Emily Dickinson eloquently portrayed how dynasties can be repaired – and the only thing exempt from change is ultimate demise. For many years, RIM was the undisputed leader in mobile email and messaging. They set the industry standard and created the performance benchmark, and helped propel mobility into the mainstream of business. Unfortunately, recent media almost exclusively focuses on their diminishing market share, bad management, poor tablet strategy, and how the Blackberry brand is entangled in a downward spiral of obsolescence.
These observations have strong elements of truth – RIM is being taken to task by hungry, agile competitors with a clear vision for the global mobile ecosystem. It needs to reengineer its brand, product portfolio and go to market strategy in its entirety to compete. Nothing can be left “as is”, since this is honestly how they arrived in their current state.
As early as 2006, before the formal launch of the iPhone, RIM had already buried its head in the sands of arrogant market leadership. Whimsical quotes about the challenges of typing on a glass screen, security issues, carrier-friendly efficiencies and other “obstacles” for iPhone adoption were launched from the RIM marketing machine. When the iPhone did launch, it garnered nearly 20% domestic market share in less than six months. Soon after, Apple was selling more iPhones monthly than RIM moved in an entire quarter. Alarms were sounding. Apple had, for all intents and purposes, completely reset expectations of the smartphone experience. RIM missed this crucial point, focusing instead on historical demand patterns and accomplishments.
Instead of taking tangible action to address new competition, the market was treated to more quotes on elusive strategies yielding little result.
“I wouldn’t underestimate the amount of research we’ve done on user interfaces and technologies. We are not afraid to reinvent ourselves.”
We’re still waiting for reinvention, and it may be too late. Apple and Google are nimble, cash-rich and willing to innovate rapidly. They are well positioned in adjacent markets to fully exploit opportunities far beyond handsets and the OS. Paramount to their success, they understand clearly the role of the product, consumers, developers, and the larger revenue-generating ecosystem surrounding their platforms. Even Microsoft is posturing for a strong re-entry into the marketplace and is slowly building credibility through enhancements to Windows Mobile. It’s next release due this fall, Mango, integrates multiple points in the Microsoft product portfolio – and represents a giant leap forward in Microsoft’s global approach.
RIM needs to follow a similar path.
The road to recovery starts with changes at the top, most notably the RIM leaders we see publicly every day portraying a reality that is well removed from the truth. No one can dispute Mike Lazaridis and Jim Basille played key roles in building RIM to fantastic levels of success. Unfortunately, given at least four years of public miscues and product challenges, it is time for change. Rebuilding the brand and creating a new organization will require fresh leadership, signaling acknowledgement of the issues and potentially slowing the downward pressure on RIM’s stock.
RIM also needs to quickly hit a “product home run”, developing a handset or tablet that creates genuine emotion and loyalty. The PlayBook is not that device. Historically, RIM has been part of the all star team in terms of game-changing handsets that push the industry forward: the StarTac, BlackBerry 957, RAZR, Nokia 9000, the “Blueberry”, iPhone and others. All of these products were surrounded by stellar marketing that created fanatical consumers. More important, they were products that worked well, delivered as promised, and were surrounded by organizations with vision and focus.
Ironically, the biggest opportunity for RIM to recover may lie in the Blackberry suite of software and infrastructure services. Blackberry Enterprise Server, MVS, Pushcast, hosted infrastructure and even Blackberry messenger represent a massive installed base of touch points to be monetized. This could be the saving grace, if they aggressively pursue interoperability and invest in their developer community with strong corporate commitment. Enterprises are ready to open the door to app stores and secure consumerization, unified communications is poised for critical mass, and messaging continues to grow at hockey-stick trajectories. RIM is uniquely positioned to be disruptive, and it’s time to take the restraints off the employees who see the opportunity and can make it happen.
Time is running short for course-correction, as the organization grows more attractive every day for acquisition. It would be healthy for the marketplace, and beneficial to consumers, to have a strong RIM competing for business globally. It would also be good to see a world-class organization regain its culture of innovation and succeed.
Posted by Michael V 
