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RIM CEO: 'There's Nothing Wrong With the Company'
redletterdave writes "Research In Motion is in trouble. The BlackBerry maker has been suffering from an identity crisis for the last six months, which has resulted in mass layoffs, lots of job shuffling, dramatic drop-offs in market share and a quickly decaying portfolio for investors. But not according to Thorsten Heins! The newly-appointed CEO published an op-ed in the Toronto Globe and Mail on Tuesday, and also appeared on a radio program the same morning, to deliver one message: 'There's nothing wrong with the company as it exists right now.'"
"I'm not dead yet... I'm happpeeeeeeee!"
Why am I reminded of the Iraqi Propaganda Minister?
Maybe it's better to have a credible CEO who says things are going poorly than an untrustworthy CEO?
If it's obvious to everyone that a company has problems, the worst possible thing a CEO can do is say everything is fine, because it makes everyone think he's out of touch or not interested in fixing what's wrong. A good CEO would acknowledge the problems and present a high-level plan for fixing them. Whistling past the graveyard just makes things worse.
I'm not sure why we're seeing all of this. But if you RTFA, you'll see a totally different message. Heins gets that they are in a lot of trouble. He's simply saying that they aren't going anywhere. They are executing their strategy in the midst of a transition. All of the negativity is expected. But they haven't lost their head, they know where they're going. The headline should read: "RIM CEO Acknowledges past, hopeful for future" Nice to see a CEO be candid about their problems.
Well I think we just found one thing wrong with the company: The CEO is delusional, a liar, or both.
As we prepare to launch our new mobile platform, BlackBerry 10, in the first quarter of next year, we expect to empower people as never before...am the first to admit that RIM has missed on important trends in the smart-phone industry...RIM is undertaking a corporate overhaul that we expect will reduce annual operating expenses by more than $1-billion by the end of our fiscal year...
I read that to mean pretty much what you think a good CEO should say.
...although I doubt they'll ever rise back to pre-iPhone prominence.
Allow me to preface this by noting that I'm not a fan of RIM's current devices or software. I don't own a Blackberry, or any other cell phone for that matter (I truly have no desire to talk to on the phone. I have a 3G iPad and an iPod touch for messaging and Internet access). I find their phones uninspired, and their existing OS lineup and development environment to be highly fragmented, with older OS based devices often available at the same time as newer OS based devices, and little upgradability to newer OS's on older devices -- not exactly the most developer-friendly sort of environment.
I'm also not a fan of how they cow-tow to carriers, particularly here in North America. Specifically here in Canada (RIM's home country), newer phones and devices are often available elsewhere first, and Canadians frequently have to wait months for newer models to be made available, after they've already launched elsewhere.
All that being said, RIM still has over $2 billion sitting in the bank, and they still have a lot of talented people, and own some impressive technologies. I was particularly heartened when I had heard they bought QNX Software Solutions. QNX is quite the powerhouse of an OS that most PC users aren't familiar with, but which has made quite the name for itself in the embedded space as an efficient and extremely stable microkernel based RTOS (Real Time OS) which has powered PC's, vehicles telematics systems, and carrier grade routers, along with a variety of industrial embedded systems. In short, it's an excellent OS for driving smart phones and tablets.
So RIM has the money, they have the technology, and they have the talent -- and now they have an excellent POSIX compliant OS to base their devices off. I think they're in the right space -- assuming they can execute successfully. They really need to get their software game up, make the OS front and centre, provide best-of-breed development tools and systems, and wean themselves off the idea that the carriers are their device customers. Where Apple really succeeded with the iPhones was in their being able to tell carriers how things were going to work, and in many regions selling their devices directly to customers completely unlocked (which was a real breath of fresh air here in Canada), cutting the carriers out of the loop when it came to device features and functionality. RIM needs to play hardball with the carriers, and if the carriers don't want to play by their ground rules, they too needs to sell unlocked devices directly to consumers, so that their biggest fans don't have to wait for nearly a year (or more) to get the latest and greatest devices. And if they're not going to take older devices out of the sales channels as soon as they're replaced, they at least need to ensure those devices can be upgraded to the latest OS (i.e.: they shouldn't be permitting the retail sale of new devices that can't run the latest and greatest OS. A mishmash of BB OS options available simultaneously on new devices isn't good for a software ecosystem).
If they can do those things, they have all the things they need to persevere and even return to some form of prominence. Their devices could be great and even desirable once more, and even the Playbook could find a useful niche. But they have to get their software strategy on track, based on a standard OS core across devices and device families, make it friendly and easy to develop for, and start putting the end-user first, and the carriers second. Then they'll be able to produce devices more people will actually want.
As such, I don't feel the death spiral is inevitable. The pieces are all there for them to get back on track, and as a Canadian I hope they get their development plans in order, get the right people working on the right projects, and execute a smart plan to make devices people want to own.
Yaz
It is possible for a business to come back from the brink, but RIM has shown absolutely no sign that they'll be a business that does so. All they really have coming up is BlackBerryOS 10
You're obviously unaware of what RIM is doing except for what the doomsayers are trumpeting. RIM understands the work/life balance issue and the paradigm shift away from a work provided device to the BYOD model. Despite this companies still have to be able to keep their data secure. RIM has introduced two new technologies recently to address these issues. BlckBerry Mobile Fusion is RIM's replacement for the BES/BIS. Mobile Fusion allows an enterprise to manage thousands of devices running anything from BB OS to Android to iOS all from one web console. In case you were wondering RIM has indeed incorporated ActiveSync connectivity into their repertoire. The second thing RIM has introduced is called BlackBerry Balance which let's you keep your pictures of your family vacation and the slides of your upcoming presentation on the same device while being secured separately. With this technology you can walk into a new job with your own device and get it activated on their BES/BIS/Mobile Fusion server and it will create a secure work related partition on the device separate from your personal data. When you leave the company they simply wipe the work partition remotely leaving your personal data intact.
I'm sure you're probably saying that won't be enough to save them and you are right it won't which is why they are making the switch to BB OS 10. A lot of people are asking...even demanding that RIM just adopt Android and move on but as is evidenced in the market today none of the players in the Android space are making any money except for Samsung and they are making money on the handsets they sell as well as the chips they sell to their competitors.And despite the death knells being sounded by every industry "expert" developers are still lining up every day to develop for the PlayBook/ BB OS 10 because the few people using the PlayBook are actually paying to get the apps they want unlike the majority of Android users who want their apps to be free.Do they have a tough road ahead? Hell yes but considering they still sold more handsets in 1Q 2012 then they did in 1Q 2009 despite the RIM faithful all holding out for a BB 10 device I'd say they are far from toast. Most government agencies can't even consider another device because there aren't any that are FIPS 140-2 validated. There are a few here and there and there are third party solutions to make devices secure but they are far from optimal. We have a program where I work where they bolt on a security layer to iOS to meet the security standards and it is the biggest PITA I have ever experienced. Not to mention cumbersome and intrusive. Even people here who love their Apple device can't stand using it to access the network because of the hoops they have to jump through.
"A person is smart. People are dumb, panicky dangerous animals and you know it." - K
The reasons our phones dont suck is because we have stuck with an out of reach business model whilst being probed from behind by other smartphone makers.
Want email AND contacts AND calendar? Well, then BlackBerry server is for you. It is another item your corporation has to sink money into and IT resources in.
What? Your phone lost connectivity to our server? Well, the fix is simple! A security wipe of the phone and a reset of your Blackberry server account by your IT will do the trick!
Nothing could be more simple!
Had an app you needed for work on the phone? Well, lets hope you backed it up, or your organization will have to pay for it again.
No other email service offers remote wipe like we do. Oh wait, they do? Well, we also offer encryption, wait they do natively?
What about our cool mouseball, no one else has that patented feature! Or our mini-thumb-track system, which is so annoying only the pains in your thumb know it is the real thing!
WEEEEEE!
Yeah... they were doomed when smart phones started supporting Exchange.
The only solution is for Microsoft to acquire RIM.
Then, the shitstorm will be perfect.
"Flyin' in just a sweet place,
Never been known to fail..."
Have you used one? There is no comparison.
After using a PB for any length of time, trying to use any Android or iOS device is like stepping back in time.
Apple uses know that "it's all about the experience". Well, RIM has that nailed as far as tablets are concerned, and all signs point to a revolutionary UI on the new BB10 handsets.
Required reading for internet skeptics