De Cling Industry

The Decline and Fall of Nokia

Not just a company

DeclineandFallofNokia.com

Nokia was headquartered in a building called

Nokia House.

They had to sell Nokia House

when they ran low on money.

Microsoft is now in Nokia House.

Nokia moved away.

People used to call Nokia House the PowerPoint

Palace.

You can tell a story using

PowerPoint.



Nokia is a very old company

They began operations in 1865

as a paper mill.

They used to make rubber boots.

Sometimes you can find an old Nokia television at yard

sales.

Nokia has had many CEOs.

Kari Kairamo was CEO of Nokia 1977-1988


He used to be a paper machinery

salesman.

• Nokia used to be in the paper business.

He wanted Nokia to expand into high

technology.

• Nokia is still in high technology.

Kari Kairamo said: “We are all the time selling bits, buying bits, making joint

ventures. Nothing is holy inside Nokia.”

• Even mobile phones are not holy.

Just a company?

His children did not come to see him at

Christmas

But he said he neglected everything

else in his life for it


Just a company?


Kari Kairamo killed himself when he was

CEO

He liked to play bandy.

His wife was a concert pianist.

He was from a family of

famous artists.

Jorma Ollila changed Nokia


Jorma Ollil

a became CEO

in 199

2

He knew mobile communications

would be big

Ollila sold off the old industrial divisions

Mobile communications became big

Nokia made a lot of money

The good times were very good


2003 2004 2005 2006 200720000

25000

30000

35000

40000

45000

50000

55000

People like to remember good times


Those were fun days. The sky was the limit.

There was not one company in the world with that freedom and

responsibility. The Google and Apple of today aren’t

good examples. There was nothing like it.

I have so many fond memories.

Throughout the years we had great events with such a great team spirit. Nokia always had the best events.

But nothing stays the same forever



• Inward-looking

• Arrogant• Complacent

• Ultra-segmented market• Prioritise existing businesses• Cost control > value creation

• Autonomy disappeared

• Matrix management

• Autocracy

• Confusion• Bureaucracy• Meetings• Procedures• Processes

Complexity increased

The organisation

changed

The culture devolved

Strategy and tactics altered

Acedia noun. MEORIGIN Latin accidia from Greek ἀκηδία, negligence

Spiritual or mental sloth; apathy.



”I don't even know where to start the hate parade I want to unleash on S60 5th edition… when legacy (sorry, mature)

software runs into a crappy half-assed UI, it's a steaming pile of suck on a slab of garbage toast.”

“Its visual feel is dated and worn, like

someone dragged 2003 into the present tied to the back of a battered and rusted

pickup truck.”

”Inconsistency seems to be the rule. Some stuff you double tap

to activate, other stuff you single tap… There's no flick

scrolling, except for when there is, like in

the Ovi Store.”

“Ovi Store manages to have the worst mobile

app store interface I've seen yet.”



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Nokia Smartphone Market Share 2007-2014


Nokia’s survival was doubtful

They sold Devices & Services to Microsoft

They moved to Windows PhoneThe situation became critical

Nokia struggledStephen Elop was hired

I called Anssi Vanjoki after the announcement.

He avoided the words ”sale” and ”divestment.” They were like names of demons he was fearful to invoke.

I felt horrible for bothering him, for being an incosiderate bloodsucking bastard.

Yet he is still polite to me.

I’m sorry, Anssi. I really am.


Ways Nokia’s mobile device business can be remembered


Bad Good

Pride

Nostalgia

Valuable lessons

Happiness

Bitterness

Shame

Anger

”Why did we do it? Connecting people. There is something very genuine in that slogan.”

”I have teenage kids now, and I sit and watch them tapping away on their phones, and I realise they are communicating completely differently now because of what we did.”

”Connecting people. A better mission statement I have never heard.”



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