Ericsson: Changing the business

Ericsson announced a new division named Industry and Society
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“We are not moving into industries, they are coming with their needs to us,” said Orvar Hurtig, vice president and head of Industry and Society at Ericsson about the company’s new vertical.

Ericsson is aware of the change that the telecommunications sector is witnessing and the company wants to be ready for it. In order to face this change and enhance their business, the firm has created a new division called ‘Industry and Society’.

“Everything is becoming connected. This will probably change business quite dramatically. We took the knowledge we have and we share it with companies, using our equipment, the tools and the people. It is very different from what we have done for long time. These industries are in the middle of a transformation and we have what they need,” explained Hurtig.

Energy and utilities, transport and automobile, and safety and security will be the areas in which Ericsson will be focusing when developing this new division. “We don’t want to do everything and we have just going to focus in some industries. There are few were we are witnessing a huge transformation. The utilities industry, the smart home, telecoms equipment, a lot of mobility, cloud too... If you look at cars, if you take the transport, every car will be connected, it has just stated. If you look at public safety, you’ll find this growth too,” explained Hurtig.

“The reason why we have picked these areas is because these industries fit the way we operate in a very good way. We used to operate with big players around the globe so, again, utilities, public safety and transport are extremely important for us,” he added.

In order to expand this business in the Middle East and North Africa region, Ericsson appointed Rutger Reman as head of Industry and Society for Ericsson in the Middle East region. Reman is responsible for optimising the division’s overall performance, exploring new business in the energy and utilities, public safety and security, intelligent transport systems, and smart cities market segments.

The company believes that there is potential in the MENA regions, and the regions are growing, regardless. The GCC is experiencing great progress in achieving a Networked Society, while other countries like Egypt, Turkey and the Levant are still trying to catch up, stated the company. Meanwhile, the least-developed countries, with regards to communications infrastructure, have started to adopt the latest global technologies that will enable their customers to connect more easily and thus working towards, what Ericsson calls, the Networked Society.

“We tried to be very focus in this region, we have some nations that are forwarded looking about what they want to do and how they want to transform themselves, improve the quality of leaving, reduce CO2, so this is the business that we want to do. From these three sectors, unfortunately, we have security focus in our region,” said Reman about the Middle East.

Regarding the smart cities vertical, Reman commented that most of the countries in the region want to reduce CO2 footprint and they want to know how to use their systems in a more effective way. “There are small things that we can do in these countries with governments and companies, for example helping them to programme or avoid leaving air conditioning on, and just use it when it is needed, or stop leaving the lights on in public buildings during the summer time.”

“The ARMEA region is the most important region. That is where we had the most important growth. However, it doesn’t’ mean that we will not work in other regions, we will do it all over the globe. We have a focus in some regions. We will make sure that we will be successful in these regions and then we will move to others,” added Hurtig.

In order to develop this new vertical in Ericsson’s business, the company is using its existing equipment, people and knowledge and also they are hiring new people to enhance its competence. Hurtig also said that Ericsson is planning to acquire some companies to develop this business vertical quicker in the region, but he did not specify which companies.

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