Why Nokia struggles to innovate

Nokia’s former head of design Adam Greenfield touches on its troubles innovating.

Nokia’s problem is not, and has never been, that it lacks for creative, thoughtful, talented people, or the resources to turn their ideas into shipping product. It’s that the company is fundamentally, and has always been, organized to trade in commodities. […]

Nokia’s engineers were and are brilliant at this. I am so far from an expert on the topic it’s not even funny, but I’d feel comfortable wagering that there is still no organization on the planet more capable at designing the guts of a phone, the various antennae and radios-on-a-chip that allow a handset to communicate with a network. Nor are there many who can compete with Nokia on the ability to optimize a supply chain and bring in a given bill of materials at a given (and generally astonishingly low) cost.

Greenfield illustrates this with an example on NFC:

I was given an NFC phone, and told to tap it against the item I wanted from the vending machine. This is what happened next: the vending machine teeped, and the phone teeped, and six or seven seconds later a notification popped up on its screen. It was an incoming text message, which had been sent by the vending machine at the moment I tapped my phone against it. I had to respond “Y” to this text to complete the transaction. […]

It’s not that the NFC-based, phone-to-object interaction didn’t work. Of course it did: it had been engineered perfectly. But what it hadn’t been was designed. Those responsible for imagining the interaction apparently wanted to protect users against the (edge case!) contingency of someone making off with their phones and running up a huge vending-machine tab. They failed to understand that, for low-value transactions like this, at least, the touch gesture is a useful proxy for consent — and that if someone’s got physical possession of my phone, I’m likely to have bigger problems than whether or not they order a few cans of Coke with it.

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