As Thorsten Heins, the new CEO, put it, RIM had missed ma jor paradigm shifts in its ecological niche. It had ignored the move in the United States to fourth-generation (4G) wireless networks, failing to build devices for 4G even as its competitors seized that market. It underestimated how popular the iPhone's touchscreen would become, and stuck to the keyboard.
"If you have a great touch interface, people are actually willing to sacrifice battery life," Heins says. "We thought that wouldn't happen. Same thing with security," as companies changed their standards to allow workers to join corporate networks with their own smartphones.While once the BlackBerry brand had seemed revolutionary, now, as one analyst put it, they "seemed clueless about what cus tomers wanted."Though it continued to lead in markets like Indonesia, just five years after the BlackBerry dominated the American market RIM had lost 75 percent of its market value. As I write this, RIM has announced a last-ditch attempt to recoup market share with a new phone. But RIM may have entered a chapter in a company's life that could be fatal-a "valley of death."
That phrase comes from Andrew Grove, the legendary found ing CEO of Intel, who recounts a near-death moment in his com pany's history. In its early years Intel made silicon chips for what was then the fledgling computer industry. As Grove tells it, top managers were oblivious to messages coming from their own sales force telling them that customers were shifting in droves to cheaper chips being made in Japan.
If Intel had not happened to have a side business in microprocessors-which became the ubiquitous "Intel Inside" in the heyday of laptops-the company would have died. But back then, Grove admits, Intel suffered from a "strategic dissonance," in shifting from making memory chips-its first business success-to designing microprocessors.
As Thorsten Heins, the new CEO, put it, RIM had missed ma jor paradigm shifts in its ecological niche. It had ignored the move in the United States to fourth-generation (4G) wireless networks, failing to build devices for 4G even as its competitors seized that market. It underestimated how popular the iPhone's touchscreen would become, and stuck to the keyboard.
"If you have a great touch interface, people are actually willing to sacrifice battery life," Heins says. "We thought that wouldn't happen. Same thing with security," as companies changed their standards to allow workers to join corporate networks with their own smartphones.While once the BlackBerry brand had seemed revolutionary, now, as one analyst put it, they "seemed clueless about what cus tomers wanted."Though it continued to lead in markets like Indonesia, just five years after the BlackBerry dominated the American market RIM had lost 75 percent of its market value. As I write this, RIM has announced a last-ditch attempt to recoup market share with a new phone. But RIM may have entered a chapter in a company's life that could be fatal-a "valley of death."
That phrase comes from Andrew Grove, the legendary found ing CEO of Intel, who recounts a near-death moment in his com pany's history. In its early years Intel made silicon chips for what was then the fledgling computer industry. As Grove tells it, top managers were oblivious to messages coming from their own sales force telling them that customers were shifting in droves to cheaper chips being made in Japan.
If Intel had not happened to have a side business in microprocessors-which became the ubiquitous "Intel Inside" in the heyday of laptops-the company would have died. But back then, Grove admits, Intel suffered from a "strategic dissonance," in shifting from making memory chips-its first business success-to designing microprocessors.
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As Thorsten Heins, the new CEO, put it, RIM had missed ma jor paradigm shifts in its ecological niche. It had ignored the move in the United States to fourth-generation (4G) wireless networks, failing to build devices for 4G even as its competitors seized that market. It underestimated how popular the iPhone's touchscreen would become, and stuck to the keyboard.
"If you have a great touch interface, people are actually willing to sacrifice battery life," Heins says. "We thought that wouldn't happen. Same thing with security," as companies changed their standards to allow workers to join corporate networks with their own smartphones.While once the BlackBerry brand had seemed revolutionary, now, as one analyst put it, they "seemed clueless about what cus tomers wanted."Though it continued to lead in markets like Indonesia, just five years after the BlackBerry dominated the American market RIM had lost 75 percent of its market value. As I write this, RIM has announced a last-ditch attempt to recoup market share with a new phone. But RIM may have entered a chapter in a company's life that could be fatal-a "valley of death."
That phrase comes from Andrew Grove, the legendary found ing CEO of Intel, who recounts a near-death moment in his com pany's history. In its early years Intel made silicon chips for what was then the fledgling computer industry. As Grove tells it, top managers were oblivious to messages coming from their own sales force telling them that customers were shifting in droves to cheaper chips being made in Japan.
If Intel had not happened to have a side business in microprocessors-which became the ubiquitous "Intel Inside" in the heyday of laptops-the company would have died. But back then, Grove admits, Intel suffered from a "strategic dissonance," in shifting from making memory chips-its first business success-to designing microprocessors.
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