9. 1Build leadership in the smartphone market2Maintain volume and value leadership in mobile phones3Sustain our future as the leading Mobile Products Company To build a sustainable future as the world’s leading mobile products company, we must…
14. 1Regain leadership in the smartphone market2Maintain volume and value leadership in mobile phones3Sustain our future as the leading Mobile Products Company Investment in future disruptions MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-related product later this year.
21. Content (map data)supported by our Local Commerce efforts. Our offering will be available in Nokia products and services, in our platform APIs - and we will continue to serve our automotive industry customers We will bring our offering to non-Nokia devices and operating platforms 12
23. Mobile and Data Evolution in 2011 “What really distinguishes the year ahead is that these disruptive technologies are finally being integrated with each other – cloud with mobile, mobile with social networking, social networking with ‘big data’ andreal-time analytics” – Frank Gens, IDC, December 2010
24. Disruptive Changes to Traditional Data Processing Increasing Data Volumes Increasing Data Complexity Increasing Data Analysis Complexity Changing Analysis Model Increased Acceptance of Open Source Software Increasing Availability of Cost-Effective Compute and Storage
25. DataOS Cloud A central place to Store, Analyze and Deliver data Big Data Analytics Web and Mobile Apps Access Scale Analytics Engine Binary Data Structured Storage Data Scale Virtualization Cloud Agile Provisioning Physical Hardware
26. A Virtuous Cycle Search Ad Targeting Recommendations Personalization Big Data Analytics Web and Mobile Apps Analytics Engine Binary Data Structured Storage Virtualization Physical Hardware
27.
28. Delivering Operational Scale via Open Source Massive Scalability Uncompromised Security Centralized data management Aggressive SLA 99.99% Availability Short latency Intel DataOS Cloud Robust Data Service Scaling Architecture Multi-Site Performance Geospatial overlays Nokia Data Model Access Control Simplified API Platform Hardening Security Productization Monitoring Probes Rolling Upgrades Automated Alerts Usage control Operationalization Open Source Projects
29. Structured Data Backend Step 1:We reduced latency with cache Step 2:We enabled fast search via indexing based on Lucene ServicesFront-end Web Server ServicesFront-end Web Server ServicesFront-end Web Server Step 3:We added a highly scalable, distributed key-value storage system based on Voldemort Memory Storage Cache Cache Cache Key-Value Storage … Node 1 Node 2 Node n Indexes
39. Our Mission: build a highly scalable and available storage platform Our Team What We Know Persistent key-value store High-performance cache Lucene-based text index GeoSpatial index High-speed search Petabyte scale Talented engineering team centered in Burlington, MA Test team focused on benchmarking and performance metrics based in Bangalore, India
40. “As 'Big Data' Grows, IT Job Roles are Changing” --- Lucas Mearian, ComputerWorld --- Structured Data Platform: Client engineers Index engineers Storage engineers Network engineers
43. Data is the New Asset EBaycollects20TBof user data a day. Facebookcollects15TBdaily, generates 10TBfrom daily analysis, scans 135TBdata daily, and has15PTof total data for generating insights. Googleprocesses over 20PTof data per day and stored 2PT daily; runs110Kmap-reduce (analysis) per day Nokia’s opportunity: over 5 billion mobile phones in use as of 2010 - all generating data
44. Data is Critical to Business Source: McKinsey Global Institute: Big Data: The next frontier for innovation, competition and productivity, 5/11
45. Product Validation ”What are the most annoying bugs we need to fix – in relation to his device feature and app usage?” ”Is the next Maps release compelling and competitive when going live?” ”What apps and features drive the stickiness of E7 along the product lifecycle?” Create Transparency Link to Maps SR6 dashboard here Link to Crash Log dashboard here Link to E7 dashboard here
46. Merchant Analytics Key value drivers for place owners or media publishers Simple breakdowns for detailed reports Map as the canvas for visualization Enable experimentation to discover needs, expose variability and improve performance
47. Supporting Product Positioning Nokia Consumer Segments Purchase Reason for China Segment populations to customize actions Connectors – 30% Personal relationships and being in constant contact is paramount Open to new ideas Mobile services usage low Essentials – 21% Strong need for simplicity; calls and text Low social engagement outside family Income low compared to other segments Actives – 27% Active, enthusiastic abt. mobile technology Actively using mobile applications Social individuals Independents – 22% Self-contained, confident individuals Likes to use the device in versatile way Source: Nokia Consumer Trackers & NoCS Mobile engagement 31
48. Analytical CRM Targeting Tools for LSU’s Support human decisions with automated algorithms To behavior-based targeted campaigns Target group selection tool available for LSU’s From untargeted email Campaigns This content will be displayed to those with OVImaps as lead service Engagement_article_thanks_maps Engagement_article_thanks Ovimaps as lead service, Ovimail as next best service Engagement_article_nbs1_maps_mail Engagement_article_nbs1 Sent to Advocate, believer and onboarding rf groups Engagement_article_ovisuite
49. Innovate Predictive Targeting These new boots across the street have great ratings and are now on sale with this e-voucher. I’m sure I have earned them! Ticket in at 7 pm (Check-in info) Personalized data Targeted advertising Recommendations Cambridge Bus Station (Public Transport Data) 33
60. Our Mission: Data at the Center of Nokia Our Team What We Know Distributed systems Big Data management Statistical analysis, insights, predictions Hadoop Petabyte scale Bangalore: Hadoop Platform Developers Helsinki: Data Scientists Burlington: Data Transformation & Management
61. “Data is widely available, what is scarce is the ability to extract wisdom.” --- Hal Varian, Chief Economist, Google --- DataOS Analytics: Java Developers Hadoop & MapReduce PHP & scripting Oracle DBA
Sustainable differentiation in the eyes of the consumers and partnersDifferentiated Nokia experiences based on Microsoft collaboration and low-end innovation Leverage our strengths by building the new Nokia around a differentiated value add experience model rather than joining the Android ecosystemEnter a broad partnership with Microsoft to create the experiences and the third ecosystemBe the lead Windows Phone partnerCollaborate broadly on services (search, advertising, location based services, Office, gaming, music etc.)Build differentiated products and servicesLeverage IPRContinue S40 renewal, invest in low-end innovation (Meltemi) and build world-class software competenceInvest in next generation disruptive platforms (e.g., HTML5, new product categories)Lead Nokia through an extensive change programAll activities focused on the same central objective of delivering differentiated product experiences and supporting our core offering. Doing less but better.Nokia needs to realign its activities to support its unique core offeringDifferentiated products through:Differentiation with designInternet for the next billionExplore & NavigateCapture, Share, & re-LiveA viable ecosystem through: apps & content monetization mechanismsHorizontalizationAPIs to partner offering & differentiating hardwareConsumer and channel pull through:Strategic operator relationshipsMost effective Demand Supply NetworkMarket position and presenceBrand pullConsumer experience
growth is back The mobile devices industry is definitely growing again. Phone volumes in 2010 grew 13% year on year, reaching 1.43 billion units. 73% of the total volume,1billion units, was sold under 100 Euros. And double digit growth is expected to continue in 2011. But most importantly there is significant value growth. Market value in 2010 was 118 billion Euros, equating to 14% annual growth. Slightly over a quarter of the total volume sold above the 100 Euros price point, accounted for 2/3rds of the total market value. A similar value growth rate again is expected in 2011, though further upside is possible due to robust smartphone adoption and continued aggressive operator subsidies for high end devices. So clearly being the biggest volume player is no longer automatically means success. Geographically, North America is increasingly the industry influencer; but the share and value of developing markets is rising fast. . So where is this value growth coming from? Consumer demand for mobile services is driving value growth in all geographies and price bands both in the core mobile phone market as well as adjacent industries. Crucial to delivering these experiences across multiple device types, such as: phone, tablet, PC, TV, and domains such as: home, office, car, will be the development of ecosystems containing ‘megacamps’ of companies. Many of these players will successfully approach service development from a distinctly non-mobile starting point. The services delivered by these ecosystems can be globally branded but the most successful need to be locally relevant, and have a playful gaming-dynamics-inspired user experience. They also need to seamlessly integrate across platforms. We see this coming to life in the development, and increasing accessibility, of smartphones which is driving demand, boosted by the applications phenomenon and attractive pricing. smartphones and increasingly competitive landscape The migration of people to smartphones is happening sooner and quicker than earlier estimated. In 2011, over half ofsalesrevenuesareexpectedtocomefromsmartphones, whiletheirvolumeshare will onlyamounttoabout 13%. Europe will representthehighestshareofthesmartphonegrowthatfirst, but Asia in 2014 isverylikelytotakeoverasthebiggestsmartphonemarket.
Together Nokia and Microsoft plan to build a winning ecosystemThere is an opportunity to disrupt the current trajectory in the war of the ecosystems, but only if an ecosystem emerges that can innovate and differentiate its products and services and achieve global scale.A long termstrategic alliance between Nokia and Microsoft would build a global ecosystem that creates opportunities beyond anything that currently exists. This ecosystem would offer a serious alternative to the existing choices of operators, developers and consumers.Bringing together highly complementary assets and competencies would allow this ecosystem to achieve more than any other industry partnership could achieve.Scale is critical to a winning ecosystem. Together, Nokia and Microsoft would bring unrivalled scale in global reach, brand identity and product breadth.Individually, Windows Phone brings a highly differentiated platform and Nokia brings scale, hardware innovation and localization expertize. Together they bring differentiated services with globally recognized brands. Combined they could capture the attention of consumers, developers and operators.Proposed commitment to using shared assets and collaboration on development roadmaps means this ecosystem would be more than the sum of its parts. This differentiates Nokia Windows Phone from those who simply adopt the Windows Phone platform.Priority would be given to advancing the ecosystem not advancing differentiation within the ecosystem. for consumers because:Together with Microsoft, we aim to deliver stellar hardware, innovative software and unique services -- great mobile products.for developers because: Microsoft’s tools make it easy for developers to build applications. Nokia’s monetization services, store and operator billing make it easy for developers to make money. Windows developers would gain exposure to broader mobility opportunities.And Nokia’s scale would make it easy for developers to grow. for operators because:Nokia and MS will create a sustainable ecosystem to counter the the Google and Apple ecosystems.With Nokia Windows Phones they would have flexibility to manoeuvre and differentiate against their competition. They would have different and more compelling choices for their customers, the consumers.With a compelling product and operator billing, they would have a more central role in the consumer value chain.We don’t just plan to be competitive as an ecosystem; we plan to redefine the industry landscape! Innovation through complementary assets and native strengthsIn these plans, Microsoft contributes a next generation software platform on which to innovate; Nokia contributes leading mobile devices on which to innovate. Both companies bring differentiated services with globally recognized brandsNokia would adopt Windows Phone as its primary smartphone strategy, helping drive and define the future of the platform. That would include contributing expertise on hardware optimization, language support, customization of the software and helping bring Windows Phone to a larger range of price points, market segments and geographies.The joint product roadmap would have an extensive portfolio of products and services spanning location, search, entertainment, social, advertising and commerce: Broader opportunities to leverage existing products and services.Leading innovation through the integration and combination of core service assets.Nokia location-based services and maps + Bing + Microsoft AdCentre: on-line advertising would go mobile, local and contextual.The opportunity to incorporate branded service and product assets such as Zune, XBox and Office 360 would create a consumer proposition that cannot be matched in its potential.Integrated products and services would bring competitive products to global markets:The joint product roadmap would potentially open up the competitive US market by providing US operators a means to differentiate.We would be able to use our combined market reach to extend existing products and services to new markets.Microsoft would give application developers the tools they need to easily and rapidly leverage Nokia’s market reach. Integration of Microsoft Marketplace and Nokia’s content and application store would provide scalable infrastructure and compelling consumer engagement. Nokia’s market-leading billing and monetization capabilities would create rich revenue opportunities for services and applications delivered globally and customized and marketed locally.Nokia has implemented operator billing with 103 operators in 32 marketsWhere operator billing is available purchases are 13 times higher than through credit card billing alone. Scale, speed and executionScale is critical to a winning ecosystem. Together, Nokia and Microsoft would bring unrivalled scale in global reach, brand identity and product breadth.Advertising platforms require scale for success; Partnership would result in a services platform that has immediate critical mass with consumers and a global infrastructure to support advertisers. Together Microsoft and Nokia have some of the most globally recognized and treasured brands on the planet. This can be leveraged for the benefit of the ecosystem and the products.This partnership would provide the ability to leverage a combined intellectual property portfolio that is unrivalled in the industry.The opportunity would be immense:Nokia works with operaters in more than 190 markets; Nokia’s application and content Store is present with more than 100 operators, receiving 4 million daily downloads and is available in 30 languages.Nokia operates an established, global supply and distribution network with the capability to bring products to almost every corner of the world. That provides the capability to take potential Nokia Windows Phone products and make them globally competitive.The opportunity to focus on core competencies and leverage established products and services promises faster execution than either company could achieve alone and on an unrivalled global scale.Planned cultural and strategic alignment of the two companies on the future evolution of mobile products,includes closely aligned development teams, joint marketing initiatives and a shared development roadmap.A virtuous circle of software driving hardware innovation and hardware driving software innovation would accelerate hardware and software development cycles.Collaboration on future roadmap development would create products and services that are optimized for joint success and global opportunity.
Nokia continues to enjoy a strong position in growth economies, on the strength of our feature phones and brand.We will continue to connect people to their first phone and their first Web and application experience, not only retain existing customers at the entry phone level. 3.2 billion people do not own a phone today and of the 3.7 billion who do, 1.2 billion only have SMS and 1.5 billion aren’t using the Web.Tim Berners-Lee speaking at Nokia World in 2010 stated that only 20 percent of the world’s population is online but 80 percent live within range of a mobile signal.By providing compelling and affordable, localized mobile experiences, particularly to the emerging markets, our ambition is to bring the next billion online.Success will require world-class software, productization, and services delivery capabilities and a maniacal focus on the unique needs of this consumer segmentWe will continue the renewal of our S40 platform in QWERTY, touch&type, dual SIM, Nokia services, including Maps, Browser, Life Tools, Web apps and Money.We are also investing in the future; developing assets (platform, software, apps), which will bring a modern mobile experience to the traditional S40 consumer. These investments will be especially focused on growth economies.Actions1) Series40 renewalDual SIM More Touch & Type More QWERTY Full Touch Richer UI experience Aspirational design2) Deliver affordable access and servicesIn 2011Address social networking craze with chat, IM and email solutions on S40Introduce S40 maps to accelerate LBS growthCapitalize on the high pull of local music services with tailored music devicesIntegrate stores & operator billing to capture apps growth3) Deliver Ovi browser – door to the webPutting our own proxy browser on our own devices will open the door for more revenue opportunities And gives consumers affordable access to the web and appsFor Consumers: faster better cheaperFor Operators: less network hungryFor Developers: increased reach4) Drive 3rd party innovation Deliver SDKs & tools to developersQuick and efficient creation and testing of Java apps – Series 40 Java SDKsNokia Web Tools for Series 40 (on Ovi Browser) will include a simulator and an app wizard for quick and easy creation of apps Build opportunities to monetize Expand operator engagementExpand local partners Increase local apps5) Invest in future assets Expand Nokia Money Explore new opportunities Invest in new assets
Investment in Future DisruptionsWe must also make sure we get ahead of the game on industry innovation evolution.With the decision to adopt Windows Phone as Nokia’s primary platform strategy we have adapted our plans for MeeGo. Under the new strategy, MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. We will continue with plans to ship a MeeGo-related open source product later this year. That device will sit within our smartphone portfolio as an opportunity to learn.It will be compatible with applications developed within the Qt framework and therefore consumers who purchase the device will have access to applications developed in Qt. At the same time, MeeGo efforts will transition into an ongoing exploration of the next generation of devices, platforms and user experiences.
Disruptive Changes on Traditional Data Processing- Data growth rates of 40% to 60% are not uncommon in today's enterprises. This increase constitutes a considerable financial burden on IT organizations. A key driver of the dramatic increase in data volumes is the increasingly sensor-enabled and instrumented world. Increasing Data Complexity - There has been an implicit assumption that the majority of valuable data is structured. It has been assumed that the 80% of data that was non-structured was therefore of limited value. The success of search engine providers and e-retailers to unlock the value in Web clickstream data was one of the first examples of the successful processing of large volumes of unstructured data. Other industries have taken note, and the requirement to analyze and mine this data in conjunction with existing structured data is increasingly on the agenda as enterprises look for a competitive advantage.Increasing Analysis Complexity - With data complexity comes analysis complexity. Examples include image processing for face recognition, search engine classification of videos, and complex data integration during geospatial processing. In addition to supporting traditional transaction-based analysis (e.g., financial performance), Web clickstream data enables behavioral analysis. Behavioral analytics is designed to determine patterns of behavior from human/human and human/system interaction data and requires large volumes of data in order to build an accurate model. These patterns of behavior may provide insight into which series of actions lead to an event (e.g., a customer sale or product switch). Once these patterns have been determined, they can be used in transaction processing to influence a customer's decision.Changing Analysis Model - Models of transactional data are well understood, and much of the value from this analysis has already been realized. Models of behavioral interactions are less well understood, and large volumes of data may be needed to build accurate models. In addition, research suggests that a sophisticated algorithm with little data is less accurate than a simple algorithm with a large volume of data. Examples include voice and handwriting recognition and crowdsourcing (see "The Unreasonable Effectiveness of Data").Increased Acceptance of Open Source Software - Many open source software projects have reached the required level of sophistication, stability, support, and documentation to make them applicable and appropriate for inclusion in product evaluations for production-quality and large-scale software projects. The number and breadth of open source projects make deploying a data-processing infrastructure based entirely on open source products possible — an example might comprise data analysis and statistical processing using R, data-processing framework using Hadoop, and data management using MySQL.Increasing Availability of Cost-Effective Compute and Storage - Cloud computing, commodity hardware, and open source software are changing the economics of data processing. Computational and data storage capacity are no longer constrained by acquisition costs. This is allowing enterprises to ask what's possible with the new "economics of compute."
Put that in speaking points about architectural changes.
Make this a build
DataOS is about containing the escalating costs associated with managing big data, its about handling the Internet scale and performance requirements around that data, and its about enabling better management and insight so that we can provide a dynamic and differentiated experience for Nokia's end consumers. That's the value of DataOS: cost containment, scale and performance, intelligence and insights to make our business grow.
Other dataOS features: Short upgrade timeKnowledge BaseUninterruptable serviceFault managementResource projectionsCapacity Planning
5 kinds of analytics, derived from McKinsey Global Institute report “Big Data: The Next Frontier for Innovation” ALREADY in use at Nokia…Create transparency: make data more easily accessible to relevant stakeholders in a timely manner can create tremendous value. Reduce search and processing time, integrate data from manufacturing, R&D, engineering and manufacturing. Enabling experimentation to discover needs, expose variability and improve performance: From everything to product inventories to personnel sick days, analyze variability in performance and enable leaders to manage performance to higher levels. Segmenting populations to customize actions: create highly specific segmentations and tailor products and services to meet those needs. Think real-time micro segmenting of customers to target promotions and advertising. Replacing/supporting human decision making with automated algorithms: Decision making may never be the same; some organizations are already making better decisions by analyzing entire datasets from customers, employees, or even sensors embedded in products. Innovating new business models, products and services: Analytics can allow us to create new products, enhance existing ones and invent entirely new business models. We have the opportunity to garner data from our products to create an after-sale market: increasing the total lifecycle of our customer.
The links were restricted but should work for Paul, Amy, Pavendeep, and Stephen E. now!Data from the 360CUP can be used in the product (or service) pre-launch phase for validating market readiness, observe real usage (app, features, bugs) as well as allow the capture of consumer feedback on satisfaction (NPS) and quality. This allows for the prioritization of the product improvement activities (e.g. bugs to be fixed, features to be improved). Information on consumer real usage gives input into the related Product Marketing and Marketing Creation activities. In addition, the data helps improve the accuracy of the product quality predictions (e.g. batch-failure rate), which helps the decision-maker assess the market implications of his go-live decision.
Is real
Nokia Consumer Segmentation (NoCS) research is conducted in 19 countries (>40,000 respondents). NoCS focuses on mobile needs and aspirations. Data is stored on NDW, and data can be linked to ongoing consumer research initiatives and internal Nokia consumer databases. The main use case for NoCS is Product Marketing (GTM) and Product Positioning. In addition, NoCS can be used for Marketing Creation and CRM Targeting.For example, the Consumer Trackers provide purchase reasons by NoCS segment as well as on global, SU, and LSU levels on a monthly basis. The attached figure shows that the “image quality of camera” is roughly 10 percentage points more important for Actives than Essentials.
Here’s an example of the difference between general and targeted content using the Single-Marketing Consent (SMC) communication plan for E6 as an example.The Advanced Analytics team has developed a series of CRM targeting tools that are being deployed to more than 70 LSU’s. Deployment started in June and continues throughout 2H11. Above you can see above how significantly more personalized the campaign messages become analytical filters have been applied. The main article is being targeted to those using Ovi Maps as a lead service and the second article is being steered to those who have Ovi Mail as a next best service recommendation. You can also see how the lead service is also nicely present in the second item content, creating a nice marketing flow. The third item is sent to all Nokia Account users who are in the Advocate, Believer, and Onboarding segments.
IS THIS MISSING SOMETHING?
Sustainable differentiation in the eyes of the consumers and partnersDifferentiated Nokia experiences based on Microsoft collaboration and low-end innovation Leverage our strengths by building the new Nokia around a differentiated value add experience model rather than joining the Android ecosystemEnter a broad partnership with Microsoft to create the experiences and the third ecosystemBe the lead Windows Phone partnerCollaborate broadly on services (search, advertising, location based services, Office, gaming, music etc.)Build differentiated products and servicesLeverage IPRContinue S40 renewal, invest in low-end innovation (Meltemi) and build world-class software competenceInvest in next generation disruptive platforms (e.g., HTML5, new product categories)Lead Nokia through an extensive change programAll activities focused on the same central objective of delivering differentiated product experiences and supporting our core offering. Doing less but better.Nokia needs to realign its activities to support its unique core offeringDifferentiated products through:Differentiation with designInternet for the next billionExplore & NavigateCapture, Share, & re-LiveA viable ecosystem through: apps & content monetization mechanismsHorizontalizationAPIs to partner offering & differentiating hardwareConsumer and channel pull through:Strategic operator relationshipsMost effective Demand Supply NetworkMarket position and presenceBrand pullConsumer experience