RIM

Can Thorsten Heins Save RIM’s Bacon?

By Mark Evans in Wireless 2 Comments Tags: , ,

There’s a wave of coverage about the dramatic overhaul at Research in Motion, which sees Thorsten Heins (Thorsten who?) replace Mike Lazaridis and Jim Balsillie as CEO.

The question is whether it’s too little too late? Has RIM already slipped too far down the slippery slope? Even if he can stabilize the situation, isn’t RIM sort of like the Costa Concordia, clinging to the shore but in danger of dropping into the abyss at any moment?

Any who the heck is Thorsten Heins anyway, any why is he so darn enthusiastic? For evidence of his optimism, check out the video clips below created by RIM. In and of themselves, they’re a dramatic PR departure for RIM, which seemed to lose touch with how to communicate to consumers. Heck, Heins even appeared on the CBC’s Metro Morning with Matt Galloway this morning!

So what does Heins do now?

What what will he be allowed to given Lazaridis and Balsillie are on the board and major shareholders? Will he kill the PlayBook, which is describes as a “mobile computing platform”? Will he magically get QNX into the market sooner rather than later? Does it matter that RIM has $1.5 billion in cash, no debt and 75 million subscribers?

And will  Jim Balsillie now has the freedom to really pursue an NHL hockey team?

Yes, there are lots of questions but, truth be told, who knows whether RIM can rebound or it will continue to struggle before it gets snapped up by Nokia, Microsoft or Samsung.

As a proud Canadian, I want Heins to be a miracle-worker. If he can revive RIM, we should award him the Order of Canada because RIM is a key part of the Canadian high-tech and new economy landscape.

More: Here’s a six-step plan that I suggested for RIM to get its mojo back. They’ve now done two of my six suggestions. The National Post’s Matt Hartley has a Q&A with Heins, who said his first priority is to “continue selling BlackBerry 7 and to bring PlayBook 2.0 out in February”.

Heins on RIM’s bright future:

Heins on why the PlayBook isn’t irrelevant:

A Six-Step Recipe for RIM to Regain its Mojo

By Mark Evans in Wireless 1 Comment Tags: , , ,

Although I don’t write about the wireless sector that often, I’ve been getting a lot of calls from the media recently asking about the future of Research in Motion. As a Canadian technology nationalist, I’d like to see RIM regain its mojo after flailing around strategically and tactically for the past year.

Here’s a recipe for RIM to regain some of its lustre, although I highly doubt it will become a tier-one smartphone player again.

1. Appoint an independent chairman to provide shareholders with the confidence the board is really vested in protecting the interests of shareholders. Whether it’s Barbara Stymiest, a current RIM director, or someone outside the company, it would provide the investment community with a small dose of confidence the company is serious about overhauling its corporate structure.

2. Hire a top-notch CEO or COO. In either case, RIM must attract fresh blood with new ideas, energy and lots of credibility. It has to be someone who has extensive experience in the smartphone and/or wireless industry. As important, Balsillie and Lazaridis would have to give this person a lot of decision-making autonomy, even though this would be a huge challenge.

3. Either fix the PlayBook (and I’m not talking about incremental software upgrades) or kill it. Nine months the PlayBook was launched, it’s still a half-baked product in a world with far too much competition. Even die-hard BlackBerry users aren’t all over the PlayBook because it does not have even the basic features. I mean, how can a company that built its business upon mobile e-mail create a tablet that doesn’t have native e-mail. It explains why RIM is now selling all its PlayBooks for $299.

4. Release the new operating system, QNX, sooner rather than later. That said, QNX has to be completely baked when it’s released. Anything less than an OS that works really well, delights users and represents a tangible upgrade over the current OS will be seen as yet another strategic and tactical disaster.

5. Take a new, fresh and different look at its marketing. Even though RIM has become a pro-sumer brand, its marketing seems unfocused and scattered. Again, fresh blood from the outside would be a great move.

6. Regain its corporate humility. When I started writing about RIM in the late-1990s, it acted like a Canadian – successful and confident but not brash or arrogant. RIM to needs to recognize its roots and how it emerged s a leading wireless player by having a product that met a need (mobile e-mail) in a way that delighted users. RIM’s belated apology for its network outage last year was evidence that its needs to re-Canadianize itself – perhaps sharing a 24, eating some poutine and watching hockey might do the trick.

Links:

Would a new chairman fix RIM? (New York Times)
BGR reports that there will only be one BlackBerry 10 smartphone, the London.

RIM Shares: The Perfect Stocking Stuffer

By Mark Evans in Wireless 1 Comment Tags: , , ,

In reading over the weekend about Research in Motion’s continued stumbling and bumbling (including the ridiculous too-little-too-late decision by co-CEOs Mike Lazaridis and Jim Balsillie to take $1/year salaries), I also received some inspiration for holiday gift giving:

When you think about it, RIM shares would make for the perfect stocking stuff. At less than $14, they’re completely reasonable after being on sale earlier this year for close to $70. As a result, they fall into that nice less than $20 range. For those of you on a budget, a RIM share also makes the perfect gift, which would be appreciated, although I suspect not as much as a new iPhone4S.

There are lots of reasons a RIM share would look perfect in your stocking:

1. There are lots of them available. In fact, it seems everyone is trying to unload inventory at the same time. This means there’s no risk of disappointing loved ones by coming home empty-handed.

2. While relatively inexpensive, there’s also a chance a RIM share could rise in value. Who knows, maybe the BlackBerry 10 will hit the market in September as opposed to A YEAR FROM NOW. Maybe RIMM will be acquired – Microsoft, Google, Huawei – and your RIMM share would jump to $20 (Woot!). Maybe a new CEO will be sent to Kitchener-Waterloo to shake things up.

3. It’s a made-in-Canada gift so you can “buy local” rather than purchasing a holiday gift that has been shipped thousands of miles across the Pacific. Nothing says I love you more than a 8″ x 10″ stock certificate, which also can be taken to school for show and tell.

4. It’s a perfect way to support Canada’s flagship technology company. Yes, RIM has been plagued by hubris, strategic mistakes, and the introduction of the half-baked, terribly designed PlayBook but that shouldn’t stop you from showing RIM some love, particularly if it doesn’t cost you much. Who knows, maybe the shares will increase in value, making it easier to buy a BlackBerry 10 for next year’s holidays…if it hasn’t been delayed yet again.

5. And, who knows, RIM shares could soon be a collector’s item if RIM gets snapped up by a giant corporate conglomerate who decides to do a rebranding to get a fresh start.

While it’s easy to kick RIM while it’s down, the idea of RIM becoming the next Nortel should be a troubling concept for Canada and the Canadian high-tech sector. Having a global player in our backyard that drives innovation (well, it used to drive innovation), provides people with experience and the financial wherewithal to start other companies, and support the local economy/community are positives.

With the disappearance of Nortel, the Canadian telecom industry and the economy took a major blow, particularly when you consider the hundreds, if not thousands of spin-offs that came out of Nortel.

Who knows if RIM can resuscitate itself. The PlayBook (which still doesn’t have native email!), the delay of BlackBerry 10 and senior management’s unwillingness to make changes at the top have created plenty of reasons for pessimism.

 

 

RIM Should Return to its Startup Roots

By Mark Evans in Wireless 6 Comments Tags: , , ,

What to do about Research in Motion, Canada’s flagship technology company that just can’t seem to find its equilibrium in a market that has become volatile, competitive and unstable despite its growth.

Here’s a radical idea inspired by an exchange on Twitter with the National Post’s Matt Hartley: RIM should embrace its startup roots and the entrepreneurialism that made it a wireless tour de force by creating a new unit focused on teenagers or perhaps people under the age of 25. It may sound like an odd concept but here’s what I’m thinking:

Despite the BlackBerry’s diminished stature, young people are huge fans based on “in-depth research”, which has consisted of looking at their wireless devices.

Anecdotally, the BlackBerry rules the roost. Maybe it’s BBM, which lets them connect with friends and family for free. Perhaps it’s the keyboard, which makes it easy to use BBM and social media services such as Facebook. Whatever the reason, the young’uns are a pocket of strength for the BlackBerry.

A New Business Focused on Young People

To capitalize on it, RIM should carve out a new startup-like unit focused on young people. The new business would be all about creating devices, applications, marketing campaigns, events and social media activity for the under-25 demographic.

Free from the shackles of RIM’s enterprise roots (aka Your father/mother’s BlackBerry), the new business would have the freedom to be hip, cool and connected with an audience that aren’t geeks but looking for devices that meet their lifestyle needs.

This business would use BlackBerry hardware but customize it for younger people. The device, for example, would emphasize chat, video, music and social media, while e-mail and the phone would be standard features but certainly not the main selling points.

The marketing, created by an agency with expertise in younger consumers, would appeal directly to a demographic that knows what they want but are looking for someone who understands their needs and how they live. The lead spokesperson would be someone such as Justin Bieber. a BlackBerry user, who grew up close to RIM’s Waterloo headquarters.

It would be a radical move for RIM to create a new business but it might take some strategic and tactical creativity to jump-start the company’s prospects.

As it now stands, RIM has a split personality. It has a strong foothold in its traditional enterprise market but, at the same time, trying to figure out how to play in the pro-sumer market. This has made it a challenge from a marketing perspective given they’re two different audiences.

The creation of a new business focused on young people would be a way to resolve this problem and, in the process, maybe bring back RIM’s mojo.

Four Positives to RIM’s Possible Demise

By Mark Evans in Wireless 1 Comment Tags: , ,

As an enthusiastic supporter of Canada’s high-tech community, I’m hoping RIM can somehow find a way to revive its flagging fortunes.

But the terrible debut of the PlayBook, the modest reception to the BlackBerry 9900, and the recent and frustrating global network outage has not only put RIM on its heels but causing some industry watchers such as GigaOM to envision an even darker future.

As much as it would be hard to believe RIM and the BlackBerry could crumble before our eyes, it wasn’t that long ago that Nortel was king of the telecom world before it went stumbling and fumbling into bankruptcy protection and an embarrassing asset sale.

So what if RIM disappeared? Would there be anything good to come out of it? Here are some reasons that accentuate the positive.

1. It would free up a lot of people within RIM, who have gained valuable experience and, in many cases, a lot of financial security over the past 10 years. These people could work for other companies that need talented people, as well as finance startups that would benefit from having smart and strategic money.

2. It would allow the Kitchener-Waterloo technology hub to not be dependent on a giant company. Now, I know my friends in K-W will contend there is already a large and thriving community but my take is it could be even more diversified. It’s like when a giant tree falls in the forest. All of a sudden, the sunlight is allowed to pour in, which lets existing companies thrive and new companies to sprout up.

3. Given RIM went from start-up to world-class company, it would hopefully be a huge reminder that supporting Canada’s start-up community is essential to the health of Canada’s high-tech community and our overall economic prosperity. There tends to be a lot of talk about creating jobs and nurturing the New Economy but Canada needs more walk in terms of financial support.

4. Jim Balsillie and Mike Lazaridis would be free to pursue other entrepreneurial and philanthropic pursuits. Over the past 15 years, they have done an amazing job building a world-class company. Along the way, they have also done some impressive non-RIM projects such as creating and funding the Perimeter Institute for Theoretical Physics (Lazaridis) and the  Centre for International Governance Innovation (Balsillie).

If they were liberated from RIM, they could focus their time and efforts on things such as supporting start-ups, providing mentorship, and influencing policy and economic changes. Heck, Balsillie might even be finally get himself a NHL franchise.

Don’t get me wrong, I’m a huge RIM supporter but you have to be realistic and pragmatic. Having covered the rise and fall of Nortel, nothing in the technology world surprises me. It’s a fickle, volatile and ever-changing landscape in which anything could happen, and often does. While RIM’s demise may seem extreme, it is possible so it’s a good exercise to consider the silver lining.

Links:
- The iPhone 4S sells out at U.S. carriers (Bloomberg)
- Can Teenagers Save RIM (Mark Evans Tech)
- BlackBerry Brand Bruised But Not Beaten (CBC)

Can Teenagers Save the BlackBerry?

By Mark Evans in Wireless 1 Comment Tags: , , ,

It may seem strange to talk about the much-beleaguered BlackBerry as the iPhone5 is making its debut but given there will be a tsunami of iPhone5 coverage but I thought it might be a good idea to go against the smartphone grain.

So, here’s my thinking about the BlackBerry, which struck me again when I went to a friend’s 20th anniversary party last weekend, and saw many of the teenage children using BlackBerrys.

While the cool kids and geeks love the iPhone, teenagers seem – and this is purely anecdotal - to like the BlackBerry. The biggest reason seems to be the keyboard makes it easy to use Facebook, Twitter, text-messaging and BBM. The BlackBerry may not be as sexy anymore but it meets the needs of a large and influential demographic at a time when touchscreen-based smartphones are here, there and everywhere.

The question is what Research in Motion should do about teenagers. Embrace them? Ignore them? The biggest challenges are two-fold: the BlackBerry has mostly been a corporate tool used by older people (aka more than 30-years-0ld), and RIM is not a particularly savvy marketing company.

This could make it difficult to RIM to effectively pursue and engage teenagers unless it embraces a new approach and arms itself with executives and an advertising agency that get teenagers.

A Split Personality

At the same time, RIM also needs to solidify its strong foothold in the corporate market. It means RIM may have to sport a split-personality by focusing its sales and marketing efforts at divergent parts of the smartphone market: older corporate, suit-wearing types and teenagers.

Can RIM pull it off? Time will tell but the upside for RIM is it appears the new BlackBerry 9900 has enough goodness to establish itself as an attractive option for both demographics that still find the BlackBerry to be compelling or, at least, a better option than the iPhone.

Links:

- A survey in the U.K. shows that older mobile users went for the iPhone4, while teenagers prefer BlackBerrys.

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