Nokia's Knowledge Management System

Today, going abreast with a successful and powerful company always is an efficient Knowledge Management System. This is also true with Nokia; its KM System plays a very important role in the success of Nokia worldwide. This assignment will study and analyze the current Nokia’s KM System; indicate the factors that influence this system, analyze the operation of this system as divided levels. Next, this assignment will find out key enablers what helps the company to achieve its knowledge management goals as well as obstacles which is preventing or can potentially block Nokia’s knowledge management success. Finally, the conclusion will sum up the studied results.

2.0 Background of Nokia

Nokia was found by Fredrik Idestam in Finland in 1865, started by making paper. In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important strategic decision in its history and in 1998; Nokia became the world leader in mobile phones.

Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia’s subsidiary Nokia Siemens Networks produces telecommunications network equipments, solutions and services.

Up to 2008, Nokia has employed about 130,000 employees in 120 countries. Its products was sold in more than 150 countries, with global annual revenue was EUR 50.7 billion and operating profit was EUR 5.0 billion. Its global device market share was about 38% in Q3 of 2009

Today, Nokia is the world leader in mobility, driving the transformation and growth of the converging Internet and communications industries. Nokia was ranked as both the best Finnish brand and the best employer. The Nokia brand, valued at $34.9 billion, is listed as the fifth most valuable global brand.

(Source: Adapted from Wikipedia 2009 and Nokia 2009)

3.0 Factors influence Nokia’s Knowledge Management System

In Nokia, Knowledge Management System is influenced and supported by 3 main factors: Vision and Strategy, Structure, and Culture. Thus, to understand Nokia’s Knowledge Management System, we are going to discuss these three factors.

3.1 Vision and strategy

Nokia’s promise is to help people feel close to what is important to them. People want to be truly connected, independent of time and place, in a way that is very personal to them. And, Nokia’s promise is to connect people in new and better ways.

Nokia’s strategy is to build trusted consumer relationships by offering compelling and valued consumer solutions that combine beautiful devices with context enriched services.

(Source: Nokia 2009)

3.2 Structure

(Source http://www.nokia.com/about-nokia/company/structure)

The Services unit is responsible for developing consumer Internet services which include five areas – music, maps, media, messaging and games.

The Devices unit is responsible for developing and managing their mobile device portfolio, including the sourcing of components.

The Markets unit is responsible for the management of supply chains, sales channels, brand and marketing activities.

Nokia Siemens Networks provides wireless and fixed network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers.

NAVTEQ is a leading provider of comprehensive digital map data for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions.

Corporate Development Office supports the three units and it is also responsible for exploring corporate strategic and future growth opportunities.

(Source: Nokia 2009)

3.3 Culture

(Source: http://www.nokia.com/careers/nokia-as-an-employer/nokia-way-and-values)

Nokia believes that great ideas can come from anywhere, so they have a supportive working culture that encourages discussion and debate. They also believe that people who are motivated and fulfilled achieve the best results at work. Thus, they are committed to helping all of their employees continuously develop skills and experience and realize their full potential.

(Source: Nokia 2009)

4.0 Knowledge Management System of Nokia

In 2000 Nokia wanted to enable knowledge management and learning solutions across its entire value chain – Suppliers (Busines-2-Business B2B), Customers (Business-2-Customers B2C) and Employees (Business-2-Employees B2E). This vision would enable Nokia to deliver learning to over 200 million people. Enabling suppliers, customers and employees easy, collaborative and timely access to pertinent and valuable information about Nokia’s products and services, would increase productivity, commercial awareness and improved commitment from its value chain through improved services, products, tools and information ( ).

Knowledge Management System in Nokia is divided into 3 levels: Individual level, Group level and Organizational level.

Knowledge Architecture in Nokia follows Nonaka’s model. There are 4 ways to capture Knowledge:

Tacit to Tacit communication (socialization)

Tacit to Explicit communication (externalization)

Explicit to Tacit communication (internalization)

Explicit to Explicit communication (combination)

4.1 Individual level

Knowledge Resources

Nokia provides employees with a wealth of information. Employees will benefit from information that will help them work and create applications with the most powerful APIs (Application Programming Interface). White papers, tutorials, and sample code also help them learn how to create sophisticated applications for Nokia platforms.

Tools and SDKs (Software Development Kits)

Nokia supplies all the tools employees need to leverage their existing development infrastructure to create or port Python, Javaâ„¢ and C++ applications to Nokia platforms. These tools include the following:

SDKs that allow employees to test applications without hardware

Tools to streamline both Java and C++ development

Tools for developers creating Python applications

Tools for media and content creation

Library

At Nokia, some researchers keep one foot in the academic world through teaching and writing books. Thus, employees can use online library to find a selection of books and chapters that Nokia researchers have written.

The online library also contains journals and conference pages about Multimedia technologies, Radio technologies, Computing architectures, Networking technologies and Software and application technologies.

Forum Nokia

(Source: http://www.forum.nokia.com/)

Forum Nokia is the world’s largest mobile developer network. Here, employees can find everything that they need to innovate because the forum will help they tap into extensive resources by matching their goals with right resources.

Employees are provided ideas and inspirations from the extensive discussion forums. The Forum Nokia’s resources are also designed to reduce employees’ time-to-market and help employees achieve success quickly.

At Nokia, people can learn, discuss and share their knowledge so the knowledge is transferred and developed and that is knowledge management process.

4.2 Group level

Ideas Project

(Source: http://www.nokia.com/technology/ideasproject)

IdeasProject is a collection of fascinating insights into where technology and communications may be taking to groups. It’s enabling a new kind of conversation; with big thinkers offering new insights into disruptive technology-driven changes impacting business and society. Therefore, it provides new views for groups, helps them perform the job better. Then, when groups captured and codified knowledge, they continue to share knowledge with others teams so it becomes the life cycle of knowledge management.

Nokia Beta Labs

(Source: http://betalabs.nokia.com/)

Nokia Beta Labs is a lead-user community, it is built to share some of the exciting new ideas that people at Nokia have been working on. It’s also an online communication channel where anyone, including consumers can post ideas, test new services and give feedback. Therefore, groups at Nokia have more ideas to improve their products and projects.

We can see that this is a brilliant way to capture knowledge with the ending purpose is satisfy customer.

4.3 Organizational level

Nokia Website

Nokia website is an important channel for this company to capture and transfer knowledge. It is designed not only for employees at Nokia but is also useful for people outside the organization. Therefore, Nokia can capture knowledge from anywhere at any time. This web site is a combination of several other applications like forum, ideasproject, beta labs… We can consider that, it could be linked to some other Knowledge Management Applications like Business Intelligence, Management Information System, and Customer Relationship Management, etc… to become a more powerful Knowledge Management System.

Nokia Research Center

(Source: http://research.nokia.com/)

Nokia believes that effective research and development is vital to remaining competitive in the mobile computing and communications industry. As of April 1st, 2007, they had R&D centers in 11 countries and employed 14,500 people in research and development, representing approximately 32% of Nokia’s total workforce. R&D expenses totaled EUR 3.9 billion in 2006, representing 9.5% of Nokia’s net sales.

Nokia Research Center (NRC) has a unique mission to lead Nokia into the future: NRC will be the global leader of open innovation for human mobility systems of the fused physical and digital world, giving birth to the growth of businesses for Nokia.

With ten locations worldwide, NRC is a truly global organization. Therefore, they can exchange and combine ideas all over the world. Moreover, by bridging this wide variety of cultures, environments and skill-sets across these diverse geographies, NRC empowers Nokia to develop products and services that meet the needs of their customers.

(Source: http://research.nokia.com/locations/index.html)

NRC is also a place where Nokia capture and apply their knowledge at academic level, for over three years now Nokia has been actively exploring and engaging in Open Innovation through selective deep research collaborations with world-leading institutions. By sharing resources, leveraging ideas, and tapping each other’s expertise they have built strong Expert Systems and they are able to multiply their efforts deriving more value for their organizations and ultimately for their end-customers.

There are some institutions that NRC collaborates with:

NRC Tampere Collaboration with Tampere University of Technology

NRC Lablet Otaniemi Collaboration with Helsinki University of Technology

NRC Cambridge USA Collaboration with MIT

NRC Lausanne Collaboration with EPFL and ETH

(Source: http://research.nokia.com/openinnovation)

Joint ventures

Nokia has entered into several joint ventures over time, particularly in the areas of manufacturing and research and development. Regional joint ventures have proven to be an effective way to combine Nokia’s global technology leadership with strong local partners to accomplish faster and higher market penetration in new and emerging markets.

Here is the list of Nokia joint ventures:

Meridea Financial Software Oy, Finland; Nokia (Suzhou) Telecommunications Co., Ltd., China; Hangzhou R&D center, China; Nice-business Solutions Finland Oy, Finland; Nokia Neu Comm Tech Company Ltd., China; Nokia Citic Digital Technology Co. (Beijing) Ltd., China; Symbian Limited, United Kingdom; ChongQing Nokia Telecommunications Co. Ltd, China; Fujian Nokia Mobile Telecommunications Ltd., China; Nemo Technologies Ltd, Finland; Dongguan Nokia Mobile Phones Co., Ltd, China; Beijing Capitel Nokia Mobile Telecommunications Co., Ltd., China; Beijing Nokia Hangxing Telecommunications Systems Co., Ltd., China; Sapura-Nokia Telecommunications Sdn Bhd, Malaysia.

5.0 Enablers and Obstacles

Cause of KM Failure: there are many cases of KM failing. It’s maybe because of a foggy identifying the real expertise in an organization. Failure may also result from an inability to capture and categorize knowledge as well as from the overmanagement of KM process and so on (……………..).

Factors Leading to KM Success: firstly companies must assess whether there is a strategic need for KM, and then they need to determine the current process of dealing with knowledge, culture, and technology infrastructure. After all, introduce the system to the entire organization for every employee to participate (….).

Nokia views Knowledge management (KM) as a combination of people, processes, technologies, and culture. It has become a competitive weapon for Nokia, who are always looking forward to break through ideas beyond current conventions in order to expand their business portfolio. Nokia has consistently applied KM practices in its business, has yielded considerable benefits in innovation-related and product development functions. Nokia makes use of KM practices extensively to understand market trends and customer requirements and puts useful knowledge into action for its innovation pipeline. Considering the local needs of consumers and local expertise Nokia has created new services and products with their KM. Knowledge management of Nokia also generated new opportunities with other business in the form of joint venture and acquisition E.g. Microsoft and Nokia Collaborate to Help Ensure Consumers Can Enjoy Digital Music Anywhere. Nokia also joint ventured with many other companies to maintain is success with the help of their KM.

5.1 Key Knowledge Management Enablers

One of the main Knowledge Management enabler is Nokia Research Center (NRC), which is utilized for exploring new frontiers for mobility, solving scientific challenges to transform the converging Internet and communications industries. NRC current research focuses on the areas of rich context modeling, user interface, high performance mobile platforms, and cognitive radio.

Customer Relation Management (CRM), Nokia uses CRM to extend the access to vital customer information to the mobile workforce, ensuring they have the required resources, when and where they need them. The Intellisync CRM Mobility Solution by Nokia provides varieties of business benefits by allowing mobile employees, including sales representatives and field service professionals, to access and updates vital customer information using the wireless device of their choice. Mobile solutions offered by Nokia also synchronize data between CRM and other applications, eliminating the need for mobile professionals to enter updates more than once, while improving the quality of the customer data used for selling and marketing to the customer base. For mobilizing CRM, Nokia excels in value and performance.

Supply Chain Management (SCM), Nokia has integrated a operating model by using SCM to achieve one of their core strategies, which is to introduce new-product rapidly that reflect consumers’ fast-changing cell phone preferences to ensure a marketplace advantage and that emphasize rapid-response manufacturing, quick-ship logistics, and a “global supply web” that links Nokia’s plants and suppliers.

There are number of companies who act as KM enablers for Nokia to achieve their KM goals. They are Liquid Air Lab GmbH, Psiloc, Kuneri Ltd., Citrix Systems, Inc., DiVitas Networks, Mobien Technologies Private Limited, Oracle Corp., Sam Click Ltd., iGuanaMobile Sdn Bhd, SYSOPENDIGIA plc, Openbit Ltd., Secure Digital Container AG.

5.2 Obstacles for Nokia’s Knowledge Management

In spite of the technological possibilities and an increased number of computer engineers and information systems professionals, Nokia continue to face serious knowledge management problems, due to the lack of interdisciplinary knowledge required for an integrated approach to the complex information activities involved in every aspect of work and doing business.

As Nokia operates globally they cannot fully understand the information phenomenon and the implications of the global information societies and information trends. To overcome this problem Nokia is spending abundant money on expensive technology and gadgetry that is not exploited to the greater benefit of the organization. Nokia, regardless of the socioeconomic and political systems in which they operate, need enormous amounts of information. This is particularly true for those in transitional economies. Hence Nokia suffers from inefficient and ineffective administration and exploitation of their information resources.

6.0 Conclusion

In conclusion, this assignment has indicated 3 factors that influence Nokia’s Knowledge Management. They are Vision and Strategy, Structure, and Culture. Besides, this study has analyzed the current Knowledge Management System of Nokia which is divided into 3 levels: Individual level, Group level and Organizational level.

In individual level, Nokia supplies all the tools that employees need to leverage their existing development infrastructure to create or port Python, Javaâ„¢ and C++ applications to Nokia platforms, and Nokia also provides employees with wealth of information to help them to learn how to create sophisticated applications for Nokia platforms and Nokia also provides online library to their employees.

In group level, the Nokia provides idea project and Nokia Beta labs for the group. Idea project is a collection of fascinating insights into where technology and communications may be taking to groups. Nokia Beta labs is a lead-user community, it is built to share some of the exciting new ideas that people at Nokia have been working on.

In organizational level, Nokia uses knowledge management through Nokia website, Nokia research centre and Joint ventures. Nokia website is an important channel for this company to capture and transfer knowledge; Nokia research centre is a place where Nokia capture and apply their knowledge at academic level, through NRC, Nokia has been actively exploring and engaging in Open Innovation through selective deep research collaborations with world-leading institutions. Regional joint ventures have proven to be an effective way to combine Nokia’s global technology leadership with strong local partners to accomplish faster and higher market penetration in new and emerging markets.

Then this assignment has brought out some key enablers what helps the company to achieve its knowledge management goals, such as, effective research and development as well as some key obstacles what is preventing or can potentially block knowledge management success, such as, lack of poor business purpose, poor planning and lack of resources, lack of accountability and lack of customization and so on.