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Global Supply Chain Management of NOKIA

Jayshree Verma [29] Baljit Singh [ Nitin Chiddar [

]

Submitted as
Assignment for Supply Chain Management [Module 3]

]

3/24/2012

Table of Contents
Table of Contents....................................................................................................... 2 Introduction................................................................................................................ 3 Nokia Supply Chain Management...............................................................................3 Nokia distribution structure – GSM.............................................................................4 Distributor............................................................................................................... 5 Retailers/ Dealers.................................................................................................... 5 Nokia distribution structure – CDMA...........................................................................6 Sourcing Sustainability:..............................................................................................6 Supplier diversity.....................................................................................................7 Nokia Suppliers Requirements....................................................................................7 Suppliers Performance................................................................................................7 Training and Building Capability.................................................................................8 Internal training.......................................................................................................8 Supplier cooperation & development programs......................................................9 A Supplier's view.....................................................................................................9 Sourcing materials......................................................................................................9 EU REACH Regulation............................................................................................10 How far does Nokia’s responsibility go down the supply chain?............................10 Industry Collaboration..............................................................................................10 Shared Audits........................................................................................................11 Learning & Capability Building..............................................................................11 Extractives.............................................................................................................11 RosettaNet............................................................................................................12 Tie up with Sify Technology......................................................................................12 Pricing Strategy for NOKIA........................................................................................16

Great Britain. India. The company had a wide distribution network which helped it to effectively reach the end customers. consumer electronics. Franchisees. Mexico. Dealers. Besides this they provide monetary . was placed sixth in the list of top 25 companies in global supply chain management. China. contract manufacturers. which in turn helped the company. Nokia started producing phones in 1982. Nokia's supply chain management was the key factor for the success of the company. Its focus on the telecommunications business had turned Nokia into a global leader by the year 1998. In 1992.Introduction Finland-based Nokia Corporation (Nokia) is the world's leading manufacturer of mobile devices. Finland-based Nokia Corporation (Nokia). rubber. The company adopted a hybrid manufacturing system which was a combination of in-house manufacturing and outsourcing." AMR Research selected the manufacturing and retail companies from Fortune's Global 500 ranking. The company maintained a long-term relationship with its suppliers and helped them in improving their processes.Brazil. sales. Then it transfers to Nokia’s mother depot which is located in Gurgaon. In May 2009. According to industry experts. They also provide assistance in selection of channel partners like redistributors. According to AMR Research. the world's leading manufacturer of mobile devices. Hungary. Romania and South Korea. It entered into a long-term relationship with its suppliers and also supported them in improving their processes. It also adopted the Smart manufacturing technique so as to enhance the competitiveness of its manufacturing facilities. etc. Nokia took a strategic decision to focus only on the telecommunications business and to close down its other businesses. The company had an integrated supply chain which inter-linked suppliers. Analysts attributed Nokia's success to its supply chain management practices. and the consumers. manufacturing plants. logistics service providers. Nokia was able to keep its costs low because of its efficient manufacturing systems and processes. And this decision paid off. Finland. and cable. announced by AMR Research. The case examines how the company is making its supply chain efficient to counter the impact of reduced demand of mobile handsets. "Nokia continues to stay ahead of the curve on everything from regional sourcing and deep supplier collaboration to an organizational design based on true value chain principles. Founded in 1865 as a paper mill. The project highlights the unique supply chain management practices of Nokia. Nokia Supply Chain Management Nokia manufactures its mobile in 15 manufacturing plants located across 9 countries globally. The company had interests in several businesses including telecommunications.

India has some 110. The leadership philosophy relies on four equally important elements: head.000 outlets that sell mobile phones. Sourcing excellence is a key ingredient for Nokia’s business model transformation.e.“Making the impossible possible through collaboration”. risk management. Nokia started their SCM transformation in 1995 with the strategy of replacing inventory with information and creating a pull-driven supply chain with end-to end integration linking suppliers.000 stores have only one brand available – Nokia. flexibility and trust . based upon factual information. and i. New product introductions and variations are also intense – 1 phone can represent 170 handset variations and 250 sales package variants. and guts. Its mobiles are available at stores measuring barely 15sq. factories. In India. . Benefits include time-to-market. Recently. leadership. hands. help in promotion of products on mass scale as well as in store and training of the sales force of partners at every level. and 10 factories worldwide. Nokia has decided to supplement that with its own distribution efforts. the operations philosophy has been: think globally. To support this complexity. Based on this approach. heart. Nokia manages one of the largest distribution networks among mobile companies globally. act locally. telecom operators. Nokia believes two critical factors were instrumental to their transformation success: leadership and the communication of the vision. Their approach was to create the most efficient supplier network to offer the best solutions to meet customer expectations. and logistics service provider tothe consumer. agility and financial model flexibility. Out of these. Nokia has been market leader in mobile phones market not just in terms of sales by volume and value. These leadership attributes are exemplified through energy and passion. It ranges from small village on island of some remote south-east Asia like Tahiti to advanced market like US and western European countries. channel partners. 60 strategic suppliers. in remote villages to super-sized Nokia Concept stores on high streets. 50. Nokia started distributing its phones through a partnership with HCLI (formerly Hindustan Computers Ltd. including supplier and customer inventories. the supplier network is now considered the central point for reaching their corporate objectives: Great products. active communication and finally. Nokia's lead is clear. trust as the base for business.). flawless execution. but also reduced inventories throughout the pipeline. It makes it hard to get much detail about the exact details of the distribution structure of Nokia mobile phones. which had already built an extensive network for its own products. ft. Today. but also in terms of setting best practices and examples in supplier selection. balancing localized decision-making with global planning. Nokia had to be extremely focused in their transformation efforts. and Customer satisfaction. With an extremely complex supply chain that handles 100 billion components. contract manufacturers. focus and drive. Nokia believed that there was a tremendous growth opportunity and it was best exploited when the resources utilization of both companies was optimized. Nokia distribution structure – GSM Nokia rarely does divulge any kind of internal data in public domain. iHubs. When it comes to distribution. banks. Operational excellence. Fundamentals for success included creating a value-based partnership with suppliers. The results of their transformation have been impressive with increased sales and reduced component inventories not only within Nokia. according to companies own conservative estimates. sales.assistance in Store development for Nokia Priority dealers.

Nokia has started an initiative to allow customers to drop their used old mobiles in Nokia drop boxes for safe disposal. They act as resellers for the GSM phones. of working days) * Stock Norm for that level . Resupplies are always just a phone call away and the delivery is made within a few hours. This has necessitated a reverse flow of handsets also. Besides. Multi brand and individual dealers in any specified region are all served by designated RDSS. Stock norms define that for how many days’ worth of stock does any level in the supply chain should have. Value-Added Resellers (VARs) and the B2B sector in France. different schemes and offers by Nokia’s representatives. The agreement will focus mainly on the IT reseller market. Retailers/ Dealers Nokia Priority dealers. Given below are the stock norms: The expected target to be fulfilled by the particular level is determined by the following formula: Expected target = (30 / No. Nokia assists most dealers in the region in the store set-up and design. The price points sometimes dictate the type of outlet. Dealers are explained the features of every new launch mobiles. In September this year Brightstar Europe today announced a distribution agreement with Nokia. Distributor HCLI Info has been handling distribution of Nokia phones in India for 10 years. These distributors perform multiple roles within the supply chain.In recent years. These norms are defined by Nokia only. Nokia follows similar pattern in different global markets of having tie-ups with companies with established network for the distribution of their mobile phones.

Carrefour…) also to traders who are intermediate who are responsible for the marketing of Nokia products with the small distributors. packaging. Structure of Nokia CDMA mobile distribution is as following: Sourcing Sustainability: Nokia sources components. Indirect sourcing . and marketing which purchase for our own use.taking care of the material supply for Nokia products. etc. Maroc Telecom) and to distributors (Cora. parts. Our sourcing activities can be divided into two categories:  Direct sourcing . They then send it to its own associate outlets and large distributors. Auchan. The CDMA handsets are manufactured and send to Nokia’s mother warehouse. same as in the case of GSM mobiles. chain of stores. SFR.  . In India Nokia has a tie-up with TATA Indicom and Reliance network for its CDMA handsets. IT consultancy. software development and research and development. Nokia doesn’t sell its cell phones directly to individuals.Nokia distribution structure – CDMA The distribution system for CDMA phones of Nokia globally is little different from that for the GSM phones. such as components. materials and services from suppliers all over the world. The mobile network operators assemble their respective mobiles with the network’s SIM card. From there they are directly delivered to the local mobile network operators in the region. In CDMA mobiles the mobile network operators need to have the mobiles supplied to them before they are sent out in the market so that they can fuse the SIM cards inside the phones.covering equipment such as office furniture and computers. for retail selling. The large distributors further transfer the handsets to agents. they sell them through operators such (Bouygues. It also includes services like catering.

Ukraine. Brazil. The main countries and regions for our supplier locations are: Austria. NSR and environmental product requirements) as part of the contractual agreement. Netherlands. Finland. Sweden. Taiwan. PCMM and ILO. Nokia recognize that their spending with suppliers there can have a significant impact on economic development. Mexico. Singapore. Morocco. Italy. Portugal. Poland. Hungary. Belgium. France. Malaysia. OHSAS18001. Germany. Czech Republic. SA 8000. Ireland. and UN conventions. Philippines. Trained Nokia assessors conduct the majority . Japan. Suppliers Performance Supplier assessments are used to understand a supplier’s performance level and compliance to Nokia’s requirements. Denmark. Supplier diversity Supplier diversity is highest on the corporate responsibility agenda in the US.As a global company Nokia has suppliers located all around the world. which include specified environmental and social requirements. USA and Vietnam. These requirements are based on international standards ISO 14001. Slovakia. China. Canada. UK. Nokia Suppliers Requirements Nokia has developed environmental requirements for the products. Israel. Spain. Switzerland. Thailand. components and parts that it source.g. S Korea. New suppliers (like our existing suppliers) must commit to meeting their requirements (e. India. We have developed a comprehensive set of global Nokia Supplier Requirements (NSR).

as part of the Global e-Sustainability Initiative (GeSI) Supply Chain Working Group (SCWG). however. Nokia believe it is important for Nokia assessors to see the factories for them. Nokia help suppliers develop their own internal CR organization and embed CR within their business starting with a commitment from the top. To drive sustainable change Nokia often need to combine assessments with other tools and approaches including face-toface meetings. labor conditions.g. or as part of joint industry assessments. Nokia also work with Tier One suppliers to help them manage their own supply chains. and substance management. Internal training is provided to new sourcing personnel and existing personnel receive training and information sessions on new requirements. health and safety in the work place. trainings and supplier-focused events. Supplier training Supplier training helps:  New suppliers to understand our expectations (e. new material restrictions. address non-conformances from on-site assessments).of its supplier assessments so that Nokia is involved first hand. Occasionally.g. Nokia do. Training and Building Capability Nokia help suppliers improve their management of corporate responsibility (CR) issues by meeting with them and providing training.g. Nokia actively participate in the Learning & Capability Building sub work group. NSR. Nokia’s trainings focus on the Nokia Supplier Requirements. performance metrics and targets. sharing examples of best practice from Nokia’s own operations or from other case studies. development programs. This hands-on approach means that both Nokia and its suppliers take their performance very seriously. invite its suppliers to use NGOs or similar parties to assure the effectiveness of its own labor standards and environmental practices. to understand the problems and to work directly with suppliers to drive improvements. it is first important that own sourcing personnel are familiar with the requirements and commitments so that they can support implementation and ensure consistent messaging. design for the environment. Internal training Before Nokia’s suppliers can be expected to meet our requirements. Therefore. and  Existing suppliers to build competences to meet existing requirements (e. updates to NSR). It is becoming increasingly apparent that training and capacity building amongst companies in the supply chain are important for driving sustainable improvements to support monitoring programs. . Nokia work with third parties for specific expertise or investigations. Environmental Requirements for Nokia products)  Existing suppliers to understand and implement new requirements (e.

Their sourcing organization and suppliers play a key role in ensuring our components and parts are safe and compliant with the Nokia Substance List (NSL). A Supplier's view "In 2007. developing a Code of Conduct in 2007. . Nokia also require suppliers to have a record of the raw material content of products supplied to them and. to provide end-of-life treatment recommendations. it is necessary to have both management support and an effective management system in place. not just those that raise concerns. improving employee benefits. the objectives have been similar. air quality control and power saving. This is genuinely a realization of supply chain collaboration and partnered actions. and to define a corporate CR commitment. That advice has helped them plan and manage social and environmental issues in a systematic. Although the suppliers are at different levels in their CR journey and organized in different ways. Nokia do this by meeting on a regular basis. Foxconn has made progress in social and environmental responsibility. safer and more enjoyable working conditions. new initiatives in 2007 included energy efficiency. helping to get management support and sharing examples of best practice from Nokia’s own operations or from other case studies. Nokia has been working with Foxconn for a number of years. meeting regularly to share best practice. In 2007 Nokia initiated a cross-commodity development program with Foxconn. For example. One of the ways in which Nokia help to build suppliers‟ Social and Environmental Responsibility (SER) capabilities is to work with them to develop their own internal Corporate Responsibility (CR) organization and embed CR within their business starting with a commitment from the top. Through the guidance of our customer and Nokia’s internal organizational change.Supplier cooperation & development programs In order for any company to systematically drive social and environmental improvements." Sourcing materials Nokia is an industry leader in substance management. The Committee holds regular meetings to bring in new improvement agendas. if needed. a global contract manufacturer and component supplier based in Taiwan. Foxconn was advised by Nokia’s customer to adopt industry best practice and set up an internal Global Social and Environmental Committee. to ensure they commit to and implement effective CR programs. but without Nokia’s help this „quantum leap‟ and significant progress wouldn’t have been possible. and ensuring cleaner. They helped the company set up a corporate CR structure connected to business units. monitoring practices and reporting. restricted. Their main objective is that they know all the materials in our products. responsive and effective manner similar to the business value propositions it deliver to customers with our products and services. and that they are safe for people and the environment when used in the proper way. or targeted for reduction with the aim of phasing out their use in Nokia products. Foxconn embarked on its journey of corporate social and environmental responsibility (SER) in 2004. The NSL identifies substances that Nokia has banned. Since 2007 Nokia have expanded this work and for the latest information please refer to Progress and targets. targets.

understanding the commitments of each tier.EU REACH Regulation In June 2007. Evaluation. To support Nokia’s suppliers they provided information to them and have ongoing discussions to ensure they are aware of the REACH regulations. the EU regulations on the Registration. According to this regulation. Nokia Supplier Requirements request that their suppliers in turn set environmental. and monitor the performance of their suppliers. This work involves increasing the transparency of the supply chains of these materials. understand the requirements and are taking responsibility for compliance to ensure uninterrupted supply. and biomaterials are an example of alternative new material. labor and health & safety requirements. working at an industry level and with stakeholders. import or found in articles considered as “substances of very high concern”. companies have obligations to ensure that the chemical substances they manufacture. the components. are registered. For certain materials of concern or alternative new materials. Nokia works deeper down the supply chain to investigate and address any concerns. Nokia believe each tier of the supply chain must take responsibility for managing its own suppliers to achieve positive. parts and services they supply. Nokia efforts with Tantalum are one example of work to tackle materials of concern. Industry Collaboration . Authorization and Restriction of Chemicals (REACH) came into force. Nokia works with suppliers to evaluate and promote environmental and social improvements further down the supply chain. authorized or notified according to legal requirements. Their suppliers are required to meet Nokia Supplier Requirements and product environmental requirements that define expectations for their suppliers. sustainable improvements throughout the entire supply chain. How far does Nokia’s responsibility go down the supply chain? Nokia’s primary focus is on those suppliers with who company contract and work with directly. If concerns arise regarding the performance of 2nd/3rd tier suppliers.

and tin) are mined. concluded the pilot studies that emerged from the multi-stakeholder capability-building project for the ICT sector in China (in collaboration with BSR and the Foreign Investment Advisory Service (FIAS)) and. the Workgroup commissioned an industry research project to understand:  How six key metals (aluminum. Shared Audits Industry shares many of the same suppliers and Nokia’s networked supply chain means that many of them are customers and suppliers of each other. GeSI SCWG and EICC formed the Learning & Capability building work group.  How members of the GeSI and EICC can effectively influence social and environmental issues associated with the mining of metals used in electronics products. The main aims of this collaborative effort are to promote good conduct and to develop and deploy a consistent set of tools and processes to measure. which means a single audit of a supplier facility can be shared across customers. purchased and used within the electronics industry. helped raise awareness of the key facts and challenges surrounding the supply of metals. They have been a member of the GeSI Supply Chain Working Group (SCWG) since 2004. . one focus of the GeSI SCWG has been to develop a shared auditing process together with the EICC. The research. this work group hosted a supplier forum in China. After this research the work group coordinated stakeholder forums to gather feedback and define the group’s priorities moving forward. Shared Auditing and Extractives sub-groups working together with EICC. With this aim. During 2008. This Group works closely with the Electronics Industry Citizenship Coalition (EICC). Learning & Capability Building Recognizing that simply assessing suppliers for compliance does not create sustainable change.Global e-Sustainability Initiative (GeSI) Nokia became a full member of the Global eSustainability Initiative (GeSI ) in 2007. monitor and improve CR performance across the ICT sector supply chain. published in June 2008. helping to develop the shared auditing process and in the actual audit pilots. palladium. the work group aims to reduce the burden of duplicate audits on suppliers and allow them to focus resources on addressing issues and improving conditions During 2008 Nokia participated within the shared audit work group. As a result. began developing a series of web-based e-learning modules. copper. As part of their membership of the GeSI SCWG. to which Nokia is an active member. they actively participate in the Learning and Capability Building. recycled. gold. Extractives GeSI and EICC formed the Extractives Workgroup to enhance members‟ understanding of social and environmental conditions at the mine level and to determine if and how Nokia could act collectively or individually to improve these conditions. cobalt. the ability to trace the sources of metal used in electronic products and the industry’s ability to include conditions. In doing so.

including information on material content. The mobile phone supply chain is complex with perishable and substitutable products. the firm’s supply chain management solution on mobile. Tie up with Sify Technology Nokia India on Monday announced its tie up with Sify Technologies to deploy Nokia Tej. . Since its commercial launch. Nokia Tej launched in April is a pay-per-use service available on Nokia handsets targeted at enterprises and small and medium customers. over 50 customers across verticals including consumer durables.” said Chand Malu. Nokia is using the web-based RosettaNet information exchange solution in its product information exchange with suppliers.RosettaNet RosettaNet is a voluntary initiative of over 500 major information technology and electronics manufacturers that is committed to developing solutions for the standardized exchange of information. service providers are focusing on services such as business applications beyond voice offerings. Sify also has a strong presence in the verticals relevant to us. Given the cutthroat competition in the telecom segment. Sify will charge a professional fee for customization. The service can be integrated to any existing IT applications used at the customer end. FMCG and pharma have signed up for the service to e-enable their sales force and distribution channels. It takes care of order. The service comes at Rs 1.250 and an additional Rs 550 per user per month. As part of its supplier cooperation development. business head of Nokia Tej. distribution and sales management processes. Sify will integrate the product with its existing suite of solutions such as Forum and will customize it for individual customers. “Our association with Sify will help us leverage their widespread distribution network.

There are two types of product forecasts.Accurate demand forecasting is key to minimizing channel inventory and lost sales. each driving different decisions .

Short term forecast is driven by a robust Sales & Operations Planning process. . Quantitative analysis is used to improve the quality of the S&OP process.

.

Demand Curve . Price skimming is sometimes referred to as riding down the demand curve. If this is done successfully. It is a temporal version of price discrimination/yield management.Pricing Strategy for NOKIA Skimming Pricing Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first. then lowers the price over time. The objective of a price skimming strategy is to capture the consumer surplus. In practice it is impossible for a firm to capture all of this surplus. then theoretically no customer will pay less for the product than the maximum they are willing to pay. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price.

Elastic Demand • Nokia’s Skimming price strategy . Inelastic Demand 2.Price elasticity of demand 1.

the products are all hi-tech equipment. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. often lower than the eventual market price. each of which has its specific location. The next phase is site acquisition. The process continues with construction works when a particular site is physically built and technical specifications for equipment frozen. Next. Therefore. The strategy works on the expectation that customers will switch to the new brand because of the lower price. projects’ aim primarily is to provide customers fastest time to profit with the investment. to attract new customers.g. there are some fundamental differences that make the environment much more complex. Our experiences show that the site implementation process of individual network elements encompasses the customer’s demand formation process. Furthermore. which is to get site permissions for base stations from authorities and make lease agreements with landlords. the process begins with planning the cellular network and sites of base stations. Now if Nokia would have adopted this policy then the prices of the new high technology and high quality sets would have been low in the starting which would have led long term profit Plan for supply chain agility at Nokia The building of cellular networks (e. Second. This implies that the supply chain should be very agile and equipment deliveries fast and reliable. design and function in the network. After this point. rather than to make profit in the short term. it clearly has many similarities with the traditional construction industry. which are characterized by high product value. Although the mobile networks are normally built and expanded as well-planned implementation projects. individual products need to be integrated seamlessly together into a complex system that has to work reliably and securely in all kinds of circumstances. which requires a very structured approach for planning and control. extremely short lifecycles and a large amount of embedded software. However. typically at year-ends. as network elements are located around the country. the base station can be delivered to the site. standard procedures and good day-to-day management skills to run the project implementation. the accuracy of demand planning can be very lousy. the behavior of market demand is cyclic with some elements of seasonal peaks. Only at this point the investment eventually starts making money for the operator. By nature. By its nature it is typically a project business. An average-sized GSM network includes several thousands base station sites. Thus. The site implementation process ends when the base station is integrated to the network. First. the base station is installed and final commissioning is done at the site. for base stations. a cellular network forms a multi-site delivery environment. For instance.Penetration Pricing Penetration pricing is the pricing technique of setting a relatively low initial entry price. GSM/EDGE or WCDMA networks) is a quite original business. In addition to project internal turbulences due to complexity in .

Integrating all these in a costeffective and efficient system of activities. Customer’s network rollout needs are cooperatively collected as a part of continuous planning process and supply capacity is reserved accordingly to meet project targets. IPM business capability that we merely focus now is the “collaborative demand planning with a customer. IPM implementation consists of deploying or fine-tuning the key business capabilities for IPM in selected customer account teams. deploying a fast and flexible delivery chain.g. After the demand is consolidated to a global level. The program started with creating of key business capabilities through a selected customer pilots. managing an increasingly complex network of suppliers. Nokia’s IPM is all about this. i. processes and tools is the way to meet those milestones. flexible and efficient supply chain all the way to final implementation sites.business environment. technical. IPM is a strategic execution program to implement a truly customer-focused delivery process in Nokia Networks. Figure 1 shows the model how this IPM allows fast.e. the core idea is to build an agile and responsive supply chain that is fully driven from the customer project front line. geographical or political) factors that may radically influence on the demand. some demand adjustments can be made based on executive opinions. as sales-forces give best estimates based on information from their own customers. Typical implementation per customer takes around half a year during which standard processes and tools with appropriate performance metrics are put in place. for base stations a planning item typically equals to a delivery item and main focus is on a short-term time horizon.g. “Quality in all we do” is a common ground for all the initiatives taken under Nokia IPM umbrella. the network elements. and (4) performance metrics with integrated platform. Idea is to seat the customer itself onto the driving seat of the whole delivery machine. for mobile switches planning can be done on system capacity level (e. Market responsive supply chain with regional delivery hubs is designed to tackle project uncertainties and to provide highstandard service levels to project implementation teams in all circumstances. (3) professional cost management. Whereas. monitoring effectively and sharing transparently the status of the operations. efficient and cost effective deliveries by better orchestrating the end-to-end supply chain. Sitebased ordering model enables short lead times and allows win-win asset management in the supply chain. Target is to provide customers with more speed. The level of aggregation and planning time horizon depends very much on products. During the network implementation project there is one clear . as equipment deliveries are triggered based on mutually agreed milestones in the site process. It typically requires fast mobilization of a network of people and companies to perform all the activities. number of air channels) and time horizon is typically more long-term. are complementarily used for certain products.” Here. (2) site-based ordering by project progress. Also some quantitative forecasting techniques. For instance. like exponential smoothing. Based on the first pilots following four items were formed and agreed as the IPM capabilities to be deployed for selected customers: (1) collaborative demand planning with a customer. Demand planning is primarily based on the judgment method in separate customer account teams. there are also many external (e. Nokia’s integrated project management Successful network deployment and expansion is about continuously understanding customer milestones.

Monetary savings to the whole customer’s project are mainly expected to materialize through improved asset efficiency and reduced non-quality costs when building the mobile network. customer. provides a common control room for all stakeholders in customer projects. However. It is a fully integrated platform to manage the progress of site implementations and support full cooperation among stakeholders. The integrated IT tools include different modules like rollout planning. subcontractors. provides a common tool for tracking the activities of different stakeholders. and partners) is guaranteed through eproject management portal. self study. Nokia Incorporating E-learning for Business Increased product complexity requires different educational model • E-learning integral part of B2B model and process Examples of B2B e-learning in Nokia: • Phone distributors/dealers: elearning content for every new Nokia phone (multiple languages globally) • Telcos: Self-study packages with access to Nokia experts and virtual classroom • Phone repair centers: Streaming video packages for repair center • Everyone who purchases a device wants to learn how to use it but customers also have learning needs at each stage of the customer promise E-learning for Nokia employees Comprehensive e-learning portfolio available through Learning Market Place • Multiple delivery methods. site quality. Correspondingly. enables integrated management of all the different project activities. virtual classroom. rollout tracking. The IPM Suite allows customers to plug and play operations in project’s start-up conditions and new project phases. The suite is also linked to the backbone logistics systems providing necessary basis for supply chain agility. site database and documentations management.interface towards the customer for all operational issues with easier communication and faster reaction.g. It is especially important upstream for planning purposes when creating agility into operations. The tools provide needed transparency to the information for all parties. Full details on each site activity and real time update of the project status are visible online. it is still good to remind that the tools do not improve the quality of demand information but only can automate data handling and sharing. short lead times and reliable deliveries directly to installation sites. Transparency to the information for all relevant project stakeholders (e. Also project progress. Nokia ensures high product availability. helps project progress monitoring by providing a joint virtual “control room” for all performing organization. Nokia IPM Suite. The customer’s project rollout plan is primarily used a basis for Nokia internal demand plans. Documentation exchange and proper management of thousands of site folders is likewise possible in the system. blended solutions • Multiple content creation tools • Some courses are free and others are charged to learners department • Learners get a personal learning history . quality tracking. and activity tracking are all available online. Integrated IT tools enabling transparency Integrated IT platform.

B2B. processes. vendors • ”Room for innovation” ”E-learning history” Phase I : E-books Phase II : Basic interaction Phase III : Diversified interactivity Phase IV : Mobility & gaming Learning points: • Technical issues should not be restrictive • Need for flexibility • Importance of scalability guidelines and .E-learning creation process Product / service content focus • Business unit driven • Target group (B2E. B2C) • Multiple packaging technologies • Centrally driven pedagogical & technical standards.

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