Major changes in Nokia before Alcatel-Lucent acquisition

NEW DELHI: Finnish telecom equipment maker Nokia has said that it has planned leadership and organizational changes after the completion of acquisition of Alcatel-Lucent.

With this acquisition, Nokia expects to create an innovation leader in next generation technology and services for an IP connected world, and to position the combined company to create the foundation of seamless connectivity for people and things wherever they are.

"We are making very good progress on being ready to operate as a combined company when the proposed exchange offer closes," said Rajeev Suri, President and Chief Executive Officer of Nokia.

"After a thorough selection process, I am pleased to announce the company's future organizational structure and exceptional leaders who will help chart the next steps in Nokia's transformation."

After the closing of the exchange offer, the Networks business would be conducted through four business groups: Mobile Networks, Fixed Networks, Applications and Analytics and IP/Optical Networks.

These business groups would provide an end-to-end portfolio of products, software and services to enable the combined company to deliver the next generation of leading networks solutions and services to customers.

Alongside these, Nokia Technologies would continue to operate as a separate business group. Each business group would have strategic, operational and financial responsibility for its portfolio and would be fully accountable for meeting its targets.

The four networks business groups would have a common Integration and Transformation Office to drive synergies and to lead integration activities. The business group leaders would report directly to Nokia's President and Chief Executive Officer:

The combined company is expected to have a common sales organization across the business groups, except for Nokia Technologies. In addition, effective after the closing of the exchange offer, there would be six additional unit leaders within the combined company, who would report directly to the President and CEO:

Nokia's New Team

Timo Ihamuotila, currently Executive Vice President and Group Chief Financial Officer, Nokia, would serve as Chief Financial Officer (CFO).

He would be responsible for all finance activities and would oversee effective and systematic performance management, external and internal reporting, and capital allocation processes.

In addition, he would be responsible for investor relations, the execution of mergers and acquisitions and treasury.

Ashish Chowdhary, currently Chief Business Officer, Nokia Networks, would serve as Chief Customer Operations Officer (CCOO).

He would lead the global Customer Operations organization, which would be responsible for customer interactions and sales across all business groups. Customer Operations would be organized by seven markets globally and act as the single interface for telecommunication and enterprise customers across all products and services.

Customer Operations would drive strong business momentum across the business groups and deliver unparalleled customer service to position Nokia as the world's leading telecom vendor.

Marc Rouanne, currently Executive Vice President, Mobile Broadband, Nokia Networks, would serve as Chief Innovation and Operating Officer (CIOO).

He would have two primary roles: innovation and operations, and all activities impacting operative transversal functions would be housed in this unit.

He would drive cutting-edge innovation at internet speed throughout Nokia, using the power of Bell Labs and FutureWorks to shape Nokia's vision across the business groups.

The CIO would also drive the combined company's digital agenda through IT and Cloud in order to create an agile and collaborative environment for the company's world class engineers. He would manage quality, information security, manufacturing and supply chain operations, as well as units like real estate, data centers and laboratories.

Hans-Jürgen Bill, currently Executive Vice President, Human Resources, Nokia, would serve as Chief Human Resources Officer (CHRO).

He would be responsible for leadership and talent development, recruitment and all human resources guidelines, as well as compensation and benefits policies for the company. Human Resources would play a crucial role in developing a diverse, international environment and entrepreneurial spirit within the combined company.

Kathrin Buvac, currently Vice President, Corporate Strategy, Nokia Networks, would serve as Chief Strategy Officer (CSO). She would be responsible for setting Nokia's corporate strategy and long-term strategic direction, market and competitor intelligence, corporate development - including the prioritization of M&A targets across the company, in conjunction with the CFO - and strategic partnerships at group level.

She would also steer and integrate the business group strategy and business development teams, as well as the CIOO innovation team, to ensure consistent execution of the company's strategy. In line with our vision of the Programmable World, she would also oversee Nokia's strategy for the Internet of Things.

Barry French, currently Chief Marketing Officer and Executive Vice President, Marketing and Corporate Affairs, Nokia, would serve as Chief Marketing Officer (CMO) and would oversee the Marketing & Corporate Affairs unit.

Maria Varsellona, currently Executive Vice President and Chief Legal Officer, Nokia, would serve as Chief Legal Officer (CLO). She would be responsible for overseeing and managing all legal, contracting, corporate governance, ethics and compliance matters across Nokia globally, as well as advising the President and CEO, Board of Directors and officers of the company in relation to such matters.

The proposed changes would only be implemented after the successful closing of the public exchange offer and be subject to the completion of the relevant works council consultation procedures.

Lastly, as previously announced, Nokia has agreed to sell HERE, its mapping and location services business, to a consortium of leading German automotive companies. HERE will continue to operate as a business of Nokia until the sale is completed, but is not included in the planned future organizational structure of Nokia.

The sale of HERE is expected to close in the first quarter of 2016, and Nokia plans to report HERE as a discontinued operation from the third quarter of 2015 onwards.