This document discusses Nokia's approach to collaborative innovation. It provides examples of Nokia's partnerships and acquisitions. The key points are: 1) Nokia discusses its history of reinvention over 150+ years and examples of recent acquisitions and partnerships in wireless networks, technologies, and other areas. 2) The document emphasizes the importance of culture for innovation and outlines elements of an innovative culture, including being entrepreneurial, acting fast, collaborating, and embracing change. 3) Nokia's approach to collaborative innovation focuses on partnerships, embracing startups, joint innovation scouting, and turning outsiders into collaborators. The challenges of partnering between large and small companies are also addressed.

1. © 2018 Nokia1 Public
Strategic Innovation:
Stories & Practices from The Trenches
Azita Arvani
Head of Innovation Partner & Venture Management

2. 2 © 2018 Nokia
Disciplined execution for successful integration and transformation
150+ years of successful reinvention
2018201620142012
Acquired
Motorola Solutions
wireless networks
Created
Nokia
Technologies
Pulp, Paper,
Rubber, Early Bell
System products,
Mobile phones
Launched Networks
transformation plan
Sold
Devices
& Services
Acquired
Alcatel-
Lucent
Sold
HERE
Acquired
Gainspeed
Acquired
Deepfield
Acquired
Comptel
Created
Nokia
Shanghai Bell
Acquired
Unium
Public
Acquired
SpaceTime Insight

3. 3 © 2018 Nokia
Nokia’s unrivalled diverse track record of innovation in
scale and speed
Public
Patent
applications
(in 2017)
Nobel Prizes Turing Prizes Grammys Emmy Oscar
1300+ 8 3 2 2 1

4. 4 © 2018 Nokia
Collaborative
Innovation
ContemplationsCulture

5. 5 © 2018 Nokia
What makes up a truly innovative company?
“Culture eats strategy for
breakfast”
Peter Drucker
“More important than any of the
individual elements, however, is the role
played by corporate culture — the
organization’s self-sustaining patterns of
behaving, feeling, thinking, and
believing — in tying them all together.”
Strategy& Innovation Survey 2011
Public
PWC Study 2017

6. 6 © 2018 Nokia6 © 2018 Nokia
Key elements of
Innovative culture
Public
Culture
Entrepreneurial
Uncertainty
& Risk
Act Fast
Agile & MVP
Collaborate
& Compete
Change World
& Make Money
Open flow
of people
& Information

7. 7 © Nokia 2017 Public

8. © 2018 Nokia8 Public
Patience is Virtue
“Make bold investment decisions
in light of long-term leadership
considerations rather than short-
term profitability considerations. “
Amazon corporate governance

9. © 2018 Nokia9 Public
Strategy Not Enemy of Agile
Bottom Up
Top Down

10. 10 © Nokia 2018
Collaborative
Innovation
ContemplationsCulture

11. © 2018 Nokia11
Collaborative Innovation
Make FOMO work for you
To keep our edge, we must constantly explore new
technologies, new business models and new processes

12. 12 © 2018 Nokia
“The Third Wave
Three P’s to succeed:
Partnership, Policy and Persistence
“The entrepreneurs of this era are
going to challenge the biggest
industries in the world, and those
that most affect our daily lives.”
Public

13. 13 © 2018 Nokia
Turning Outsiders into Collaborators
Public
“… successful innovation
ecosystems create virtuous cycles
of external creativity, which drives
internal adaptation.”
‘This is the real IP — not
“Intellectual Property” but
“Innovation Partnerships.” ’
Toyota helping suppliers scale Netflix fostering content producers
YouTube Space for external collaborators
Source: Harvard Business Review, by Michael Schrage, April 30, 2014

14. © 2018 Nokia14 Public
Select Nokia Collaborations
Business Development
& many more

15. Our disruptive approach with partners
From an Evolution to a Revolution of the Supply Chain
Public© 2018 Nokia15
Smaller, agile, and modular
factories… anticipating the fast-changing manufacturing needs of the
future

16. 16 © 2018 Nokia
Joint innovation scouting with TIM
Public
Pioneering partnership since December 2015
• Joint scouting of innovative start-ups and
initiatives
• Partnership for innovative offerings
• Field deployment of systems, solutions
and services
• Acquisition of technologies & companies

17. © 2018 Nokia17
Bridge Big Entities and Startups
Expectations Reality
Public

18. © 2018 Nokia18 Public
Big Company is Like Europe
Image: Wikitravel

19. 19 © 2018 Nokia© 2018 Nokia
Establish Phased Metrics for Innovation Projects
Public
Problem
Traction
P&L

20. 20 © 2018 Nokia
Incentives for Time To Market
Public

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Accountability for Rejecting Outside
Innovation
Public

22. © 2018 Nokia22 Public
Do Not Overpromise!

23. Nokia 2018
Find a Champion
Public
INNOVATION

24. 24 © 2018 Nokia Public

25. 25 © 2018 Nokia
Factor in Industry specific peculiarities
Public

26. 26 © 2018 Nokia
Collaborative
Innovation
ContemplationsCulture

27. © 2018 Nokia27 Public
Timing is Everything…

28. © 2018 Nokia28
4 TB/day
Public
Explosion of Data in All Industries … estimates by 2021
1 PB/day
1.9 GB/day
3 TB/day
5 TB/day
Source: Intel

29. © 2018 Nokia29 Public
5G Enabling Revolutionary Use Cases
Automotive
Health
Events and
tourism
Industry 4.0
Mega
cities
Homes and
buildings
People &
Things

30. © 2018 Nokia30
…and we need to rethink the connectivity
Value in IoT is driven by industrial automation
5G World 2018
IoT Value Creation
Estimated2025 value creationpotentialof theIoT
- McKinsey Global Institute Time
Area of uncertainty
2019 2020
Enhanced mBB
Ultra speed Internet
HD & UHD services
New monetization
4th industrial
revolution
Digitization
Automation
Flexible production
Disruptive new
experiences
e.g. Haptic
Internet
NWrequirements
Acceleratingspeedof
change 2022
Unrealistic
Factories
Worksites
Cities
Logistics
& Transport
Health
($B)170
37001210
930
1660
930
560
1590
Low estimate
High estimate
160
850
Public

31. © 2018 Nokia31 Public
5G: Huge Force Multiplier for AI
Massive
machine
communication
Extreme
Mobile
Broadband
Critical
machine
communication
5G
>15 years
on battery
100 Mbps
wheneverneeded
Ultra Reliable
< 10-5 outage
1.000.000
devices per km2
10 000
x more traffic
mMTC
ultra low cost
>10 Gbps
peak data rates
<1 ms
radio latency
Zero
mobility interruption
Range
164 dB MCL

32. 32 © 2018 Nokia
• Cultivating culture to empower growth
• “Startups” in big organizations
• Strategic planning with agile make-over
• Collaboration evolving forms and practices
• Art & science in partnering across large and small
companies
• Key technologies to dramatically force multiply
Summary
Public

33. Azita Arvani
Head of Innovation Partner & Venture Management