Nokia: Joining the Microsoft Bandwagon Dropping Symbian as the Operating System - Term Paper Example

?Nokia – joining the Microsoft bandwagon dropping Symbian as the OS Important facts in the case Nokia, the Finland based communications and information technology products manufacturer, focuses on two principal products of mobile telephones and portable IT devices. For a over decade, starting from 1998, Nokia held its position in the top echelons as it had the distinction of world’s largest vendor of mobile phones. However, that position of Nokia started to slide down, due to certain inefficiency or even complacency on the part of Nokia and also with the advent of newer mobile phones operating on newer platforms including Apple iPhones, Android based mobile phones, etc. The complacency or lack of proactive action by Nokia is in line with the psychic prison metaphor. “This metaphor joins the idea that organizations are ultimately created and sustained by conscious and unconscious processes, with the notion that people can actually become imprisoned in the images, ideas, thoughts, and actions to which these processes give rise.” (Morgan 207). These aspects of self-limitations could develop in an employee, then in a team and could occur in an entire organization, causing negative impacts like non-growth and further slide. After reaching the top, Nokia from its top management to the lower-level employees allowed this psychic prison factor to creep in, thereby forming a false sense of security. Nokia not only avoided improving its existing strategies but also avoided carrying out key innovations particularly in the aspect of its operating system, thus allowing its competitors to leapfrog over it. Thus, the psychic prison factor made Nokia’s growth a stagnant one, and in course of time caused a downslide. As its market share continued to slide, Nokia decided to come up with strategic changes to avert the slide and emerge successful. In that direction, Nokia found that it’s Operating System (OS), Symbian was not able to compete with newer and more advanced OSs like iOS and Android, thus contributing sizably to the slide in Nokia’s Market Share. This perspective was validated by Gartner analyst Nick Jones, who stated, “Market share is an existential threat to Symbian, it imperils the very existence of the platform, and the main reason Symbian is losing share is the user experience, which isn’t competitive with Apple or Android.” (Chen). Key issue or issues to be investigated Due to this understanding, Nokia went in search of other OSs, which can be incorporated into its devices. After doing in-depth study, Nokia and in particular its recently appointed CEO, Stephen Elop, who is actually a former head of Microsoft business division, decided to form a strategic alliance with Microsoft in early 2011, thereby replacing not only Symbian but also MeeGo with Microsoft's Windows Phone operating systems particularly with Windows Phone 8. Although, Nokia decided to run its low-to-mid end mobile devices on Symbian and MeeGo, majority of its devices especially Smart Phones were planned to be migrated to Windows OS. After being attached with Symbian OS for many years, this decision to incorporate Windows OS is not an easy process to adopt and implement, as it involves sizable changes to the whole organization including its different departments. Any change in strategy will have to be accompanied by a sizable amount of change within the organizational structure. This need to actualize changes in various departments is line with the metaphor of Flux and transformation. This metaphor focuses on how entities including organizational bodies will be in a constant state of change, based on the changes that are happening in their external and internal environment. “Everything flows and nothing abides; everything gives way and nothing stays fixed.” (Morgan 241). If the organization maintains a rigid stance, without changing and flowing with the flow, then it will stagnate. Only if the organization in line with Flux and Transformation updates its organizational processes, filtering out failing processes and further improving its thriving processes, it can travel on a optimum path. With Nokia having complex organizational structure due to the involvement of American “factors” in what is essentially a quintessential Finnish company, the changes that needs to be carried out has to be with extra care. The primary focus has to be on realigning or reallocating its departments and resources, in order to incorporate a foreign OS in a smooth manner. In that direction, Nokia decided to have a new organizational structure featuring two distinct business units namely Smart Devices unit and Mobile Phones unit, with former focusing on high-end smartphones, while the later dealing with low-to- mid mass-market mobile phones. As Microsoft OS was included mainly in the smartphones, its Smart Devices unit had to undergo specific changes. Its Research and Development (R&D) department, Human Resource department and support services had to undergo some restructuring. Among these departments, R&D particularly its software section saw maximal changes, as it had to minimize its indigenous software development and instead focus on customization and enhancement to the software and other apps provided by the Microsoft. (Ricker). Due to this change, new employees are brought in, existing employees has to be transferred and also had to be trained, thereby bringing in the role of Human Resources department. Thus, HR department also had to undergo constant changes in line with the metaphor of Flux and transformation to make the strategic alliance between Nokia and Microsoft a successful one. Although, other departments underwent changes, these two departments had to carry out bulk of those changes. Manifestation of the issues Due to the above changes, certain manifestations were visible. That is, with the minimization of Symbian related software activities, Nokia in line with the metaphor of Flux and Transformations eliminated jobs of sizable software developers working in R&D department, and also transferred sizable number of its employees to another the strong IT player Accenture. As stated by Sayer (2011) Nokia by closing down number of research and development sites in its worldwide operations particularly in Denmark, Finland and the U.K., had or have plans to eliminate a “further 4,000 jobs by end of 2012, as it seeks to cut €1 billion (US$1.4 billion) from its annual devices and services operating expenses by 2013.” This elimination of employees, which has mainly arisen due to the introduction of Windows OS, has to be carried out, with HR department playing the main role. Starting from conveying the message to the exiting employees to setting the severance package, HR personnel has to provide key inputs. This decision of Nokia to introduce Windows OS also has resulted in Nokia outsourcing its Symbian software activities to Accenture (ACN), and in the process transferring around 3,000 employees of its employees in its operations in UK, China, India, etc., to Accenture facilities. Accenture by using these employees “will initially provide Nokia with software development and support services for the Symbian mobile platform,” and later by giving them further training, it will make them do work related with “software and services around the Windows Phone platform” (Sayer). During this process of transferring and training, Nokia’s HR department has to closely liaise and coordinate with Accenture, so that its employees aptly fit in with the organizational processes and culture in Accenture and importantly contribute their best for Nokia. Both these downsizing and transferring processes as part of organizational change and along the lines of metaphor of Flux and Transformations will be a key challenge to the HR department. It will also be a challenge to the Nokia’s in-house as well as outsourced R&D department as well because with Nokia using Windows OS, it has to orient all the software related activities in conjunction with Microsoft, restricting its own scope. As former Nokia executive Lee Williams state, “When software is developed by another company, and under tight change control restrictions, you have less flexibility to adapt that software to your needs, also, a third party company will be taking the software in new directions, directions that may not be aligned with your needs, but other customer's needs.” (Lomas) Alternative courses of action, evaluation and recommendation From the above analysis of Nokia’s decision to associate with Microsoft, it is clear that although there are good opportunities for Nokia to tap and emerge successful, there are few challenges. To overcome these challenges, alternatives and recommendations can be formulated. With Nokia focusing on strengthening its alliance with Microsoft, it has become important for it to reorganize its operational processes to fit with that of Microsoft in line with the metaphor of flux and transformation. Although, it had been mentioned above that this association could challenge Nokia’s in-house departments and processes, as Microsoft will be bringing in its set of processes particularly in the software development activities, it is a reality which has to be accepted. Considering it, employees inside Nokia as well as those working as part of outsourcing to Accenture has to be prepared and made to sync with Microsoft. Nokia has already initiated this process, with Nokia’s executive Vice-President Jo Harlow spearheading it, but more needs to be done. “To make sure the teams were in sync, she rearranged her organization to match her partner's Windows Phone unit structure.” (Lev-Ram). When this course of action is followed, with HR department playing the main role, Nokia can aptly coordinate with Microsoft to come up innovative features both from the software as well as the hardware side. With both sides having innovative ideas and capabilities for mobile phones, apt coordination can lead to optimal output, which can make Nokia products an enticing one. The other key course of action that is related to the above discussed cooperation in the software related activities, is the need for both Nokia and Microsoft to come up with more apps. With number of apps being one of the key criterions for the prospective customer to make the eventual purchase of smartphones as well as other IT related devices, Nokia has to do more. Unlike Android and iOS devices, which have a robust following among developers and consumers, devices that run on Windows Phone have access to minor quantity of apps, with developers also numbering in minimal numbers, when compared to its competitors. (Lev-Ram). This being the case, it is of crucial importance for Nokia as well as Windows (with Windows having more stake) to come up with huge number of quality apps. In addition, they have to facilitate Third-Party developers as well as freelance developers to come up with effective apps. When this is done, there can be more synergy between Nokia and Microsoft and importantly can enlarge its customer base. Thus, it is clear that by first breaking its psychic prisons and by optimally incorporating the above courses of actions by following Flux and Transformations, Nokia with its strong hardware capabilities can aptly complement Microsoft’s software advantages, thus making its alliance a success. Works Cited Chen, Brian X. “Sinking Nokia Prepares to Abandon Symbian for Windows Phone.” Wired, 2 Oct 2011. Web. Lev-Ram, Michal. “Can the Lumia smartphone save Nokia?” CNN Money, 2 Sept 2012. Lomas, Natasha. “Nokia's Windows Phone "bear hug" is choking the Mighty Finn.” CNet, 25 April 2012. Ricker, Thomas. “RIP: Symbian.” Engadget, 11 Feb 2011. Sayer, Peter. “Nokia Hands Symbian OS Work and 3,000 Employees to Accenture.” CIO, 27 April 2011. Read More