LONDON Nokia's latest round of reorganization comes with a certain feeling of déjà vu. In effect, the Finnish mobiles giant is returning to the group structure it had before 2004, when it operated as Nokia Mobile Phones and Nokia Networks.
The company said Wednesday (June 20) said it plans to move to a structure comprising just two reporting segments; Devices & Services, and Nokia Siemens Networks.
The move will clearly allow the company to be more flexible with its device offerings and will give it the ability to reap greater benefits from its huge volumes. It obviously hopes a tighter structure will yield more efficient product development as well as improved time to market.
The reorganization also reflects the fact that the boundaries between voice, multimedia and enterprise are blurring.
Particularly notable is the prominence being given to the creation of a software and services division, further evidence that the company sees its already growing interest in the services business as a major opportunity. This, of course, is not likely to please one group of major customers, the mobile network operators, some of whom are already uncomfortable with, and may even resent, the Finnish group's dominance of the handsets business. However, it seems an obvious strategy for Nokia, and is following very much in the footsteps of arch rival Ericsson.
The company is not saying anything about whether there will be any job losses or maybe even job creation but this will no doubt be clarified ahead of the January 2008 starting date for the restructuring.
It seems clear there will be a subtle shift of power, an inevitable and often useful aspect of such a move, and key management people will be given more responsibility, giving an insight of who will be leading the company in the future.