8 Comments

Summary:

Nokia’s CTO has left with no timetable for a return. The wheels continue to fall off for the company, which is skidding down the road solely due to momentum, which is slowing. Like a modern retro car, however, Microsoft gives Nokia a chance to survive.

car-crash

Richard Green, Nokia’s CTO, left the company today in order “to attend to a personal matter,” Nokia said. Nokia told The New York Times  that Green’s return has “no specific timeline” and that the head of Nokia’s Research Center, Henry Tirri, would fill in for Green. The news of Green’s departure continues a string of personnel changes dating back to September, when Stephen Elop, then at Microsoft, was named Nokia’s new CEO.

Om and I briefly chatted this morning about the continued turmoil and he suggested the wheels may be falling off the company. I actually disagree: As I see it, the wheels have already fallen off and Nokia is simply skidding down the current road on the momentum it built as the world’s largest seller of handsets. Without wheels, that pace will stop, as evidenced by the company’s recent lowering of second-quarter and year-end outlooks. The situation has even caused Nokia to say it won’t be providing any future guidance. Sorry, but that’s not the simple problem of a blown tire.

Just one look at Nokia’s recent journey illustrates the problem:

I suspect Green doesn’t agree with the strategic changes, although that’s pure conjecture on my part. I don’t mean to lump him in with Nokia-at-large, but if I had to describe the company in just a few words, the phrase “receptive to change” wouldn’t come to mind. And if Green has personal matters to attend to, I surely wish him luck and strength. But for all of the bad coming from this situation, there’s good too because Nokia does need to change drastically and if it makes it through the current but risky transition and regains its wheels, it could be back on the road to success.

Finishing up the car analogy, Nokia’s smartphone situation reminds me of the Dodge Challenger. In the 1970s muscle car days, it was a popular model, but over time, lost its luster and was cancelled in 1983. Dodge later revived the Challenger in 2008 with a current design that included many throwback features to blend the best of the old with that of the new.

Windows Phone 7 is Nokia’s “Challenger”: The company has always made great hardware, and although not perfect, Microsoft gives Nokia some modern smartphone software for a future with potential.

Car crash image courtesy of Flickr user JJ_The_Jester
Challenger image courtesy of Flickr user butterflyx

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  1. Lucian Armasu Thursday, June 9, 2011

    This article implies Nokia is in a much worse situation than we think they are (blocked distribution channels):

    http://communities-dominate.blogs.com/brands/2011/06/the-patient-heart-has-stopped-now-the-doctor-helps-by-starting-to-strangle-the-patient-too-stephen-e.html

    1. Wow – that’s quite a post…

  2. The line about heart surgery being akin to replacing part of a car’s engine while that engine is running comes to mind…

  3. Nokia used to be renown for it’s leaks. Now it seems there is nothing but silence about upcoming devices. Every major announcement seems to send the stocks tumbling. I hope when they announce their new devices they can also explain why someone would want to buy them if they are part of a burning platform.

  4. connectedtraveler Thursday, June 9, 2011

    These are the people that were derailing Nokia.

    Is their leaving a bad thing?

  5. connectedtraveler Thursday, June 9, 2011

    These are the people that have been derailing Nokia and their leaving is a bad thing?

  6. Sure its not a medical / family matter that requires his leave?
    Seriously I agree with your analysis for sure. Just saying that sometimes we need to be bit careful with personal issues. Then again its like I know anything. Just asking.

    1. ^ meant to say: NOT that I know anything …

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