Thursday, June 2, 2011

Speech by Stephen Elop, President & CEO, Nokia Corporation Nokia Annual General Meeting, May 3, 2011

Here’s a great article (speech) from Stephen Elop, the new President and CEO of Nokia -- Download.


And now, today, Nokia is again facing a moment of disruption. Let’s talk now about that disruption.
In 2007, Apple introduced the iPhone, which became the experiential bar against which every device was and continues to be measured. When Apple introduced the iPhone, they also created what we call an ecosystem: They delivered not only a device, but various services like iTunes and an environment where software developers could quickly build applications for the iPhone. The iPhone and associated ecosystem changed forever what people expect of their mobile devices.

Disruption - that’s the keyword from Stephen and he confessed that Apple have created a disruption in the market which has been predominantly dominated by Nokia.

What I’ve learned about moments of disruption is that they are often followed by periods of great innovation. Throughout business history, there is a pattern of new platforms emerging, often disruptively, followed by unprecedented innovation.
The pattern we’ve seen over time is that when a new communications medium emerges, the first exploration of that platform usually takes the approach from an old platform and simply porting it to a new one. For example: When movies first emerged, directors just filmed live theater. When TV first came out, it mimicked radio programs. When cable TV first was launched, it simply repackaged network programs. When mobility emerged as a media and entertainment platform, it simply ported Internet content.
However, once these new platforms hit an inflection point from the advancement in technology or enough consumer participation, the content and applications on that platform take on a new form that is unique and that can only be done on that new platform.
For example, the innovation of portable cameras helped movie directors to film high speed trains and landscapes, which created a new experience for the audience. Early TV programs started using nonverbal communications and gestures to tell stories beyond the words. New cable-only channels, like ESPN and CNN, began to appear. Broadband expanded and browsers evolved and the Internet exploded

A Tsunami of Innovative ideas after Disruption - Similar patterns emerged whenever disruption happens. People getting excited whenever there is technology or new ideas breakthrough. New media of communications allows change in user behavior patterns and experience.

Mobility is following exactly this same pattern. Mobility first emerged by using internet content on mobile phones. But we are now at that point of innovation – in other words, the story of mobility is at its very beginning, and Nokia is in a strong position to take advantage of so much of what is still ahead.
We are just starting to see the potential for mobility as a platform. Mobility has the potential to become the most dynamic medium ever. It is more intelligent, more pervasive and more accessible.
Nokia can lead through this disruption to unleash this unprecedented innovation. I have seen incredible innovation within Nokia. We can bring this innovation to market more rapidly by drawing on the strength of our people, respecting the values of our past, and taking decisive action to change the way our company works

Positive Note - Nokia faced big challenges ahead. But Stephen believed all of this can be changed. Use disruption as a catalyst to propel Nokia into greater heights.



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