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NEW TECHNOLOGY
2014
Ólafur Andri Ragnarsson
LECTURE L01

INTRODUCTION
Stephen Elop, 

CEO Nokia
New Technology 2014 L01 Introduction
In 2002 Nokia had 35% of 

the worlds mobile market

In 2006 Nokia had 73.6% of the 

worlds smartphone market
Falling from glory

Nokia stock price 2007-2011
1871: Founded. Spends the next century making tyres, boots and cables.
"

1987: Launches first phone. The Mobira Cityman weighs almost 1kg.
"

1992: Sells non-mobile divisions and launches first digital GSM phone, the Nokia
1011.
"

2000: Stock market value hits 186bn euros. Now worth 11bn euros.
"

2003: Basic 1100 phone launched. Goes on to sell 250 million units and become the
world's most popular consumer electronic device.
"

2011: Abandons Symbian mobile phone operating software and switches to the
Windows platform instead.
Source: Reuters/Nokia
The iPhone Effect
Shift in power

Source: Google
Shift in power
Early 2011, Elop said in a memo they were 

standing on a burning platform
Elop’s Memo
How did we get to this point? Why did we fall behind when the world
around us evolved?
"

This is what I have been trying to understand. I believe at least some
of it has been due to our attitude inside Nokia. We poured gasoline on
our own burning platform. I believe we have lacked accountability and
leadership to align and direct the company through these disruptive
times. We had a series of misses. We haven't been delivering
innovation fast enough. We're not collaborating internally.
"

Nokia, our platform is burning.

http://www.theguardian.com/technology/blog/2011/feb/09/nokia-burning-platform-memo-elop
February 11th 2011, Nokia announced 

a partnership with Microsoft
September 3rd 2013, Microsoft bought Nokia’s Devices

and service business for $7.2 billion
Western Union 1878"
7,500 offices"
12.000 employees"
200,000 miles of cable
https://thepoliticalcarnival.net/tag/western-union/
Alexander G. Bell, 1876
"This 'telephone' has too many
shortcomings to be seriously considered
as a means of communication. The
device is inherently of no value to us." !
"

- Western Union internal memo, 1876.
New Technology 2014 L01 Introduction
Britannica 1990"
Sales: $650 million
Taken	
  from	
  Mary	
  Meeker’s	
  State	
  of	
  the	
  Internet
THEN

NOW

Printed books, sold in stores

Online, access everywhere, 

updated in real-time, 

crowdsourced
By January 2010, Blockbuster 

operated 5,200 stores worldwide
By September 2010, Blockbuster 

files for bankruptcy
New Technology 2014 L01 Introduction
THEN

NOW

DVDs from the video store, with late

fees, or a library at home

Access everywhere, available 

anytime

26
Technology is one of
the major factors in
change
Three billion people will connect for the first time to the Internet
TV stations as we know them will go out of business
CDs and DVDs are not the future distribution format for music
Printed magazines and newspapers will go out of business
Smartphones will dominate Internet traffic
Social networks transforms how we communicate and share information
Real-time news will be handled by people
Credit cards will disappear
Currencies will become digital, peer-to-peer disrupting the banking system
Cars will be self-driven
Objects can be printed at home, creating a new design industry
Drone highways in the sky for delivery network
Robots will enter the workplace and home
DISRUPTION AHEAD!
THE PREREQUISITE
INFORMATION TECHNOLOGY
2,6 BILLION PEOPLE ARE CONNECTED TO THE INTERNET
3 BILLION NEW MINDS WILL CONNECT
2000

2010

iMac

iPhone

Mac OS 9.0.4

500 MHz PowerPC G3 CPU, 128MB Memory

Screen - 786K pixels

Storage - 30GB Hard Drive

iOS 4.0

1 Ghz ARM A4 CPU, 512MB Memory

Screen - 614K pixels

Storage - 32GB Flash Drive

Source:	
  Ars	
  Technical	
  Images:	
  Apple
32
New Technology 2014 L01 Introduction
CONTENT
BECOMES
DIGITAL

THE DIGITAL DECADE
2000

2010
THE DIGITAL DECADE

MOVIES
MUSIC

TV	
  SHOWS

COMMUNICATION

BÆKUR
PICTURES

2000

SMARTPHONES

2010
COMPLEX WORLD

FACEBOOK
GOOGLE
TV

WEB
Software and data are stored in the cloud

Unlimited computing
THE CONSEQUENCE
CHANGED BEHAVIOUR
FUNDAMENTAL

SHIFT
IN

PEOPLE’S

BEHAVIOUR
DIGITAL
LIFESTYLE
DIGITAL WORLD
DIGITAL WORLD

VIDEO	
  
WATCHING
RELAXED

SOFTWARE	
  
WORK
FOCUS

APPS
VIEW/BROWSE
ENTERTAIN

APPS	
  
CHECK	
  
NOW!
DIGITAL WORLD
IS PART OF
GROWING UP
NEW GENERATIONS
NEW HABITS
NEW NEEDS
NEW GENERATIONS
ARE DIGITAL NATIVES
President XI Jinping
Population 1,349,585,838
President Pranab Mukherjee
Population: 1,220,800,359
Facebook
CEO Mark Zuckerberg
Population: 1,260,000,000
Amount of Data is 300 petabytes
22 billion likes per day
Over 6 billion hours of video are watched
each month on YouTube—that's almost an
hour for every person on Earth, and 50%
more than last year

Source: Youtube
100 hours of video are uploaded to 

YouTube every minute
Mobile makes up almost 40% of
YouTube's global watch time
People send over 400 million
tweets per day
Number of minutes played each day:
200 million
New Technology 2014 L01 Introduction
(ALMOST)	
  ALL THE MUSIC IN WORLD IS ACCESSIBLE
NETFLIX USES ABOUT 32,7% OF NETWORK TRAFFIC IN USA
OUR
DEVICES
ARE
GATEWAYS
TO
THE
CLOUD
TRACKING TECHNOLOGY

“Life	
  is	
  lived	
  forward	
  but	
  understood	
  backwards”

- Sören Kierkegaard
WE TEND TO
LOOK BACK

DAWN OF MAN

THE
UNKNOWN

FUTURE
Understanding what is next

Seeing how current trends will 

d i s r u p t and transform the future

62

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