The glory days of Nokia began in the 1990s, and the iPhone faded after the advent of the century. During this period, a CEO has been in charge of Nokia for more than a decade. He is a member of Jorma Ollila. .
Ollila first joined the investment bank, joined Nokia in 1985, and was promoted to the company's CFO all the way, and finally took the helm. His CEO's tenure lasts more than a decade, witnessing Nokia's growth as the world's largest smartphone maker, and witnessed the beginning of Nokia's decline before the Apple iPhone.
In his biography "Impossible Success," Ollila described the process of selling his assets at the helm. Nokia's toughest asset divestiture process is the sale of its paper mill in 1989. The paper industry is the first industry in which Nokia started.
The sale of this asset took a whole year. "It is the most sacred part of Nokia, and people are not willing to talk about its sale publicly."
The second asset that Nokia sold was its TV production department. Even the mobile phone department, Nokia once considered selling. However, in 1991, the Boston Consulting Group evaluated that the Nokia mobile phone business could not compete with Motorola and Japanese mobile phone manufacturers.
At the time, Nokia was still subject to the Finnish bank. In 1991, they tried to sell the company to Ericsson as a whole, but the Swedish company believed that Nokia's TV business was too risky and could not agree to the acquisition. A year later, Siemens proposed to acquire Nokia's mobile phone division, but Ollila refused.
Finally, Nokia insisted on developing the mobile phone business and ruled the entire mobile phone industry from the late 1990s to the beginning of the 21st century. Until the Apple iPhone came out in 2007, Nokia began to decline.
Too focused on the mobile phone business, forgot to open up new areasSo, how did Apple surpass Nokia? In this regard, Ollila's explanation is: Apple has superior products, superior features, and more profitable prices.
Despite admitting defeat, Ollila still insists that Nokia is only one step away from success. Nokia’s leadership knows that the company must move from a mobile phone company to a software company, and that Ollila has repeatedly talked about such a strategic transformation inside and outside the company.
Ollila claims that as early as the 1990s, the success of the Nokia 101 mobile phone and Ericsson’s failure in the mobile phone market have reminded Nokia that it cannot develop too fast.
In 1998, Nokia held a strategic meeting, where company executives gathered to seek common development. Ollila said that Nokia "thinks the right direction", but has not been able to go deep into the development of new areas.
"Maybe Nokia is too focused on the mobile phone business. Maybe it should study other wireless technologies. But when you become a global market leader, it is easier to reshape the company's overall strategy," Olila said.
Grasping the timing requires intuitionOllila also pointed out that Nokia is facing a shortage of software engineers when it develops in Europe. Moreover, the company has gradually developed a sense of pride and complacency, and is reluctant to imitate others in software research and development, and is always accustomed to closing the door to innovate.
US operators are always complaining to Nokia: users don't want smartphones that cost more than $300. As a result, the iPhone, which sells for $600, is as popular as the enthusiasm.
"Ultimately, the timing must be based on intuition. It is not the result of democratic decision-making. This is the responsibility of the CEO. The timing is the most important mission of the CEO," he said.
In 2006, Ollila resigned as CEO and was replaced by the company's then COO Kang Peikai. Ollila said that Nokia's management will continue to insist on the implementation of the former CEO's plan within a year and a half of the new CEO's appointment, which means that the company's rapid transformation is almost impossible.
After Kallasvuo, it was Stephen Elop who took over as CEO of Nokia. But Ollila publicly admitted that Elop is not his first choice. His favorite candidate is the second person in a famous American technology company, but he did not name the person.
In 2012, Ollila resigned as chairman of Nokia; now he is a non-executive director of the oil giant Shell. But there are rumors that he is still staring at the Microsoft board of directors.
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