Ericsson’s strategy is to be a leader in mobile infrastructure and to establish an enterprise business. To execute on its strategy and growth ambitions while continuing to invest in R&D to maintain its technology leadership, Ericsson announced changes to its group structure and executive team.
Business Area Cloud Software and Services
To lead in the mobile infrastructure business, a Business Area Cloud Software and Services is created by merging the Business Area Digital and Managed Services segments. Per Narvinger is appointed Senior Vice President and head of this new department.
“Through the new Business Area Cloud Software and Services we provide solutions that will help our customers automate the increasingly complex networks for cost advantages and speed to market. By combining the two business areas we can coordinate our investments in orchestration and AI solutions leveraging insight from our network operations. This will allow us to remain a technology leader in a constantly evolving market,” said Ericsson President and CEO Börje Ekholm.
It is worthy to note that 16 out of the 20 largest operators globally have chosen Ericsson’s cloud native 5G core portfolio.
Business Area Enterprise Wireless Solutions
The new Business Area Enterprise Wireless Solutions would consist of the current Cradlepoint business and Dedicated Networks, taking full accountability and focus to develop solutions to meet the growing needs of enterprises and create a dedicated go-to-market organization for enterprise customers by leveraging the established relationship with service providers.
George Mulhern is appointed Senior Vice President and head of this new business area that will enable Ericsson to build on recent success of Cradlepoint as 5G coverage increases on the US C-band and the launch of Ericsson Private 5G (EP5G) in several leading markets.
“With this change we are taking important steps in our journey to execute on our strategy. The new Business Area Enterprise Wireless Solutions will provide the focus and conditions we need to thrive in the enterprise market and secure the next wave of success for this business,” added Ekholm.
Group Function Global Operations
By creating a global operations function, Ericsson will be able to run its global operations more effectively and consistently across the organization, with Moti Gyamlani as the appointed Senior Vice President and head.
“Global Operations is created to achieve best-in class customer and employee experience by simplifying and digitalizing end-to-end process flows in the company. By creating this function, we will be able to better serve the needs of our customers and better support our people, making us more agile and more competitive,” explained Ekholm.
Narvinger, Mulhern, and Gyamlani would join Ericsson’s executive team while Arun Bansal, Jan Karlsson and Peter Laurin will be leaving.
“After turning around the company, Ericsson is entering a new phase of growth. The changed group structure that we announce today represents exciting opportunities for our people, our customers and our business and will allow us to continue to grow our core mobile infrastructure business and capitalize on the fast-growing enterprise market. Within 2-3 years, we want to achieve our long-term goal of growing faster than the market and an EBITA margin (excluding restructuring costs) of 15-18% for the Group. I look forward to working together with the new Executive Team, and the whole Ericsson team, as we accelerate our work to execute on our strategy, strengthen our company culture and continue to grow the company with increased profitability”, concluded Ekholm.