Responsive Frameworks for Innovation & Reinvention

1. © 2018 Nokia1 Public
Strategic Innovation:
Stories & Practices from The Trenches
Azita Arvani
Head of Innovation Partner & Venture Management

2. 2 © 2018 Nokia
Disciplined execution for successful integration and transformation
150+ years of successful reinvention
2018201620142012
Acquired
Motorola Solutions
wireless networks
Created
Nokia
Technologies
Pulp, Paper,
Rubber, Early Bell
System products,
Mobile phones
Launched Networks
transformation plan
Sold
Devices
& Services
Acquired
Alcatel-
Lucent
Sold
HERE
Acquired
Gainspeed
Acquired
Deepfield
Acquired
Comptel
Created
Nokia
Shanghai Bell
Acquired
Unium
Public
Acquired
SpaceTime Insight

3. 3 © 2018 Nokia
Nokia’s unrivalled diverse track record of innovation in
scale and speed
Public
Patent
applications
(in 2017)
Nobel Prizes Turing Prizes Grammys Emmy Oscar
1300+ 8 3 2 2 1

4. 4 © 2018 Nokia
Collaborative
Innovation
ContemplationsCulture

5. 5 © 2018 Nokia
What makes up a truly innovative company?
“Culture eats strategy for
breakfast”
Peter Drucker
“More important than any of the
individual elements, however, is the role
played by corporate culture — the
organization’s self-sustaining patterns of
behaving, feeling, thinking, and
believing — in tying them all together.”
Strategy& Innovation Survey 2011
Public
PWC Study 2017

6. 6 © 2018 Nokia6 © 2018 Nokia
Key elements of
Innovative culture
Public
Culture
Entrepreneurial
Uncertainty
& Risk
Act Fast
Agile & MVP
Collaborate
& Compete
Change World
& Make Money
Open flow
of people
& Information

7. 7 © Nokia 2017 Public

8. © 2018 Nokia8 Public
Patience is Virtue
“Make bold investment decisions
in light of long-term leadership
considerations rather than short-
term profitability considerations. “
Amazon corporate governance

9. © 2018 Nokia9 Public
Strategy Not Enemy of Agile
Bottom Up
Top Down

10. 10 © Nokia 2018
Collaborative
Innovation
ContemplationsCulture

11. © 2018 Nokia11
Collaborative Innovation
Make FOMO work for you
To keep our edge, we must constantly explore new
technologies, new business models and new processes

12. 12 © 2018 Nokia
“The Third Wave
Three P’s to succeed:
Partnership, Policy and Persistence
“The entrepreneurs of this era are
going to challenge the biggest
industries in the world, and those
that most affect our daily lives.”
Public

13. 13 © 2018 Nokia
Turning Outsiders into Collaborators
Public
“… successful innovation
ecosystems create virtuous cycles
of external creativity, which drives
internal adaptation.”
‘This is the real IP — not
“Intellectual Property” but
“Innovation Partnerships.” ’
Toyota helping suppliers scale Netflix fostering content producers
YouTube Space for external collaborators
Source: Harvard Business Review, by Michael Schrage, April 30, 2014

14. © 2018 Nokia14 Public
Select Nokia Collaborations
Business Development
& many more

15. Our disruptive approach with partners
From an Evolution to a Revolution of the Supply Chain
Public© 2018 Nokia15
Smaller, agile, and modular
factories… anticipating the fast-changing manufacturing needs of the
future

16. 16 © 2018 Nokia
Joint innovation scouting with TIM
Public
Pioneering partnership since December 2015
• Joint scouting of innovative start-ups and
initiatives
• Partnership for innovative offerings
• Field deployment of systems, solutions
and services
• Acquisition of technologies & companies

17. © 2018 Nokia17
Bridge Big Entities and Startups
Expectations Reality
Public

18. © 2018 Nokia18 Public
Big Company is Like Europe
Image: Wikitravel

19. 19 © 2018 Nokia© 2018 Nokia
Establish Phased Metrics for Innovation Projects
Public
Problem
Traction
P&L

20. 20 © 2018 Nokia
Incentives for Time To Market
Public

21. 21 © 2018 Nokia
Accountability for Rejecting Outside
Innovation
Public

22. © 2018 Nokia22 Public
Do Not Overpromise!

23. Nokia 2018
Find a Champion
Public
INNOVATION

24. 24 © 2018 Nokia Public

25. 25 © 2018 Nokia
Factor in Industry specific peculiarities
Public

26. 26 © 2018 Nokia
Collaborative
Innovation
ContemplationsCulture

27. © 2018 Nokia27 Public
Timing is Everything…

28. © 2018 Nokia28
4 TB/day
Public
Explosion of Data in All Industries … estimates by 2021
1 PB/day
1.9 GB/day
3 TB/day
5 TB/day
Source: Intel

29. © 2018 Nokia29 Public
5G Enabling Revolutionary Use Cases
Automotive
Health
Events and
tourism
Industry 4.0
Mega
cities
Homes and
buildings
People &
Things

30. © 2018 Nokia30
…and we need to rethink the connectivity
Value in IoT is driven by industrial automation
5G World 2018
IoT Value Creation
Estimated2025 value creationpotentialof theIoT
- McKinsey Global Institute Time
Area of uncertainty
2019 2020
Enhanced mBB
Ultra speed Internet
HD & UHD services
New monetization
4th industrial
revolution
Digitization
Automation
Flexible production
Disruptive new
experiences
e.g. Haptic
Internet
NWrequirements
Acceleratingspeedof
change 2022
Unrealistic
Factories
Worksites
Cities
Logistics
& Transport
Health
($B)170
37001210
930
1660
930
560
1590
Low estimate
High estimate
160
850
Public

31. © 2018 Nokia31 Public
5G: Huge Force Multiplier for AI
Massive
machine
communication
Extreme
Mobile
Broadband
Critical
machine
communication
5G
>15 years
on battery
100 Mbps
wheneverneeded
Ultra Reliable
< 10-5 outage
1.000.000
devices per km2
10 000
x more traffic
mMTC
ultra low cost
>10 Gbps
peak data rates
<1 ms
radio latency
Zero
mobility interruption
Range
164 dB MCL

32. 32 © 2018 Nokia
• Cultivating culture to empower growth
• “Startups” in big organizations
• Strategic planning with agile make-over
• Collaboration evolving forms and practices
• Art & science in partnering across large and small
companies
• Key technologies to dramatically force multiply
Summary
Public

33. Azita Arvani
Head of Innovation Partner & Venture Management