Innovation-in-practice-創(chuàng)新-實(shí)踐-BCG-matrix-波士頓矩陣.docx

A very impressive interview, thank you, Pouline, Chloe and Lynn. Now lets come to the conclusion part. In this part, Ill talk from two aspects. One is key to success. Thats why Nokia Lumia 800 can successful got the gold award in Innovation competition. The second part is predicting the future. We will predict the future of Nokia from its current position.IDSA gave the gold award to Nokia Lumia800 and provided reasons like: it established Windows phone; combined hardware with the Windows Phone user interface and the principle of the design team.I think the primary reason for Nokia to win the award is design thinking. The IDEOs CEO Tin Brown gave a definition of “design thinking” like this, “Design thinking is a human-centered approach to innovation that draws from the designers toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Thinking like a designer can transform the way organizations develop products, services, processes, and strategy.For the second part, in order to predict the future of Lumia 800, we need to find out its current position. Here, we will use the BCG growth-share matrix to analyze Nokia. Let me briefly explain the BCG growth-share matrix, as you can see here, its a model established by Boston Consulting Group(BCG) which helps companies to assess the portfolio of their business with measuring theMarket growth rate and Relative market share. There are four segmentations in the BCG matrix as the chart shows here- Stars, Question Marks or Problem Children, Cash cows, and Dogs. Star represents the best profits and growth which enjoy a high market share in a fast growing industry; Question Marks or Problem Children are units with low market share in a fast growing industry. They have potential to generate profits and achieve a dominate position in market;Cash Cows represent product or business units that generate high profit margin with low market growth but high market share. Its product in maturity stage.Dogs are those that suffer from low market share and market growth. They are always self sustaining units which generate lower profits or just break-even.Then which segmentation does Nokia belongs to? To find the answer, we searched the data from IDC about smart phone market share by brands. Here we can see Nokias market growth rate and market share. For the market growth rate, we usually regard 10% as the boundary between high and low. Here Nokias growth rate is -50.8%. Its obviously a low growth rate. For Relative market share, we compare it with its strongest competitor which is Samsung. The rate is 0.28 which is less than 1; we regard it as low relative market share.Therefore, the result is Nokia belongs to the dog segment. If Nokia does not make any change, it will divest from the market. How can Nokia change its current standing?We raise two points. One is Innovation became necessary in the face of decliningmarket share, Nokiascurrent situation is not pressing, but the concern is what the situation will be like in two or three year if no changes are made. Big strategy changes are not about the present, but about the future.The other one is Lumia and China are key to Nokias future. The Lumia series are Windows phones, which is a new start for Nokia. China, as Pauline mentioned before is a large market for Nokia. Nokia has a really good reputation in the eyes of Chinese. I still remember when I was in my middle school. If I wanted to buy a phone, my mom would say buy a Nokia. Nokia represented a high quality phone at that time. Although Nokia is now declining, it is the ideal time for Nokia to reflect and reorganize itself. We all believe that Nokia will have a brighter future with innovation and sweat.Thats the end o