Radical innovation projects Data presentation

Nokia and Palm Computing Inc., which was announced in 1999. Nokia has introduced its first pen-based products in the American market and subsequently on a worldwide basis. New partner? Nokia and Palm Computing are collaborating for the first time on this project. Capabilities. Since Palm Computing Inc. is a provider of handheld computing solutions, the company can be said to have different capabil- ities from Nokia. Commitment. This joint development and licensing agreement is not a long-term commitment. Case 2 is a project to develop Internet-enhanced television solu-tions. It was organized as a joint development agreement between Nokia and Intel and was announced in 1999. The solutions developed in this alliance allowed broadcasters to provide consumers with access to new, Internet-enhanced television services, as well as to the extensive range of services already available on the Internet. The product is based on Nokia and Intel technology, open standards, and specifications, including Digital Video Broadcast DVB, Internet protocols, the Advanced Television Enhancement Forum specification ATVEF, as well as open source, including Linux and the Mozilla browser. The first products were introduced in the second half of 2000. New partner? This is the first time that Nokia and Intel collaborated in a joint RD project. Capabilities. Intel, the world’s largest chipmaker, is also a lead- ing manufacturer of computer, networking, and communications products, though it does not develop telecommunication products. Nokia and Intel work in different industries and have different capabilities. Commitment. This joint development agreement is not a long-term commitment. Case 3 is a project to deliver enterprise-class intrusion detection for effective information protection. It was organized as a joint develop- ment agreement between Nokia and Internet Security Systems ISS signed in 2001. This agreement broadened the scope of the existing ISSNokia relation encompassing continued development of the indus- try’s first enterprise-class intrusion detection appliance, RealSecureI for Nokia. In addition, the agreement covered offerings, and joint channel, and marketing activities that would broaden each company’s reach in delivering simplified security solutions to partners and cus- tomers worldwide. New partner? Nokia and ISS have collaborated before, so ISS is not a new partner for Nokia. Capabilities. Internet Security Systems is a leading global provider of security management solutions for the Internet, protecting digital assets and ensuring safe and uninterrupted e-business. This requires different capabilities from Nokia’s know-how in telecommunications. Commitment. This joint development agreement is not a long-term commitment. Case 4 is a project to produce and market software for mobile and online financial services. It is a combined venture between 3i Group plc, Accenture, Nokia, and Sampo, established in 2001, called Meridea Financial Software. The new company, Meridea, showcased in 2001 its first, next-generation software solution for financial institutions, which enables consumers to access electronic and mobile financial services through multiple channels including mobile devices, the Internet, tele- phones, IVRs Interactive Voice Response systems, and digital TV. Meridea employed more than 100 people in Finland by the end of 2002. New partner? For Nokia, all partners in this combined venture are new. Capabilities. 3i is a provider of venture capital and brings capital, knowledge, and connections to the creation and development of busi- nesses around the world. It invests in a wide range of opportunities from start-ups to buy-outs and buy-ins, focusing on businesses with high growth potential and strong management. Accenture is the world’s leading management and technology consulting organization. Sampo is Finland’s first full-service financial group providing financial, invest- ment, and insurance services. It has one of the world’s highest e-banking penetrations. Thus, all four companies in the combined venture have very different capabilities. Commitment. This joint venture is a long-term commitment. Case 5 is a project targeted on the integration of the Macromedia Flash Player into the Nokia Mediaterminal, an innovative infotainment device that seamlessly combines DVB, full Internet access, personal video recorder PVR technology, and gaming. This project was organ- ized as a joint development agreement between Nokia and Macromedia, and announced in 2002. New partner? The partnership between Nokia and Macromedia is new. Capabilities. Macromedia is a company that facilitates content deliv- ery of designers and developers on the web, and enables innovative Internet business applications. Nokia and Macromedia have quite dif- ferent capabilities. Commitment. This joint development agreement is not a long-term commitment. These data are summarized in Table 5.1.

5.2.9.2 Incremental innovation projects

Case 6 is an operating system solution for the Nokia 9000 Communicator and intelligent mobile devices. The innovation project was a joint devel- opment agreement signed in 1997 between Nokia and Geoworks to develop new software. The Nokia 9000 Communicator, which integrates the Geoworks’ GEOS operating system, was the world’s first all-in-one communications device that combined wireless voice and data services with personal organizer functionality. New partner? This alliance continues the strong relationship that the two companies formed during the development of the Nokia 9000 Communicator. In addition, Nokia and Geoworks are working on delivering wireless content and services solutions that provide value- added services including remote shopping, telebanking, and access to Internet information and entertainment. Since Geoworks and Nokia collaborated before, they can be said to have formed strong ties. Capabilities. Geoworks Corporation’s principal activity is to provide soft- ware design and engineering services to the mobile and handheld device industry. It develops operating systems, related applications, and wireless server technology. Geoworks Corporation operates in the mobile telecommunications industry and can be said to have similar capabilities. Commitment. The joint development agreement between Nokia and Geoworks is not a long-term commitment. Case 7 is an innovation project to develop TETRA-switches technology and TETRA applications for a nationwide network in Austria, based on IP Telephony. It was organized as a joint development agreement between Nokia and Frequentis announced in 2000. New partner? Frequentis and Nokia have not collaborated before, so they are new partners. Table 5.1 Radical innovation projects Collaboration history Technological capabilities Level of commitment Case 1 New Different Short-term Case 2 New Different Short-term Case 3 Not new Different Short-term Case 4 New Different Long-term Case 5 New Different Short-term Capabilities. Frequentis develops communication and information systems for safety critical areas. Frequentis operates in the telecommu- nications industry and can be said to have similar capabilities to Nokia. Commitment. The joint development agreement between Nokia and Frequentis is not a long-term commitment. Case 8 is a project targeted at the design, development, and marketing of the value-added mobile applications for clients of Telefónica Móviles. It was organized as a joint development agreement between Nokia and Telefónica Móviles, signed in 2001. The two companies established a joint Services Creation Center, which has the latest Nokia infrastructure and technology to execute the new developments. New partner? Telefónica Móviles and Nokia are new partners. Capabilities. Telefónica Móviles is a leading mobile telephone oper- ator and so it can be said to have similar capabilities to Nokia. Commitment. The joint development agreement between Nokia and Telefónica Móviles is not a long-term commitment. Case 9 is a project for delivering network operations services to operators. It was organized in a co-production contract between Nokia and Primatel, signed in 2001. This non-exclusive cooperation reinforced Nokia’s capa- bility to support network operations for advanced 2G and 3G networks. Working with Nokia, Primatel built on its extensive previous experience with mobile networks to support the development, management, integra- tion, and optimization of network operations for 3G and 2G. New partner? This is the first time that Nokia and Primatel work together. Capabilities. Primatel Ltd is Finland’s leading provider of telecom- munication solutions. Primatel specializes in comprehensive design, implementation, and maintenance of telecommunication networks and has similar capabilities to Nokia. Commitment. The co-production contract between Nokia and Primatel is not a long-term commitment. Case 10 is a project targeted at the development of 3G wireless com- munications products in China. It was a combined venture of Nokia, Texas Instruments TI, China PTIC Information Industry, China Academy of Telecommunications Technology CATT, and Korea’s LG Electronics, established in 2002. LG, Nokia, and TI have each taken a 13.5 per cent equity stake in the company, which was founded with an initial investment of 28 million. New partner? This is the first time that Nokia has collaborated with any of the partners in this combined venture. Capabilities. China PTIC Information Industry and CATT have simi- lar capabilities to Nokia. But, in contrast, TI and LG Electronics are