Sunday, April 17, 2011

An Open Letter to RIM

To: Jim Balsillie, Mike Lazaridis and RIM employees
From: Jonathan Hoover

I love BlackBerry. I was an early and loyal user for years. You got me with the Pearl. (your best kept secret to date) I know you are getting a lot of these letters, a lot of advice, a lot of it you're not going to pay attention to. I understand that, but that's the problem. You're clearly not paying attention.

You already know iPhone is eating your lunch. That's a big deal, BlackBerrys have become a "pushed on me device" instead of your customers "pulling (choosing) them". See what I did there? I know that you tout your "push" services and they are without a question still the best. However, when IT managers are the last remaining advocates of your devices and services, it's a problem. Yes, consumers care about security and yes, consumers love your keyboards and I'll talk about the wonder that is BBM.

That's not enough. iPhone security is very strong, strong enough for a lot of Fortune 500 companies, many of whom were your customers last year. Android, HP/Palm's webOS and Microsoft's Windows Phone 7 will all get there too. They are all gunning for your customers and they are winning.

Let me tell you a story. I know a small company who recently adopted smart phones for their employees, many of whom work out of the office. Their primary reason for finally making this investment? Email. It has just now become important enough to their day to day that the decision makers wanted them to be able to get email while out of the office. That's it. They weren't concerned about the browser or media playback or apps. They bought Android devices. BlackBerrys weren't even on their radar! RIM that's YOUR market! That's your business model! You built your company for this and they didn't even look at you. Why? Mindshare. You've fallen so far off the radar that the Business to Business sales guy at Verizon didn't even recommend your product. I was flabbergasted. They would've been much better off with BlackBerrys, you have a superior product but no one cares anymore.

You are now where Palm was before webOS and Nokia was before it embraced Windows Phone. That means it's time for something big but we don't see it coming or even that you know you need it.

I'm really not trying to jump on the anti RIM bandwagon here. You know that the PlayBook was half baked. You know that your iterative updates to your handsets aren't getting anyone excited. You know that your OS is a generation behind. I know you know because of the acquisitions you've been making. Torch (thanks for the browser), QNX (thanks for PlayBook OS) TAT (thanks for the bit of UX help) but it isn't enough.

I thought you should've bought Palm, but that ship has sailed, I'm sure you were in on the bidding but HP won. I am in strong disagreement with anyone who thinks you should adopt another platform. Thats not the right move, you are a platform company and as Apple and Palm have always said, to have the best devices you have to control the hardware and the software and I know you know that. So what do you do?

Acknowledge the problem. Being open about the fact that you are behind the times will only help, really. It gives people hope. I don't know if you've done this internally, but if not, start there. Tell your employees you know you screwed up. Maybe not this extreme but close. Then, tell the public, tell them great things are ahead, make teaser sites, let it get picked up by the tech blogs, whatever, just give hope. That adds current brand equity. As a consumer, I'd be much more comfortable entering into a service agreement and buying a BlackBerry if I thought that the company had something great around the corner. Even if "around the corner" is years. Microsoft admitted they "missed a cycle" in the smartphone market. So did you. Admit it.

Again, you've got a great product. If all I needed was messaging (email, text, and above all BBM) and phone calls I'd still be your customer but the reality is Apple and Google showed me I can have more from my smartphone and they do it better than you.

Here's what I'd like from you next. First, do a better job of telling your story. Why should I buy a BlackBerry? No one has an answer for that. The best you've done is BBM and that's because that's what your users are saying to their friends with iPhones and Androids. "Why do you have a BlackBerry?" "BBM." That's it. Not enough. It's the network effect in reverse. If your users are leaving BBM becomes exponentially less attractive. Ask MySpace. So open BBM up. Make iOS and Android BBM clients. The demand is there, the "group messaging" apps space is white hot. GroupMe and Kik are growing real fast and bringing in lots of funding. (well, you know that, you sued Kik) Again, you invented the space and are allowing someone else to define it. Give iOS and Android users BBM so they can have a taste for it. I'd pay for the app, and others would too. Whether its a subscription or a one time for the app or ads just make it happen. You could even "dumb it down" so it's text only for non-BlackBerry platforms. Only BlackBerry customers can send audio and video over BBM. That's a way to draw customers who get hooked on the service back to your platform.

Secondly, remember you are a platform company. You used to want to sell your BES and BIS services to everyone and that was your bread and butter. It should be! When I set up my iPhone or Android device BES or BIS should be an option right there with Exchange. I can't tell you how bad there needs to be something between MobileMe (consumer), Google apps (a half hearted attempt at Exchange style stuff) and Exchange. BIS and BES could be that! Charge less than Microsoft so small business can afford it and let it be device agnostic but again leave the best features for BlackBerry devices.

For now I'll use my iPhone. (until HP/Palm ships something that catches my attention) I hope to be your customer again one day.





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