Nokia to restructure business in 2008

Nokia said it will restructure its business in 2008 to capitalize on the convergence of the mobile communications and Internet industries. Under the new organization, effective Jan. 1, 2008, Nokia's current business group and horizontal group structure in the device business will be replaced by three main units: Devices, Services & Software and Markets. The Services & Software unit will manage the vendor's enterprise software and solution activities, as well as Nokia's consumer Internet services. The Markets unit will handle supply chains, sales channels and marketing activities.

"The convergence of the mobile communications and Internet industries is opening up new growth opportunities for us, both in the devices business as well as in consumer Internet services and enterprise solutions," said CEO Olli-Pekka Kallasvuo in a statement.

Under the new structure, Nokia will have two reportable segments: Devices & Services, and Nokia Siemens Networks. Nokia will report on these two segments in its quarterly and annual results announcements.

In addition to the new structure, the role of chief development officer will be created--and filled by Mary McDowell, currently head of the Enterprise Solutions Business Group. McDowell's office will manage growth opportunities as well as offer support for the three units during the reorganization. Kai Oistamo, head of the Mobile Phones Business Group, will lead the Devices unit. Technology Platforms chief Nikas Savander will head Services & Software, while Anssi Vanjoki, currently head of the Multimedia Business Group, will take responsibility for the Markets division.

To read more about Nokia's new structure:
- check out this release

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