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Ericsson Reorganizes in Effort to Build Growth, Profitability

By Paula Bernier April 22, 2016

Ericsson today announced executive and organizational changes in an effort to accelerate its growth and profitability, deliver a higher level of customer service, and eliminate duplication across capabilities and portfolios. The news comes on the same day the telecom equipment giant revealed its financial results for the first quarter of 2016, during which its sales decreased by -2 percent year over year.

Jan Frykhammar, CFO and executive vice president, in an interview with NFVZone this morning, said Ericsson has gradually improved its earnings in recent years, but it has not grown. It is in an industry that is not seeing much global growth, he said, but the company hopes this reorganization will enable it to grow faster than the industry norm of 3 to 5 percent. He added that it’s good for a business to reorganize every five to seven years to keep things moving forward. Ericsson hadn’t reorganized since 2010.

“From time to time it’s good to introduce new people with new diverse experiences and so forth,” he said, adding the industry has changed a lot since Ericsson’s reorganization six years ago.

The new organization, which goes into effect starting July 1, will be aligned around type of customers and type of business and will include five business units and one dedicated customer group for Industry & Society.

“We will create a leaner, more fit for purpose organization, to cater for the needs of different customer segments and to faster capture market opportunities,” said Hans Vestberg, Ericsson president and CEO, who remains in this post under the reorganization. “As 5G, the Internet of Things, and cloud drive the next phase of industry development, the time is just right to make these changes."

Radio and transport will fall under the auspices of Business Unit Network Products. Customer support, managed services, and network rollouts will be handled by Business Unit Networks Services. Together these core business groups will focus on incremental improvements in networks business performance, and capturing 4G and 5G opportunities.

Business Unit IT & Cloud Products, and Business Unit IT & Cloud Services, meanwhile, will work with a new Business Unit Media to drive growth by focusing on software sales and recurring business to complement what the company says is its already strong business in Consulting & Systems Integration and the Broadcast Services business.

Ericsson already has been focused on three main new customer segments: public safety, transport, and utility, said Frykhammar. Now companies it serves in these verticals will have dedicated customer support within the leadership team, he said.

“For the rapidly growing Industry & Society business a separate Customer Group will be introduced to improve scaling and time to market,” Ericsson said.

As noted above Ericsson has also shifted the responsibilities of some executives, and brought in some new folks to the team. Here’s a quick rundown of what’s changing on that front:
 

• Frykhammar becomes Executive Vice President, Chief Financial Officer and Head of Group Function Finance & Common Functions.

• Arun Bansal becomes Senior Vice President and Head of Business Unit Network Products. Currently Head of Business Unit Radio, he will be a new member of the Ericsson Leadership Team.

• Per Borgklint becomes Senior Vice President, Chief Innovation Officer and Head of Business Unit Media. Borgklint currently holds the position as Senior Vice President and Head of Business Unit Support Solutions.

• Bina Chaurasia remains as Senior Vice President, Chief Human Resources Officer and Head of Group Function Human Resources.

• Ulf Ewaldsson remains as Senior Vice President, Chief Technology Officer and Head of Group Function Technology.

• Niklas Heuveldop becomes Senior Vice President, Chief Customer Officer and Head of Group Function Sales. Heuveldop currently holds the position as Head of Global Customer Unit AT&T and is a new member of the ELT.

• Chris Houghton, the Head of Region North East Asia since 2015, becomes a new member of the ELT.

• Fredrik Jejdling becomes Senior Vice President and Head of Business Unit Network Services. Jejdling currently holds the position as Head of Region sub-Saharan Africa and becomes a new member of the ELT.

• Anders Lindblad becomes Senior Vice President and Head of Business Unit IT & Cloud Products. Lindblad currently holds the position as Head of Business Unit Cloud & IP and becomes a new member of the ELT.

• Nina Macpherson remains Senior Vice President, Chief Legal Officer and Head of Group Function Legal Affairs.

• Helena Norrman remains Senior Vice President, Chief Marketing and Communications Officer and Head of Group Function Marketing and Communications.

• Jean-Philippe Poirault becomes Senior Vice President and Head of Business Unit IT & Cloud Services. Poirault, who currently holds the position as Head of Consulting and Systems Integration, becomes a new member of the ELT.

• Rima Qureshi becomes Senior Vice President, Head of Region North America and Chief Strategy Officer. Qureshi currently holds the position as Senior Vice President, Head of Group Function Strategy and Head of M&A.

• Charlotta Sund becomes Senior Vice President and Head of Customer Group Industry & Society. Sund, who currently holds the position as Head of Region Northern Europe and Central Asia, becomes a new member of the ELT.

• Elaine Weidman-Grunewald, Head of Group Function Sustainability and Corporate Responsibility, becomes a new member of the ELT.

• Peter Laurin become Head of Region Northern Europe and Central Asia. Laurin currently holds the position as Head of Global Customer Unit Vodafone,

• Jean-Claude Geha becomes Head of Region sub-Saharan Africa. Geha currently holds the position as Head of Business Line Managed Services.

• Gustav Brismark becomes Chief Intellectual Property Officer and Head of IPR & Licensing. Brismark currently holds the position as Vice President, Patent Strategy and Portfolio.




Edited by Stefania Viscusi

Executive Editor, TMC

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