Organisational shake-up for Alcatel-Lucent

BUSINESS

|
Image: Ben Verwaayen . By BiztechAfrica
Ben Verwaayen

Alcatel-Lucent has unveiled a new operating model focused on core products, a strengthened sales organization and re-shaped corporate functions to deliver the Company’s Performance Program; the strategic initiative announced on July 26 to generate Euro 1.25 billion of cost savings by the end of 2013.

Ben Verwaayen, Chief Executive Officer, said: “In today's markets it makes sense to play to your strengths. Alcatel-Lucent’s leadership in core networking, reflects our innovation excellence and long-standing customer relationships.   The objective of the new operating structure is to strengthen Alcatel-Lucent’s presence in key telecommunications products and services through a unified business group.  A streamlined Executive Committee will oversee the simplified business model, with a newly-appointed Chief Operating Officer focused on executing operational improvements.  This announcement simplifies our operating model and puts our Performance Program at the forefront of our 2013 objectives."

Benefits of the program and new operating structure will enable Alcatel-Lucent to:

  • Focus on profitable markets and customers around the world
  • Optimize tendering and sales in a single global sales organization
  • Accelerate pace of transformation
  • Maintain strong innovation engine with continued R&D investment
  • Manage patent portfolio as a dedicated profit center
  • Concentrate on higher value-added contracts in Managed Services
  • Simplify management layers across the company

To achieve these outcomes, the following changes will come into effect from January 1, 2013:

Paul Tufano becomes Chief Operating Officer, with worldwide responsibility for Supply Chain, Procurement and three individual focused businesses (Enterprise, Strategic Industries and Submarine), in addition to his current role as Chief Financial Officer.

Robert Vrij becomes President Global Sales & Marketing, leading a single global sales organization to oversee and manage all customer-facing commercial relationships.

Stephen A. Carter becomes President Managed Services & EVP Corporate Restructuring; overseeing the Performance Program and Corporate Marketing & Corporate Communications.

Philippe Keryer becomes President of Networks & Platforms. This worldwide business group will replace the existing regional operating structure with four global product & services business units, each with full P&L responsibility, comprising:

i. Core Networks, leveraging global leadership in IP and Optics; IP and Optics will be placed under the management of Basil Alwan leveraging Alcatel-Lucent’s leadership position in both of these fast growing markets.

ii. Fixed Networks, investing further in the Company’s leadership position in this market and the synergies with Small Cell deployment.

iii. Wireless, focusing on serving our existing customer base in North America, China and EMEA.

iv. Platforms, evolving the Company’s High Leverage Network capabilities into unified software platforms for control, optimization and network analytics.

George Nazi remains President of the previously created Global Customer Delivery division.

Jeong Kim remains President of Bell Labs and Chief Strategy Officer and will be responsible for the Company’s patents assets/portfolio.

In addition to the above, due to the Company’s unique position in the Chinese market through the Alcatel-Lucent Shanghai Bell (ASB) joint venture, Rajeev Singh-Molares, working with the chairman of ASB, will take on a dedicated role focusing on the transformation and development of our commercial operations in China.

All back-office and business support functions will be part of a new central administrative system for greater efficiency.

Commenting on the new operating model, Ben Verwaayen added: “The Performance Program announced on July 26 is the spearhead of these changes. We are putting in place a simple, robust delivery mechanism for the company to ensure that Alcatel-Lucent meets its target of a total cost saving of Euro 1.25 billion by the end of next year.”

The company says: "We will engage with our employee representatives wherever required by law, through discussions or consultations, before we finalize and then implement this new operating model. Subject to the completion of this process, our new organization will become effective on January 1, 2013."



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Shop Soko connects Kenyan artisans to lucrative international markets

A new e-commerce platform, Shop Soko, is helping Kenyans access a lucrative international market. Read More

Ricoh SA begins rollout of new services-led strategy, Africa expansion

Jacques van Wyk has been appointed Ricoh SA’s new COO to drive the expanded strategy that will enable the business to become a services-led organisation and see its expansion into the rest of Africa. Read More

Stock Exchange launches news service

A news service by the name of X-News has become the latest product coming from the local bourse, the Botswana Stock Exchange (BSE) recently. Read More

Telkom forays into Botswana through acquisition

South African telecommunications giant Telkom is making inroads into the Botswana market through the acquisition of an ICT company, Business Connexion (BCX).  Read More

Umati Capital secures $10m finance line from ApexPeak

Kenyan financial tech startup Umati Capital has agreed a deal with ApexPeak securing its first line of wholesale capital.  Read More

Kirusa acquires Ghana’s Saya Mobile

Voice messaging and social media apps firm Kirusa has acquired Ghana-based Saya Mobile, which provides instant messaging apps geared specifically for African consumers.  Read More

SAP to invest up to $500m in African innovation

Pfungwa Serima SAP has announced a long-term commitment to regional expansion, sustainable growth and skills development of up to 10,000 IT consultants in Africa. Read More

Microsoft, UNDP partner to support Ethiopian entrepreneurs

First Lady Roman Tesfaye (front) visiting women undergoing entrepreneurship training Microsoft has signed a collaborative agreement with the United Nations Development Programme (UNDP), under which Microsoft will provide training and mentorship services to 200,000 Ethiopian entrepreneurs. Read More

Location based services market to reach $43.3bn by 2019

A new report from Juniper Research forecasts that the Mobile Context and Location Services market will reach $43.3bn in revenue by 2019. Read More

Garmin calls on buyers in Southern Africa

The Africa team for Garmin Sub-Saharan Africa will be hosting meetings in Lusaka, Zambia to meet with buyers, potential resellers and business partners this month. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Nigeria’s VAS providers ‘on brink of extinction’Nigeria’s VAS providers ‘on brink of extinction’

WASPAN chief Simon Aderinlola says unless the regulator intervenes, WASPAN may not have anything left to regulate. Kokumo Goodie reports.

IN DEPTH

Kenya rolls out e-extension to improve agricultureKenya rolls out e-extension to improve agriculture

In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.

COMPANY NEWS

Sage CRM is Umsinsi Health Care’s engine for growth

Umsinsi Health Care, a distributor of medical products, has enhanced customer service and streamlined its business processes by implementing Sage CRM as its customer relationship management platform. 

VMware delivers new innovations for the open, agile, secure software-defined data centre

Industry’s most complete software-defined data centre portfolio helps customers slash CAPEX by nearly 50 percent and improve IT productivity by 100 percent or more.

Alex families receive Schneider Electric solar lamps

Schneider Electric, a specialist in energy management, has partnered with Rays of Hope, a non-profit organisation, providing 28 schoolchildren and their families in the northern Johannesburg township of ...