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Today morning news, Nokia CEO Stephen Elop recently accepted an interview with Roger Cheng, executive editor of CNET, a US technology information website. Elop talked about the transformation of Nokia's corporate culture, the reasons for the exclusive partnership with AT&T, and the reasons why he could not sleep at night.
The following is the main content of the article:
Under the leadership of CEO Stephen Elop, Nokia underwent a major cultural and identity shift.
Elop joined Nokia in September 2010 as a CEO and soon began taking on new strategies after taking office. Five months later, Elop decided to abandon his own mobile operating system and switch to Windows Phone. This operating system was developed by Elop's former owner, Microsoft.
Perhaps the biggest impact on Nokia’s success is the company’s internal changes. To this end, CNET interviewed Elop to discuss Nokia's transformation, Lumia 920 flagship smartphone and other topics. The following is a summary of the access content:
Q: Under your leadership, what has changed in Nokia's corporate culture?
Stephen Elop: I walk around the company and talk to people, and things are changing here. Everyone knows that we must work harder and more actively every day. We need to amend everyone’s existing work. We need to keep doing it. They are developing the next set of products, future products. They are excited because you can't see any results right now. The beginning of all this is to motivate employees to develop superior products.
When Lumia 920 R&D entered the final testing phase and was finally delivered to AT&T, I kept a close eye on each step and asked the developers for specific details. When the goal is reached, people are exhausted, but they still feel great.
Nokia is changing to the challenger's mentality. This change is very obvious. We must take active action. We must treat ourselves as users, make empathy, and listen to the needs of users. Before we failed to respond quickly to user needs, how should we change this now? How to implement those measures? How to break the current competitive landscape?
As I saw in Nokia, the change is happening.
I first asked a question: What do you want me to change? They say that is the kind of feeling we are creating for the society. Mobile phones help people communicate and connect billions of people with the Internet to help people move forward. From a cultural point of view, mobile phones are still very important. In essence, we help people improve. We are not just selling mobile phones, we have higher pursuits.
Q: Where did Nokia surprise you?
Elop: I said before, what I see now is a jade. Nokia has many great projects and new ideas, but it has not been able to effectively bring these to market. This is what you saw on Lumia 920. We are polishing this piece of jade. Our patent portfolio is an expression of our innovation, as it was many years ago.
After many years of investment, Nokia now faces some major challenges. If you are the largest company, you may think you understand the market better. However, this idea makes it difficult for you to break the competitive landscape. One of the things that I must change for Nokia is that we are chasing new market competitors.
Q: Did you adapt to life in Finland? (Elop is Canadian)
Elop: I'm here. Finnish and Canadian cultures are very similar. Both countries have grown up under the shadow of a big country. Finland is the Soviet Union and Canada is the United States. But here there is a passion for enthusiasm for the production of great products and the pursuit of good quality. This experience is pleasing.
This is a very interesting point, but it is only part of Nokia World. Nokia is one of the world’s few truly global companies. In the past two weeks, I went to the United States and Beijing. Nokia has full-scale operations in both locations. Nokia not only has to adapt to Finland, but also to adapt to different countries and regions in the world.
Microsoft is an American company that has overseas operations. Nokia China Branch is only responsible for running local business in China and maintains business contacts with local companies. This also applies to Nokia India, the United States and other regional offices.
Q: I know that I once asked you this question, but I still want to ask why I chose Windows Phone? Why do you want to bet on an operating system that is rarely heard or used?
Elop: Using one word to answer is: differentiation. This is a decision we must make, which will allow us to stand out. For example, Lumia 920, this product is different from Nokia's innovation, in addition, Lumia 920 is also a Windows Phone device, which is another basic point of differentiation.
The choice of Windows Phone is also a strategic decision, taking into account the establishment of partnerships with operators. We do not want to explain to operators why our Android phones are better. About two years ago, we were worried that vertical integration and "the first person to eat crabs" would take the lead in the market, and this happened to the Samsung and Android camps.
Due to the late entry into the ecosystem, it is difficult for us to differentiate ourselves. Therefore, we adopt different operating systems and we still need to fight for market share, but we still have the opportunity because people see us as another option.
Q: How does Lumia 920 perform now?
Elop: We are very satisfied. Although there were some setbacks due to limited availability, the sales department was very excited about the performance of the equipment. Our concern is to expand our distribution network. You will see us launch the device in more countries. At the press conference in September this year, we had boldly stated that the Lumia 920 is the most innovative mobile phone. We still say this now.
Today, every Nokia employee has this feeling. This is a sense of pride and we are developing the best products. This is very encouraging.
Q: Why did you choose AT&T as the sole supplier of Lumia 920? Don't you want to get more users?
Elop: One of the things we learned from the first Lumia cell phone release was that for us, intensification may bring better results. We introduce a product that provides exclusive supply to a specific operator. In a market with high mobile phone subsidies and marketing expenses, we encourage operators to build it into a star product, promote it, and subsidize the price of the product to a competitive price point. In addition, intensification can also help you access to in-store resources.
If you do your best, you can get more parallel investment and cooperation. As we said in the evaluation report, cooperation with them from the very beginning will bring us the best results.
Perhaps working with another operator can achieve similar results, but at this particular moment, Lumia 920 is working well with AT&T. At the same time, we are very pleased to restart our partnership with Verizon. We and Verizon are also planning a lot of exciting things.
Q: Your management team has been stressing the map. What kind of role does the map play in Nokia?
Elop: If Google solves the "what" problem and Facebook answers the question of "who", then in the mobile era, the problem to be solved is "where". Give you a chance to know more about your location and the things around you.
I want to know where I am, who is around me, how can I get there? Mobile makes these important. In the future, you will see more applications benefit from it. Navigation is the simplest example. It is important that maps have scale. Every time a user searches for a map and obtains traffic information, it will bring greater benefits.
Q: Do you feel that you missed the opportunity to replace the Apple Maps service with Nokia's Nokia Maps service? Nokia's map service is not rated high in the Apple App Store and is not very popular.
Elop: We are just starting to force on the iOS platform. Our program is based on HTML5 applications and has limitations. And Apple thinks our application can replace its map service.
This "when" war has just begun and there are many opportunities for success. In fact, in this area, only a few giant companies with core assets compete, Google is one of them, and we also have.
Q: In the end, what's the reason you don't sleep late at night?
Elop: It is to meet consumer needs, improve without a detail, ensure the enthusiasm of our employees, and enable them to understand services and consumers. Go deep into the store to ensure that the product is properly promoted. If we can communicate our information to consumers and show them the quality of our products, then we will succeed. We need to straddle our customers.