AOM – Chicago August 7 th 2009

1. Nokia Siemens Networks LEAGILITY in Global Telecom Services – an application AOM –Chicago August 7th 2009 Dennis Lorenzin, Head of Global Project Management, NSN Services / Network Implementation

2. Nokia Siemens Networks in nutshellOne of world’s largest telecom infrastructure companies #2 in wireless networks#2 in operator services#4 in wireline networks Worldwide presence and local footprint in 150 countries More than 600 Operator Customers 40% of revenues come from Services ~ 60.000employees Major manufacturing sites in China, Finland, Germany and India Over 1.5 billion people connect through our networks

3. Telecom infrastructure building A multifaceted Supply Chain & Project Mgmt challenge Every 3 minutes a site is completed at Nokia Siemens Networks … … in one of 600+ Customer networks, in 150 countries many of which in emerging markets … combining NSN and 3rd party products in hundreds of different configurations … supported by a network of thousands of suppliers … aligning several global and local supply chains and responding to site/configuration changes within hours of final delivery … embedding into quite diversified normative and institutional environments

4. The problem …How to “extract” scale from a highly local process Country level: one/few Projects Telecom projects are very local in nature e.g. a turnkey rollout project must be seamlessly embedded in the administrative, legal, capability and capacity context of the country of deployment … 10s of suppliers 1000sof sites Scale-up factor 1:100 … yet NSN must leverage the considerable volumes of activities it is implementing every day, and that scale effect is only to be gained on the global level 1000s of suppliers 100.000sof sites Worldwide: a network of 100s of Projects

5. … and a leagile response to it Introducing the“4E”framework Processes designed for Agility Respecting the local nature of Customer Projects and the need to embed into the administrative, legal and capability context of each country EXPLOIT leverage scale through automation and remotization eNABLE e-enable and integrate processes and tools to the global backbone ENHANCE foster sustainability by monitoring & improving the operations EMBED integrate standard processes into the local environment DP* Customer Processes designed for Lean Leveraging the volumes of activities implemented every day, and the economies of scale materialized only on global level * Decoupling point

6. LEANI – a program for leagile network deploymentA dedicated global program to implement the 4E concept AGILE EMBED ENHANCE 1. Local service delivery 4. Beyond LEANI … developing the future NSN services delivery platform DP* 2. Integrated Project Management (IPM) eNABLE LEANI 1+2+3”Exploit the scale of each unique Project” EXPLOIT 3. Remote service delivery LEAN * Decoupling point

7. Leagility in Global telecom infrastructureA few ideas for research and further developments Lean theory application to Services business environment Lean-Agile supply chains – concept “translation”in a global Services context Workflow Mgmt systems as ‘decouplers’ in a services supply chain Delusion and deception in a Global-Local relationship Automation and remotization – cultural and political limiting factors “Green” aspects as risk/reward factors for a Global Project

8. Thank you ! Contacts : dennis.lorenzin@nsn.com