[ZT]
Nortel Networks Corp. chief executive Bill Owens yesterday unveiled his vision of a leaner, more agile company that will focus on bundled Internet-protocol solutions and expand in sectors like network security.
He said the company needs to become more like archrival Cisco Systems in aggressively marketing its products and services.
And he said Nortel will look to form more partnerships to offer comprehensive network solutions.
In his first public speech since taking the helm in April, Mr. Owens recognized the "hellish rollercoaster ride" the company's employees have endured over the past three years.
"We will persevere. We will get through these difficult times. We know the challenges are there but are eyes are very much focused on the future of this great business," Mr. Owens said at an event hosted by the Ottawa Centre for Research and Innovation.
Nortel recently delayed the release of its financial results for 2003 and the first half of 2004 until next month. In late April, its board fired chief executive Frank Dunn and announced it would have to restate results going back to 2001.
Nortel also faces investigations by securities regulators and law-enforcement authorities on both sides of the border, and recently announced it would sack another 10 per cent of its workforce.
Mr. Owens said staff should know in the "next 10 days to two weeks" who will be let go.
He could not say how many of Ottawa's 6,000 employees will be laid off, though he reiterated that the cuts will focus on senior management.
Amid Nortel's accounting troubles, Mr. Owens has talked about leading the company in a number of new directions. In recent days he has shifted from "transparency and financial accountability" to a message focused on cash flow, cost reduction and revenue generation.
Mr. Owens said the company will trim sales, general and administrative expenses to about 35 per cent of revenues with the latest restructuring and try to bring that ratio into the 25- to 30-per-cent range. It recently integrated its wireless, wireline and optical divisions into one division called Carrier Networks, part of a plan to save $500 million U.S. Though he called optical networking a "challenging" business, he said Nortel would stay in it.
He said Nortel is well positioned to serve cable and phone companies as they migrate to common networks based on Internet protocol, but he admitted that no single company can service this "converged network" on its own.
"None of us can do this by ourselves. Not Nortel, not any of our competitors."
Nortel will look to build partnerships in areas such as "smart boards" and video-conferencing gear, said Mr. Owens.
"It's not exactly the DNA of Nortel, but it's a very important part of our future."
The company is also taking aim at network security.
"I don't think anybody does (network security) very well. None of us are really coming to grips with the architecture, the granular nature of the Internet, the seriousness of providing quality service on that network. But Nortel will."
http://www.canada.com/ottawa/ottawa....html?id=4f2f54fc-7dc7-4678-bd47-31c6f9832820
Nortel Networks Corp. chief executive Bill Owens yesterday unveiled his vision of a leaner, more agile company that will focus on bundled Internet-protocol solutions and expand in sectors like network security.
He said the company needs to become more like archrival Cisco Systems in aggressively marketing its products and services.
And he said Nortel will look to form more partnerships to offer comprehensive network solutions.
In his first public speech since taking the helm in April, Mr. Owens recognized the "hellish rollercoaster ride" the company's employees have endured over the past three years.
"We will persevere. We will get through these difficult times. We know the challenges are there but are eyes are very much focused on the future of this great business," Mr. Owens said at an event hosted by the Ottawa Centre for Research and Innovation.
Nortel recently delayed the release of its financial results for 2003 and the first half of 2004 until next month. In late April, its board fired chief executive Frank Dunn and announced it would have to restate results going back to 2001.
Nortel also faces investigations by securities regulators and law-enforcement authorities on both sides of the border, and recently announced it would sack another 10 per cent of its workforce.
Mr. Owens said staff should know in the "next 10 days to two weeks" who will be let go.
He could not say how many of Ottawa's 6,000 employees will be laid off, though he reiterated that the cuts will focus on senior management.
Amid Nortel's accounting troubles, Mr. Owens has talked about leading the company in a number of new directions. In recent days he has shifted from "transparency and financial accountability" to a message focused on cash flow, cost reduction and revenue generation.
Mr. Owens said the company will trim sales, general and administrative expenses to about 35 per cent of revenues with the latest restructuring and try to bring that ratio into the 25- to 30-per-cent range. It recently integrated its wireless, wireline and optical divisions into one division called Carrier Networks, part of a plan to save $500 million U.S. Though he called optical networking a "challenging" business, he said Nortel would stay in it.
He said Nortel is well positioned to serve cable and phone companies as they migrate to common networks based on Internet protocol, but he admitted that no single company can service this "converged network" on its own.
"None of us can do this by ourselves. Not Nortel, not any of our competitors."
Nortel will look to build partnerships in areas such as "smart boards" and video-conferencing gear, said Mr. Owens.
"It's not exactly the DNA of Nortel, but it's a very important part of our future."
The company is also taking aim at network security.
"I don't think anybody does (network security) very well. None of us are really coming to grips with the architecture, the granular nature of the Internet, the seriousness of providing quality service on that network. But Nortel will."
http://www.canada.com/ottawa/ottawa....html?id=4f2f54fc-7dc7-4678-bd47-31c6f9832820
