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Nokia happier to live on the edge when buying components,
The Finnish phone maker, trying to recover its former mobile-phone influence, is willing to take on more risk for the key business of buying electronics to become more competitive.
Kari Kulojarvi, Nokia's senior vice president for smart devices supply chain
(Credit: Stephen Shankland/CNET)
PARIS--Overhauling Nokia hasn't just been a matter of slapping a new operating system on older mobile phone hardware.
In reality, the company had to rebuild its entire supply chain -- the vast network of business partners that build everything that makes up a phone. And a big part of the change: accepting more risk as the company tries to move back to the cutting edge of mobile phone technology.
"For us as a company, our risk appetite has increased a lot in the way we work," said Kari Kulojarvi, Nokia's senior vice president for smart devices supply chain, in a speech here at IHS's Technology, Media and Telecommunications (TMT) Summit.
One risk is relying more on a single supplier of a particular component, he said. Another is designing products with the latest technology rather than using lower-cost components that are more reliably available.
"Time to market is much more important than it used to be," Kulojarvi said. "That's a major decision point when selecting the companies we work with."
The Finnish company, now more than a year into the overhaul of its mobile-phone business, has changed its approach to buying ingredients such as screens, processors, camera sensors, and memory that are essential in a modern smartphone.
One example is the shift with its Windows Phone products to Qualcomm processors.
"We had traditionally very strong key strategic supplier base with our legacy platform, Symbian. The Windows Phone introduction changed a lot of that. We changed our chipset. Today we work very closely with Qualcomm, and it's our sole supplier for the Windows phones we're producing," Kulojarvi said. "The decision here was time to market and find companies that can help us with their R&D.
In the past, the company basically had one big supply chain. But its new two-pronged approach to mobile phones -- higher-end models running Microsoft's Windows Phone and lower-end models for "the other billion" phone customers -- has meant the company now has two separate networks.
For the premium products, the priority is on fast delivery, customization, responsiveness to market changes, and innovation that customers will desire. For the other line, the priority is on high volume, low cost, and reliable delivery.
"The challenge for us is to tackle both -- how to be responsive, how to optimize costs," Kulojarvi said. It's all necessary, though. "In all my years at Nokia, the competition hasn't been as fierce as it has been today."
Some seemingly risky choices actually can be a safe bet, he added. For example, dual sourcing, in which a company buys components from two suppliers to guard against problems with one or the other, actually isn't as risk-averse a practice as it might seem.
That's because a supplier, when times get tough, might favor deliveries to a company for which it's a sole supplier, he said. The company with the dual-source arrangements gets the short end of the stick.
"It's sometimes counterintuitive to think the single-source policy is the best risk-management policy," he said.
TORONTO • If the mantra “kill them with kindness” can be successfully employed as a business model, Telus Corp. has become the standard bearer.
The Vancouver-based telecommunications giant is seeing its fortunes boom in its mobile business with key performance metrics again jumping ahead of competitors in the latest quarter. A relatively new television service called Optik also kept up its steady assault on market share.
The novel approach: Convince customers to like you.
“We are experiencing meaningful progress on our No. 1 corporate priority — which is to be the most recommended company in the hearts and minds of our customers,” Darren Entwistle, chief executive, said at the company’s shareholder meeting in Edmonton.
The company is adding contract mobile subscribers at a faster clip than rivals Rogers Communications Inc. and BCE’s Bell Mobility, while its “churn,” or rate at which customers leave the carrier, is the lowest in the industry. Roughly 63,000 new customers signed on with Telus in the quarter, compared with 47,000 at market leader Rogers.
By streamlining rate plans, lowering costs on things like roaming and generally fostering a better relationship with subscribers, Telus is winning hearts and minds — and growth.
Further evidence can be found in Telus’ “ARPU” or the average monthly revenue it generates per wireless subscriber. Telus has opened a gulf between it and competitors in recent quarters, up nearly another two percentage points to $58.87.
In a later interview, Mr. Entwistle expanded: “It’s putting our investments and actions into a model that says, ‘Let’s give customers what they want and let’s stop doing what we know irritates our clients.
“It’s amazing the success you can have when you listen … and at the same time have the discipline and maturity to stop what they have found troublesome about our industry,” he said.
The new strategy was adopted a few years ago just as new wireless players Wind Mobile, Mobilicity and others launched. The returns have been obvious for investors. Mr. Entwistle, who has taken his compensation entirely in stock since, noted that Telus’ share price has appreciated by more than 25% since the beginning of last year, up sharply compared to all in the sector save for BCE, which has climbed 13.5%.
BCE and Telus have jointly benefited from a wireless network upgrade made in late 2009 wiping out advantages Rogers held over them. New entrant firms have also been slower to deploy out West, making for a less competitive environment for the Vancouver-based firm, analysts say.
On wireline, 44,000 additional customers were signed up to Optik as heavy promotions featuring free Xboxes convinced many to switch providers. Telus has gained 550,000 TV subscribers — or roughly a fifth of the market — in Alberta and British Columbia since launching Optik two years ago, directly eating into the base of chief Western Canadian cable competitor Shaw Communications Inc.
The company’s months-long battle with New York hedge fund Mason Capital was settled before the meeting when Telus dropped plans to merge voting and non-voting shares into a common equity pool. Mason, which has shorted its position in non-voting stock while buying up enough votes to strike down the motion, is poised to benefit as the latter shares float back to a historical discount.
An angry Mr. Entwistle said regulators must address the loophole in securities governance.
He was nevertheless upbeat about Telus’ operational prospects. Firing on all cylinders, a dividend growth commitment remains intact for this year and next.
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VENICE, Italy (MainStreet) -- Let's just say that BlackBerrys no longer hold the America's Cup for international business cellphones.
I am not sure what is the most telling clue to this: the troubles I have trying to take in cutting-edge racing yachts here at the America's Cup Village with a decidedly not-cutting-edge BlackBerry; throngs of international tourists doing the same with their really cool Apple(AAPL) iPhones, Samsung Notes or even iPads; or the row after row of cellphone stores here slinging anything but Research in Motion(RIMM) products.
Business features on the BlackBerry Bold remain excellent, but RIM devices are clearly losing ground to competitors.
But even I, a believer that tales of RIM's demise are greatly overstated, am beginning to feel BlackBerry Bold is like Venice itself: a lovely piece of ancient history.
RIM lovers need to know this: I have tried -- I mean really tried -- to find an upside for the troubled Canadian mobile device maker. My colleague schlepped over to Orlando, Fla., a couple of weeks back so we could cover BlackBerry World 2012 firsthand. Then, to be fair, we drove AT&T(T) and RIM crazy setting up a legit global roaming demo for a Bold I would bring here. Then to be extra fair, for a week, everybody in my little world had to deal with me doing every nutty thing possible with this device covering this stop in the America's Cup World Series yacht races, as well as filing tech stories and doing general company work.
The point was to get a real feel for one of RIM's supposed bright spots, its international business worthiness.
Now, this Bold most definitely works. Voice and data service provided by roaming agreements with Vodafone, Wind Mobile and TIM via AT&T was very impressive. But even with this productivity, there was just no shaking the cold certainty I was holding a device that was slowly sinking in the mobile technology lagoon.
Here's why:
Business features remain excellent, but even basic apps are clumsy.
No question, BlackBerrys still are the champ of basic business text, files and emails. The BlackBerry 6 Operating System offers the fastest, most versatile work environment for sending and receiving business SMS, editing documents and managing messages. But step beyond that iron business triangle -- and I mean just a little bit -- and the Bold's clunk factor becomes a business cellphone buzz kill. Simple things such as Facebook(FB), now a critical business marketing tool, were terribly awkward. The camera, which is becoming an indispensable part of the office collaboration process, is simply awful. And any sort of browser-based Web search attempt resulted in me breaking out my PC.
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Nokia happier to live on the edge when buying components,
The Finnish phone maker, trying to recover its former mobile-phone influence, is willing to take on more risk for the key business of buying electronics to become more competitive.
Kari Kulojarvi, Nokia's senior vice president for smart devices supply chain
(Credit: Stephen Shankland/CNET)
PARIS--Overhauling Nokia hasn't just been a matter of slapping a new operating system on older mobile phone hardware.
In reality, the company had to rebuild its entire supply chain -- the vast network of business partners that build everything that makes up a phone. And a big part of the change: accepting more risk as the company tries to move back to the cutting edge of mobile phone technology.
"For us as a company, our risk appetite has increased a lot in the way we work," said Kari Kulojarvi, Nokia's senior vice president for smart devices supply chain, in a speech here at IHS's Technology, Media and Telecommunications (TMT) Summit.
One risk is relying more on a single supplier of a particular component, he said. Another is designing products with the latest technology rather than using lower-cost components that are more reliably available.
"Time to market is much more important than it used to be," Kulojarvi said. "That's a major decision point when selecting the companies we work with."
The Finnish company, now more than a year into the overhaul of its mobile-phone business, has changed its approach to buying ingredients such as screens, processors, camera sensors, and memory that are essential in a modern smartphone.
One example is the shift with its Windows Phone products to Qualcomm processors.
"We had traditionally very strong key strategic supplier base with our legacy platform, Symbian. The Windows Phone introduction changed a lot of that. We changed our chipset. Today we work very closely with Qualcomm, and it's our sole supplier for the Windows phones we're producing," Kulojarvi said. "The decision here was time to market and find companies that can help us with their R&D.
In the past, the company basically had one big supply chain. But its new two-pronged approach to mobile phones -- higher-end models running Microsoft's Windows Phone and lower-end models for "the other billion" phone customers -- has meant the company now has two separate networks.
For the premium products, the priority is on fast delivery, customization, responsiveness to market changes, and innovation that customers will desire. For the other line, the priority is on high volume, low cost, and reliable delivery.
"The challenge for us is to tackle both -- how to be responsive, how to optimize costs," Kulojarvi said. It's all necessary, though. "In all my years at Nokia, the competition hasn't been as fierce as it has been today."
Some seemingly risky choices actually can be a safe bet, he added. For example, dual sourcing, in which a company buys components from two suppliers to guard against problems with one or the other, actually isn't as risk-averse a practice as it might seem.
That's because a supplier, when times get tough, might favor deliveries to a company for which it's a sole supplier, he said. The company with the dual-source arrangements gets the short end of the stick.
"It's sometimes counterintuitive to think the single-source policy is the best risk-management policy," he said.
Raj Rajput [ MBA ]
Mobile Reviews Expert
On Line Assistence :
Gtalk : aerosoft.Raj@gmail.com
Y! Messenger : Raj.AeroSoft@yahoo.com
Rediff Bol : Raj.AeroSoft@rediffmail.com
MSN : Raj.AeroSoft@hotmail.com
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The Vancouver-based telecommunications giant is seeing its fortunes boom in its mobile business with key performance metrics again jumping ahead of competitors in the latest quarter. A relatively new television service called Optik also kept up its steady assault on market share.
The novel approach: Convince customers to like you.
“We are experiencing meaningful progress on our No. 1 corporate priority — which is to be the most recommended company in the hearts and minds of our customers,” Darren Entwistle, chief executive, said at the company’s shareholder meeting in Edmonton.
The company is adding contract mobile subscribers at a faster clip than rivals Rogers Communications Inc. and BCE’s Bell Mobility, while its “churn,” or rate at which customers leave the carrier, is the lowest in the industry. Roughly 63,000 new customers signed on with Telus in the quarter, compared with 47,000 at market leader Rogers.
By streamlining rate plans, lowering costs on things like roaming and generally fostering a better relationship with subscribers, Telus is winning hearts and minds — and growth.
Further evidence can be found in Telus’ “ARPU” or the average monthly revenue it generates per wireless subscriber. Telus has opened a gulf between it and competitors in recent quarters, up nearly another two percentage points to $58.87.
In a later interview, Mr. Entwistle expanded: “It’s putting our investments and actions into a model that says, ‘Let’s give customers what they want and let’s stop doing what we know irritates our clients.
“It’s amazing the success you can have when you listen … and at the same time have the discipline and maturity to stop what they have found troublesome about our industry,” he said.
The new strategy was adopted a few years ago just as new wireless players Wind Mobile, Mobilicity and others launched. The returns have been obvious for investors. Mr. Entwistle, who has taken his compensation entirely in stock since, noted that Telus’ share price has appreciated by more than 25% since the beginning of last year, up sharply compared to all in the sector save for BCE, which has climbed 13.5%.
BCE and Telus have jointly benefited from a wireless network upgrade made in late 2009 wiping out advantages Rogers held over them. New entrant firms have also been slower to deploy out West, making for a less competitive environment for the Vancouver-based firm, analysts say.
On wireline, 44,000 additional customers were signed up to Optik as heavy promotions featuring free Xboxes convinced many to switch providers. Telus has gained 550,000 TV subscribers — or roughly a fifth of the market — in Alberta and British Columbia since launching Optik two years ago, directly eating into the base of chief Western Canadian cable competitor Shaw Communications Inc.
The company’s months-long battle with New York hedge fund Mason Capital was settled before the meeting when Telus dropped plans to merge voting and non-voting shares into a common equity pool. Mason, which has shorted its position in non-voting stock while buying up enough votes to strike down the motion, is poised to benefit as the latter shares float back to a historical discount.
An angry Mr. Entwistle said regulators must address the loophole in securities governance.
He was nevertheless upbeat about Telus’ operational prospects. Firing on all cylinders, a dividend growth commitment remains intact for this year and next.
Raj Rajput [ MBA ]
Mobile Reviews Expert
On Line Assistence :
Gtalk : aerosoft.Raj@gmail.com
Y! Messenger : Raj.AeroSoft@yahoo.com
Rediff Bol : Raj.AeroSoft@rediffmail.com
MSN : Raj.AeroSoft@hotmail.com
Mexico América Móvil ,
Spain Telefónica (Movistar, O2 & Vivo)
France Orange,
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Russia Beeline,
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Malaysia Axiata Group Berhad,
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BlackBerry Bold Shows RIM's Shrinking Niche
VENICE, Italy (MainStreet) -- Let's just say that BlackBerrys no longer hold the America's Cup for international business cellphones.
I am not sure what is the most telling clue to this: the troubles I have trying to take in cutting-edge racing yachts here at the America's Cup Village with a decidedly not-cutting-edge BlackBerry; throngs of international tourists doing the same with their really cool Apple(AAPL) iPhones, Samsung Notes or even iPads; or the row after row of cellphone stores here slinging anything but Research in Motion(RIMM) products.
But even I, a believer that tales of RIM's demise are greatly overstated, am beginning to feel BlackBerry Bold is like Venice itself: a lovely piece of ancient history.
RIM lovers need to know this: I have tried -- I mean really tried -- to find an upside for the troubled Canadian mobile device maker. My colleague schlepped over to Orlando, Fla., a couple of weeks back so we could cover BlackBerry World 2012 firsthand. Then, to be fair, we drove AT&T(T) and RIM crazy setting up a legit global roaming demo for a Bold I would bring here. Then to be extra fair, for a week, everybody in my little world had to deal with me doing every nutty thing possible with this device covering this stop in the America's Cup World Series yacht races, as well as filing tech stories and doing general company work.
The point was to get a real feel for one of RIM's supposed bright spots, its international business worthiness.
Now, this Bold most definitely works. Voice and data service provided by roaming agreements with Vodafone, Wind Mobile and TIM via AT&T was very impressive. But even with this productivity, there was just no shaking the cold certainty I was holding a device that was slowly sinking in the mobile technology lagoon.
Here's why:
Business features remain excellent, but even basic apps are clumsy.
No question, BlackBerrys still are the champ of basic business text, files and emails. The BlackBerry 6 Operating System offers the fastest, most versatile work environment for sending and receiving business SMS, editing documents and managing messages. But step beyond that iron business triangle -- and I mean just a little bit -- and the Bold's clunk factor becomes a business cellphone buzz kill. Simple things such as Facebook(FB), now a critical business marketing tool, were terribly awkward. The camera, which is becoming an indispensable part of the office collaboration process, is simply awful. And any sort of browser-based Web search attempt resulted in me breaking out my PC.
Raj Rajput [ MBA ]
Mobile Reviews Expert
On Line Assistence :
Gtalk : aerosoft.Raj@gmail.com
Y! Messenger : Raj.AeroSoft@yahoo.com
Rediff Bol : Raj.AeroSoft@rediffmail.com
MSN : Raj.AeroSoft@hotmail.com
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Mobile Reviews Expert
On Line Assistence :
Gtalk : aerosoft.Raj@gmail.com
Y! Messenger : Raj.AeroSoft@yahoo.com
Rediff Bol : Raj.AeroSoft@rediffmail.com
MSN : Raj.AeroSoft@hotmail.com
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