Changes in Process Management
In a company, it is not possible to oversee all processes. Managers can only manage a narrow segment of a process. It is not possible to impose process design and make it work without assistance. This is why it is important for Nokia management to support and empower employees from the rank-and-file to the top of the echelon to deliver process work or a high level of performance focused on customers. Having an excellent business process in place provides greater clarity on strategic direction and cascade it through your organization (Kotelnikov, 2001).
Risk Management
As the business grows so do the risks involved. Nokia must anticipate and address these risks effectively. Risk management is one aspect that enables Nokia to accomplish this. Nokia as an international company encounters a number of risks in its operations such as engagement with governments and authorities to avoid legislation that is counter-productive for society or anti-competitive; supply-chain management to reduce risks to quality or productivity; management of conflicts of interest for employee satisfaction and to protect the brand (Nokia, 2005). Coming up with solutions on how to address these possible risks is one way of achieving value chain for the business.
Boosting Service-Profit Chain
This refers to the people in the chain, meaning, both employees and customers. It is important for powerful companies such as Nokia to keep in mind that creating a harmonious link between the two - employees and customers - is important influence in company's performance and boost profits (Kotelnikov, 2001).
Changes in Waste Reduction Methods
In most production operations, only a small part of the total time and effort actually add value to the end customer. Clearly defining "value" for a specific product or service using the end customer's perspective, all the non-value activities - or waste - can be targeted for removal step by step (Kotelnikov, 2005).
According to Kaizen, the Japanese strategy of continuous improvement, the main seven wastes are:
- overproduction,
- transportation,
- motion,
- waiting,
- processing,
- inventory, and
- defects
The future of the logistical operations of NOKIA such as procurement, distribution, maintenance and replacement of material and personnel is influenced by the changes cited above.
Future logistical operations of Nokia will have to make room for the necessary changes.
Raw materials procurement, for instance, requires sourcing of the latest materials needed for its plan to achieve differentiation. Also, wastes in transforming these raw materials to finished products should be monitored and if possible, completely eliminated.
Customer service of Nokia must focus on the key elements which are personnel and end-customers. Nokia must improve relations with both to achieve greater competence.
Billing service is one aspect of customer service they need to attend to. With new and faster technologies in place, customer billing will be greatly facilitated.
Distribution of new products might follow a different pattern. The difference could take the form of new set of target market or coming up with new promos and advertisements to attract existing users.
Maintenance of equipments could also be another aspect to look into. As the products evolve, the need for new and better equipment also follows. Replacement of material and personnel could be another matter to consider. New materials must be added or replace the old parts. Just as new personnel would be required to implement the latest changes at the same produce a better version of the old Nokia product. Learning better risk management could make the transition effortless for the giant company, Nokia.
Nokia as a business should evolve with the times. Nokia must learn to look into the different aspects of its value chain that could be improved and make necessary changes. Improving its value chain could spell the difference of profit or loss. And its results is often reflected in the income statement and balance sheet.
After all the survival of Nokia in a very fast-paced environment such as mobile industry could depend on its ability to look “after the markets they operate in, to anticipate risks, demonstrate company values, work at increasing employee satisfaction, enhance corporate governance principles, protect the Nokia brand and build a reputation for citizenship” (Nokia, 2005).
