NOKIA DIGITAL TRANSFORMATION PLAN

January, 2014 unofficial, the author has no affiliation to Nokia

CONNECTING PEOPLEIN THE WEB

Overview

This document presents a preliminary plan for Nokia to critically improve its digital presence. It briefly discusses 1) social media agility, 2) bloggers as new PR, 3) crowdfunding, 4) virality, 5) content partnerships, and 6) internal changes required for implementation, including 7) a proposal for digital marketing organization.
A. Social media agility

The problem for a big organization is that algorithms and platforms change frequently. For example, Google has made approximately 500-600 changes to its search algorithm since its launch1, and Facebook several important changes to its newsfeed algorithm2. These changes noticeably impact the reach and visibility of firms engaged in digital marketing communications. Most big organizations fail to keep up with these changes due to their slow decision-making and inertia; however, the ones adapting fast are gaining a competitive advantage. To keep up with dynamic changes in the social platform environment, I suggest Nokia considers two aspects: 1. knowledge dissemination 2. tactical empowerment Knowledge dissemination means that there is a central authority whose sole responsibility it is to track changes in algorithms, rules and platforms people use (e.g. new platforms, such as Pinterest and Snapchat as they become popular). The idea is that the early mover benefits from a small window opportunity by understanding the changes before others are able to incorporate them in their social media strategies (this is simply acting faster than competitors). By making this the sole responsibility of a unit, Nokia ensures all relevant changes are observed and acted upon. This unit is responsible for tracking those changes and disseminating them in an easily understandable way to other units; in other words, they process what the changes mean and share these insights for others inside the company. In addition, they provide further clarification and support for understanding the changes. Tactical empowerment means small teams that have the power to react instantly to changes and benefit from the window of opportunity. These teams need to consist of people who live and breathe social media. I am interested in helping you find such people. The teams influence who is hired to be a part of them; they have their own way of organizing work and sharing tasks; in a word, they are efficient tactical units that execute the common strategy by independent tactical decisions. The independence shows in how they work and use their budget this requires trust, but at the same time the method attracts entrepreneurial people to the firm who are more interested in doing than managing. The digital Nokia will need these kind of people, or otherwise it will remain too slow, too rigid and too corporate to succeed.
B. Bloggers as the new form of PR

Nokia needs to build and improve its blogger relationships, and treat bloggers like VIPs instead of additional resources. I suggest there be a unit whose only job is to take care of blogger needs.
1

http://moz.com/google-algorithm-change http://marketingland.com/edgerank-is-dead-facebooks-news-feed-algorithm-now-has-close-to-100kweight-factors-55908
2

the relationships should be lasting and integrated into existing PR workflow (bloggers get the same information, and more, than other media); bloggers represent midway influencers that research has found are even better investment than only focusing on high volume media3. Potential ideas include forming a test group for new innovations; of these I can tell more once I know what has been previously done. A formal program such as Nokia Bloggers could be useful I have experience in creating such programs. For example, in my current job for ElmysLahjat I have created a program called Experience Bloggers which includes bloggers receiving a monthly collaboration offer, e.g. trying new experiences and reporting about them to their readers; and organizing competitions for their readers. I have a thorough understanding of what is needed to collaborate with bloggers, and how it is similar and different to regular public relations efforts.
C. Crowdfunding

Ubuntu Edge, an imaginary phone, collected over $12M million with a crowdfunding campaign in the crowdfunding platform Indiegogo4. Despite of Ubuntu Edges inability to gather the target amount, it proved that 1) mobile phone concepts can work as a crowdfunding project, and 2) existing brands, not only startups, can leverage crowdfunding platforms. Through crowdfunding, Nokia is able to gain three benefits: 1) image as an innovator, 2) buzz relating to its new products, 3) commercial validation (or non-validation) prior to manufacturing, 4) feedback from its loyal fans in the online environment, and 5) actual sales towards manufacturing. Nokia should also explore successful crowdfunding campaigns relating to its industry to keep up with consumer trends. For example, comments in Ubuntu Edge campaign reveal what kind of functionalities consumers expect from future handsets. Crowdfunding is a new method in which new innovations can be tested by allowing consumers to buy them before they are actually built however, no major brand in the mobile industry has yet exploited it to its full extent5. Nokia has an opportunity to be the innovator here, and I can help. I have co-authored two papers on managing crowdsourcing projects from a firms perspective, and co-founded Presales Ltd.6, Finlands first crowdfunding marketing agency. Since I have studied crowdfunding some time now and am familiar with its critical success factors, I can help Nokia identify suitable internal projects for crowdfunding.
D. Virality

At the moment, Nokia produces good videos but they are not going viral most of them are missing emotional elements. Research suggests emotions are important part of viral diffusion of messages7. As a means to identify best partners, I would hire several firms focused on viral videos and make them compete against one another. The companies I would go to include Viral Factory8, Marcel9, Goodby Silverstein & Partners10, Seedwell11, Viral Spiral12, Akestam
3

http://blog.grouphigh.com/5-tactics-to-engage-mid-level-influencers-for-your-brand/ 4 http://www.engadget.com/2013/08/22/ubuntu-edge-indiegogo-campaign-fails/ 5 Jollas 2013 campaign is not comparable; they did it independently instead of leveraging the millions of users in an existing platform such as Kickstarter. 6 www.presales.fi 7 www.newyorker.com/online/blogs/elements/2014/01/the-six-things-that-make-stories-go-viral-willamaze-and-maybe-infuriate-you.html 8 http://www.theviralfactory.com/#!/agency 9 http://www.marcelww.com/ 10 http://goodbysilverstein.com/ 11 http://seedwell.com/

Holst13, and Mekanism14. These providers have a solid track record in providing viral content. Working with the best provides the best results, and therefore choosing the right partners for producing online content is crucial. Besides video creation, their ability to seed the videos to the right people to kick off the viral diffusion process has to be tested. I am ready for getting to know these creative people and handling the process of partner selection.
E. Content partnering

Nokia would benefit from collaboration in content production. For example, GoPro & Redbull are producing amazing videos all the time why not shoot them with Nokia equipment? Devin Graham15 is a Youtube video maker whose videos have over 300M views and over 1,7M subscribers (compare to Nokia: 179M views and 280k subscribers). He is known for his positive, fun and action-oriented videos. I would hire him to do promotion for Nokias next high-end camera phone launch. By leveraging partners who already have hundreds of thousands of followers, organic (=free) visibility is improved from get-go.
F. Internal changes

Nokia requires some transformation also in terms of organization structure to become more agile in sharing information internally, reducing middle management, and moving into small and lean times that have strong executive power. Im well familiar with problems of matrix organizations and the lean startup methodology, and would provide useful insight into getting digital communication more agile. 1. Lean ideology 2. Nokia testing process Lean includes remaining flexible, learning algorithm changes as they come. Excessive middle management should be removed and more attention should be paid on execution of tactical campaigns; middle management and over-planning are great barriers in the digital environment which emphasizes fast, tactical actions, thereby supporting smaller team sizes and higher empowerment. This does not lead to a loss of control, when KPIs are defined correctly no excessive metrics, but selecting the best and most appropriate and developing custom dashboards to follow them. I have several years of experience on Web analytics, and can help in streamlining the digital marketing metrics used by Nokia. Lean startup and lean analytics are philosophies that I personally follow, and they are very popular among startups that, as generally known, need to move fast or be eaten. Organizational tactics such as small, independent teams are also being used by Nokias competitors, including Google and Facebook16. Based on what Ive heard from my friends who have worked in Nokia, here is a definite point of improvement; poor organization structure is especially harmful in the fast-moving online environment. The Nokia testing process outlines a new way of tactical creation and testing of ads and social media posts. It is based on the fact that only a small percentage of posts receives organic visibility due to excessive competition and liking17. Therefore, to differentiate Nokia needs to create posts that receive high engagement, such as shares and likes, and as a result reach a wider
12

http://www.viralspiralgroup.com/ 13 http://fabriken.akestamholst.se/ 14 http://www.mekanism.com/ 15 http://www.youtube.com/user/devinsupertramp 16 http://jeffhilimire.com/2010/12/more-small-team-philosophy-this-time-by-facebook/ 17 http://searchenginewatch.com/article/2324814/Facebook-News-Feed-Algorithm-Change-ReducesVisibility-of-Page-Updates

segment of fans without paid efforts. To do that, Nokia needs to constantly test, fail, and improve its social media activity. I suggest Nokia creates a process for this, based on Jon Loomers18 & Marko Pyhjrvis19 successful Facebook ad testing methods. Why Facebook? Because it is currently the most challenging environment to produce positive direct ROI; these guys are making their living on it, both creating successful communities and sales by Facebook ads. Im connected to both of them, as well as other Facebook professionals, and can invite them to participate in creation of Nokias new testing process for ads & social media communication. It is crucial that all efforts are based on create-test-recreate loop in which messages and ad copies are tested.
G. Nokia digital organization

Finally, digital media are two-way channels. That means huge amount of fan feedback is available, if Nokia just is willing to reach out. There is an enormous fan base for the Nokia brand and it hurts me to see it go to waste. These people are the strongest asset Nokia has in the digital world, and everything possible should be made to encourage their sharing and nurture the relationships. The actions Ive seen so far from Nokia are good, but not nearly as good enough as they should be. Nokia needs to do everything in its power to nurture digital WOM peer-to-peer or consumer-to-consumer communication makes up for most of online communication20, and without building a loyal digital community no firm is able to capture the attention by paying. Hence, new strategies for listening are needed; Nokia needs to build a unit of community managers that interact with local online communities across the world; noting down their concerns and ideas and delivering it to a central repository. Since this amount of data is huge, there needs to be another team than filters the ideas for their relevance and disseminates that information to the tactical ad optimization and social media teams. The following figure presents a proposal for Nokias digital organization. It is divided into three layers, including strategic, tactical and operational layers, and includes seven internal units and two external support units. Other organizational bodies, although they might participate e.g. in strategy formulation, are omitted this is an organization chart for digital marketing operations. The units are planned so that they end up supporting operational activities, which are the most critical ones since they are shown in the customer interface and therefore provide brand awareness, interest, desire and ultimately action towards Nokias offerings.

18

http://www.jonloomer.com/ 19 http://fiercermedia.fi/ 20 http://ufdc.ufl.edu/UFE0043775/00001

1. STRATEGIC Blogger relationship unit

Digital Head

Community manager unit

Digital changes unit

Digital content unit

Tactical analysis unit

2. TACTICAL Testing support (external)

Viral videos (external)

3. OPERATIONAL

Digital ads unit (paid efforts)

Social media unit (organic efforts)

Figure 1

The digital organizational chart

The digital head is responsible of the overall strategy and its communication to digital units. He overlooks their performance and participates in team building, and negotiation of large deals. He works together with tactical unit, blogger relationship unit, and other Nokia organization to create and reshape the digital marketing strategy. Blogger relationship unit builds and nurtures blogger relationships. It will shape the outreach strategies and blogger collaboration programs together with the digital head. The feedback received from bloggers in the course of collaboration is also used for modifying the strategy when needed, making this unit strategic. Digital changes unit tracks and monitors changes in rules and algorithms of social media platforms, such as Google, Facebook and Twitter. It summarizes these changes to other units and proposes immediate action points. The digital content unit is responsible for creating creative material for all units; be it Facebook covers, infographs, videos. This unit needs to be filled with creative and talented individuals who thrive on digital media. In addition, viral marketing agencies are used to combine creativity with understanding of viral mechanisms. Tactical analysis unit receives the most information out of all units. Its job is to constantly analyze data to make relevant tactical suggestions that are used to 1) redefine strategy and investment allocations, and 2) at tactical level to execute campaigns in digital platforms. This unit comprises people who understand both data analysis and business. Digital ads unit is responsible for planning, delivering and optimizing paid campaigns across online advertising networks (e.g. Google Display Network, AdRoll, Facebook). The visual

material is provided by digital content unit. Campaign ideas are received from tactical analysis unit, but the digital ads unit is ultimately responsible for campaign content, and it has to follow Nokias production calendar. These efforts ensure paid presence of Nokia in websites that its potential customers visit; ads are also retargeted to consumers who have visited Nokias website. Social media unit is responsible for organic messaging. It writes content, interviews users, organizes competitions, etc. It collaborates with digital content creation unit for visual material. Both operational units, digital ads and social media unit, follow the Nokia testing process to ensure that progress is constantly made in terms of what kind of ads and messages best resonate. They receive tactical guidance from tactical analysis unit about customer feedback, from digital changes unit about algorithm changes in their respective platforms, and from content unit creative ideas and materials for messaging. Two external support units, viral video producers and testing experts provide tools for increasing performance of digital efforts.
About the author

Joni Salminen is a PhD. candidate at Turku School of Economics. He teaches digital marketing and has consulted several companies on digital marketing and platform business model. His main interests include search engine marketing, strategic use of social media, platforms (two-sided markets), and business models of Internet startups.