The story of the Blackberry is informative for investors, entrepreneurs, and product designers. Investors riding high on Apple should be very conscious the same thing can happen to Steve Job's empire. Once upon a time, stock value was directly related to the assets of the company. Today - it is only perspective. Despite its valuation, I don't believe that Apple comes close to the true intellectual and capital ownership of some scorned companies like General Motors, Honda, and Ford.
So what happened to Blackberry? It is hard to determine from the outside why the company hasn't produced more innovative products. I understand engineers, and believe me, I know they have been proposing new features and designs to Research In Motion's management.
Part of the failure can be attributed to: a) management unwilling to take on the risk of something completely new and b) inability to deliver a new product. Americans know frequently what happens when a football team is winning and goes into a 'prevent defense' in order to protect the lead. (No risk taking.) The strategy frequently fails, even though almost everyone in the stadium except the coaching staff can foresee the victory slipping away.
The inability to deliver a product is more difficult to explain. Today's consumer products are incredibly complex and everyone (including product designers) have been seduced by the large feature set of PCs and cellphones. We look at what a cellphone or PC can do, and think - this should not be difficult to add to the product, subconsciously underestimating the effort required to make the feature work.
Herding several million lines of software into submission is no easy feat and failure is more frequent than success. A handful of the right (or wrong) people determine the outcome. Talent matters and companies must effectively assemble the best team for the new product. I used the word team purposely because the world is too complex for a single individual contributor anymore. I want a brilliant collaborator on my product team instead of a shooting star that cannot work with others.
A third disease is hubris. I think Wikipedia has it right - "Hubris often indicates a loss of contact with reality and an overestimation of one's own competence or capabilities, especially when the person exhibiting it is in a position of power." Most of us can ruefully add from personal experience that arrogance is self-correcting.
Watching from the outside, I believe the Blackberry has fallen to all of these diseases. For years they were integrating 2M pixel cameras on even their flagship products. That just sounds like management playing 'prevent defense' and also hubris - people don't need 8M pixel cameras. The customer has an interesting way of selecting what she wants. In response to the iPhone and Android, RIM has offered the Storm and Torch with touch-screen products, but their product teams frankly, did not deliver.
Perhaps more frightening to everyone is how quickly they have fallen. Remember several years ago, Motorola owned the cellphone world with its Razr products. But their fall was not as fast as what RIM has experienced. RIM unexpectedly faced risk-taking investment by Apple and Google. The two of them cleaned RIM's clock, or Blackberry, to be more accurate.
Is this the end for RIM? It depends. Over a decade ago, Apple really, really, tanked. Now they are the premier consumer product company. It takes both talent and luck. We wish RIM the best.
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