In the latest issue of Businessweek magazine, an interesting article is written about the developments at Nokia. Once the pride and flagship of technology craftsmanship of Finland. Addressed at all Business Schools, as an example on how you can turn around your company.
But as the Businessweek illustrates, Nokia missed the developments around the smartphones and is losing market share. With the rise of Android, the continous growth of the iPhone and the latest release of Microsoft’s mobile platform, the Nokia is not able to turn around it’s business.
But is it an issue of the phones, or is it a cultural thing within the company. Nokia also bought small start-ups, whom most of them failed to continue their growth under the Nokia umbrella. There seemed to be no room for true diversity of business models and management styles within the organisation.
Businessweek suggested that Nokia should have moved to Silicon Value ten years ago, but I doubt whether that would have made the difference. For me it’s all about the adaptiveness of your company and the agility to adapt new technologies, new demands from the market, but also to have the flexibility to deal with different business models and management styles.
Most large companies will spin-off companies in order to have a broad portfolio of companies, which allows different management styles and models. Afraid of having mixed ups or difficulties between the different business.
I predict that those companies that can have true diversity from within, are those companies that can best leverage from their different units, can promote innovation between the different units and can foster new initiatives that comes out of this.
Are they there yet. Not really, but we will witness the rise of these companies !!