Well, RIM has been in all the news for the past month for all the wrong reasons: lackluster sales, sales estimate cuts and a plummeting share price, you name it. It's always sad to see a once great brand that builds great products diminish in such a way and in such proportions. I obviously wasn't old enough, or perhaps not even born but many will remember when Apple in the late 80s to the mid 90s began to lose its feet and if it wasn't for Steve Job's return to the company he created we mightn't be seeing the iPhone and Mac as they are that have influenced and helped to greatly shape consumer electronics. Sony, currently are elbow deep in a similar sort of decline, in which once ubiquitous and world changing products they created are struggling to even be noticed in a tidal wave of competition. For many, the advent of the Apple iPhone and rise of Google Android marked a beginning of a rapid decline for the maker of the Blackberry.
WHERE RIM STUMBLED:
Perhaps it is only suitable to begin this here editorial with a discussion of how Research In Motion have found themselves in this precarious conundrum. Let's face it, RIM were breezing before the iPhone came around. They had a clear vision for their products and their devices were selling well to both their two distinct consumer groups at the time: the social savvy and the enterprise consumer. I believe that much of the reason that made their vision so straightforward was the fact that the concept of the smartphone itself was so uniform back then. Smartphone was deemed as a device with exclusive features for people who needed them, not wanted them for mindless time consumption or...fun, for want of a better word. Having said that, there was ultimately nothing truly fun about a smartphone when the 'Berry was king, at least not to the extent to which it could be considered more entertaining than the average dumb-phone.
There were several things that made Blackberry unique, and thus, far superior to their competitors: the keyboard, BES services, BBM and of course just the unmistakeable look and feel of a Blackberry. BES services and BBM are the two key points here and they really serve to highlight what went so right with RIM, and subsequently with the arrival of Apple and Google, what went so wrong. Essentially, RIM knew who their products were for and therefore delivered appropriately. A potent combination of a high-quality keyboard and the acclaimed Blackberry Messenger sealed the deal for a solid product for the social consumers. Additionally, BES (Blackberry Enterprise Server) provided a secure and powerful experience for the business consumers, completing once again, a flawless offering.
So what went wrong? The introduction of the Apple iPhone, initially laughed off by Steve Ballmer (don't get me wrong, I love Steve Ballmer) augured a significant shift in the smartphone landscape. The iPhone didn't just bring the smartphone concept to the mass market, but it shifted the entire form factor of the traditional smartphone entirely. Suddenly, the things that had made the Blackberry unique, were undermined significantly. The novelty of the capacitive touchscreen iPhone diminished the appeal of RIM's small display and keyboard combination. Not only this, but the introduction of the now enormous App Store raised the iPhone's after-market appeal enormously and more importantly widened the devices' potential use cases. Blackberry users began to question 'hey, why can't my phone do that?'
Fast-forward three years later, and we see RIM as it is now. Stumbling badly and thus far unable to create a product that truly sticks. What's most saddening isn't that Apple, subsequently Google and potentially Microsoft beat RIM at the smartphone game, but how little RIM did to stop it. The technology industry is a bit like quicksand, the further down you go the progressively harder it gets to climb back up. And I don't mean this in an 8 steps down 8 steps up kind of respect, but more an exponential relationship. Had RIM capitalised on the loyalty of their consumers rather than purely relying on them, the Blackberry's market share probably wouldn't be sliding to quite the extent it is now. Perhaps not sliding at all.
RIM separated themselves somewhat from the emerging smartphone pack and focused on continuing to deliver brilliant messaging and enterprise services whilst the 'fun' factor and user experience so prevalent in competitors slipped by the wayside. This short-sighted decision making was driven by one thing, and one thing only: overconfidence. With the prior success of their products, RIM were simply too confident in their own ways and their own purpose to consider rethinking their products. Consequently, with too much focus to their traditional ways, BBM became the only thing keeping the social savvy consumers attached to their Blackberry's, but the sacrifices that had to be made to obtain this service continued to build to a certain breaking point where the scales tipped out of RIM's favour. Because of this, the Blackberry's market share continues to slip. It reminds me a lot of my situation with my Walkman. The same can be said for the enterprise customers, though certainly to a lesser extent. To many of these business consumers, Blackberry isn't just a phone, it's a way of life. It's so rare and special to be able to boast such exceptional brand loyalty. But if RIM can't deliver products that can simply do more things...well they're going to lose them too.
WHY RIM STILL MATTERS:
This is not just another RIM bashing article, because I strongly believe that RIM still definitely has the assets to get themselves back on track. RIM has not sunk completely into a deep realm of despair and irrelevance. Actually, quite the opposite, to the average Joe's consumer the Blackberry still represents professional and quality handsets and devices.
As much as you can try to convince yourself that it's not, the simple fact is: brand matters. Brand matters a lot. And despite all of RIM's problems, their greatest asset, the intangible 'Blackberry' name is still almost entirely intact. It is arguably the only thing keeping RIM's head above the water. Ask around, and you'll find that most Blackberry users with the exception of the business consumers don't have much in defence of their purchase aside from the fact that 'Bro, it's a Blackberry'. And rightly so, if it's a Blackberry then it must have something going for it. Such a ubiquitous and powerful brand is so rare to see in any industry. In the mobile market the Blackberry name is only rivalled by the iPhone, and from my perspective, is still unmatched. Just the pure delight of telling people that you have a 'Blackberry' goes a very long way. The contributing factors that build this brand though are equally as important to RIM, and these are the things that they can effectively leverage to get themselves back on track. So far, they've made all the right steps towards this redemption.
One thing I've noticed is that there is still something unmistakeably RIM about their products. I had a chance to play with the Blackberry Playbook over the weekend and it was everything that I dreamt it would be: solid, fast and it exhibited a kind of professional polish unparalleled by any Android tablet that I have ever tried. With mobile devices like tablets, even the slightest of lags or missed touches can detract from the user experience significantly because these imperfections are very obvious in touchy-feely devices like this. Having said this, the Playbook ran unbelievably smoothly. Multitasking on the Playbook was brilliant, better than any tablet currently on the market. Most importantly, in just holding, grabbing and using the device I could immediately tell that 'This is a Blackberry'. Such significant brand awareness is enormously hard to achieve, and to have such a powerful asset at their disposal is healthy proof that RIM still matters.
One of the hardest things to achieve in this viciously crammed tablet market is finding ways to differentiate your products from the competition. I outlined this quandary in an older article where I discussed that the accessibility and availability of Android has definitely given consumers choices, but vendors are finding themselves providing virtually identical products to their competitors. RIM has an advantage here, despite their vastly smaller ecosystem, with the acquisition of QNX, RIM decided that it would take the challenging but rewarding path to exclusivity as opposed to the easy path to mediocrity via the Android wave. RIM's announcement that the QNX platform would be used in the company future smartphones is promising in two very important respects: not only are they laying down the foundations for their own platform with their own ecosystem of apps and services but also, given how well QNX works on the Playbook, well, I can only imagine good things.
The Playbook can arguably be considered as RIM's first step to a new beginning. A new platform, a new form factor and a brilliant web experience take a great diversion from the traditional RIM that we have known in the past, the same one that has failed to adapt and is struggling currently. It has been a wobbly first step, no doubt and the continual flooding of Android tablets has offered little succour for a Playbook struggling in a price battle. But I can't help but contemplate whether the Playbook I used over the weekend was the same Playbook receiving lackluster reviews on many tech sites across the net. It certainly didn't feel like it. It's such a shame then that RIM brought the Playbook to market half-baked and essentially killed off the hype that could have surrounded a potentially exceptional product at launch. Having said this, the Playbook is still a work in progress, but once the omissions are filled (as promised) and the Playbook is able to reach its full potential, I have not an inkling of doubt that the Playbook with its exceptional design, stellar performance and Blackberry name prowess can conquer the shallow 7 inch tablet market.
HOW WOULD I FIX RIM:
So where do we take it from here? The key now, as it always is, is to build an ecosystem around the Blackberry platform and the products and integrate them. Direct integration between the Playbook and Blackberry smartphones is rather lacking currently. Blackberry Bridge perhaps is mildly useful for enterprise consumers but I can't imagine it being very useful for consumers and it would be useless for those without a Blackberry smartphone. RIM need to know that they can't simply lock their consumers in anymore, particularly since their prison is no longer the pleasant stay it used to be. RIM has to realise that ecosystems aren't a selling point of a product but merely a way of providing more integrated services for consumers and furthermore enticing them to buy further into the ecosystem. Thus, a poor product line-up and great ecosystem is of no help since there is no stand out product to effectively lure consumers in in the first place. Engadget 'Switched On' writer Ross Rubin stated 'if you're going to lock in consumers, it's best to build a prison that people want to move into anyway'. I couldn't possibly put it better myself.
RIM in the past thrived on created services and products exclusively for their own devices. But I believe RIM now has to warm up to the idea of working with others and integrating their products with other services out there. For example the Playbook video calling app only works with other Playbooks. Wouldn't it be nice if it talk to other devices too? You could argue that Apple's Facetime is also proprietary, however for Apple it's excusable because they've reached a certain level of ubiquity with their products that it's an unnoticeable hindrance. An owner of a Playbook on the other hand would be hard pressed to find a mate with one too. Even the popular BBM is beginning to lose its popularity as consumers are beginning to find that they can find comparable services that have the ability to converse with other platforms too. With a declining market share, sticking by their proprietary ways would simply convert into a deathly spiral for RIM. They simply no longer have a large enough customer base to make proprietary services useful. It's time for RIM to play nice with others, it's no longer everyone living in RIM's world, it's RIM living in everyone else's world.
That's probably the most important thing I would change at RIM, because proprietary is only really useful if they can leverage a large market share, which is something that RIM has undeniably lost. It's also important that RIM doesn't stop chasing the consumer business. I've read many articles saying that RIM should stick to investing more in enterprise services and providing for enterprise consumers which is traditionally what they've been known for. But the fact is, the Blackberry does mean something to average consumers and it would be wasteful to not take advantage of such a powerful brand. Furthermore, a pursuit of the consumer business is definitely a safer option because, hey, business people like to browse app stores and use 'fun' apps too. If RIM invest solely in the enterprise market and the consumer competitors are able to match or even come close to them in this market, then the competitors' advantage in more 'consumerised' products and services would guarantee a death to RIM's one-trick pony.
Amidst all the negativity, I feel like I'm the only one that has any confidence in RIM. But I think RIM still has plenty of potential. If RIM utilise QNX appropriately and efficiently, I personally do think they have a gem in their possession.
How would you fix RIM?
So what went wrong? The introduction of the Apple iPhone, initially laughed off by Steve Ballmer (don't get me wrong, I love Steve Ballmer) augured a significant shift in the smartphone landscape. The iPhone didn't just bring the smartphone concept to the mass market, but it shifted the entire form factor of the traditional smartphone entirely. Suddenly, the things that had made the Blackberry unique, were undermined significantly. The novelty of the capacitive touchscreen iPhone diminished the appeal of RIM's small display and keyboard combination. Not only this, but the introduction of the now enormous App Store raised the iPhone's after-market appeal enormously and more importantly widened the devices' potential use cases. Blackberry users began to question 'hey, why can't my phone do that?'
Fast-forward three years later, and we see RIM as it is now. Stumbling badly and thus far unable to create a product that truly sticks. What's most saddening isn't that Apple, subsequently Google and potentially Microsoft beat RIM at the smartphone game, but how little RIM did to stop it. The technology industry is a bit like quicksand, the further down you go the progressively harder it gets to climb back up. And I don't mean this in an 8 steps down 8 steps up kind of respect, but more an exponential relationship. Had RIM capitalised on the loyalty of their consumers rather than purely relying on them, the Blackberry's market share probably wouldn't be sliding to quite the extent it is now. Perhaps not sliding at all.
RIM separated themselves somewhat from the emerging smartphone pack and focused on continuing to deliver brilliant messaging and enterprise services whilst the 'fun' factor and user experience so prevalent in competitors slipped by the wayside. This short-sighted decision making was driven by one thing, and one thing only: overconfidence. With the prior success of their products, RIM were simply too confident in their own ways and their own purpose to consider rethinking their products. Consequently, with too much focus to their traditional ways, BBM became the only thing keeping the social savvy consumers attached to their Blackberry's, but the sacrifices that had to be made to obtain this service continued to build to a certain breaking point where the scales tipped out of RIM's favour. Because of this, the Blackberry's market share continues to slip. It reminds me a lot of my situation with my Walkman. The same can be said for the enterprise customers, though certainly to a lesser extent. To many of these business consumers, Blackberry isn't just a phone, it's a way of life. It's so rare and special to be able to boast such exceptional brand loyalty. But if RIM can't deliver products that can simply do more things...well they're going to lose them too.
WHY RIM STILL MATTERS:
This is not just another RIM bashing article, because I strongly believe that RIM still definitely has the assets to get themselves back on track. RIM has not sunk completely into a deep realm of despair and irrelevance. Actually, quite the opposite, to the average Joe's consumer the Blackberry still represents professional and quality handsets and devices.
As much as you can try to convince yourself that it's not, the simple fact is: brand matters. Brand matters a lot. And despite all of RIM's problems, their greatest asset, the intangible 'Blackberry' name is still almost entirely intact. It is arguably the only thing keeping RIM's head above the water. Ask around, and you'll find that most Blackberry users with the exception of the business consumers don't have much in defence of their purchase aside from the fact that 'Bro, it's a Blackberry'. And rightly so, if it's a Blackberry then it must have something going for it. Such a ubiquitous and powerful brand is so rare to see in any industry. In the mobile market the Blackberry name is only rivalled by the iPhone, and from my perspective, is still unmatched. Just the pure delight of telling people that you have a 'Blackberry' goes a very long way. The contributing factors that build this brand though are equally as important to RIM, and these are the things that they can effectively leverage to get themselves back on track. So far, they've made all the right steps towards this redemption.One thing I've noticed is that there is still something unmistakeably RIM about their products. I had a chance to play with the Blackberry Playbook over the weekend and it was everything that I dreamt it would be: solid, fast and it exhibited a kind of professional polish unparalleled by any Android tablet that I have ever tried. With mobile devices like tablets, even the slightest of lags or missed touches can detract from the user experience significantly because these imperfections are very obvious in touchy-feely devices like this. Having said this, the Playbook ran unbelievably smoothly. Multitasking on the Playbook was brilliant, better than any tablet currently on the market. Most importantly, in just holding, grabbing and using the device I could immediately tell that 'This is a Blackberry'. Such significant brand awareness is enormously hard to achieve, and to have such a powerful asset at their disposal is healthy proof that RIM still matters.
One of the hardest things to achieve in this viciously crammed tablet market is finding ways to differentiate your products from the competition. I outlined this quandary in an older article where I discussed that the accessibility and availability of Android has definitely given consumers choices, but vendors are finding themselves providing virtually identical products to their competitors. RIM has an advantage here, despite their vastly smaller ecosystem, with the acquisition of QNX, RIM decided that it would take the challenging but rewarding path to exclusivity as opposed to the easy path to mediocrity via the Android wave. RIM's announcement that the QNX platform would be used in the company future smartphones is promising in two very important respects: not only are they laying down the foundations for their own platform with their own ecosystem of apps and services but also, given how well QNX works on the Playbook, well, I can only imagine good things.
The Playbook can arguably be considered as RIM's first step to a new beginning. A new platform, a new form factor and a brilliant web experience take a great diversion from the traditional RIM that we have known in the past, the same one that has failed to adapt and is struggling currently. It has been a wobbly first step, no doubt and the continual flooding of Android tablets has offered little succour for a Playbook struggling in a price battle. But I can't help but contemplate whether the Playbook I used over the weekend was the same Playbook receiving lackluster reviews on many tech sites across the net. It certainly didn't feel like it. It's such a shame then that RIM brought the Playbook to market half-baked and essentially killed off the hype that could have surrounded a potentially exceptional product at launch. Having said this, the Playbook is still a work in progress, but once the omissions are filled (as promised) and the Playbook is able to reach its full potential, I have not an inkling of doubt that the Playbook with its exceptional design, stellar performance and Blackberry name prowess can conquer the shallow 7 inch tablet market.
HOW WOULD I FIX RIM:
So where do we take it from here? The key now, as it always is, is to build an ecosystem around the Blackberry platform and the products and integrate them. Direct integration between the Playbook and Blackberry smartphones is rather lacking currently. Blackberry Bridge perhaps is mildly useful for enterprise consumers but I can't imagine it being very useful for consumers and it would be useless for those without a Blackberry smartphone. RIM need to know that they can't simply lock their consumers in anymore, particularly since their prison is no longer the pleasant stay it used to be. RIM has to realise that ecosystems aren't a selling point of a product but merely a way of providing more integrated services for consumers and furthermore enticing them to buy further into the ecosystem. Thus, a poor product line-up and great ecosystem is of no help since there is no stand out product to effectively lure consumers in in the first place. Engadget 'Switched On' writer Ross Rubin stated 'if you're going to lock in consumers, it's best to build a prison that people want to move into anyway'. I couldn't possibly put it better myself.
RIM in the past thrived on created services and products exclusively for their own devices. But I believe RIM now has to warm up to the idea of working with others and integrating their products with other services out there. For example the Playbook video calling app only works with other Playbooks. Wouldn't it be nice if it talk to other devices too? You could argue that Apple's Facetime is also proprietary, however for Apple it's excusable because they've reached a certain level of ubiquity with their products that it's an unnoticeable hindrance. An owner of a Playbook on the other hand would be hard pressed to find a mate with one too. Even the popular BBM is beginning to lose its popularity as consumers are beginning to find that they can find comparable services that have the ability to converse with other platforms too. With a declining market share, sticking by their proprietary ways would simply convert into a deathly spiral for RIM. They simply no longer have a large enough customer base to make proprietary services useful. It's time for RIM to play nice with others, it's no longer everyone living in RIM's world, it's RIM living in everyone else's world.
That's probably the most important thing I would change at RIM, because proprietary is only really useful if they can leverage a large market share, which is something that RIM has undeniably lost. It's also important that RIM doesn't stop chasing the consumer business. I've read many articles saying that RIM should stick to investing more in enterprise services and providing for enterprise consumers which is traditionally what they've been known for. But the fact is, the Blackberry does mean something to average consumers and it would be wasteful to not take advantage of such a powerful brand. Furthermore, a pursuit of the consumer business is definitely a safer option because, hey, business people like to browse app stores and use 'fun' apps too. If RIM invest solely in the enterprise market and the consumer competitors are able to match or even come close to them in this market, then the competitors' advantage in more 'consumerised' products and services would guarantee a death to RIM's one-trick pony.
Amidst all the negativity, I feel like I'm the only one that has any confidence in RIM. But I think RIM still has plenty of potential. If RIM utilise QNX appropriately and efficiently, I personally do think they have a gem in their possession.
How would you fix RIM?
I agree with most of the things you mentioned here. I'm not sure if you've read the anonymous public letter to RIM, but if you haven't you should check it out.
ReplyDeleteI don't think RIM should just follow the market and offer big touchscreen phones, BB phones should always have keyboards otherwise they're going to alienate their business customers.
Certainly. The new Blackberry Bold Touch looks absolutely amazing
ReplyDelete