1) The use of a product line gave Nokia the opportunity to increase their production of new mobile phone models from 5-10 to around 30 4) Effective communication of architectural properties can be achieved only with concise documentation. It is very hard to find inconsistencies in a document of more than 500 pages. Nokia strives to describe Architecture in a way that provides concise document that directly address the wanted characteristics.
Ex # 1: - Nokia fails to offer design that fits the tastes of American consumers, like flip phones and touch screens Ex # 2: - Nokia fails to provide solutions to the problems of consumers regarding the use of their Internet connection features.
Too many products: Problems • Decreasing complete commonality • Increasing partial commonality • Over-engineered architecture
Nokia product line management analysis - presentation
Product Line Management Analysis By : Swapnil Deole, Marie Putri December 2011
What is Nokia?Nokia is About Connecting People It is the worlds largest manufacturer of mobile phones. Offers much more: mobile devices and solutions for imaging, games, multimedia, mobile network operators and business.Headquarter : Espoo, Finland
What is Nokia?• Market share as 23% in the second quarter 2011• Over 132,000 employees in 120 countries, sales in more than 150 countries• Around 220 different phones (till 2011)
List of Nokia Product FamilyNokia 1000 series – Ultrabasic seriesNokia 2000 series – Basic seriesNokia 3000 series – Expression seriesNokia 5000 series – Active seriesNokia 6000 series – Classic Business seriesNokia 7000 series – Fashion and Experimental seriesNokia 8000 series – Premium seriesNokia 9000 series – Communicator series (discontinued)
List of Nokia Product FamilyNokia C series - affordable series (optimized for social networking and sharing)Nokia Eseries - enterprise-class series (business- optimized smartphones)Nokia Nseries - advanced smartphone series (with advanced multimedia and connectivity features)Nokia Xseries – for young audience (focused on music and entertainment)
Product Line StrategyStarting since 1994, Nokia :• created global platform, GSM 900 platforms (2110, 8110 and 6110) – GSM 900 and 1800, primarily in Europe and Asia – 1900 MHz and TDMA 800, primarily in US and South America – PDC (Personal Digital Cellular), primarily in Japan
Product Line Strategy• Introduces lots of product in a short time• Emphasizes aesthetic design, user interface and software features• Use common designs across standards• Concise Architecture-documents
Product Line StrategySource : J. Funk. Global Competition Between and Within Standards: The Case of Mobile Phones.
Advantages• Effectively covers various price segments while maintaining lower development cost• Improves efficiency to further development and manufacturing of products within each series• Changes the competition from a single market to global level• Creates a strong brand image, enables it to set prices that are based more on customer value than on cost
Problems• Nokia products are not reaching intended customers, a clear mismatch between the product and its customer• Variability needs in software are constantly increasing because – variability moves from mechanics and hardware to software – design decisions are delayed as long as economically feasible• ‘Here is a phone. Do you want it?’
Problems• Victims of success: broadening scope of product families – Convergence leads to broader set of products – Success leads to unrelated products to be included in the family• Too many products – The wide product portfolio results in customers being thinly scattered across each product line• Buyers bargaining power is high – More choice of products with very limited differentiation – Elastic demand, buyers can delay buying new models
Solutions• Focus on increasing the user satisfaction index• Release less products but hit bulls eye• Learn to know better about customer’s evolving tastes, needs and requirements• Hierarchical Software Product Family• Composition-Oriented Approach
References• Bosch, Jan. Software Product Families at Nokia. Nokia Research Center, 2005.• Funk, Jeffrey. Global Competition Between and Within Standards: The Case of Mobile Phones. London, Palgrave, U.K., 2001.• Funk, Jeffrey. The Product Life Cycle Theory and Product Line Management: The Case of Mobile Phones. 2004.• http://www.janbosch.com/QoSA-Keynote0606.pdf• http://en.wikipedia.org/• http://www.slideshare.net/merragun/nokia-strategy- 3763661• http://www.nytimes.com/2009/10/19/technology/compani es/19nokia.html