1 / 23

Organizational agility in the Adaptive Cycle case study:

Organizational agility in the Adaptive Cycle case study:. Konstantins Babahodzajevs Arvind Bihari Mouade Boussaid Martin Jorna Alexandre Pinheiro. Introduction. Explaining organizational agility through the use of a case study about N OKIA .

sienna
Download Presentation

Organizational agility in the Adaptive Cycle case study:

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Organizational agility in theAdaptive Cycle case study: KonstantinsBabahodzajevs ArvindBihari MouadeBoussaid MartinJorna Alexandre Pinheiro

  2. Introduction Explaining organizational agility through the use of a case study about NOKIA. • Evolution in five phases (1988– 2012) • Adaptive Cycle according to the phases • The use of Virtual Organizations • The impact of the organizational structure on the agility 1

  3. Why NOKIA? Nokia went through significant changes in the recent years and fits well with the different phases in the Adaptive Cycle. About NOKIA • Finnish multinational communications and • information technology corporation • 122000 employees across 120 countries • Annual revenue of € 38 billion 2

  4. Five Phases of NOKIA • Crisis era(1988-1992) • Entrepreneurial era(1993-1997) • Equilibrium era(1998-2004) • Transition era(2004-2008) • Crisis era 2 (2009-2012) 3

  5. Phase I (1988 - 1992) • Nokia underestimated how intensely competitive the telecom business was • Nokia had ambition to internationalize and diversify • Nokia expanded by making new acquisitions, based on their large telecom business in the USSR 4

  6. Phase I (1988 - 1992) Cause: • Collapse of Soviet Union • CEO committed suicide Change: • Split-up into handset and network businesses. • Fully digitalization of networks(Pioneer) 5

  7. Phase II (1993 - 1997) • Production and Sales needed to meet Nokia financial targets • Nokia Mobile Phones faced major difficulties in operations,logistics and sourcing • The supply chain wasn't prepared for the demand, propelling them into a "logistics crisis” 6

  8. Phase II: Logistics Crisis "The crisis increased leadership unity in NMP and within corporate management, as it was seen as a "growing pain" - a toxic side-effect of exploding growth - not as a failure management." Importance to redesign the supply system to more disciplined and structured approach • Implementation of an integrated ERP system • Nokia realized that a more formal process of managing growth was required 7

  9. Phase III (1998 - 2004) Nokia was concerned that it would miss new growth opportunities. So they came to two conclusions: • Intellectual Leadership was introduced in 1995 that led to the creation of new ventures and research and established in 1998 Nokia Venture Organization as their home • Nokia realized they needed a third core business, however this was considered to be too daunting of a process. Instead they focused on strategic evolution and renewal of the core business 8

  10. Phase III (1998 - 2004) Organizational Structure: 9

  11. Phase III: 2001 Disruption • Market growth slowed down in 2001 • Competition became more severe • Market share dropped from 35% to 30% from 2002 to 2005 This lead to a new organizational structure, segmenting intonine value domains: 10

  12. Phase III: 2001 Disruption 11

  13. Phase IV: (2004 - 2008) • Seasoned leader executives resigned, due to the new interdependent matrix structure • The different domains started losing their capability to cooperate together • In 2006 the management team was rebuilt and Nokia announced it would merge its network division with Siemens 12

  14. Phase IV: The 2006 Structural Change 13

  15. Phase V: Present • Couldn't compete with disruptive innovations by competitors in the smartphone market • iPhone • Android • New competitors arrived in the networks market • ZTEand Huawei (China) 14

  16. Phase V: Present • Nokia responded to the smartphone threat, however they did not respond to the services delivered next to the smartphones. • Symbian OS did not have an app market like Google Play or the App Store. • Symbian OS was not built for touchscreen navigation, this resulted in Nokia having to play catch-up. • In the networks market, the new competitors have competitive pricing. 15

  17. Phase V: Organizational Structure 16

  18. Virtual Organization • Nokia has a virtual organizations policy since 2008 • Close cooperation with Microsoft, where Microsoft develops the software (Windows Phone 8) and Nokia focuses on the devices 17

  19. Influence of Organizational Structures 18

  20. Nokia’s Process over time • 1995-Realization that the supply chain wasn't prepared for the demand • Intellectual Leadership was introduced Fully digitalization of the networks • 2004-Seasoned leader executives resigned, due to the new interdependent matrixstructure • 2006- Nokia announced it was merging its network business with Siemens 1988- CEO Committed Suicide • 1998- Process and establishment of NVO 1988 2004 1993 1998 2008 • Implementation of an integrated ERP system • 2009- Creation of the “Ovi Store” • 2001-Market Share drop. • NMP split its core mobile phone business into 9 different market-segment focused “value domains” 1991-Collapse of the Soviet Union • 1996-Two forums were created: The Nokia Strategy Panel and Business Development Forum Split-up into handset and network businesses

  21. Thank You For Your Attention!

  22. Q & A

  23. References “The Dynamics of Strategic Agility: Nokia’s Rollercoaster Experience”,Y.Dozand M.Kosonen ,California Management review Vol 50, no. 3, 2008 John P. McCray, Juan J. Gonzalez, John R. Darling, (2011),"Crisis management in smart phones: the case of Nokia vs Apple", European Business Review, Vol. 23 Iss: 3 pp. 240 - 255

More Related