98-08-21 10.08 Sidan CONTACTNo. 1998 CONTACTNo. 1998

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98-08-21 10.08 Sidan CONTACTNo. 1998 CONTACTNo. 1998

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98-08-21 10.08
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CONTACTNo. 1998
CONTACTNo. 1998
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Lena Widegren
lena.widegren@etx.ericsson.se
avid Cooperstein, Forrester Inc's telecom strategist, analyses industry every day. comparing companies such Ericsson, Lucent, Nortel, Alcatel, Siemens Cisco. advice Ericsson "Find good partners good acquisitions." "Nowadays, everything eing global company which makes right acquisitions," David Cooperstein says. "Ericsson's world changing very rapidly." David discuss telecom development with wants maintain neutral role, analyst, prepared indicate various potential options Ericsson. "Traditional telecom, used know will never same again," David believes. "The future just question buying selling. also have take ormation structure into account, corporate wholesaling retailing aspects. Ericsson's problem will differentiate products. customers cannot difference between them, they will find other suppliers. Cisco, example, makes easy customers differentiate between products.
product. that's case with corporate acquisitions. Ericsson should consider both options."
personnel base crucial
What tnerships acquisitions would suggest? "Computer network suppliers that quick their feet," David's instant response. "The product range needs broader this gment. echnology means getting routing systems faster orporating extranet routers systems platforms. Ericsson identify such needs early stage build them into systems. next generation platforms must that good." David Cooperstein keen oint importance managing Ericsson's high-quality personnel resources effectively. Tomorrow's strategies will involve both global regional telecom companies. Deregulation opened several markets. Companies which have high degree flexibility fast their feet will prove winners.
counter setbacks. Telecom companies have take greater risks. same movie industry Internet. first step believe there market product, then have find someone prepared invest idea start business," states.
Room guesswork
"Ericssons's Cyberlab Lucent's Bell Labs examples infinite spirit entrepreneurship. Some projects will successful, others will not. There also scope guesswork based scientific gic. Everything moves much faster today. Digital xchanges were developed course years. oday, ranet ters, which appeared scene 1997, already part infrastructure. Development that fast these days." What distinguishes Ericsson from competi tors? "They have more wireless applications than everyone else," David says. "Lucent working hard develop products, focuses heavily high-tech future. Motorola Nortel concentrating existing platforms. Siemens Alcatel seem have close relationships with their customers. Wireless applications dominant force Europe today Internet. Ericsson wants focus aspects data communications, including wireless datacom, see. Ericsson probably also needs invest heavily other areas, oing this cautious manner, allows mistakes. Making mistakes essential aspect progress."
Charlotte Proschwitz
good partner worth gold. partnerships dissolved, Ericsson should also consider buying companies, says telecom strategist David Cooperstein. Photo: Great Shots
David Cooperstein advises Ericsson find good partners acquisitions. Photo: Roger Schederin
Interested business strategies
David Cooperstein particularly interested business strategies, thinks that Lucent, manufacturer, been more successful than competitors this area several ways. "Lucent good marketing products very rapidly," says. "Ericsson needs equally aggressive from strategic point view, just telephones, types products. have careful void marketing that aggressive." Forrester's analysts also look implica-
tions being linked other corporate trademarks, following acquisition merger. "Buying other companies positive impact market's perception products," according David Cooperstein. excited about rospect major cquisition Ericsson. "Lucent buying many companies can. same applies Nortel. Even their strategy perfect, possible strike happy balance." world which constantly changing, partnerships often cquiring personnel rather than making products. partnerships also break rather easily, they don't guarantee ownership finished
Cyberlab excellent initiative
will Ericsson great deal good manages establish partnerships with small companies." David Cooperstein thinks that Ericsson's Cyberlab initiative excellent example this. "This type approach also needs plied traditional areas. Innovative ideas about financial resources manufacturing also required. Netscape America OnLine companies ture being developed today's Cyberlabs. research development initiative also bound
Lars Magnus Ericsson's instrument-making workshop, which commenced operations 1876, might have grown without partnership early stage with Henrik Tore Cedergren, founded public telephone company Stockholm 1883.
Bell's telephone, which invented year before, demonstrated Stockholm 1877. Cedergren, qualified engineer, immediately ordered first telephone link Stockholm etween home jeweler's shop founded father. Bell Telephone U.S. supplied apparatus. Cedergren ecided give some competition ering telephone services
general public reasonable prices, with assistance Lars Magnus Ericsson. founding Stockholms Telefonaktiebolag (SAT) 1883 date development Swedish telephone service.
Joint innovations
SAT's utes June 1883 indicate that Board decided order telephone sets
from Ericsson." July Board approved order "ten switchboards, subscribers each, price kronor, switchboards link xchanges (Oxtorget Svartmangatan) kronor each." Cooperation between Ericsson Cedergren expanded rapidly, soon generated several joint technical innovations, exam multiple switchboard. day, exchange Malmskillnadsgatan, which opened July 1887, largest Europe. initial equipment consisted multiple switchboards maximum 7,000 subscribers. design
manufacture, with exception pentry operations, entrusted Ericsson, this largest assignment undertaken Ericsson workshops date.
climate
early history elephone industry Stockholm clearly demonstrates that cooperation between Ericsson Cedergren expansion both companies. change climate their relationship soon occurred. 1896, Cedergren established manufacturing operations form Aktiebolaget Telefonfabriken, with
explicit reducing dependence Ericsson supplier. When Telegrafverket also started make equipment public sector, Ericsson forced concentrate oreign business years around turn century. This also involved setting companies other countries.
which been started Cedergren, cooperation etween pioneers resumed. that another story.
Thord Andersson
thord.andersson@ebc.ericsson.se
Commencement
1896, Ericsson incorporated limited company, inaugu rated. Five years orporation, Telefonaktiebolaget Ericsson acquired competitor, Aktiebolaget Telefonfabriken,
cooperation between Lars Magnus Ericsson Henrik Tore Cedergren early example partnership that mutually benefitial.
roud independence sign strength nowadays least telecom industry. Strong companies ensure that they have satisfactory cooperation with other companies, thus enabling them quicker, costs gain access crucial expertise. This strategy makes Ericsson flexible company, giving freedom action resources take rapid changes course redictable market. Partnership close cooperation nothing Ericsson concerned. contrary, more cooperation these days levels, from component development systems integration. data ommunications technology accelerating this process. eech-handling capabilities data networks roving every day, evelopment rapid that hardly possible build internal data communications expertise same rate. Ericsson safeguarding expertise establishing partnership relations with both well-established datacom companies. This strategy includes total partial acquisition smaller companies. Ericsson also needs have close relationships with leading global suppliers areas such software development, maint enance, services, component development, marketing advertising. Ericsson's vision future working with limited number large entrepreneurial companies great many small ones. Contact will devoting series articles describing some partnerships which Ericsson already established. Some these elationships have developed over years, others relatively recent. David Cooperstein, American telecom industry analyst presented first this series article, resses importance establishing good partnership relations. that story. From rican perspective, David also considers that corporate cquisitions crucial business strategy. dramatic deals spring clear demonstrated that many players have adopted this strategy. Alcatel purchased ommunication, Nortel rabbed Networks, Ericsson's partners datacom area. This series articles primarily focused importance cooperation number areas. People used refer "joint ventures", Ericsson's lawyers reminds article this series. Nowadays, everyone prefers talk about "partnership", which ecome catchword contexts volving cooperation, even label traditional suppliers. look word dictionary, simple enough: partner close associate colleague, same side court someone whirl around dance floor with.
Lena Widegren editor responsible this series articles.

98-08-21 10.08 Sidan CONTACTNo. 1998 CONTACTNo. 1998

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