How To Reinvent a $38 Billion Company, Ericsson AB

I have been working for Ericsson for almost 10 years Before I left the company for some years ago. I do continuesly by using publically available information to follow and understand (at least at high level) about its technical and business strategy.

Recently Andrew Keen from TechCrunch interviewed Hans Vestberg, CEO of the Swedish Telecom giant Ericsson. This interview was more or less based on a dialogue about the future of the company Ericsson and its strategic direction towards 2025-2030.

From this interview you may get the understanding that Ericsson divided it’s strategy in following areas (from less to most focused)

  • New areas
    Mobile Money, M2M (Machine-to-Machine i.e. part of the Internet of Things), Mobile Enterprise
  • Target areas
    OSS/BSS (Operation Support Systems / Business Support Systems), TV/Media, I&S (Industry and society), IP and Cloud
  • Strong areas or the Ericsson core business
    Mobile broadband, Telecom Services

The idea is to provide enough facts, understanding, experiences and business/technical rationale to move

  • New area      -> Target area
  • Target area    -> core area

Some may have noticed that the “roadmap” has been changed after (2:32 minutes) and one of the target areas I&S (Industry and Society) disappeared from the paper. Not really sure if he missed to put I&S back in the new paper or intentionally left out.

Ericsson-HV0

EricssonHV2

“…if I may draw…”

Most popular people with excellent presentations skills avoiding to get stuck in “bad PowerPoint habits” and minimize the risk to jeopardize the presentation. I have experienced that sometime it is a good idea to have the full/complete picture ready to avoid in getting stuck in unreadable or diffuse pictures.
In this case I am pretty sure that Hans Vestberg could by having a prepared complete “roadmap/drawing”, could focus more on the content of the Ericsson Business Strategy. Here is some proposal for such a paper

At Iast: It is have to beleive that the presented “strategic business roadmap” is really showing the future of a $38 billion dollar company during the next 16 years. But I guess that a lot of directions and facts about the future investments are intentionally left, which is understandable. In my honest opinion this paper is more or less showing Ericssons’ current process of business startegty.

The source on YouTube:

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