All About Symbian - Symbian, Nokia and S60 unwrapped.
Nokia's Tero Ojanperä on Solutions and strategy
Published by Rafe Blandford at 0:02 UTC, March 11th 2010
Nokia is currently transforming itself from a hardware company to a hardware+services (solutions) company. At MWC 2010, we spoke to Tero Ojanperä, EVP of Services, in order to get an insight into current progress. Over a wide-ranging interview we cover a number of topics around Nokia's service strategy including how Ovi fits into Nokia's software platform strategy, the thought processes that led to free navigation, the importance of services compared to phone hardware, getting content onto the Ovi Store, the importance of partners and much more.
Keypoints
- Nokia is currently focused on delivering Ovi services on Nokia platforms (i.e. Nokia devices running MeeGo, Symbian and Series 40). However it is worth noting that the underlying assets (e.g. Navteq) are being used on other platforms; indeed, the free navigation offering is expected to drive demand for Navteq products.
- The thought process behind the decision to move to free navigation with Ovi Maps has three key areas: consumer demand, technology situation and business model. "Putting all of this together, we realised there was an opportunity and with our scale we could take it to the next level. Rather than selling premium navigation licenses, let's move to the next phase, scale it across the device range and then get the benefits out of the increased device sales for Nokia, creating advertising based monetisation and also by opening the APIs we encourage third parties to build on top of the offering."
- The point at which services become more important that phone hardware is already here. "So I see it is already a criteria. It does not take away that it still needs to come in an attractive package. So I think it has already happened."
- Nokia services / solution business has good momentum. Nokia Messaging and Nokia Music are growing quickly, Ovi Store is getting established and Ovi Maps has increased momentum. "We will continue to concentrate on those four areas - we will drive it harder - more countries, more content, more localised services."
- There are "more sophisticated tools for media companies to bring their content more easily to Ovi Store" in incubation (on the way soon) and ongoing initiatives to bring content into the Ovi Store with an emphasis on the local. "But we can always do more and we need to do much more."
- Nokia's software platform strategy has three tiers: "MeeGo - push the envelope as much as possible, Symbian - push it downstream as much as possible and Series 40 - low cost. This segmentation will evolve, but I do not see it changing in the next 12 -24 months."
- For Nokia, especially in solutions, it is an ecosystem game - "If our partners cannot succeed, we cannot succeed in services".
Tero Ojanperä (EVP Solutions, Nokia) on solutions and strategy
Transcript (approximate):
Tero Ojanperä [Nokia] on how Ovi integrates with the MeeGo and Symbian strategy:
We have Symbian, we have Maemo, which is now evolving to MeeGo together with Moblin. But the key thing is we have Qt as an application development environment common to both. We are trying, even though the two operating systems and their stores serve two different categories: smartphones and computer, to unify as much as possible the platform and the tools for developers. So Ovi is the platform and we want to drive both quality and quantity.
It is not only about only about application developers; there are a lot of content providers who don't want to develop apps, they just want to get their content to be discovered through apps and we will pride more sophisticated tools going forward in that direction.
Tero Ojanperä on whether applications and services will launch simultaneously on MeeGo and Symbian (continuing from above):
Of course, because the focus is different [there will be some differences]. With the computer category we expect to see more powerful hardware, more capabilities, so of course went to take advantage of those and our partner will want to take advantage of those to develop something that.. it might not be available for Symbian in the same form because the capabilities are different. So it will depend, a bit, on the type of application and how much computing power they require.
Tero Ojanperä on whether we see Ovi on other platforms or other MeeGo hardware:
We are currently focused on getting the scale and getting the offering ready on the Nokia platforms. On the other hand if you take, not as such Ovi, but if you take our offering in location - the location and the free turn by turn navigation - it is driving demand from other vendors into the underlying assets, which in this case are in Navteq, so in that sense there is already a horizontal offering, but it is not under the Ovi brand. But Ovi - currently our strategy is to focus on Nokia.
Tero Ojanperä on the thought process that led to making Navigation free:
That is a very good questions - because there was a thought process - and it was actually quite long. What we have observed - for me and for us it is always a question - what is the consumer demand, what is the technology situation and what is the business model. And in this one we saw that - OK technology - GPS chipsets are penetrating a very large number of smartphones so there is an underlying technology that is almost like 'what are we going to do with this one'. Then on the other hand, in the turn by run navigation was there, but when we look at what consumers actually want from [the] mapping application - it is not only navigation - they wanted more. And if you look at the current Ovi Maps client you'll see the Facebook integration, the local content and so on. Then we look at why hasn't anyone got into real scale with the navigation offering. We felt that the market was fragmented, there were too many - buy this license for 10 days, for a month, for two years - it was just too complicated.
And so then the business model - is this going to be monetised through transactional navigation licenses or is it going to be something else. Putting all of this together, we realised there was an opportunity and with our scale we could take it to the next level. Rather than selling premium navigation licenses, let's move to the next phase, scale it across the device range and then get the benefits out of the increased device sales for Nokia, creating advertising based monetisation and also by opening the APIs we encourage third parties to build on top of the offering. So that was the thought process that we went through.
I'm quite happy - we have just updated today that, in the few weeks since the launch, we have gone through 3 million downloads and we haven't even started the pre-loads yet - we start to pre-load next month. So people are downloading it now, so of course they will get the benefit and I believe that has some impact. But I believe when we pre-load including the map content for your specific area we will start to get more uplift.
Tero Ojanperä on when will services offered become more important than phone hardware:
I think we are already at that point now, in my opinion. Because I see the fact that people [ask] ‘where do I get the apps' - in Nokia case you go to Ovi Store. So I see it is already a criteria. It does not take away that it still needs to come in an attractive package. So I think it has already happened.
Tero Ojanperä on where is Nokia's market (given Nokia's strength in the emerging markets):
If I look at our situation it is not just about the emerging markets, we compete on a global scale. If I look to Western Europe I think we are getting traction, whether is is mapping, messaging, Comes with Music, Ovi Store. It depends of course on the specific market how we are doing. But I do not see this as an emerging market play - it is a global play.
Let's talk about Ovi Store - so we launched in May - there was a fair amount of coverage... and what I have seen now happening, if you look at November, December, January coverage it is turning. It is not about us telling the story - actually it is the developers - Nimbuzz, Polarbit - 1 million downloads - and those downloads are happening everywhere. I feel the story is starting to coming out and we are focused to make it come out. The Valley will be shown - if our partners will be successful - then will be successful. A store without great content and great success for those who provide content is nothing. So I don't want to talk about Ovi Store, I want to talk about what is in Ovi Store.
Rafe Blandford [All About Symbian]
Do you not feel you might need to provide incentives to get people into Ovi Store, to kick start the process if you will?
Tero Ojanperä:
There are a number of initiatives in that respect. Locally - we are localised in 30 languages, and Forum Nokia is providing [local] developer support. And as I mentioned [earlier], but still in incubation, more sophisticated tools for media companies to bring their content more easily to Ovi Store. So absolutely we need to develop the ways we work with developers and publishers to make it easier to bring content. But I feel in the last months we have good momentum and there is more interest - companies like Greystripe announced the advertising game offering - there are a lot of good developments. But we can always do more and we need to do much more.
Tero Ojanperä on platform strategy:
There are three tiers here. MeeGo - push the envelope as much as possible, Symbian - push it downstream as much as possible and Series 40 - low cost. This segmentation will evolve, but I do not see it changing in the next 12 -24 months.
Tero Ojanperä on the progress / success of Nokia service / solution business:
Good question. If you look back a year: zero Messaging deals - now 70 plus (half of which are active in the market); we didn’t have Ovi Store (now getting good momentum); a music offering in 1 market, now 27 markets; navigation we were already established, but with the new client we have significantly increased momentum. So I expect we will continue to concentrate on those four areas - we will drive it harder - more countries, more content, more localised services. We will be significantly up from where we are now and will be reporting on a quarterly basis [active users].
Tero Ojanperä on educating users about services:
That's an extremely good point. We need to talk more about solutions, and not only Nokia, but also work with our channel partners (operator, retail) and our customers to make sure the proposition is understood. We have a joint education task. Ultimately if the consumer does not understand [there is a problem]. Even though we (and the market) have good momentum from the early adopters to really take it to the next level a lot educational work is needed.
Tero Ojanperä on Nokia's ecosystem approach:
I believe it is an ecosystem game. If our partners cannot succeed, we cannot succeed in services. With Ovi Store and the Maps there is now more of a focus on the content partners... and partners will be relevant locally. So it is about working together.
See also
- Nokia's Christof Hellmis on Ovi Maps and location strategy.
- Anssi Vanjoki on Nokia N97 - commerical success, but user experience failure, how to solve, importance of Symbian^3.
- Anssi Vanjoki on Symbian, MeeGo and N95 form factor - open source as a software making model for the future, future primary input mechanisms (N95).
- Anssi Vanjoki on the future of Symbian and MeeGo - what next for Symbian and MeeGo, maps as a generic UI, Nokia competitors, importance of openness.
News Discussion
Even as a current Nokia owner (E71 and 6650 flip), the idea that the Finns in Espoo can somehow transform themselves into a software services company is absolutely laughable.
Software or services is just NOT in their DNA. It never has been. They're a pure hardware company, like Sony (who also can't do software). To be credible in at least services, a company needs absolutely phenomenal customer service and product post sales support. Nokia's current performance in this area is abysmal, even in the markets where they're strong, and the Ovi store is still a total joke.
Nokia's best strategy going forward, in handsets, is to leverage their strength in hardware design and model HTC, who presently make some of the best smart phones on the market.
|
Originally Posted by Jimmy1
To be credible in at least services, a company needs absolutely phenomenal customer service and product post sales support.
|
I have to disagree with you a bit here. As an American currently for the gov't and living in Finland, I can say that Finns are very good at software. They simply do not make it pretty. They have a sort of austere functionality that serves the purpose without much fanfare. Yes, they can do more to make it look better and to perform better, but in essence the essential operations are there.
I do agree with you 100% when you say that Nokia will most likely fail in their attempt to be a services company. You can see this in their product launches. They launch "flagship" phone after "flagship" phone without the necessary infrastructure in place. They just lost a sale for me on the N900 while not providing Ovi support. What are they thinking here? This is simply amateurish and unprofessional. People may hate Apple for a variety of reasons, but no one can say that they do not provide a great and memorable user experience the first time, every time. Even when they have issues (Mobile Me launch), they correct it, issues an apology and offer the customer something free. Nokia does no such thing. The N97 was and is in some ways still defective. Nokia too months and was forced to admit that something was wrong and they did nothing other than what was forced from the negative publicity. A simple test would be to see if Nokia could really compete if they had to go up against Apple or HTC, or Android with only one phone instead of having the lower end models saving their butts. Without the bottom end, Nokia would be in dire shape.
|
Originally Posted by Unregistered
@jimmy1,
People may hate Apple for a variety of reasons, but no one can say that they do not provide a great and memorable user experience the first time, every time.. |
As an iPhone owner and Snow Leopard user I can definitely state that this is not true. Their stuff is full of irritating esoterocisms and awful control desisions and in many cases just poor product performance.
As stated elsewhere on this site, an iPhone has an excellent web browser capability and application platform, but is rendered useless against Nokia phones because the Nokias can still pull in strong signal where the iPhone is struggling to even see its carrier. It's battery life is crap and there is a list of other irritations as long as your arm.
It does some things very well, but is far from a perfect "user experience every time".
I feel fortunate that I am immune to hype.
|
Originally Posted by Unregistered
As an iPhone owner and Snow Leopard user I can definitely state that this is not true. Their stuff is full of irritating esoterocisms and awful control desisions and in many cases just poor product performance.
As stated elsewhere on this site, an iPhone has an excellent web browser capability and application platform, but is rendered useless against Nokia phones because the Nokias can still pull in strong signal where the iPhone is struggling to even see its carrier. It's battery life is crap and there is a list of other irritations as long as your arm. It does some things very well, but is far from a perfect "user experience every time". I feel fortunate that I am immune to hype. |
You do have valid points about most things though.
|
Originally Posted by Unregistered
I too own an iPhone and also a Nokia, and can easily admit that neither phone outshines the other. The one thing I have found is that with the iPhone, you pretty much get what you signed on for. I have not had any of the signal problems that you are experiencing. The battery life on just about smartphone today is crap at best. It seems the battery technology race has not kept up with the demands of the hardwired and software. The irritations that I have were there from the very start and documented (if you consider them irritations) enough on the Internet to allow anyone to make an informed purchase. So if you purchased an iPhone knowing what you know then you have only you to blame. Nokia continued to sell the N97 with a defective lens protector, a badly placed GPS antenna, TERRIBLE software, and they remained silent until it simply became to widely known.
You do have valid points about most things though. |
Place the Nokia with an O2 Sim next to any iPhone on o2. The Nokia has a steady 3 bars. The iPhones say "no service" and "searching". This is consistent. I can make and receive calls from my desk with the Nokia. The iPhone owners have to go outside and find a spot in the car park where they get a signal. That's all iPhones.
As for knowing the iPhone flaws before I bought, yes I did and I still went ahead and got one, because it has apps available that I need and make my life easier. There is no Wordpress client for Symbian and the ftp and on screen editing allows me to maintain several websites on the move. Unfortunately, I have to carry two phones because I also need a reliable voice connection. (an no the ipod touch is not the answer because there are times and places when the iPhone 3G connection is useful.
I also was aware of the N97 problems, which is why I didn't buy one. Nokia have almost as capable phones at a fraction of the price.
|
Originally Posted by Unregistered
I work in an office with fringe coverage, so I can do this experiment with any iPhone and have done several times.
Place the Nokia with an O2 Sim next to any iPhone on o2. The Nokia has a steady 3 bars. The iPhones say "no service" and "searching". This is consistent. I can make and receive calls from my desk with the Nokia. The iPhone owners have to go outside and find a spot in the car park where they get a signal. That's all iPhones. As for knowing the iPhone flaws before I bought, yes I did and I still went ahead and got one, because it has apps available that I need and make my life easier. There is no Wordpress client for Symbian and the ftp and on screen editing allows me to maintain several websites on the move. Unfortunately, I have to carry two phones because I also need a reliable voice connection. (an no the ipod touch is not the answer because there are times and places when the iPhone 3G connection is useful. I also was aware of the N97 problems, which is why I didn't buy one. Nokia have almost as capable phones at a fraction of the price. |
As for Nokia, I can't think of one single flagship phone released in the last two or 3 years that did not have some major design or software flaw. I have very little confidence in Nokia as a phone manufacturer and even less as a services company. They had a head-start on Apple for about a year or so and Ovi is still a disaster and playing catch up. I am afraid that when the iPad launches, this will just seal the deal.
Moreover the fact that there is software running in all of Nokia's phone means it is already a very capable software engineering company. Now you can make an argument about web services etc, but this is a nascent market (relatively speaking). And Nokia can point to sucess too (Ovi Maps and Ovi Mail and Nokia Messaging being the obvious ones).
Solutions is about service + hardware - not just one or the other. Solutons is likely to be a global game, which is currently the most mis-understood / overlooked factor going forward in mobile.
Anyone who really thinks Ovi is a total disaster isn't watching closely enough and/or doesn't understand global scale. It has its problems - absolutely - so does everyone else. Are Nokia's worse - worse than what? Nokia has received a lot of criticism because of its weakness in the hgih end space - but that does not mean the business strategy is wrong. So yes Nokia needs some good hardware products at the high end matched with new software versions, but there's a clear roadmap for that. In the mean time the N97 (and yes it ha had issues) has still sold more than any other single Android product (rather suggesting that sales mechanics are more complicated than what some 'term' best).
If you compare Nokia's progress here to their traditional competitors you'll see a very different story. It is the only one of the traditional handset manufactrers that is in the solutions game. And I would argue Nokia has the most coherent startegy for addressing a global market.
And there are several nuggets in the interview that no one has really picked up on. Shame really - this is not about Nokia versus iPhone - that really is only one part of the story.
Google is a great Software Company, but no Hardware.
Apple has a bit of both Software and Hardware. But their Hardware and Software is verry restricted and they are in both Area not the leader just one ofthe player.
Samsung is strong in Hardware but little in Software cases, I dont count Bada because no hardware and software on market.
Nokia is a all in one Company. They have a lot Hardware and Software and Services. Nokia is not a Services Company but they show us that Nokia can change it self. I think in 2-3 years Nokias Eco System with Meego,Symbian, S40, QT, Ovi Services and Ovi Store will grove enormous.
All Competitors of Nokia have their strength and week but none of them is stronger than Nokia in every area.
|
Originally Posted by Unregistered
As for Nokia, I can't think of one single flagship phone released in the last two or 3 years that did not have some major design or software flaw.
|
"As for smartphones, I can't think of one sinlge flagship phone in the last 5 years that did not have some major design or software flaw. "
|
Originally Posted by RogerPodacter
Nokia has great hardware, but they are not good at software, period. Please, how long did we live with the call log bug, 2 years or so? How long did we wait for threaded text, which never even made it to useable, and then disappeared? How long have we been asking for a real html email client, which we still dont have (or just now got from nokia messaging beta labs)? Dont make me go on with more examples. Nokia just doesnt do good software...they do enough to barely get by. Those are the facts as i see them.
|
I'm getting sick and tired of reading this, it's so subjective it's unreal :-/. I'm in Newcastle and get perfect 3G nigh on everywhere even my office, yet when I went to London a while back I barely got any 3G service, just Edge.
|
Originally Posted by Fed up
"As stated elsewhere on this site, an iPhone has an excellent web browser capability and application platform, but is rendered useless against Nokia phones because the Nokias can still pull in strong signal where the iPhone is struggling to even see its carrier. It's battery life is crap and there is a list of other irritations as long as your arm."
I'm getting sick and tired of reading this, it's so subjective it's unreal :-/. I'm in Newcastle and get perfect 3G nigh on everywhere even my office, yet when I went to London a while back I barely got any 3G service, just Edge. |
|
Originally Posted by Rafe
I imagine people said that mobile phones were not in a Nokia's DNA when they switched from being a cable / rubber company to mobile phones (yes here was a transition period).
|
Services and software are a different ball of wax; logistics advantages here don't matter.
Steve Ballmer of Microsoft was totally accurate this year at Mobile World Congress in Barcelona when he said that, for the most part, mobile phones now tend to all look relatively the same (commodization): the thing people tend to notice now is the software running on devices.
Nokia maybe doing OK at present but believe me their future is very bleak. The just don't know what they're doing on software and services.
nGage = major fail
Ovi Store = fail
Ovi Games = fail
Initial Firmware On Phones = fail (customers are treated as guinea pigs)
Comes With Music = major fail
OVI ANYTHING = MAJOR FAIL (Nokia Maps not included)
The likes of HTC, Apple and Google are doing a far better job.
| Anyone who really thinks Ovi is a total disaster isn't watching closely enough and/or doesn't understand global scale. |
"Yes, we lose money on every transaction, but we make it up in scale"
failing globally doesn't make something a success. It just makes the failure global. Everyone but Tero knows Ovi is failing hard (except for Maps). Music? PIM? Store? All make the Nokia phone LESS attractive than one without Ovi. It's the kind of garbage operators put on. It's why there's a debranding industry. Is no one in his circle permitted to tell him the bad news?
Time to say thanks Tero, and bring in new blood.
"Yes, we lose money on every transaction, but we make it up in volume"
Pity Tero never heard that.
|
Originally Posted by Unregistered
Rafe:
this reminds me of the old dot.com joke: "Yes, we lose money on every transaction, but we make it up in scale" failing globally doesn't make something a success. It just makes the failure global. Everyone but Tero knows Ovi is failing hard (except for Maps). Music? PIM? Store? All make the Nokia phone LESS attractive than one without Ovi. It's the kind of garbage operators put on. It's why there's a debranding industry. Is no one in his circle permitted to tell him the bad news? Time to say thanks Tero, and bring in new blood. |
The rebranding of firmware is around a different issue - mainly around stabilty after removing standard Nokia functionality (I think).
Of course by your logic we would also remove the Apple and Google services from iPhone and Android respectively...
The point I was making was that Nokia re the only ones with a properly coherent global strategy (at the moment). If you look at Nokia service division in the quartely reports you'll see they are currently making money from services (though I'd be the first to say this depends on how you account for revenue).
|
Originally Posted by Rafe
Sorry I don't agree. They all add more value to the phones. Music, Maps, and Store all work wll on the most recent handsets. Room for improvement - yes. Failures - no.
The rebranding of firmware is around a different issue - mainly around stabilty after removing standard Nokia functionality (I think). Of course by your logic we would also remove the Apple and Google services from iPhone and Android respectively... The point I was making was that Nokia re the only ones with a properly coherent global strategy (at the moment). If you look at Nokia service division in the quartely reports you'll see they are currently making money from services (though I'd be the first to say this depends on how you account for revenue). |
Do you just make this stuff and throw it at a wall hoping that some of it will stick?
Nokia is the only one with a properly coherent global strategy? Did your brain even scream "STOP" before you hit the enter key? So you are saying that Apple, Android(Google), RIM have not figured out how to implement a global strategy but Nokia has? Really? Apple, and Android are both growing and are leading the smartphone market with far less phones than what Nokia is offering. If Nokia had to compete with only one phone, they would be dead in the water. Apple has sold over 10 million iPhones in just 2 and a half years, over a billion plus apps, and 3 million iTunes purchases. Nokia had a big jump on this with their coherent global strategy and they are getting their butts kicked.
It is okay to like product but to lie simply to make them look better erodes your credibility. So far AAS is 0 for 3 in credibility. Only Ewan is left to give credence to anything printed here. Steve's blinding bias, and your tacit support for the indefensible is simply sad.
Search
Navigation
Social
Advert