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What RIM's Failing Says About Canada

Posted: 03/29/2012 7:17 am

Rather infamously, although unofficially, Google's corporate mantra is the fairly benign: "Don't be evil."
And while lately that philosophy has come under attack as Google extends its perky red, blue, yellow, and green claws into as many parts of the digital value chain as it can, the Google brain trust supposedly believes that a modern media company can "make money without doing evil." It even says so on their corporate webpage.

On the surface everyone's favourite search engine cum Internet behemoth has seemingly benevolent ambitions. Google's corporate mission is almost messianic: " [we're] continuously looking into ways to bring all the world's information to people seeking answers."

How lovely.

And while this rosy view of their endeavors may seem hokey to a jaded public which grows increasingly concerned that Google is nothing more than a wolf in sheep's clothing, Google's mission is in keeping with how its major corporate competitors paint themselves with an almost missionary like zeal.

Consider Facebook, which does the following for its users: "To help you connect and share with the people in your life." Mark Zuckerberg even recently declared that: "Our development is guided by the idea that every year, the amount that people want to add, share, and express is increasing."

Similarly Amazon's vision is to be earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.

Regardless of your level of skepticism, Google, Facebook, Amazon, and the fourth digital powerhouse Apple, have very clear and very lofty goals for their enterprises. While these four companies are all making very different bets on what our integrated future looks like, the common goal of the "Fab Four" is to own as much of the content purchase, delivery, and playback mechanisms as they can.

As Fast Company's article, "The Great Tech War of 2012," notes: "There was a time, not long ago, when you could sum up each company quite neatly: Apple made consumer electronics, Google ran a search engine, Amazon was a web store, and Facebook was a social network. How quaint that assessment seems today."

The good Canadian patriot in all of us hopefully asks: Where in this messy digital soup is RIM?

The answer, quite sadly, is nowhere.

While much ink has been spilled over RIM's recent fall from grace, there is a part of me that wonders if it is Canada itself which prevented the Blackberry from playing in the big-boy sandbox. I wonder if it was pre-ordained that a tech company based in Waterloo, Ontario would never become the world's dominant smartphone maker?

Unlike Apple, Amazon, Facebook, or Google, RIM seemingly had a much smaller vision for its technological future.

While RIM's corporate mission statement is similar to that of Facebook: "RIM helps users all over the globe connect to the specific people, information and media that makes their worlds go round," I doubt that the company ever saw the Blackberry as part of a broader eco-system of owning, delivering, and selling content.

Witness Jim Balsillie's now infamous and very dismissive reaction upon the introduction of the iPhone, "How much presence does Apple have in business? It's vanishingly small." What Balsillie failed to realize was that while Apple had a nascent knowledge of the cellphone industry (presumably "the business" Balsillie was referring to), Steve Jobs WAS well known for revolutionizing how consumers bought, shared, and stored digital music. .

But RIM never really wanted to create a digital ecosystem: RIM believed that telephony was the pure play. In RIM's 2008 Annual Report, (2008 will probably be remembered as the company's halcyon year -- the last year the Blackberry iOS exhibited market-share growth in the United States), RIM used aspirational quotes from its customers to highlight how effective the Blackberry was as a communications device: "Being in contact makes for less work, more fun, more play." Or, "I can communicate new insights and inspirations immediately."

As its technological competitors leap-frogged it creating entirely new industries around the integration of phones, software, and content delivery, RIM was happily simply connecting customers to other customers, trumpeting its proprietary BBM software and security features as if it was rearranging the deck chairs on Titanic trying to convince the Street that consumers gave a damn.

Even today as RIM releases updates to its orphaned Playbook system, it has developed a product that will only have limited mobile ad support. A lack of mobile advertising disincentivizes app developers from creating software for the Playbook, thus further reinforcing RIM and the Playbook as nothing more than an expensive communication device even as consumers truly start to see the possibilities of the mobile ecosystem.

So does RIM's downfall fulfill a nasty Canadian trope? Does RIM's narrow-mindedness shadow Canada's status as a middle-power? No world domination please, we're Canadian. The Blackberry is like the technological version of Lester Pearson's peacekeepers, a fine and dandy tool during times of peace, but useless throughout a period of prolonged technological upheaval.

In his seminal work on the Canadian identity, Lament for a Nation, George Grant prophetically feared that Canadian nationalism would eventually be superseded by continentalism. A part of this was fear was technological determinism: technology, modernity, and progress would render the idea of "local culture" irrelevant.

In the 1960s, Grant saw Canada as an increasingly liberal state, one which fetishized the "vaunted freedom of the individual," (the U.S.) while moving away from its Marxist leanings. There were technological ramifications to these political shifts too; as Grant noted, "In Marxism technology remains an instrument that serves human good."

This ability to serve human good was RIM's competitive advantage and what made the company Canada's great technological, if not nationalistic, hope. The Blackberry -- a technology that facilitated simple communication -- fulfilled the Marxist intentions of its home country; it just wanted to connect people to others.

The irony in all of this is that for a brief moment in time, RIM attempted to prove Grant's fears unfounded. If RIM succeeded then Canada did not have to become a brunch plant of the U.S. Technology wouldn't be Canada's undoing; rather, it would be our nationalistic saviour.

Sadly, Grant's lament was strangely prophetic. Contintentlism won out. The supposed personal freedoms of Apple, Facebook, Amazon, and Google -- all of whom said: "don't be evil" -- declared war on the one company which actually wasn't.

As Grant himself wrote: When men are committed to technology, they are also committed to continual change in institutions and customers.

Technology changed, RIM didn't. R.I.P.

 

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03:41 AM on 03/31/2012
I don't own any apple or RIM products, but I DO have a small Canadian tech company and here's my 2 cents:

RIM is typically Canadian in that when someone "comes into your house talking trash" ie: creating bad press for you or your product Canadians just don't know what to do. We get all uncomfortable and would never "talk back" or go on the offensive.

If I was RIM's marketing guy I would "politely" mention that:

* Apple does not compete in the business market AT ALL. No rack servers; nobody was buying them so they just suddenly stopped selling them, "'ya sorry dude, no more servers..." They did the same thing for their Pro video editing suite. Sorry, not makin' them anymore...Unbelievable.

* Iphones, because of their "connected" nature consume LARGE amounts of data, which for BUSINESS is a huge concern ($$)

I could go on...but the point is Apple is good in Consumer, RIM good in business. Every company has it's strengths and it's tough to play well through all categories. I would be more than happy to have a local company that created billions of $ in QUARTERLY earnings. (losers??)

So I think as Canadians we we don't understand marketing or defend ourselves very well.
12:35 PM on 04/03/2012
The lack of ads and mobile ad infrastructure is actually a wonderful thing for businesses. They're going to be paying the big bucks to get all their employees who use BlackBerry the apps they need to get their work done. Free apps are the standard for consumers, but for businesses, they aren't standard at all.

RIM should stick to what it knows best but should still offer consumer options, perhaps with a spin-off company that can tackle Apple, Google, etc. without worrying about harming the business/enterprise side.
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Charles the Great
Canadian/Israeli Goy in Alert,Nunavut
12:06 AM on 03/31/2012
RIM only was digging their own grave and it started years ago
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Amorak
12:50 PM on 03/30/2012
It's obvious that this blog entry didn't kick up much interest in Canadians, despite being out for two days and today being contained within HP's Canada's front page lead. Did the author make his case or are Canadians getting tired of reading nothing from pundits except gratuitous shots pointed directly at RIM and at Canadians by using RIM as a symbol of something inherently Canadian?

I think most of us are just waiting to see what RIM has for us in the fall. Because we're waiting for new products, RIM is essentially a big company with few products to sell. I want a new phone and it will be a BlackBerry. Whether it will be the first of many or the last one I'll ever own depends on RIM.
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Jonathan Naymark
02:42 PM on 03/30/2012
And yet you chose to make no less than two comments on it! Thanks for the feedback!
01:39 AM on 03/30/2012
The premise of this article is so thin it should appear in Weight Watchers' commercials.

It takes a single story of a company's difficulties and attempts to extrapolate generalisations applicable to an entire nations. By the same token, you could easily argue that Canada promotes a highly aggressive and imperialist buisiness culture when you look at our world leading status in the mining industry (with over 2/3rds of mining companies headquartered in Canada). Of course that would be a bad argument because it uses annecdotal evidence to construct laws governing a nation's culture.

Spare us this preposterous "analysis" of Canadian culture
11:59 PM on 03/29/2012
It is Canada itself. It seems every enterprise set up in Canada is doomed to some sort of failure.

Eaton's, Hudson Bay Company, Nortel and now RIM. And, perhaps not a business, but could have been huge for Canadian industry, the Avro Arrow.

It is Canadian culture that prevents these companies from fostering. There is no sense of free enterprise, competition or venture capitalism in Canada. And, very little vision for the future.

It's a - play it safe - mentality that keeps Canada from becoming more than what it is. An even larger player in the world.
12:39 PM on 04/03/2012
I think all of these companies either have settled down and gotten too comfortable with the situation and then failed to innovate or capitalize on new opportunities, or they didn't have enough cash reserves to wait out the volatile situations and their competitors.

Enterprise, competition and venture capitalism only shove investment capital into consumer-oriented markets that have high visibility. There are few VCs in the United States that are taking chances in the medical, auto, and other sectors that require more work (in the form of poltiics, negotition, research, development, etc.). We don't need that, what we do need are businesses leaders who are not so short-sighted.
09:31 AM on 03/29/2012
RIM's leaders display a quality that I see more and more among Canadians - a smug belief that we're inherently better than others and don't have to worry about imminent threats. Balsillie's dismissal of the iPhone shows a real ignorance to the threats on the horizon. Rather than being world leaders, we like to swim in our delusions of superiority. Hey, at least we're better than the Americans.
06:01 PM on 03/29/2012
Your last sentence shows that all too common superiority complex of Canadians. Its not uncommon to go about daily business up there and someone always makes derogatory comments about Americans. Its somewhat of a pastime among Canadians to put down the people, politicians, or characteristics of the U.S. What's interesting to me as an American is that we think of Canada as our "friendly neighbors to the North" and don't have that mindset towards the Canadian people.
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Blodo
Time to build a better world
10:33 AM on 03/30/2012
I'm pretty sure his last sentence was meant to be ironic.
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Amorak
11:17 AM on 03/30/2012
Don't get us going about the USA! Let's stick with Canadians' notion of superiority. We come up way short of using the word "exceptionalism" but we would rather be here than anywhere else. Otherwise, we don't bother to talk too much about it. The talk about the USA is of a country in immense trouble with a very limited understanding of democracy. And profound selfishness comes to mind, and corrupt values, especially among the religious. The USA has become the world's most dangerous threat to democracy. Too much religion, too little education and an unwillingness to pull together. It can't be fixed in a hundred years.
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Amorak
08:21 AM on 03/29/2012
Gee, I'll never look at my BB the same way again! I know my new BB is hopelessly out of date and that I can't shoot chickens at pigs with it, but I have never looked at it (or myself) as being such a destructive force, our obsolescence the very symbols of Canada's sad demise.

Shoot, I thought it was just a phone built by a business that didn't have good leadership, like all the other symbols of a failing Canadian entrepreneurial spirit - Kodak, the old General Motors, Lehman Brothers, Motorola, pre-Jobs Apple, the current Microsoft, Borders, Nokia and such.

Come on, if you want a business failure that better illustrates the Canadian spirit then look at La Senza. Only in Canada could sexy underwear be pulled down without anybody noticing, or caring! In the USA, somebody would have sold tickets to that show!