Was this week's Nokia World event a turning point? New executives taking the reigns. New devices being released and NOT being panned by developers (like the poor Blackberry Torch getting torched by Engadget recently.)
Torch torching (vs. Windows Phone 7):
10.9.10
Nokia's New CEO Faces A Turnaround of Lou Gerstner Proportions
If Stephen Elop hasn't read "Who Says Elephants Can't Dance?" he'd better rearrange his reading list.
Lou Gerstner pulled off one of the most unexpected turnarounds in history and now Elop faces a similar challenge. Marching into a firm with a dying hardware business and rapidly evolving customer demands was a daunting task and yet Gerstner managed the near-impossible and IBM rides high today.
As unflattering the mental image may be, Stephen Elop needs to do the monkey dance. Yes. Developers, developers, developers. Mobile devices are ALL about software now. Yes, hardware matters a great deal but if a firm doesn't have a fantastic user interface (Nokia does not - I own an E71) they will perish. If Elop doesn't engage the developers Nokia will be relegated to the low-margin, high-volume "dumb" handset market and never recover. (Remember how that worked out for a company named Motorola?)
As hard as it is to fathom we're watching the demise of not only Nokia but also Blackberry due to bureaucratic decision-making structures which are inherent in all large firms. This is truly unfortunate because Nokia has been churning out incredible mobile devices for decades.
Elop has little margin for error. It is time to innovate or die.
Lou Gerstner pulled off one of the most unexpected turnarounds in history and now Elop faces a similar challenge. Marching into a firm with a dying hardware business and rapidly evolving customer demands was a daunting task and yet Gerstner managed the near-impossible and IBM rides high today.
As unflattering the mental image may be, Stephen Elop needs to do the monkey dance. Yes. Developers, developers, developers. Mobile devices are ALL about software now. Yes, hardware matters a great deal but if a firm doesn't have a fantastic user interface (Nokia does not - I own an E71) they will perish. If Elop doesn't engage the developers Nokia will be relegated to the low-margin, high-volume "dumb" handset market and never recover. (Remember how that worked out for a company named Motorola?)
As hard as it is to fathom we're watching the demise of not only Nokia but also Blackberry due to bureaucratic decision-making structures which are inherent in all large firms. This is truly unfortunate because Nokia has been churning out incredible mobile devices for decades.
Elop has little margin for error. It is time to innovate or die.
2.7.10
Open Revolt at Nokia - The Symbian-Guru Shuts Down
If Nokia's most staunch supporters give up on them where will they turn for grassroots support?
A quick review of the Symbian-Guru's list of complaints does not reveal a simple list of manufacturing problems or even software problems which drove them to abandon ship. It sounds as though Nokia's inability to communicate with one of their most vocal customers is what pushed him over the edge. (And will correspondingly have a significant long-term negative impact on their marketing efforts in the United States.)
Frustration ended the relationship. They asked. They pleaded. Their passion ebbed. They finally gave up.
"Shopper Relationships 101" dictates that a company listen to their customers. Especially if that customer is a blogger with hundreds or thousands of followers.
A quick review of the Symbian-Guru's list of complaints does not reveal a simple list of manufacturing problems or even software problems which drove them to abandon ship. It sounds as though Nokia's inability to communicate with one of their most vocal customers is what pushed him over the edge. (And will correspondingly have a significant long-term negative impact on their marketing efforts in the United States.)
Frustration ended the relationship. They asked. They pleaded. Their passion ebbed. They finally gave up.
"Shopper Relationships 101" dictates that a company listen to their customers. Especially if that customer is a blogger with hundreds or thousands of followers.
21.6.10
Can Nokia Be Saved?
One could easily dismiss this morning's Barrons's article by Eric Savitz as being filled with little more than hyperbole but I'm afraid this would be a drastic mistake.
Many of the statements made are simply painful truths but the outcome is yet to be written.
I believe, as I've stated previously, that Nokia STILL has the upper hand in the worldwide mobile device business due to their immense distribution platform. Granted, they've failed to build a legitimate presence in the U.S. market but elsewhere Nokia is still a giant. The key to Nokia's revival, and possibly their very survival, lies in their ability to leverage their in-store network in a manner never before seen.
Nokia needs to build an in-store shopper relationship network to meet their customers where they shop and convince them to remain customers by displaying live devices and their immense capabilities. They must use this network to build relationships with their customers which connect with them across shopping channels. If a shoppers sees something wonderful in a store allow that shopper to revisit their shopping experience when they get home. It requires 2-way communication rather than simply advertising.
It is relatively simple. Most buyers are not technical buyers. Most shoppers are "safety" buyers. They buy what is safe. They buy what their geeky friends or coworkers buy because they know mobile devices have grown so complex they'll never be able to understand it themselves. Nokia used to be the beneficiary of this shopping mode but the consumer market momentum has now shifted to the iPhone. Does this mean the game is over? Certainly not. Just as Apple didn't exist in the mobile device market a few years ago there is no reason Nokia cannot reclaim their momentum.
What is lacking? A robust shopper experience which clearly shows consumers the capabilities of "live" mobile devices (i.e. an Apple store) and educates them on why Nokia is the better choice.
Nokia has an opportunity. They must take a step no other major manufacturer is capable of even considering. Nokia must build a comprehensive Store-in-Store network Content Management System which displays live devices and shows comprehensive video tutorials of how their devices work. Nokia must learn to engage shoppers where they shop. People still visit stores to buy mobile devices. Why? Because they like to touch and feel and use their devices before making such a substantial investment. Apple and Google are trying to shift this buying culture to online sales and are doing so with some level of success. 5 years from now online mobile sales could become the norm. If Nokia doesn't act now their most important asset, their distribution network, could be irrelevant in 5-10 years.
Nokia will either embrace a solution such as that offered by Podo Technology and dramatically overhaul their existing In-store, TV, and Print campaigns or face continued decline. The landscape has changed. Nokia has the opportunity and the capability to reclaim their throne.
Nokia has not failed. Nokia will not fail. If they take bold steps. The time is now.
Many of the statements made are simply painful truths but the outcome is yet to be written.
I believe, as I've stated previously, that Nokia STILL has the upper hand in the worldwide mobile device business due to their immense distribution platform. Granted, they've failed to build a legitimate presence in the U.S. market but elsewhere Nokia is still a giant. The key to Nokia's revival, and possibly their very survival, lies in their ability to leverage their in-store network in a manner never before seen.
Nokia needs to build an in-store shopper relationship network to meet their customers where they shop and convince them to remain customers by displaying live devices and their immense capabilities. They must use this network to build relationships with their customers which connect with them across shopping channels. If a shoppers sees something wonderful in a store allow that shopper to revisit their shopping experience when they get home. It requires 2-way communication rather than simply advertising.
It is relatively simple. Most buyers are not technical buyers. Most shoppers are "safety" buyers. They buy what is safe. They buy what their geeky friends or coworkers buy because they know mobile devices have grown so complex they'll never be able to understand it themselves. Nokia used to be the beneficiary of this shopping mode but the consumer market momentum has now shifted to the iPhone. Does this mean the game is over? Certainly not. Just as Apple didn't exist in the mobile device market a few years ago there is no reason Nokia cannot reclaim their momentum.
What is lacking? A robust shopper experience which clearly shows consumers the capabilities of "live" mobile devices (i.e. an Apple store) and educates them on why Nokia is the better choice.
Nokia has an opportunity. They must take a step no other major manufacturer is capable of even considering. Nokia must build a comprehensive Store-in-Store network Content Management System which displays live devices and shows comprehensive video tutorials of how their devices work. Nokia must learn to engage shoppers where they shop. People still visit stores to buy mobile devices. Why? Because they like to touch and feel and use their devices before making such a substantial investment. Apple and Google are trying to shift this buying culture to online sales and are doing so with some level of success. 5 years from now online mobile sales could become the norm. If Nokia doesn't act now their most important asset, their distribution network, could be irrelevant in 5-10 years.
Nokia will either embrace a solution such as that offered by Podo Technology and dramatically overhaul their existing In-store, TV, and Print campaigns or face continued decline. The landscape has changed. Nokia has the opportunity and the capability to reclaim their throne.
Nokia has not failed. Nokia will not fail. If they take bold steps. The time is now.
20.6.10
AT&T 1993 "You Will" Ads
It's easy to see the future in technology. You simply claim what you wish already existed and predict it to be future fact. ATT's advertisements from 1993 did a good job of this - even touching on in-store shopping concepts in the process (though perhaps unwittingly). I'm sure no one at ATT expected this progression to take 20 (or 30) years but many of these shifts have already come to pass.
One of the most significant shifts yet to arrive is a true embrace of shoppers. Not just to "advertise" to them in a new way but to build relationships. ATT only had to envision new screens being used in innovative ways. The potential of the data component and the resulting analytics is what is truly going to alter the buying landscape.
Apple, Google and Blackberry are already enabling this via the apps erupting on their mobile devices. The question is whether or not retailers and brands will embrace the possibilities created by a big screen experience or simply succumb to the intelligence of 3-4" screens.
One of the most significant shifts yet to arrive is a true embrace of shoppers. Not just to "advertise" to them in a new way but to build relationships. ATT only had to envision new screens being used in innovative ways. The potential of the data component and the resulting analytics is what is truly going to alter the buying landscape.
Apple, Google and Blackberry are already enabling this via the apps erupting on their mobile devices. The question is whether or not retailers and brands will embrace the possibilities created by a big screen experience or simply succumb to the intelligence of 3-4" screens.
Which would be more attractive to your retail setting? Controlling your message on big screens (w/ an innovative consumer experience) or allowing all knowledge to be provided by "price" apps delivered to their mobiles? The difference between the two options is the difference between success and irrelevance.
"You Will" choose. Don't fool yourself. Inaction is a choice.
17.6.10
Turning the Titanic Called Nokia
Shareholders are a famously impatient group. They will frequently bear with their investments when the company in question is in a stable, slow-changing market but technology companies are different.
Technology changes at such an incredible pace investors are forced to be very short-sighted. (And I won't even begin to enter the discussion of the fact that most investors are ridiculously short-sighted to begin with...)
Yes, Nokia has problems but their technical problems are surmountable. If/when Symbian 4 comes out (yes, I'm assuming Nokia will still be around in 2013) they'll finally get it all right and the markets will forget that Nokia was deemed irrelevant in 2010. Big companies have staying power. Big companies have distribution networks and carrier relationships. They have access to capital.
In my estimation Nokia's only failing (outside of their weak lineup of smartphones (voice of a paperweight E71 owner speaking)) has been their unwillingness to embrace their customers and shoppers in the in-store retail setting. Nokia has the broadest retail distribution network in the business and yet it is not being leveraged. Podo Technology spent over a year attempting to penetrate Nokia's bureaucracy to no avail. (Primarily due to gatekeepers who were more interested in their "fees" than they were showing their customer something potentially groundbreaking).
In this brief analysis of Nokia we've listed many reasons Nokia will survive and thrive. The one weakness I've personally witnessed which could be the downfall of the company? Bureaucrats and gatekeepers ignoring innovation and protecting their turf.
Apple won't bring down Nokia, but Nokia could bring down Nokia.
Technology changes at such an incredible pace investors are forced to be very short-sighted. (And I won't even begin to enter the discussion of the fact that most investors are ridiculously short-sighted to begin with...)
Yes, Nokia has problems but their technical problems are surmountable. If/when Symbian 4 comes out (yes, I'm assuming Nokia will still be around in 2013) they'll finally get it all right and the markets will forget that Nokia was deemed irrelevant in 2010. Big companies have staying power. Big companies have distribution networks and carrier relationships. They have access to capital.
In my estimation Nokia's only failing (outside of their weak lineup of smartphones (voice of a paperweight E71 owner speaking)) has been their unwillingness to embrace their customers and shoppers in the in-store retail setting. Nokia has the broadest retail distribution network in the business and yet it is not being leveraged. Podo Technology spent over a year attempting to penetrate Nokia's bureaucracy to no avail. (Primarily due to gatekeepers who were more interested in their "fees" than they were showing their customer something potentially groundbreaking).
In this brief analysis of Nokia we've listed many reasons Nokia will survive and thrive. The one weakness I've personally witnessed which could be the downfall of the company? Bureaucrats and gatekeepers ignoring innovation and protecting their turf.
Apple won't bring down Nokia, but Nokia could bring down Nokia.
10.6.10
M-Commerce In the Store
This progression is inevitable. The only question is whether or not retailers believe they will be able to control the information presented on a shopper's mobile device long term - surely no one believes this to be case.
But the alternative is an investment in an in-store network. A 30" screen and CPU enables a retailer to build a customized, constantly changing experience for their shoppers. Think of it as "the controlled web" or "retail web". It's your space and your shoppers. Isn't it about time you leverage of the situation?
You control the content. You control the message. You communicate with the shopper. Who deserves your shopper's attention? You (the retailer) or Pricegrabber? It's your call.
But the alternative is an investment in an in-store network. A 30" screen and CPU enables a retailer to build a customized, constantly changing experience for their shoppers. Think of it as "the controlled web" or "retail web". It's your space and your shoppers. Isn't it about time you leverage of the situation?
You control the content. You control the message. You communicate with the shopper. Who deserves your shopper's attention? You (the retailer) or Pricegrabber? It's your call.
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