Organisational shake-up for Alcatel-Lucent
BUSINESSBy BiztechAfrica - Sept. 11, 2012, 9:13 a.m.
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."
MORE BUSINESS NEWS
Further African expansion for PhoenixPhoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East Africa. Read More
Garmin seeks business partners in West AfricaGarmin is hosting a trade delegation in Accra, Ghana from the 12th to 16th May 2014. Read More
Orange Telkom not closing Kenya business: GhosseinSpeculation that Orange Telkom Kenya would be closing its Kenyan operations has been put to rest. Read More
Dimension Data enters Ghana’s IT marketDimension Data, a South Africa-based ICT solutions and services provider, has announced its entry into the Ghanaian ICT market. Read More
Glo rewards business partnersGlobacom has showered 53 high-end vehicles and other prizes on its trade partners responsible for distributing Globacom’s products and services across Nigeria. Read More
Worldwide PC shipments declineWorldwide PC shipments totalled 76.6 million units in the first quarter of 2014, a 1.7 per cent decline from the first quarter of 2013, according to preliminary results by Gartner Read More
Axis Solutions becomes first VMware Premier Partner in the WECA RegionAxis Solutions, a Pan-African ICT solutions provider headquartered in Harare Zimbabwe, is the first VMware partner to become a Premier Partner within the WECA region. Read More
Nigeria to spur Oracle's African driveOracle Corporation has assured that Nigeria will be the centerpiece of its developmental drive in Africa. Read More
Pivot East nurtures promising startupsPivot East, an innovative mobile web competition geared towards nurturing the growing ICT talent in East Africa, is providing an ideal platform to grow mobile web startups. Read More
Phoenix Distribution unveils new, interactive websitePhoenix Distribution, currently the leading value added software and CES distributor across the African continent, has redesigned its website, making it easier to use for clients and partners alike. Read More
FEATURED STORYKenyan shift to Green Economy would generate USD 45bn by 2030
Kenya’s transition to a green economy could produce major economic benefits equivalent to an estimated USD 45 billion by 2030, a new study shows.
BEST READ NEWS
IN DEPTHE-waste threatens Ghana’s beaches
Many beaches in Ghana, already stressed by pollution and poor maintenance, are now facing a new threat: e-waste.
COMPANY NEWSFurther African expansion for Phoenix
Phoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East ...