Ericsson today announced its focused business strategy focusing on increased profitability.
As part of this strategy, Ericsson also simplified organizational structure and appointed a new Executive Team under the leadership of president and CEO, Börje Ekholm.
With focus on networks, digital services (OSS/BSS and telecom core) and Internet of Things (IoT), Ericsson has reallocated resources and increased investments in these portfolios. Managed Services is another strategic focus area.
Key strategies include:
- Accelerate and increase investments in key areas in Networks to support a continued global rollout of 4G and establishing a leading position in 5G.
- Shift the IoT strategy from a systems-integration-led approach to a platform- and solutions-led strategy to better leverage our global scale and industry expertise.
- Refocus Managed Services strategy with emphasis on automation, fully leveraging our global scale and OSS capabilities, to provide high-tech services and cost efficient operations.
- Explore strategic opportunities for the Media business while continuing to develop existing media solutions, to enable the business to scale and succeed in the evolving media landscape. The media business will be split into two units: Ericsson Broadcast & Media Services and Ericsson Media Solutions, to create a stronger operational focus.
- Accelerate investments both in R&D and services capabilities in selected core areas
Ericson said the new strategy will help the company revitalize technology and market leadership, improve group profitability and enable customer success.
With specialized solutions for 5G, IoT and cloud, Ericsson will help service providers expand their business across industries and into new profit pools, especially 5G, IoT and cloud.
Börje Ekholm, Ericsson president and CEO, said, “For some time Ericsson has been challenged on both technology and market leadership and the group strategy has not yielded expected returns. In our strategy review we have listened carefully to customers around the world and made an in-depth analysis of our portfolio and performance. To enable us to immediately take action and move with speed in execution we are today outlining our path to restoring profitability and to lead with innovation and best in class solutions in areas we have decided to focus on.”
To simplify the organizational structure, Ericsson removed the two-tiered leadership structure, Executive Leadership Team and Global Leadership Team, forming a single Executive Team.
The new organizational structure features three Business Areas, namely Networks, Digital Services and Managed Services, as well as two separate units for the Media business, Ericsson Broadcast & Media services and Ericsson Media Solutions.
The current 10 regions are reduced to five Market Areas, all represented in the Executive Team. The new Market Area set up will align better to our global customers and reduce the number of interfaces for them.
The new Executive Team roles and the new organization will take effect April 1, 2017.
The following Business Area and Market Area structure will apply to the Ericsson Group as of April 1, 2017:
Business Area Networks; Business Area Digital Services; Business Area Managed Services
Market Area North America; Market Area Europe & Latin America; Market Area Middle East & Africa; Market Area North East Asia; Market Area South East Asia, Oceania & India
Effective April 1, 2017, Ericsson’s Executive Team members will be:
- President and CEO – Börje Ekholm
- Business Area Networks – Fredrik Jejdling, senior vice president, currently head of Business Unit Network Services
- Business Area Managed Services – Peter Laurin, senior vice president, currently head of Region Northern Europe and Central Asia
- Business Area Digital Services – Ulf Ewaldsson, senior vice president, currently head of Group Function Strategy & Technology
- Market Area North America – Rima Qureshi, senior vice president, currently head of Region North America
- Market Area Europe & Latin America – Arun Bansal, senior vice president, currently head of Business Unit Network Products
- Market Area Middle East & Africa – Rafiah Ibrahim, senior vice president, currently head of Region Middle East
- Market Area North East Asia – Chris Houghton, senior vice president, currently head of Region North East Asia
- South East Asia, Oceania & India – Nunzio Mirtillo, senior vice president, currently head of Region Mediterranean
- Technology & Emerging Business – Niklas Heuveldop, senior vice president, currently head of Group Function Sales
- Finance & Common Functions – Carl Mellander, senior vice president, currently acting Head of Group Function Finance & Common Functions
- Human Resources – MajBritt Arfert, senior vice president, currently acting Head of Group Function Human Resources
- Marketing & Communications – Helena Norrman, senior vice president, currently in same role
- Sustainability & Corporate Responsibility – Elaine Weidman Grunewald, senior vice president, currently in same role
- Legal Affairs – Nina Macpherson, senior vice president, currently in same role
- Advisor to the CEO – Jan Frykhammar, executive vice president currently in same role
- Advisor to the CEO – Magnus Mandersson, executive vice president, currently in same role
- Per Borgklint, Anders Lindblad, Jean-Philippe Poirault and Charlotta Sund will leave the Executive Leadership Team effective April 1, 2017.
Ekholm said, “As we form a new team, I would like to thank those leaving the executive groups. They have contributed to the leadership of Ericsson during important times of change and we appreciate their dedication and perseverance.”
editor@telecomlead.com
