In the late 1990s, after Nokia developed the first smartphone (the “Communicator”), executives became increasingly sensitive to the importance of operating systems, data communications, and multimedia. It was also becoming clear that more complex business models would be needed to tap in to new opportunities. This chapter describes and analyzes how Nokia managed this transformation. It describes the development of the Communicator smartphone, the establishment of the Symbian OS, and the creation of an innovative camera phone. As the nature of the industry was changing and becoming more complex, it also looks at how Nokia responded by engaging with a wider ecosystem to develop the visual radio concept. These examples highlight the challenges that the new world of software platforms and application ecosystems raised for Nokia.
