employees Comprehensive e-learning portfolio available through Learning Market Place Multiple delivery methods, self study, virtual classroom, blended solutions Multiple content creation tools Some courses are free and others are charged to learners department Learners get a personal learning history

E-learning creation process Product / service content focus Business unit driven Target group (B2E, B2B, B2C) Multiple packaging technologies Centrally driven pedagogical & technical standards, processes, vendors Room for innovation E-learning history Phase I : E-books Phase II : Basic interaction Phase III : Diversified interactivity Phase IV : Mobility & gaming Learning points: Technical issues should not be restrictive Need for flexibility Importance of scalability

guidelines and