Nokia’s culture of Organizational Innovation

“Innovation is the process whereby new and improved products, processes, materials, and services are developed and transferred to a plant and/or market where they are appropriate.” Albert Rubenstein (1989)

Nokia’s history is truly remarkable; it is in the top 3 mobile makers in the world and is from Finland; a country with a population below 6 million people. The strategy of involving 40% of its employees in R&D and not centralizing them in one single research and development unit has proven to be very efficient. Nokia has been able to transform itself from a wood pulp mill to a cluster of ready to implement innovative solutions and products.

A notable example of innovation at Nokia are the Virtual Private Network (VPN) capabilities for remote offices and small enterprises, of which Dan MacDonald, vice president of marketing, Nokia said: "Faced with the need to reduce costs and improve business efficiency without risking security, CIO's and IT Managers are extending reliable network access to users in a variety of locations. The Nokia IP40 delivers to the remote office and small office, the same level of security, high availability and management required of a large enterprise or data center." This is a process innovation that will lead to new opportunities and just as Dan MacDonald says; it will allow small and medium firms to compete with larger firms because they will be able to operate lightly in multiple locations at lower costs while protecting confidential business matters. This innovation falls in trial use commitment on the S-curve of technological progress because as much as there is an understanding of what the purpose of this new process is; there are still limitations in terms of integrating such as system as a company standard. I believe companies bought into it to test and proof if it was a fit.

Another unique innovation from Nokia is the enablement of millions of mobile consumers worldwide to enjoy live and on-demand access to digital multimedia through the integrated alliance with RealNetworks. Rob Glaser, CEO and Chairman, RealNetworks, Inc. announced: "Our two companies will accelerate deployment of mobile media services by offering field-proven, standards-based technology as well as total business solutions to mobile operators and content owners.” This would be a product innovation due to the discarding of an old platform only focused on audio for a new platform that would allow usage of rich media; audio and video for entertainment and news. This innovation falls in the evolution of successive products on the S-curve of technological progress; it is a great improvement to a new system made available immediately to a very large consumption group. In this case, Nokia and RealNetworks have made the determination that this will have to be adopted and therefore yield high profits in the short run; they are leading and enforcing change.

A final example of Nokia’s culture of innovation would be the exciting Club Nokia; an online community and loyalty program for Nokia phone owners who with Lucas Film made Star Wars related content available for the first time on phones. This is a marketing and media innovation product in terms of the partnership and access to exclusive content. This innovation falls in the growth section on the S-curve of technological progress because it is an innovative product that is integrated to an institutionalized platform for Nokia device users.

References:

Rubenstein, Albert. 1989. Managing technology in the decentralized firm. New York: Wiley.

M2 Presswire-7 October 2003. Nokia: Nokia Launches Robust New Remote Office And Small Office Security Solution Extending Its Leading Mobile Connectivity Offering; Nokia Ip40 Ip Security Appliance Integrated With Check Point Software Provides Full End-To- End Firewall And Vpn Solution For Enterprises (C) 1994-2003 M2 Communications Ltd

M2 Presswire-12 March 2002. Nokia: Nokia And RealNetworks Announce Comprehensive Alliance To Bring Audio And Video To Mobile Users Worldwide. (C) 1994-2002 M2 Communications Ltd. Retrieved from: http://search.proquest.com.ezp.waldenulibrary.org/docview/443934780/13CBA8A28CE1AA9AA25/14?accountid=14872

M2 Presswire-12 March 2002. Nokia: The Force Is Strong With Nokia As Star Wars: Episode II Attack Of The Clones Arrives. (C) 1994-2002 M2 Communications Ltd. Retrieved from: http://search.proquest.com.ezp.waldenulibrary.org/docview/443939133/13CBA8A28CE1AA9AA25/3?accountid=14872

White, M., & Bruton, G. (2007). The management of technology and innovation: A strategic approach. Mason, OH: Thompson South-Western.