adam greenfield: on cultural transition

…Nokia’s problem is not, and has never been, that it lacks for creative, thoughtful, talented people, or the resources to turn their ideas into shipping product. It’s that the company is fundamentally, and has always been, organized to trade in commodities. Whether those commodities were stands of timber, reams of paper, reels of cable, pairs of boots, or cheap televisions for deployment in hotel chains, much the same basic logic applied: acquire, or manufacture, great quantities of a physical product for the lowest achievable cost, and sell for whatever the market will bear.

Nokia’s engineers were and are brilliant at this. I am so far from an expert on the topic it’s not even funny, but I’d feel comfortable wagering that there is still no organization on the planet more capable at designing the guts of a phone, the various antennae and radios-on-a-chip that allow a handset to communicate with a network. Nor are there many who can compete with Nokia on the ability to optimize a supply chain and bring in a given bill of materials at a given (and generally astonishingly low) cost.

These are precisely the skills you need if you’re interested in dominating a global market in commodity communication devices, as Nokia did for the fourteen years of the Jorma Ollila era. But the company utterly failed to anticipate, understand or organize itself to deal with the critical thing that happened at the cusp of the Ollila-Kalasvuo transition. This was that you could no longer think of mobile phones as communication devices. You had to conceive of them as interface objects through which users would experience content and command functionality that ultimately lived on the network.

via Nokia: Culture will out « Adam Greenfield’s Speedbird.

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