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The Strategic Decisions That Caused Nokia’s Failure

Yves L. Doz

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In less than a decade, Nokia emerged from Finland to lead the mobile phone revolution. It rapidly grew to have one of the most recognisable and valuable brands in the world. At its height Nokia commanded a global market share in mobile phones of over 40 percent. While its journey to the top was swift, its decline was equally so, culminating in the sale of its mobile phone business to Microsoft in 2013.

It is tempting to lay the blame for Nokia’s demise at the doors of Apple, Google and Samsung. But as I argue in my latest book, “ Ringtone: Exploring the Rise and Fall of Nokia in Mobile Phones ” , this ignores one very important fact: Nokia had begun to collapse from within well before any of these companies entered the mobile communications market. In these times of technological advancement, rapid market change and growing complexity, analysing the story of Nokia provides salutary lessons for any company wanting to either forge or maintain a leading position in their industry.

Early success

With a young, united and energetic leadership team at the helm, Nokia’s early success was primarily the result of visionary and courageous management choices that leveraged the firm’s innovative technologies as digitalisation and deregulation of telecom networks quickly spread across Europe. But in the mid-1990s, the near collapse of its supply chain meant Nokia was on the precipice of being a victim of its success. In response, disciplined systems and processes were put in place, which enabled Nokia to become extremely efficient and further scale up production and sales much faster than its competitors.

Between 1996 and 2000, the headcount at Nokia Mobile Phones (NMP) increased 150 percent to 27,353, while revenues over the period were up 503 percent. This rapid growth came at a cost. And that cost was that managers at Nokia’s main development centres found themselves under ever increasing short-term performance pressure and were unable to dedicate time and resources to innovation.

While the core business focused on incremental improvements, Nokia’s relatively small data group took up the innovation mantle. In 1996, it launched the world’s first smartphone, the Communicator, and was also responsible for Nokia’s first camera phone in 2001 and its second-generation smartphone, the innovative 7650.

The search for an elusive third leg

Nokia’s leaders were aware of the importance of finding what they called a “third leg” – a new growth area to complement the hugely successful mobile phone and network businesses. Their efforts began in 1995 with the New Venture Board but this failed to gain traction as the core businesses ran their own venturing activities and executives were too absorbed with managing growth in existing areas to focus on finding new growth.

A renewed effort to find the third leg was launched with the Nokia Ventures Organisation (NVO) under the leadership of one of Nokia’s top management team. This visionary programme absorbed all existing ventures and sought out new technologies. It was successful in the sense that it nurtured a number of critical projects which were transferred to the core businesses. In fact, many opportunities NVO identified were too far ahead of their time; for instance, NVO correctly identified “the internet of things” and found opportunities in multimedia health management – a current growth area. But it ultimately failed due to an inherent contradiction between the long-term nature of its activities and the short-term performance requirements imposed on it.

Reorganising for agility

Although Nokia’s results were strong, the share price high and customers around the world satisfied and loyal, Nokia’s CEO Jorma Ollila was increasingly concerned that rapid growth had brought about a loss of agility and entrepreneurialism. Between 2001 and 2005, a number of decisions were made to attempt to rekindle Nokia’s earlier drive and energy but, far from reinvigorating Nokia, they actually set up the beginning of the decline.

Key amongst these decisions was the reallocation of important leadership roles and the poorly implemented 2004 reorganisation into a matrix structure. This led to the departure of vital members of the executive team, which led to the deterioration of strategic thinking.

Tensions within matrix organisations are common as different groups with different priorities and performance criteria are required to work collaboratively. At Nokia,which had been acccustomed to decentralised initiatives, this new way of working proved an anathema. Mid-level executives had neither the experience nor training in the subtle integrative negotiations fundamental in a successful matrix.

As I explain in my book, process trumps structure in reorganisations . And so reorganisations will be ineffective without paying attention to resource allocation processes, product policy and product management, sales priorities and providing the right incentives for well-prepared managers to support these processes. Unfortunately, this did not happen at Nokia.

NMP became locked into an increasingly conflicted product development matrix between product line executives with P&L responsibility and common “horizontal resource platforms” whose managers were struggling to allocate scarce resources. They had to meet the various and growing demands of increasingly numerous and disparate product development programmes without sufficient software architecture development and software project management skills. This conflictual way of working slowed decision-making and seriously dented morale, while the wear and tear of extraordinary growth combined with an abrasive CEO personality also began to take their toll. Many managers left.

Beyond 2004, top management was no longer sufficiently technologically savvy or strategically integrative to set priorities and resolve conflicts arising in the new matrix. Increased cost reduction pressures rendered Nokia’s strategy of product differentiation through market segmentation ineffective and resulted in a proliferation of poorer quality products.

The swift decline

The following years marked a period of infighting and strategic stasis that successive reorganisations did nothing to alleviate. By this stage, Nokia was trapped by a reliance on its unwieldy operating system called Symbian. While Symbian had given Nokia an early advantage, it was a device-centric system in what was becoming a platform- and application-centric world. To make matters worse, Symbian exacerbated delays in new phone launches as whole new sets of code had to be developed and tested for each phone model. By 2009, Nokia was using 57 different and incompatible versions of its operating system.

While Nokia posted some of its best financial results in the late 2000s, the management team was struggling to find a response to a changing environment: Software was taking precedence over hardware as the critical competitive feature in the industry. At the same time, the importance of application ecosystems was becoming apparent, but as dominant industry leader Nokia lacked the skills, and inclination to engage with this new way of working.

By 2010, the limitations of Symbian had become painfully obvious and it was clear Nokia had missed the shift toward apps pioneered by Apple. Not only did Nokia’s strategic options seem limited, but none were particularly attractive. In the mobile phone market, Nokia had become a sitting duck to growing competitive forces and accelerating market changes. The game was lost, and it was left to a new CEO Stephen Elop and new Chairman Risto Siilasmaa to draw from the lessons and successfully disengage Nokia from mobile phones to refocus the company on its other core business, network infrastructure equipment.

What can we learn from Nokia

Nokia’s decline in mobile phones cannot be explained by a single, simple answer: Management decisions, dysfunctional organisational structures, growing bureaucracy and deep internal rivalries all played a part in preventing Nokia from recognising the shift from product-based competition to one based on platforms.

Nokia’s mobile phone story exemplifies a common trait we see in mature, successful companies: Success breeds conservatism and hubris which, over time, results in a decline of the strategy processes leading to poor strategic decisions. Where once companies embraced new ideas and experimentation to spur growth, with success they become risk averse and less innovative. Such considerations will be crucial for companies that want to grow and avoid one of the biggest disruptive threats to their future – their own success.

About the author(s)

Yves L. Doz

is an Emeritus Professor of Strategic Management and the Solvay Chaired Professor of Technological Innovation, Emeritus at INSEAD.

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Anonymous User

16/03/2022, 10.44 am

Nokia is the one of the oldest phone and also it is existed until now

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17/09/2021, 07.41 pm

Why does Nokia fail

26/06/2021, 09.54 pm

Someone really should dig into the tale of Nokia Music, that of OD2, a successful independent company bought by Nokia in 2007. In less than four years through marketing bodges, strategic failures, interference from gormless management in the USA, and even more nepotistic and mostly incompetent management in the UK, a profitable company with numerous high profile corporate customers was brought to its knees by talent free people who should never have been promoted into the positions they were in. Well worth digging into, just don't interview the management or you will never get to the truth.

03/06/2021, 01.56 am

As I read through many of these comments, the word "dillusional" kept coming to mind. For starters, Windows OS was as good as either Android or iOS. The main thing lacking were just a few more core apps. That was really it.

Sure, they could easily have run Andoid, and as soon as that idea was floated, Microft instantly shuttered their offices.

The fact that Nadella had his trojan horse Elop do the deal on Friday and hand everyone their walking papers on Monday is proof positive that Microsoft never had any good intentions for Nokia.

MS could have easily thrown one of their legions of Devs onto the task of writing apps. which would have solved the app. store issue in a hurry.

Instead, Nadella destroyed Microfts own eco-system by loosing that lucrative and Crucial market sector. A permanent wound that still haunts them to this day, and showcased Nadella as being far Inferior to Ballmer as well as Gates.

While my first inclination is to assume some nefarious reason for this, I do have to acknowledge however the old addage: "Don't attribute to maclice, what can easily be explained by stupidity"

30/10/2020, 04.23 pm

Why only Nokia there are a number of business world wide which have failed because of its own Founders/CEO/COO lapses some of the reasons which I contribute are as follows.... 1. Lack of vision future 2. Innovation in new age computing revolution 3. High Salary package 4. Founders cannot be pushed out or replaced easily. 5. Management Decisions 6. Dysfunctional Hierarchy 7. Growing Bureaucracy 8. Internal rivalry

21/01/2018, 12.17 am

Captain of the ship knows how to sink the boat. Stephen (the first non Finnish CEO in history of Nokia) joined in 2010 from Microsoft and made a deal to use Windows only despite the fact that Android was growing and already captured huge market share. There was a lot of pressure from Nokia employees to move to Android but he ignored all. He fired a lot of people. It was famous in Nokia Espo office (H/Q) that he is a Trojan Horse. He later sold Nokia mobile business to Microsoft and earned millions of dollars in the deal. Later, he joined Microsoft again. Looks like the plan was to promote Windows Mobile at the cost of Nokia (that failed badly)

Sheila Yovita

13/01/2018, 04.20 am

If the company is at crises, what should the managers do? Could it be one of the option go for advices from top management consulting firms or any other third parties that can help to formulate better strategies to save the company? Assuming they went for consulting firms, then the firms were failed to help Nokia as well?

22/12/2017, 02.34 am

I would love to also see something similar about Blackberry. They were the prime brand for many early adopters and business users of cellular phones here in the USA. Similar to Nokia they also had/have secure network platform. I wonder if their demise was also due to strategic mistakes, and if similar to Nokia they also got bogged down with tactical activities and lost sight of overall strategy.

21/12/2017, 05.00 am

I agree with everyone, broadly. Nonetheless we should NEVER FORGET that Nokia would be far far better (as a Smartphone maker), than it is today.

Another illustration of a North American Corporation that did so well from its foundational years in the 19th Century and well into its first centenary is NORTEL Networks... I read a book about the rise, growth and maturity of NORTEL and it became one great role model for me... Unfortunately, NORTEL failed to go the length any longer than the beginning of the 21st Century; NORTEL collapsed for reasons that are too embarrassing to speak openly abbout - or even in privacy!

I'm working on to establish a Corporate and Product Branding Consultancy in town (Accra, Ghana), and this article on Nokia, like others, is what I've been looking out for, to help learn and know how to start and grow an enterprise and keep it growing and succeeding decade after decade, century after century!

I'm learning!

17/12/2017, 07.59 pm

"While Symbian had given Nokia an early advantage, it was a device-centric system in what was becoming a platform- and application-centric world." Well, actually Nokia pioneered the app-centric world. Go check. Only it's User Interface didn't keep up with the emerging competition.

07/12/2017, 05.51 am

Nokia is still alive... and much more than a mobile phone manufacturer. Nokia is the biggest network equipment maker in the world, employees +100k people and ~25 billion € in revenue in 2016...

30/11/2017, 05.40 pm

Good article. Thanks.

Interesting side note: While working in Japan around 2002, I heard "on the street" that Nokia ran a research center in Japan. Intended to tap the vast and growing Japanese mobile market. They saw everything that was coming in the Western world. Good cameras. Apps. Cost effective mobile internet & services. Mobile email messaging on a mass scale. Multi media devices. Long before the iPhone was invented. Nokia deemed the Japanese market too challenging and closed their research center. Turned a blind eye. The competition was already too far ahead.

28/11/2017, 03.21 am

Another consideration is that Nokia stayed committed to hardware-based human-computer factors as differentiation far longer than it should have: optical strip for scrolling, buttons for menus, buttons for navigation, etc. What the iPhone showed is that software-based UX was the more flexible and powerful approach.

26/11/2017, 04.40 pm

Just imagine, if Nokia had seen the future and adopted Android operating systems before 2009-10, perhaps the horizons of the mobile Eco system would have been very different today. Similarly, Blackberry also failed to see the shift in the mobile market from a communicating device to a multi Media device. Phones transcended the mere communication and functional level to take control of our social lives and presence. The social sites and e commerce growth were trends and changes that both these behemoths failed to see or gauge. They still remain extremely hardware centred, building very physically robust devices but perhaps falling short on the imagination part. I think this is entirely a matter of leadership vision and imagination.

25/11/2017, 12.00 am

Unless I am misremembering, I am sure I had a Samsung phone in the early 2000s. It was nothing like the Samsung mobiles of today. It was not user friendly, the operating system was a mess and I soon went back to Nokia but it's not true to say that Samsung hadn't entered the mobile communications market, they just hadn't entered the smart phone market. (Not that I don't agree with the thrust of the article - Nokia's downfall was very much of its own making).

24/11/2017, 11.53 pm

I think a similar story can be told about Microsoft under Ballmer. What Symbian was for Nokia, Windows was for Microsoft at one time. Nadella came in just at the right time to lift the company out of that slumber and made it take a leap of faith in the Cloud world. The results are evident. Microsoft is sailing at its lifetime best share prices. On the contrary, when we look at Apple, they seem to be following the footsteps of Nokia. Slowly but surely they are becoming a victim of their own success.

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The Rise and Fall of Nokia

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About The Authors

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Juan Alcacer

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The Real Cause of Nokia’s Crisis

  • Michael Schrage

Nokia’s technology isn’t a root cause of its current crisis. Don’t blame its engineers and designers either. The company still knows how to innovate. There’s a simpler and more strategic explanation for why this once-perennial market leader became second-rate. Nokia ignored America. The company simply refused to compete energetically, ingeniously and respectfully in the U.S. […]

Nokia’s technology isn’t a root cause of its current crisis. Don’t blame its engineers and designers either. The company still knows how to innovate . There’s a simpler and more strategic explanation for why this once-perennial market leader became second-rate.

case study analysis of nokia

  • MS Michael Schrage , a research fellow at MIT Sloan School’s Center for Digital Business, is the author of the books Serious Play (HBR Press), Who Do You Want Your Customers to Become? (HBR Press) and The Innovator’s Hypothesis (MIT Press).

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Nokia: The Inside Story of the Rise and Fall of a Technology Giant

The case examines the downward spiral of Nokia, the mobile technology giant that once conquered the world, seen from the perspective of ‘insiders’ – based on interviews with Nokia executives at top and middle management level. They describe the emotional undercurrents of the innovation process that caused temporal myopia – an excessive focus on short-term innovation at the expense of longer-term more beneficial activities. Nokia’s once-stellar performance was undermined by misaligned collective fear: top managers were afraid of competition from rival products, while middle managers were afraid of their bosses and even their peers. It was their reluctance to share negative information with top managers – who thus remained overly optimistic about the organisation’s capabilities – that generated inaccurate feedback and poorly adapted organizational responses that led to the company’s downfall. The case covers the period from the early 2000s to 2010, with a focus on 2007 (the introduction of the iPhone) to 2010, when the CEO left. Read a related Knowledge article "Who Killed Nokia? Nokia Did" by Quy Huy.

After reading and analysing the case, students will understand (i) how emotional dynamics influence hard technological and strategic decisions in organizations as they translate into challenges for innovation, (ii) how emotional dynamics can undermine innovation and performance.

  • Top and middle management
  • Mobile phone
  • Radical change
  • Strategic agility
  • Temporal myopia

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Quy Huy

Timo o. vuori.

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Lisa Simone Duke

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The case describes Nokia's spectacular rise and fall, shedding light on the combination of external factors and internal decisions that resulted in the company's handset business being sold to…

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  • Publication Date: Sep 1, 2011
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The case describes Nokia's spectacular rise and fall, shedding light on the combination of external factors and internal decisions that resulted in the company's handset business being sold to Microsoft in 2010. During the successful period of growth (roughly 1990 through to 2006), Nokia's focus on design and functionality gained it a worldwide reputation. It was acknowledged as the first smartphone manufacturer. Through the early-mid 2000s it was the undisputed leader in the global mobile phone business. The case traces the first signs of trouble and the company's subsequent decline over the period 2005 to 2010. Pressure in the early 2000s from low-end competitors led to early signs of problems. Then of course the game changed in 2007 with Apple's iPhone and a year later with phones powered by Google's Android operating system from HTC, Samsung and others. Nokia was initially dismissive of these new offerings but its proprietary OS, Symbian, was ageing badly and its App store (Ovi) was no match for Apple's. In September 2010 it was announced that American Stephen Elop, formerly of Microsoft, would become CEO. Not long afterwards a partnership with Microsoft was signed which subsequently led to Nokia's handset business being sold to Microsoft.

Learning Objectives

Understand why good companies go bad: in other words, to see how the assets that enable companies to succeed can also be liabilities when the market turns against them.

Provide insight into the nature of disruption in an established industry, and why incumbent firms struggle to adapt.

Examine the different paths companies should take to respond to disruptive forces.

To understand the leadership challenge for executives when their performance starts to decline.

To understand the dynamics of change in a fast-changing industry.

To identify strategies companies can use to adapt quickly to disruptive changes

Sep 1, 2011

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case study analysis of nokia

StartupTalky

9 Reasons Why Nokia Failed After Enjoying Unrivaled Dominance

Devashish Shrivastava

Devashish Shrivastava , Akshat Hawelia

In the annals of mobile phone history, Nokia once reigned supreme with its robust devices and iconic brand. However, as the smartphone revolution took hold, Nokia's fortunes took a sharp turn, leading to a notable decline in its market share and influence. The fall of such a prominent industry leader begs the question: What were the reasons behind Nokia's failure?

This post focuses on the reasons why Nokia failed after enjoying unrivaled dominance in the mobile segment for several years. The ferocious and mighty telecom giant Nokia was well known for its products' hardware and battery life. By understanding the lessons from Nokia's journey, we can gain valuable insights into the rapidly evolving landscape of the technology industry and the critical importance of adaptation and innovation.

For years, it was the talk of the town. User satisfaction with Nokia’s mobiles was globally recognized. The company launched the first internet-enabled phone in 1996, and by the start of the millennium, Nokia had also released a touch-screen mobile prototype.

This was the start of a revolution in the mobile phone industry. The Finnish giant was the largest cell phone maker in 1998. Nokia overtook Motorola, a move that was hard to predict. So, what led to the downfall of Nokia? It wasn’t a single factor but a myriad of reasons, most of which resulted from Nokia's resistance to change. We present to you the six main reasons behind Nokia's failure.

case study analysis of nokia

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Reasons for Nokia Failure: Case Study

The resistance to smartphone evolution, the deal with microsoft, nokia's failed marketing strategies, moving too slow with the industry, overestimation of strength, lack of innovation in products, organizational restructuring at nokia, the symbian vs. meego os dilemma at nokia, failure to adapt and reposition.

Why Nokia failed in India - case study

In the fast-paced world of technology, companies that fail to adapt to changing trends and consumer demands can quickly find themselves left behind. Nokia, once synonymous with mobile phone supremacy, experienced a significant downfall due to its resistance to smartphone evolution. As competitors embraced the shift towards smartphones, Nokia's reluctance to fully embrace this revolution became one of the key reasons for its failure.

Nokia failed to take advantage of the Android bandwagon. When mobile phone manufacturers were busy improving and working on their smartphones, Nokia remained stubborn. Samsung soon launched its Android-based range of phones that were cost-effective and user-friendly.

Nokia's management was under the impression that people wouldn’t accept touchscreen phones and would continue with the QWERTY keypad layout. This misapprehension was the start of its downfall. Nokia never considered Android as an advancement and neither wanted to adopt the Android operating system.

After realizing the market trends, Nokia introduced its Symbian operating system, which was used in its smartphones. It faced usability issues and lacked the app support and developer ecosystem that rival platforms like iOS and Android offered. The clunky user experience and limited app selection hampered Nokia's ability to compete effectively. Also, it was too late by then, with Apple and Samsung having cemented their positions. It was difficult for the Symbian operating system to make any inroads. This is the biggest reason behind Nokia's downfall.

Nokia was slow to recognize the potential of smartphones and the shift from feature phones to touchscreen devices. They failed to anticipate the demand for devices with advanced capabilities, such as app ecosystems and touch interfaces. This led to a loss of market share to competitors like Apple's iPhone and Android-based smartphones.

Another reason for Nokia's failure was the ill-timed deal with the tech giant Microsoft . The company sold itself to Microsoft at a time when the software behemoth was fraught with losses.

Nokia's sales screamed the mobile phone maker's inability to survive on its own. At the same time, Apple and Samsung were making significant strides in innovation and technological developments.

It was too late for Nokia to adapt to the dynamic and rigorous changes in the market. Microsoft’s acquisition of Nokia is considered to be one of the biggest blunders and wasn't fruitful for either side.

The partnership limited Nokia's ability to differentiate itself and left it dependent on Microsoft's success in the mobile industry . The Windows Phone platform struggled to gain traction, further impacting Nokia's market position. This case study provides valuable lessons for businesses considering similar alliances and emphasizes the importance of aligning visions, complementary strengths, and adaptable strategies.

Nokia's Global Net Sales

Marketing plays a crucial role in shaping a brand's success and perception. In the case of Nokia, its decline can be attributed, in part, to failed marketing strategies that hindered its ability to compete effectively in the mobile phone market.

One notable misstep in Nokia's marketing approach was its unsuccessful implementation of umbrella branding . Companies like Apple and Samsung successfully adopted the umbrella branding model, with flagship products like the iPhone and Samsung Galaxy series acting as the focal point for expanding their product lines. However, Nokia failed to follow suit and capitalize on the umbrella branding strategy, missing out on the opportunity to create a cohesive and recognizable brand identity.

Additionally, Nokia's marketing efforts struggled to maintain the user trust that the company had built over the years. Inefficient selling and distribution methods further eroded consumer confidence and made it difficult for Nokia to reach its target audience effectively.

While Nokia attempted to regain momentum by introducing hardware and software innovations, these offerings were often late to the market and lacked the uniqueness that would have set them apart from competitors. Rivals had already released similar features and devices, diminishing Nokia's ability to capture consumers' attention and regain market share.

The failure of Nokia's marketing and distribution strategies played a significant role in its ultimate decline and exit from the mobile industry market. Without a strong brand identity, effective distribution channels, and timely innovations, Nokia struggled to compete with rivals who had successfully aligned their marketing strategies with evolving consumer preferences and market dynamics.

case study analysis of nokia

Nokia's failure to keep pace with changing technology and trends played a significant role in its decline. While the company had earned a reputation for its hardware, it didn't prioritize its software lineup, which proved to be a crucial oversight.

Initially, Nokia was cautious about embracing technical advancements in order to mitigate the risks associated with introducing innovative features to its phones. However, this approach hindered the company's ability to adapt to the rapidly evolving market.

The business needed diversification, but it was too late by the time Nokia realized this. Instead of being amongst the early initiators, Nokia transitioned when almost every major brand had already started producing awesome phones.

This case study shows Nokia's failure to keep up with changing technology and its delayed response to industry trends significantly contributed to its downfall.

Nokia overestimated its brand value. The company believed that even after the late launch of its smartphones, people would still flock to stores and purchase Nokia-manufactured phones. This turned out to be a misconception, as consumer preferences had shifted towards other brands.

People still make predictions that Nokia will retain the market leadership if it uses better software at its core. However, this is far from the truth, as seen today.

The company got stuck with its software system, which is known to have several bugs and clunks. Nokia felt its previous glory would help alleviate any sort of trouble. Unfortunately, things didn’t play out that way.

Unfortunately, the market dynamics had changed, and consumers were no longer willing to overlook the shortcomings of Nokia's software. Competitors had surpassed Nokia in terms of user experience and software innovation, leaving Nokia struggling to regain its position.

Nokia's lack of innovation in its products significantly contributed to its failure case study. While brands like Samsung and Apple came up with advanced phones every year, Nokia simply launched the Windows phone with basic features, failing to keep up with the industry's rapid progress..

The Nokia Lumia series was a jump-start measure, but even that collapsed due to a lack of innovation. The unattractive and dull features didn’t help. In the era of 4G, Nokia didn’t even have 3G-enabled phones. Nokia also came up with the Asha series, but it was game over by then.

Wrong decisions and risk aversion brought about the decline of the mobile giant. Nokia refrained from adopting the latest tech. Nokia's failure became a powerful case study that made organizations realize the importance of continuous evolution and enhancements. The journey of what was once the world’s best mobile phone company to losing it all by 2013 is quite tragic. Nokia's failure was not solely due to its lack of innovation but also its shortcomings in leadership and guidance. These factors, combined with its inability to adapt to market demands and technological advancements, sealed the company's fate.

case study analysis of nokia

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Nokia underwent a sudden and significant organizational shift by adopting a matrix structure driven by enhancing agility within the company. However, this abrupt change resulted in dissatisfaction among stakeholders, particularly as key individuals in top management departed from the organization. These individuals, who had played instrumental roles in establishing Nokia as a leading company, were no longer part of the decision-making process .

The shift to a matrix structure also brought about internal challenges, as stability in top management, a crucial element for organizational coherence, was disrupted. Over just five years, Nokia experienced two CEO replacements , preventing employees from fully adapting to new leadership goals and visions. The frequent changes in leadership created instability and hindered consistent strategic direction. The lack of continuity in leadership contributed to employee dissatisfaction and impacted the overall cohesiveness of the organization. Employees and other stakeholders found it challenging to align with successive CEOs, leading to a breakdown in communication and a sense of disconnect within the company.

Nokia Changes their Logo After 60 Years

Nokia's problem arose when its R&D division underwent a split, with one faction dedicated to enhancing the Symbian operating system and the other focused on developing MeeGo. The competing claims of superiority between the two teams led to internal friction, causing delays in the release of new phones. The company grappled with the challenge of harmonizing divergent technological directions, impacting its ability to bring innovative products to market in a timely manner. This internal competition within the R&D division created a complex dynamic, hindering Nokia's efficiency and potentially affecting its competitive edge in the rapidly evolving smartphone market.

case study analysis of nokia

Nokia's downfall can be attributed to its failure to analyze market trends and adjust its strategy accordingly. The company neglected the burgeoning smartphone market, ultimately missing a significant opportunity for growth. Rather than capitalizing on this evolving landscape, Nokia could have revitalized its position by enhancing its existing software, such as Symbian. Unfortunately, the lack of strategic foresight and adaptability led to a missed chance to stay competitive in the dynamic tech industry.

Moreover, the oversight in market analysis and strategic planning eroded Nokia's market share and diminished its relevance in the rapidly changing consumer electronics landscape. The company's reluctance to pivot and innovate in response to market dynamics ultimately contributed to its decline in the face of evolving consumer preferences and technological advancements.

The fall of Nokia can be attributed to a combination of factors that hindered its ability to adapt, innovate, and stay competitive in the mobile phone market. The resistance to smartphone evolution, missed opportunities, ineffective marketing strategies, and the deal with Microsoft all contributed to its downfall. Ultimately, Nokia's decline serves as a reminder of the importance of staying agile, embracing change, and continuously evolving to meet consumer demands.

Why did Nokia fail?

Not switching to Android, lack of innovation, not upgrading the software, and overestimating the brand value were some of the reasons that led to Nokia's failure.

What is Nokia?

Nokia is a consumer electronics company popular for its mobile phones. It is one of the largest mobile phone manufacturers in the world.

Is the Nokia company closed?

No, the company is still running, but it has shut down some of its plants.

What happened to Nokia?

Once a dominant force, Nokia clung to outdated software, allowing Android and iOS to surge ahead, leaving the brand lagging. Despite its focus on new technologies, Nokia's legacy now lives on in the realm of Android.

Why did Nokia fail to compete with Samsung and Apple?

Nokia didn't adopt Android and focused on its hardware more than its software, which is why it failed to compete against Samsung and Apple.

Are there any new Nokia smartphones coming in the near future?

Though Nokia might seem dominant on the phone front, the company occasionally comes up with some new phones/smartphone devices. Here are some of the Nokia smartphones that are likely to be launched in 2022:

  • Nokia 2760 Flip 4G
  • Nokia C21 Plus
  • Nokia Suzume
  • Nokia C2 2nd Edition

Who took over Nokia?

Nokia phones were robust and dependable companions of the pre-smartphone era. However, Nokia's Java and Windows phones failed to stand out in the market dominated by Apple and Android phones. The Android phone manufacturing companies like Samsung, LG, HTC, Sony, Motorola, and other Chinese smartphone developers like MI, Realme, Oppo, Vivo, and the Apple IOS devices took over Nokia in the mobile sector.

What lessons can other businesses learn from Nokia's failure?

Nokia's failure highlights the importance of embracing change, anticipating market trends, and continuously innovating to meet customer expectations. It underscores the need for effective marketing strategies, strategic partnerships, and an unwavering commitment to adaptation and innovation in today's rapidly evolving business landscape.

Was Nokia's lack of innovation a significant factor in its decline?

Yes, Nokia's lack of innovation in its product lineup played a significant role in its downfall. The company failed to keep pace with rivals who consistently introduced advanced devices and embraced evolving market demands, which resulted in Nokia losing its competitive edge.

Why did Nokia go out of business?

Nokia lost its phone industry dominance by sticking to outdated software, missing the smartphone revolution, and experiencing a significant sell-off. Despite not going out of business, Nokia's cautionary tale highlights the vital role of innovation in a rapidly evolving tech landscape, with the company still present in network tech and patents.

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The Nokia Case: fall and rise

The Nokia Case: fall and rise

Multinationals are not always a guarantee of permanent success, even though they are considered indestructible over time and avant-garde in terms of technological innovations.

<<< Good strategies: What do winning brands have in common? >>>

This is the case of what happened a few years ago with the Finnish telecommunications company Nokia, which by not adapting to the most ambitious change in mobile telephony (the smartphone) lost its followers and their phones resoundingly, which could do nothing against the competition and were forgotten.

Although over time, Nokia managed to recover from that fall by finally adapting to the demand of the market and of demanding users by incorporating the Android operating system, it took several years behind the shadows to be able to achieve it, until just two or three years ago its incipient rise was noted with the launch of the first smartphones that still retain the distinctive mark of strength and durability that catapulted the brand.

In this article, we tell you all the details of the fall and rise of Nokia , the company that was once the market leader and today retains a discreet place alongside leading companies such as Apple, Samsung, Xiaomi, and Huawei.

Story of a fall and rise.

It all started when in 2007, even when Nokia was still leading the world cell phone market, the first iPhone smartphone was launched, led by the prestigious Apple, which was here not only to stay but to unseat the Finnish giant that was beginning to sense its decline.

Faced with the stark prospect of an increasingly demanding market that fed unattainable competitors, the company decided to join forces with Microsoft to be able to deal with the operating systems that were already prevalent at that time.

But unfortunately, it became aware of this reality late because, like many companies with a long history, it resisted change. However, it attempted.

In 2011, Nokia launched the Nokia N9, running the MeeGo operating system. Then it also presented the first terminals of the Asha series, but clearly, the Finnish giant was looking to bet stronger as soon as it realized that they were losing to other competitors who had already launched more advanced phones than the N and the Asha.

Examples of this unequal competition were the Android devices that Samsung and Sony Ericsson were already launching to capture the desire of users with a growing market share.

It was then, in that same year, Nokia established a strategic alliance with Microsoft so that all the company's smartphones would incorporate the Windows Phone operating system, leaving aside MeeGo and Symbian, except in the most basic models. Two years later, in 2013, Microsoft announced the purchase of mobile devices and the licensing of Nokia patents in a global agreement.

From this strategic alliance, the Nokia Lumia series of smartphones was born, which had the Windows Phone operating system. But despite all the efforts between the two multinationals, the Nokia Lumia failed to charm consumers because the competition led by IOS and Android left them no room for maneuver.

So, finally, in 2014, Microsoft decided to stop the production of Windows Phones Lumia, once it understood that there was no point in fighting against operating systems that were easier to use, faster, and more efficient for users. Consequently, he announced the latest public version of Windows Phone 8.1.

The bet on Android.

Due to Nokia's extensive history in the mobile phone market, it was not easy to overcome old preconceptions concerning preserving a certain distinctive brand of producing resistant phones made of hard materials and with classic keys.

That is why they fell behind and did not see the flood of Android and IOS coming, which was installed among people to erase from their memory any remnants of experience with that obsolete technology for the new digital age.

10 years have passed since the checkmate that iPhone and Android did to the proud Nokia. Ten years of bad decisions, of which the alliance with Microsoft was the worst of all. However, there was still a glimmer of hope in this path of darkness into which the Finnish giant had plunged. There was still the part that Microsoft had not bought, and that was its salvation.

Satya Nadella, the new CEO of Nokia at that time (2015), did something very practical to give the Finnish company back the prestige it once had: he demolished everything that Microsoft had built since it bought it, leaving almost not a single vestige of that failed alliance. He had understood that if he wanted to re-emerge as a brand and recover lost market share, he had to do something different, not dig through the rubble.

In this way, he made the best decision he could to win back the public that had abandoned him: surrender to Android. And far from seeming like a risky act, it was the best decision because he played it safe. Android then became the answer that the company needed to resurface and be competitive again, and in 2017 the firm, together with HMD, launched the Nokia 6, the first mid-range smartphone that incorporates Android as an operating system.

Although at first it was only launched in the Chinese market, it meant the company's most anticipated return to the cell phone market. And it was not bad at all because the terminal was renewed in increasingly advanced devices.

Nokia forever.

This story teaches us that no multinational company is guaranteed success if the right decisions are not made to stay updated, which was precisely what Anssi Vanjoki, the company's CEO during the early days of Android, did not do, expecting to be successful without betting on change.

Then the desperation not to go bankrupt drives the company to ally with Microsoft - the worst of decisions - and launch very interesting phones but not what consumers wanted after flirting with Android and Apple, which shows that they made a failed market study for uselessly believing that their buyer persona would continue to buy small phones with keys or poor imitations of smartphones without WhatsApp or an application store to download for free and unlimitedly.

But as failures teach us to reinvent ourselves and improve, fortunately, Nokia reinvented itself when it decided to maintain its design and resistant materials to take advantage of Android to create very powerful phones that are gradually climbing positions in the market. And it's still Nokia, its quality phone essence was not diluted by Microsoft's handling.

<<< How digital strategies are redefining brands >>>

In final words, this was the story of the fall and rise of Nokia, a multinational that had everything to be the best indefinitely, but bad decisions precipitated its failure just when the competition adopted Android to sink it further. But thinking about customers was what saved it because customers wanted Nokia with Android, and now they finally have it.

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The Rise and Fall of Nokia

By julian birkinshaw , lisa duke.

The case describes Nokia’s spectacular rise and fall, shedding light on the combination of external factors and internal decisions that resulted in the company’s handset business being sold to Microsoft in 2010.During the successful period of growth (roughly 1990 through to 2006), Nokia’s focus on design and functionality gained it a worldwide reputation. It was acknowledged as the first smartphone manufacturer. Through the early-mid 2000s it was the undisputed leader in the global mobile phone business. The case traces the first signs of trouble and the company’s subsequent decline over the period 2005 to 2010. Pressure in the early 2000s from low-end competitors led to early signs of problems. Then of course the game changed in 2007 with Apple’s iPhone and a year later with phones powered by Google’s Android operating system from HTC, Samsung and others. Nokia was initially dismissive of these new offerings but its proprietary OS, Symbian, was ageing badly and its App store (Ovi) was no match for Apple’s. In September 2010 it was announced that American Stephen Elop, formerly of Microsoft, would become CEO. Not long afterwards a partnership with Microsoft was signed which subsequently led to Nokia’s handset business being sold to Microsoft.

Learning objectives

  • Understand why good companies go bad; in other words, see how the assets that enable companies to succeed can also be liabilities when the market turns against them.
  • Provide insight into the nature of disruption in an established industry and why incumbent firms struggle to adapt.
  • Examine the different paths companies should take to respond to disruptive forces.
  • Understand the leadership challenge for executives when their performance starts to decline2. To understand the dynamics of change in a fast-changing industry.
  • Identify strategies companies can use to adapt quickly to disruptive changes.

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A STUDY ON NOKIA'S FAILURE IN THE GLOBAL MARKET AND CONSUMER PREFRENCE LEVEL TOWARDS NOKIA INTRODUCTION OF THE STUDY

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CONSUMER PREFRENCE LEVEL TOWARDS NOKIA

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ramanajaneyulu pokathota

Nokia was a synonym for the mobile phone industry for a long time; however, when it came into the era of smart phones, the former leader was under an awkward situation. Nokia sold its mobile phone business to Microsoft on September 3, 2013. A company following Kodak with the legendary color failed in the impact of the new technology revolution. This was a typical case of the subversion of an industry; therefore, the author believed that it was necessary to analyze the process. This paper studied Nokia's decline mainly from the three parts. First of all, looking back Nokia's development process from the glory to the decline, it can be divided into three stages: the transition period, the peak period and the decline period, followed by analyzing the reasons of its decline from three parts: Nokia executives' grasp for the market, the company's business strategy and business cooperation, and finally analyzing its inspiration for modern enterprises from the marketing perspective.

case study analysis of nokia

In this paper, we study the changing explanations of success and failure over the course of a firm’s history. We build on a discursive approach that highlights the role of narrative attributions in making sense of corporate performance. Specifically, we analyze how the Nokia Corporation was framed first as a success and later as a failure and how these dimensions of performance were explained in various actors’ narrative accounts. In both the success and failure accounts, our analysis revealed a striking black-and-white picture that resulted in the institutionalization of Nokia’s metanarratives of success and failure. Our findings also reveal a number of discursive attributional tendencies; and thus warn of the cognitive and politically motivated biases that are likely to characterize management literature. Keywords: strategic management; causal attribution; sense-making; discourse analysis; narrative; management history

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Microsoft Corporation’s Acquisition of Nokia Case Study

The Microsoft Corporation purchased the Nokia phone business in 2014 for approximately $7.2 billion. Although Nokia could be labeled as a profitable business during that time, it was a downstream customer for Microsoft. Thus, it was unclear whether the deal was beneficial for Microsoft since Nokia was not even a leader in the mobile phone industry.

The issue that Microsoft had to resolve was the negotiation process between the companies as the negotiators were from different cultural origins: Microsoft is an American company, while Nokia is a European (Finnish) one. What is more, the strategies and aims of both companies were different: while Microsoft was trying to become present in the mobile phone market, Nokia wanted to be provided with a serious capital that could help it deal with expensive operations and productions. However, it should be noted that negotiations between the two companies took place before Microsoft acquired Nokia: in 2011, the Windows 7 Platform was presented on Nokia phones. At first, the companies only cooperated to develop new devices and products. Only three years after the first cooperation Nokia was purchased by Microsoft. This decision implies that this type of partnership was profitable for both companies at first.

Another problem of these negotiations is the fact that companies often do not see their counterparts as individuals; thus, one of the companies (Nokia) had to abandon its identity to receive benefits from the synergetic deal. However, as it can be seen from the case study, Windows phones were not as popular as it was expected and did not bring Microsoft visible presence and recognition in the mobile phone market, where Apple and Android were the main leaders.

While the deal might appear as unprofitable at first, it may present some benefits in the long run. Nevertheless, Microsoft is not the first company that chose to purchase a “downstream customer” in order to target a new market where the corporation was not present. Acquiring a company that is not a leader anymore can be a risky decision, and, in Microsoft’s case, it led to a reduction in the value of the company. Moreover, it also brought little benefit to Nokia, although the Finnish company had expected other outcomes. While Microsoft tried to resurrect the former leader in the mobile phone market, Nokia experienced losses and thousands of job cuts due to Microsoft’s workforce management policy in 2014. Thus, the deal was not as profitable as both companies had expected.

One question remains to be answered: why did Microsoft decide to involve in this deal if it was clear that the deal was not profitable? On the one hand, this deal was unlikely to harm Microsoft’s core business. On the other hand, the corporation tried to present a new product (Windows Phone) by purchasing a (once stable) company in decline – not an entirely new approach. It can work if the odds are in your favor. However, as it can be seen, Windows Phone cannot compete with iPhones and Android devices, and Microsoft’s presence in the smartphone market is still relatively small. Android is capable of expanding because this operating system can be installed on multiple devices from various manufacturers (Samsung, LG, Lenovo, Huawei, etc.). Windows 7 and 8 for mobile phones are mostly used on Nokia smartphones that cannot compete with Samsung, not to mention other companies. Thus, Microsoft’s acquisition of Nokia was unprofitable. It is possible to assume that this deal will bring more additional losses in the future.

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IvyPanda. (2021, August 2). Microsoft Corporation's Acquisition of Nokia. https://ivypanda.com/essays/microsoft-corporations-acquisition-of-nokia/

"Microsoft Corporation's Acquisition of Nokia." IvyPanda , 2 Aug. 2021, ivypanda.com/essays/microsoft-corporations-acquisition-of-nokia/.

IvyPanda . (2021) 'Microsoft Corporation's Acquisition of Nokia'. 2 August.

IvyPanda . 2021. "Microsoft Corporation's Acquisition of Nokia." August 2, 2021. https://ivypanda.com/essays/microsoft-corporations-acquisition-of-nokia/.

1. IvyPanda . "Microsoft Corporation's Acquisition of Nokia." August 2, 2021. https://ivypanda.com/essays/microsoft-corporations-acquisition-of-nokia/.

Bibliography

IvyPanda . "Microsoft Corporation's Acquisition of Nokia." August 2, 2021. https://ivypanda.com/essays/microsoft-corporations-acquisition-of-nokia/.

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PESTLE analysis of Nokia

Nokia (NYSE: NOK), based in Finland, was once the world’s premier manufacturer and marketer of mobile phones. Unfortunately, it has been unable to adapt to changing market conditions created by the introduction of smartphones and the rise of aggressive competitors such as Apple Inc. and Samsung.

Nokia’s problems and struggles are clearly exposed by its financial numbers. As recently as June 2012 Nokia reported revenues of $34.08 billion, but on June 30, 2015, Nokia reported revenues of $16.31 billion. Those revenues actually represent something of a turnaround for the company; in June 2013 Nokia reported revenues of just $8.57 billion, or a little over a quarter of the number from the year before. Recent revenue figures indicate that Nokia is maintaining its market position but not growing.

The troubles affecting Nokia arise from a radical transformation in its business environment. A brief examination of the Political, Economic, Social/Cultural, Technological, Legal and Environmental, or PESTLE, conditions affecting Nokia can give us a glimpse of the company’s potential future.

The impact of political factors on Nokia is hard to ascertain. The company is based in the European nation of Finland, but the Finnish government has refused to give it a bailout or special favors.[1] This forced Nokia into an uneasy alliance with Microsoft (NASDAQ: MSF) that has since fallen apart.[2]

Unlike some tech companies, Nokia lacks strong government support because it is based in a small country. This can both help and hurt the company because it is not associated with a major power, but it might lack the political clout of American- or Chinese-based rivals.

Political unrest or other changes in China could disrupt production and limit Nokia’s manufacturing capabilities in that country. This could force it to move production to higher-cost locations such as the United States.

Nokia suffered heavily from the European downturn of recent years. Economic turmoil in Europe has hurt it badly by limiting buying power in its home markets.

Unlike Apple, Nokia has had a hard time tapping into the fast-growing Chinese market. Nokia also lacks the vast economic resources available to some of its competitors, such as Google, Apple and Samsung. In particular, Nokia seems to lack the research and development capabilities that have enabled these companies to develop new devices and tap new markets. One reason why it lacks those capabilities is that Nokia simply does not have the money to finance extensive research and developments efforts like its competitors do.

The major cultural factor that has hurt Nokia has been the widespread adoption of smartphones and the growing use of apps. Many of the most popular apps, such as WhatsApp, are designed for more popular operating systems such as Google’s Android and Apple’s proprietary iOS. Nokia’s decision to utilize the Microsoft Windows Phone instead of Android limited its appeal to many customers.

The popular association of Apple with smartphones in some countries—such as the United States—has cut deeply into Nokia’s market by creating a generation of customers that only buy one brand. In more recent years, Nokia has had to deal with the popular misconceptions that there are only two brands of smartphone in the market, Apple and Samsung, and only two operating systems: iOS and Android. This has kept many customers from even considering Nokia products.

The technological challenges affecting Nokia are at the root of the social factors limiting its business. The development of open sourced operating systems such as Android and the invention of apps radically changed the mobile phone market. Mobile phones were transformed from simple communications devices into handheld computers.

This led to a situation in which customers wanted to perform a wide variety of tasks with phones, including taking photographs, watching streaming video and performing business functions. The problem was compounded by Nokia’s decisions to utilize the less popular Windows Phone operating system and to stick with its own operating system. This limited customers’ choices and made it difficult to sell Nokia products to younger consumers.

Nokia has not been able to significantly tap the potentially lucrative market for other kinds of mobile devices such as tablets and wearable technology. This could greatly reduce its competitive edge in the future.

Nokia’s legal environment is extremely challenging because it operates within the European Union. That body’s regulators have been investigating Google’s use of Android for a possible antitrust case.[3] EU action against Google could lead to radical changes in Nokia’s market, such as Android being spun off into a separate company.

It is not clear how exactly such action would affect Nokia, but it could create a more level playing field and increase Nokia’s access to the European market. One possible game changer could be that popular Google solutions such as Gmail could be taken off of Android, which could limit its popularity.

Like other electronics manufacturers, Nokia is faced with the problem of safely and economically disposing of its used products in an environmentally-friendly manner. One costly requirement that it could face in the years ahead is laws making electronics manufacturers responsible for the disposal or recycling of used devices, a potentially costly expense, particularly if the devices use lithium batteries.

Another environmental concern that could affect Nokia is increased costs for materials and components, particularly lithium for batteries. Increased demand for lithium for other uses such as electric cars could limit its supply and raise costs.

A long-range challenge could be climate change created by global warming, which could disrupt transoceanic shipping and Nokia’s supply chain. New environmental laws in China designed to curb greenhouse gases could increase production costs in that country and affect Nokia’s costs.

Nokia faces serious challenges in a radically altered mobile phone market. It will need to radically alter its business model and products simply to survive. At this junction, it is unclear if Nokia will ever be able to become a major player in the consumer electronics business again.

[1] http://businesstech.co.za/news/mobile/16053/nokia-not-getting-finnish-government-bailout/

[2] http://www.wired.com/2015/07/microsoft-takes-big-nokia-hit-ballmer-era-now/

[3] http://www.androidauthority.com/eu-right-bring-antitrust-case-google-603007/

Image “Nokia Lumia 1520” by Karlis Dambrans is licensed under CC BY 2.0

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Towards Wise Management pp 163–188 Cite as

Case Study 4: The Collapse of Nokia’s Mobile Phone Business

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  • First Online: 30 July 2018

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This chapter provides a wisdom-oriented reading of one of the most spectacular business failures of recent times: the collapse of Nokia mobile phones between 2007 and 2015. Using executive biographies and other published accounts of Nokia’s organisational patterns, the chapter attempts to offer a more balanced explanation of the processes behind Nokia’s inability to respond to the changing industry circumstances. The following analysis pays attention to the shaping of Nokia’s organisational culture. Company and its new leadership adopted a professional, no-nonsense approach in the aftermath of the problems of the late 1980s and early 1990s. The new generation of managers believed in a rational mindset supported by a bureaucratic organisational form. Leaning on a superior technological competence within the mobile phone sector, Nokia was capable of ultimately becoming the market leader. However, in 2007, with two major players, Apple and Google, joining the business, the established rules of competitive dynamics were irrevocably changed. Focus shifted to software and applications. Nokia’s risk-aversive and closed organisational culture could not respond in a situation where an open search for new innovations and a cooperative internal working mode were needed. An analysis of the development of Nokia’s organisational psyche following the emergence of a new generation of managers and executives highlights the role of local beliefs in using philosophical wisdom in critical circumstances. Nokia and its leadership were not able to abandon the outmoded habits and structures, as these had become integrated with the very identity of the company.

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Peltonen, T. (2019). Case Study 4: The Collapse of Nokia’s Mobile Phone Business. In: Towards Wise Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-91719-1_6

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Unified Inventory

Discover a new approach to modern telecom inventory management for autonomous networks

What is telecom inventory management?

Telecom inventory management relies on solutions that provide a complete database to track detailed information about physical and logical network components, including, for example, cell towers, cables, switches, routers, antennas and network devices.

What are the requirements for telecom inventory management for autonomous networks?

Modern inventory solutions need to leverage a data-mesh approach to map end-to-end services to the physical network. This approach enables root cause analysis (RCA), domain stitching and correlation analysis for software configurations, network connections and relationships between elements.  

You can use this type of inventory system for data aggregation, normalization and as part of a network observability fabric. It serves as a single source of truth for your operational support systems (OSS) and business applications.

Today, communications service providers (CSPs) face the challenge of having to shrink operating costs while implementing new services faster and boosting revenues at the same time. Automation is critical to achieving these objectives. A precise and dynamic inventory system forms the foundation for effective automation by leveraging a deep understanding of network and services coupled with real-time insights.

  • Requirements for telecom inventory management
  • Key benefits

What is Nokia’s telecom inventory management solution?

Case studies, related solutions and products, what are the key benefits of modern inventory solutions for autonomous networks, observability.

Through Observability, the inventory solution can discover existing and new network elements (physical, virtual or containerized) in a highly dynamic environment. The knowledge about relational connections and graphs provides the foundation for RCA and enables you to leverage machine learning (ML) platforms and other automation tools.

Normalization

With data aggregation, normalization and labeling, you can efficiently link the inventory solution to northbound systems. Normalization also enables multi-domain and multi-vendor stitching and the creation of service abstraction. And by defining relationships between physical elements and logical services it’s possible to identify the effects of a failure and to perform service impact analysis (SIA), resulting in (is there a missing word here Steffen?)

Optimization

A modern inventory solution provides insights that can be used to recommend the most efficient routes, energy and spectrum usage. ML tools enable pattern recognition among similar services, facilitating suggestions for the best route or service path based on prior service utilization. When integrated with intent-based orchestration, you benefit from a highly intelligent system capable of autonomously defining services and KPIs.

Digital twins

Modern inventory solutions are also a key element of network digital twins, which emulate network elements and their behavior. This improves SIA and, when combined with RCA, gives you insights into the future state of the network. Network digital twins also help you to identify critical resources for simulation and planning purposes.

Flexibility

It’s essential for inventory systems to work and integrate with systems from multiple vendors while enabling CSPs to create their own models, adapters and configurations. You can rely on our software development kits to achieve this flexibility. 

The Nokia Unified Inventory solution provides all necessary information about services and service assets in near real-time, enabling modern operational functions like MLOps, AIOps , service orchestration and assurance. Better data integrity also helps you to improve your network automation efficiency and effectiveness.

Unified Inventory is an integral part of several Nokia products and solutions:  

  • The Core Slice Controller automates 5G core slicing operations with slice lifecycle management
  • Digital Operations Center offers closed-loop end-to-end service and slicing operations
  • The RAN Slice Controller automates 5G RAN slicing operations with slice lifecycle management
  • Assurance Center provides AIOps-driven network and service assurance
  • Orchestration Center enables intent-driven service orchestration

Nokia’s award-winning Digital Operations software is used by over 200 customers globally to design, delivering and assure services at scale and with speed. 

Interested in learning how Nokia’s Orchestration Center has helped service providers around the globe? Find out about the lessons learned from real-world deployments in our case studies. 

Image

Service orchestration and assurance case studies

Autonomous operations requires a new approach to telecom inventory management, core slice controller.

Automate core slicing operations with lifecycle management for 5G slices

Digital Operations Center

End-to-end closed-loop operations for autonomous networks

RAN Slice Controller

RAN Slice Controller automates 5G RAN slicing lifecycle management and assures 5G slice performance

Nokia Assurance Center

Automate assurance for network and service operations

Orchestration Center

Intent-based service orchestration for autonomous networks

Learn more about network automation

Black and white photograph of orchestra on stage

Appledore: Cross-Domain Service Orchestration Nokia profile

Highway long exposure photo

Enhance differentiated service experience with slicing using URSP

Here's how to make Network Slicing work efficiently

Here's how to make Network Slicing work efficiently

Network Nirvana

Autonomous Operations - is it time for a new Network Operating System?

Are you ready to deliver the 5G-era customer experience?

Are you ready to deliver the 5G-era customer experience?

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Key findings from Telco AI survey

Unlocking revenue and efficiency with intent-driven autonomous operations

Unlocking revenue and efficiency with intent-driven autonomous operations

Latest news, stc selects nokia orchestration software to deliver 5g slicing and strengthen monetization efforts  .

12 Dec 2022

Nokia deploys Orchestration Center software for Telstra to drive enhanced automation and customer experience

18 Oct 2022

Nokia launches AI Maturity Assessment to support communication service providers with AI strategy, adoption

Orange and nokia deploy the first industry 4.0 4g/5g private network with network slicing in french factory.

18 May 2021

Nokia to help transform PLDT and Smart’s nationwide network and standardize virtualization environment

10 Dec 2020

Nokia’s Digital Operations Center software wins Fierce Innovation Award

29 Jul 2020

ÖBB, A1 Austria and Nokia are piloting network slicing in the existing A1 network

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Computer Science > Computation and Language

Title: shallow synthesis of knowledge in gpt-generated texts: a case study in automatic related work composition.

Abstract: Numerous AI-assisted scholarly applications have been developed to aid different stages of the research process. We present an analysis of AI-assisted scholarly writing generated with ScholaCite, a tool we built that is designed for organizing literature and composing Related Work sections for academic papers. Our evaluation method focuses on the analysis of citation graphs to assess the structural complexity and inter-connectedness of citations in texts and involves a three-way comparison between (1) original human-written texts, (2) purely GPT-generated texts, and (3) human-AI collaborative texts. We find that GPT-4 can generate reasonable coarse-grained citation groupings to support human users in brainstorming, but fails to perform detailed synthesis of related works without human intervention. We suggest that future writing assistant tools should not be used to draft text independently of the human author.

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Study finds antibiotics prescribed by VA dentists 'commonly unnecessary'

Dental procedure

More than half of the antibiotics prescribed by dentists practicing in the Department of Veterans Affairs (VA) in 2019 do not have guidelines supporting their use and were likely unnecessary, researchers reported today in Infection Control & Hospital Epidemiology.

Using 2019 VA national electronic health record data, a team of VA researchers evaluated antibiotics prescribed by dentists for appropriateness using two definitions: a guideline-based definition (labeled as "consensus") consistent with American Dental Association Guidelines for Dental Pain and Swelling and American Heart Association Guidelines for the Prevention of Infective Endocarditis and an evidence-based definition (labeled as "non-consensus"). 

Inappropriate prescriptions, excessive duration

A total of 92,224 antibiotic prescriptions were associated with 88,539 dental visits. Most study participants were White (67.8%) and male (90.6%), and 53.9% were medically compromised. Amoxicillin (57.8%) and clindamycin (11.2%) were the most prescribed antibiotics. More than half of the prescriptions were used to prevent complications in medically compromised patients (30.9%) or to prevent post-surgical complications (20.1%), areas that lack professional guidance, the authors note. Of the antibiotics prescribed, 17.5% were considered concordant based on the consensus definition and 64.3% were considered non-consensus concordant.

Patient-specific factors that predicted receipt of inappropriate antibiotics were African American race, Native Hawaiian or Pacific Islander race, and Hispanic ethnicity.

The study also found that the average duration for antibiotics prescribed—8.3 days—was excessive.

"Regardless of definition applied, antibiotics prescribed by dentists were commonly unnecessary," the study authors wrote. "Improving prescribing by dentists is critical to reach the national goal to decrease unnecessary antibiotic use."

Flu remains elevated in the Northern Hemisphere

Flu activity remains elevated in many parts of the Northern Hemisphere, though detections have declined at the global level, the World Health Organization (WHO) said in its latest update , which roughly covers the last week of January and the first days of February.

H3N2 flu

Hot spots include parts of Europe and Central Asia, with very high activity reported from Russia and Slovakia. The 2009 H1N1 virus is dominant, and hospitalizations are elevated but stable. In North America, flu levels are still elevated, with slight influenza B rises in the United States and Canada.

China's flu activity is elevated but declining in both the northern and southern provinces, with most detections involving influenza B. Hong Kong's flu hospitalizations are still above the seasonal threshold.

Upward trend in South East Asia

South East Asia's flu activity showed an overall increase, especially in Malaysia, Singapore, and Thailand. In Western Asia, flu activity rose in Armenia, Georgia, Israel, and Turkey. Flu remained stable in parts of tropical Asia, but with rises in the Maldives and Nepal.

In Africa, flu detections rose in some western nations, including Mauritania and Niger, and rose slightly in Cameroon.

Globally, of respiratory samples that were positive for flu at national flu labs during the reporting period, 78.9% were influenza A, and of subtyped influenza A viruses, 54.8% were H3N2. All influenza B viruses belonged to the Victoria lineage.

Site in India receives responsible antibiotic manufacturing certification

Pharmaceutical company Viatris announced today that its manufacturing site in India has received Minimized Risk of Antimicrobial Resistance (AMR) certification.

The certification , developed by the British Standards Institution (BSI) in collaboration with the AMR Industry Alliance, provides third-party, independent verification that the antibiotic waste released into the environment by antibiotic manufacturing sites is below a threshold that could promote AMR in the environment. That threshold was established in responsible manufacturing guidelines developed by BSI and the AMR Industry Alliance in 2022 to encourage sustainable production of antibiotics.

The certification scheme is targeting key antibiotic supply chain markets like India and China. According to a CIDRAP-ASP report , approximately 20,000 tons of pharmaceuticals, including antibiotics, are produced at active pharmaceutical manufacturing sites in India, which are largely unregulated. Researchers have found high levels of antibiotics and multidrug-resistant bacteria in waters near some of those sites, raising concern about the environmental risks posed by antibiotic manufacturing.

The Viatris facility is in Aurangabad, India.

"We are proud to be the first pharmaceutical site in India to achieve this important Minimized Risk of Antimicrobial Resistance certification from BSI, demonstrating our commitment to controlling antibiotic discharge," Viatris Chief Operations Officer Sanjeev Sethi said in a company press release .

Mpox symptoms evolved over the past 5 decades, meta-analysis finds

mpox rash on hands

A meta-analysis of papers published during mpox epidemics from 1970 to 2023 suggests that symptoms in affected patients have become more diverse, with a decrease in symptoms other than rash.

Researchers from the Second Affiliated Hospital of Chongqing Medical University in China searched three databases for English-language, peer-reviewed studies on mpox symptoms published from January 1970 to April 2023. The periods covered included 1970 to 2022 (period 1, within Africa), 2003 to 2021 (period 2, mostly within Africa, but clusters elsewhere), and 2022 to 2023 (period 3, worldwide).

The 61 included studies reported on 21 symptoms in 720 mpox patients from period 1, 39 symptoms from 1,756 patients from period 2, and 37 symptoms from 12,277 patients from period 3.

The findings were published late last week in JMIR Public Health and Surveillance .

Rash common to all 3 periods

The most common symptom in all three periods was rash (period 1, 92.6%; period 2, 100%; and period 3, 94.8%), followed by enlarged lymph nodes (period 1, 59.8%; period 2, 74.1%; and period 3, 61.1%). In period 1, the primary symptoms were fever (99%), enlarged lymph nodes (80.5%), and headache (69.1%), with a significant decline in these symptoms in period 3 (37.9%, 31.2%, and 28.7%, respectively).

Epidemic countries may shift their focus on the potential association among symptoms and the high synergy risk.

In period 2, chills/shivering (73.3%), fatigue (68.2%), and difficulty swallowing (61.2%) emerged as the main symptoms but fell off significantly in period 3. In period 3, most other symptoms were similarly prevalent or declined relative to periods 1 and 2.

Nausea/vomiting correlated most closely with 13 symptoms and was highly positively correlated with enlarged lymph nodes and conjunctivitis ("pink eye") in period 2. During period 3, rash and headache were both most closely correlated with 21 symptoms and were highly positively correlated with fever.

"It is necessary to surveil the evolving nature of mpox and the consequential changes in clinical characteristics," the study authors wrote. "Epidemic countries may shift their focus on the potential association among symptoms and the high synergy risk."

Study suggests pandemic employment drop for US nurses was transitory

nurse

A new study in JAMA Health Forum of national data on US registered nurses (RNs) finds that the rebound in the total size of the RN workforce during 2022 and 2023 indicates that RN labor shortages during the first 2 years of the pandemic were likely transitory.

In 2021, the US RN workforce decreased by more than 100,000 employees, the largest single-year drop in 40 years.

But by 2022, increases in RN hiring had picked up across the country. To assess if pandemic trends were lasting or an anomaly, researchers used data from the US Bureau of the Census Current Population Survey, including employed RNs aged 23 to 69 years from 1982 through 2023. They paired those data with a retrospective cohort analysis of employment trends by birth year and age to project the age distribution and employment of RNs through 2035.

Included in the survey were 455,085 RNs ages 23 to 69. The authors found that the total number of full-time RNs in 2022 and 2023—3.35 million—was actually 6% higher than in 2019 (3.16 million).

Workforce expected to grow to 4.5 million by 2035

Using projections based on enrollment in nursing programs and jobs data, the authors estimate that by 2035, the RN workforce will grow by 1.2 million full-time employees to 4.5 million, which matches prepandemic forecasts. RNs ages 35 to 49 will make up nearly half of the workforce (47%) in 2035. In 2022, those RNs accounted for 38% of the workforce.

"This forecast suggests that the pandemic's impact on employed RNs, at least thus far, is unlikely to have a significant impact on the future growth of the overall RN workforce," the authors said.

This forecast suggests that the pandemic's impact on employed RNs, at least thus far, is unlikely to have a significant impact on the future growth of the overall RN workforce.

The authors did note, however, that RN employment in hospital settings is shifting, and may add to the perception of staffing shortages.

"Workforce growth from 2018 to 2023 occurred almost entirely in nonhospital settings and may reflect a shift of RN employment away from hospitals and into ambulatory and community settings," they wrote. "This shift may help explain why some hospitals have reported shortages of RNs, despite robust growth of the overall workforce in 2022 and 2023."

Quick takes: Good uptake of RSV vaccines in moms and infants, first avian flu in WV poultry, global COVID

  • New data from the Centers for Disease Control and Prevention (CDC) shows that more than half of US newborns were protected from respiratory syncytial virus (RSV) this season by either the new monoclonal antibody preventive nirsemivab (Beyfortus) or maternal RSV immunization with Abrysvo, Axios reported, citing CDC figures . Through January, 40.5% of women with babies ages 8 months and younger said their infants received Beyfortus, and 16.2% of women at 32 or more weeks gestation received Abrysvo. Beyfortus was approved in July 2023, and high demand led to shortages in the fall and winter. In August 2023, Abrysvo was approved for pregnant women as a strategy to protect newborns.
  • The US Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) today announced the first detection of highly pathogenic avian influenza in West Virginia's poultry, which occurred in a backyard flock in Kanawaha County, which encompasses Charleston, the state's capital. The state's agriculture department said the poultry owner contacted authorities following the rapid onset of illness and death in the multispecies flock. It said the virus had previously been detected twice before in wild birds. The outbreaks, which began in 2022, have now affected poultry in 48 states.
  • Though few countries regularly test for COVID-19 and report their data, the World Health Organization (WHO) continues to report monthly trends, and for January , cases declined 58% compared to the previous month, while deaths declined 38%. Even fewer countries regularly report hospitalizations and intensive care unit admissions for COVID, and those markers also declined in January. The JN.1 variant remains the dominant strain—accounting for 88% of sequences—and is the only variant showing a continued increase.

In case you missed it

This week's top reads, studies spotlight cognitive issues, depression, fatigue in those with long covid.

57% of those with post–COVID-19 condition—or long COVID—said they experienced symptoms of a cognitive (thinking) deficit daily.

long covid

Those hospitalized with COVID-19 later at risk for several key symptoms

Adults and kids have, respectively, a 50% and 40% higher risk of having shortness of breath after recovery from COVID-19.

exhausted woman

Alaska reports fatal Alaskapox case

The case is the first outside of the Fairbanks area, suggesting wider circulation in small animals.

cat scratch

Long COVID incidence in US varies by state, highest in West Virginia

Nationally, 6.4% of US adults reported ever having experienced long COVID

CDC tracking BA.2.87.1 SARS-CoV-2 variant

So far, the cases have been detected in 3 South African provinces and aren't fueling a resurgence in cases.

Flu continues to rise in some US regions as COVID markers decline

Influenza B proportions are rising in regions where flu activity is trending upward.

tamiflu

Study shows 43% to 58% lower prevalence of long COVID among vaccinated people

The prevalence of 30-day long COVID was 43% lower among the vaccinated group.

vax

New COVID antiviral candidate linked to shorter symptoms

Treatment shortened symptoms by a day and also reduced viral loads.

Florida probes measles cases at elementary school

Several states have now reported cases amid a global spike in measles activity.

Rise in hypervirulent, carbapenem-resistant Klebsiella noted in Europe

European health officials say the rise in Klebsiella pneumoniae strains combining hypervirulence with resistance to last-resort antibiotics is a cause for concern.

Carbapenem-resistant Klebsiella pneumoniae

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  1. (PDF) Case Study 4: The Collapse of Nokia's Mobile ...

    Study The Nokia's Mobile Phone Business (2009). Strategic renewal of organizations. Organizati on Scienc e, 20 (2), 281-293. https://doi.org/10.1287/orsc.1090.0423 Alahuhta, M. ( 2015)....

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    Yves L. Doz , INSEAD 23 Nov 2017 16 The moves that led to Nokia's decline paint a cautionary tale for successful firms. In less than a decade, Nokia emerged from Finland to lead the mobile phone revolution. It rapidly grew to have one of the most recognisable and valuable brands in the world.

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    The case examines the downward spiral of Nokia, the mobile technology giant that once conquered the world, seen from the perspective of 'insiders' - based on interviews with Nokia executives at top and middle management level. They describe the emotional undercurrents of the innovation process that caused temporal myopia - an excessive focus on short-term innovation at the expense of ...

  10. The Rise and Fall of Nokia

    The case describes Nokia's spectacular rise and fall, shedding light on the combination of external factors and internal decisions that resulted in the company's handset business being sold to Microsoft in 2010. During the successful period of growth (roughly 1990 through to 2006), Nokia's focus on design and functionality gained it a worldwide reputation. It was acknowledged as the first ...

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  12. The Nokia Case: fall and rise

    This is the case of what happened a few years ago with the Finnish telecommunications company Nokia, which by not adapting to the most ambitious change in mobile telephony (the smartphone) lost its followers and their phones resoundingly, which could do nothing against the competition and were forgotten.

  13. PDF Case Study 4: The Collapse of Nokia's Mobile Phone Business

    Case Study 4: The Collapse of Nokia's Mobile Phone Business. Nokia's loss of dominance in the mobile market after 2007 is one of the most significant failures in modern business history. For Finland, this was an economic catastrophe, when the largest company in the country lost grip on its core business. In 2007, Nokia's mobile division ...

  14. The Rise and Fall of Nokia

    The case describes Nokia's spectacular rise and fall, shedding light on the combination of external factors and internal decisions that resulted in the company's handset business being sold to Microsoft in 2010.During the successful period of growth (roughly 1990 through to 2006), Nokia's focus on design and functionality gained it a worldwide reputation.

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  18. (Pdf) a Study on Nokia'S Failure in The Global Market and Consumer

    A STUDY ON NOKIA'S FAILURE IN THE GLOBAL MARKET AND 2015 CONSUMER PREFRENCE LEVEL TOWARDS NOKIA CHAPTER 1 INTRODUCTION OF THE STUDY 1.1 INTRODUCTION The global mobile phone industry is based on many different manufacturers and operators.the industry is based on advanced technology and many of the manufacturers are operating in different industries,where they use their technological skills ...

  19. Unveiling the SWOT Analysis of Nokia: A Comprehensive Study

    The swot analysis of Nokia has changed drastically as compared to early age this block is all about the strengths, weaknesses, opportunities, and threats of Nokia. Around 155 years ago on 12 May 1865 Nokia, a single-mill operation Finnish multinational corporation, was founded.

  20. Microsoft Corporation's Acquisition of Nokia Case Study

    Microsoft Corporation's Acquisition of Nokia Case Study Exclusively available on IvyPanda The Microsoft Corporation purchased the Nokia phone business in 2014 for approximately $7.2 billion. Although Nokia could be labeled as a profitable business during that time, it was a downstream customer for Microsoft.

  21. PESTLE analysis of Nokia

    A brief examination of the Political, Economic, Social/Cultural, Technological, Legal and Environmental, or PESTLE, conditions affecting Nokia can give us a glimpse of the company's potential future. The impact of political factors on Nokia is hard to ascertain. The company is based in the European nation of Finland, but the Finnish ...

  22. Case Study 4: The Collapse of Nokia's Mobile Phone Business

    Case Study 4: The Collapse of Nokia's Mobile Phone Business Tuomo Peltonen Chapter First Online: 30 July 2018 1970 Accesses 2 Citations 7 Altmetric Abstract This chapter provides a wisdom-oriented reading of one of the most spectacular business failures of recent times: the collapse of Nokia mobile phones between 2007 and 2015.

  23. Sustainable Supply Chain Practices in the Oil and Gas Industry: A Case

    Sustainability reporting within the oil and gas (O&G) industry started back in the 1990s and has improved longitudinally since then. However, when reporting their sustainability-related practices and initiatives, O&G companies seldomly mention the term green supply chain management (GSCM). The study aims to investigate the development of GSCM practices in the O&G sector and to categorize how ...

  24. Unified Inventory

    The Nokia Unified Inventory solution provides all necessary information about services and service assets in near real-time, enabling modern operational functions like MLOps, AIOps, service orchestration and assurance. Better data integrity also helps you to improve your network automation efficiency and effectiveness.

  25. Comparative Analysis of the Technology Strategy in the High-tech

    This paper presents a comparative case study of the rise and fall of Nokia and Apple technology companies in the mobile device industry, focusing on their different approaches to technology...

  26. Shallow Synthesis of Knowledge in GPT-Generated Texts: A Case Study in

    Numerous AI-assisted scholarly applications have been developed to aid different stages of the research process. We present an analysis of AI-assisted scholarly writing generated with ScholaCite, a tool we built that is designed for organizing literature and composing Related Work sections for academic papers. Our evaluation method focuses on the analysis of citation graphs to assess the ...

  27. Short term exposure to low level ambient fine particulate matter and

    However, relatively few such studies have been conducted.1 24 25 For example, in a pooled analysis of multiple European cohorts, one study evaluated the association between long term exposure to PM 2.5 and mortality, with a focus on the health effects of such exposure below the current standards and guidelines of the European Union (25 μg/m 3 ...

  28. Study finds antibiotics prescribed by VA dentists 'commonly ...

    A total of 92,224 antibiotic prescriptions were associated with 88,539 dental visits. Most study participants were White (67.8%) and male (90.6%), and 53.9% were medically compromised. Amoxicillin (57.8%) and clindamycin (11.2%) were the most prescribed antibiotics. More than half of the prescriptions were used to prevent complications in ...

  29. Integrating large language models in systematic reviews: a framework

    Large language models (LLMs) may facilitate and expedite systematic reviews, although the approach to integrate LLMs in the review process is unclear. This study evaluates GPT-4 agreement with human reviewers in assessing the risk of bias using the Risk Of Bias In Non-randomised Studies of Interventions (ROBINS-I) tool and proposes a framework for integrating LLMs into systematic reviews.