Vodafone Group plc has announced changes to its organisational structure, including a number of new appointments which will come into effect on 1 May.
The overall objective of the new structure is to focus the business according to the
different markets and customer requirements. As from 1 May, Vodafone Malta will no longer form part of the group known as Other Vodafone Subsidiaries (OVS), but will become a member of the European group of business units.
There are three key principles underpinning the new structure: to drive operational benefits and cost reductions on a local and regional scale in the more mature markets; to drive profitable growth from the company’s emerging market portfolio and to position the company to capture new revenue streams by extending its reach into converged and IP services. As a result, the operations of the group will be managed through three new business groups.
The CEO of the European business unit will be Bill Morrow, currently president of Vodafone’s business in Japan. Apart from Malta, this will include all Vodafone’s principal European markets, namely Germany, Italy, Spain, Ireland and the UK.
Given the high penetration levels and competitive nature of these markets, the unit will focus on leveraging its unique regional scale and reducing operational costs. This unit will also include the global technology and marketing functions.
With the increased focus on operational efficiency, Tim Miles will move from his role as CEO of Vodafone UK to become Chief Technology Officer. He will be succeeded by Nick Read, currently Chief Commercial Officer with Vodafone UK. In addition, Frank Rovekamp has been appointed Chief Marketing Officer.
The CEO of the business unit in Central Europe, Middle East, Asia Pacific and Affiliates will be Paul Donovan, currently Chief Executive of OVS (Other Vodafone Subsidiaries), and will include the Group’s Emerging Markets and other Vodafone operations. It will have a particular focus on profitable growth in emerging markets. These are grouped into three clusters to maximise the benefits of regional focus.
This unit will also include the Group’s joint ventures, affiliates and investments, notably Verizon Wireless, China Mobile, Vodacom and SFR. The key focus will be on maximising performance and, where possible, increasing the benefits of being part of the Vodafone Group.
The unit for New Businesses and Innovation will be led by Thomas Geitner as CEO. He is currently the Company’s Chief Technology Officer and an Executive Director. This unit will focus on converged and IP services in order to deliver new revenue streams as Vodafone seeks to provide innovative services to its customers.
Group Chief Executive Arun Sarin said: “This new structure is an important step forward for the Group, as it is aligned with our evolving strategy and addresses the different priorities across the Group. It will enable us to continue to outperform our competitors, as the changes deliver a streamlined and simple structure with a clear focus. By creating three new business units, and with an increased focus on costs, we are reflecting the different approaches that will be required to continue to succeed, both in terms of our existing operations and in capturing new revenue streams for the future.”
As at 31 December 2005, Vodafone had 179 million customers worldwide.