Ericsson presents focused business strategy - Seite 2

Portfolio changes

We will take the following steps to focus and strengthen the core portfolio:

Accelerate and increase investments in key areas in Networks to support a continued global rollout of 4G and establishing a leading position in 5G.  

Target the Network Rollout business on Ericsson's own networks portfolio. Ambition is to optimize the end-to-end offering to address our customers' needs. The work to improve profitability in this area will be further sharpened.

For the newly created Digital Services Business Area, including cloud based virtualized network infrastructure and applications, management and monetization software (OSS/BSS) and related services capabilities, the near term focus is on re-establishing profitability. As this area is strategically important to our customers going forward, we will also selectively increase our investments to enable Ericsson to be the partner of choice for our customers on their journey to become digital service providers.

Shift the IoT strategy from a systems-integration-led approach to a platform- and solutions-led strategy to better leverage our global scale and industry expertise.

Refocus Managed Services strategy with emphasis on automation, fully leveraging our global scale and OSS capabilities, to provide high-tech services and cost efficient operations. Full attention on turning business around from a negative result in 2016, addressing low- performing operations and contracts.

Explore strategic opportunities for the Media business while continuing to develop our media solutions, to enable the business to scale and succeed in the evolving media landscape. Our media business consists of two parts, managed services and technology solutions. We will now create two separate units, Ericsson Broadcast & Media Services and Ericsson Media Solutions, to create a stronger operational focus. Video traffic today constitutes over 50% of mobile data traffic globally, and is forecast to grow to 75% by 2022. We have built a strong and competitive portfolio and we have become a world leading supplier of TV & Media products and services.

As a consequence of our increased focus on software technology development within virtualized core networks and management and monetization software (OSS/BSS) we will explore strategic opportunities for the IT Cloud Infrastructure hardware business.

Ekholm continues: "With these changes I am confident that we will create the most intelligent and efficient networks, deliver the most competitive solutions and constantly innovate to enable our customers to succeed in a fully connected world."