Jan
30

New York Times reported yesterday that BlackBerry is under siege in Europe where it is drastically loosing share of enterprise market to IPhone and Android. It now has about 1/4th of the market where it used to pretty much own the whole market.

BlackBerry’s maker, Research in Motions’ (RIM) answer to all of its trouble is BlackBerry 10 OS with even stronger focus on security which RIM believes is its edge. However, it may be fast losing its edge on security to companies like Samsung who are now releasing products like Galaxy with extra security features for enterprise customer. To top that, RIM focused so hard on security that it neglected other enterprise features like compatibility with Microsoft exchange server which is the messaging system of choice in most companies. IPhone integrated with Microsoft exchange server back in 2007 whereas Blackberry’s integration is still in beta.

I have been using BlackBerry for years.  My top qualms with BlackBerry are its Microsoft exchange server integration, bad app integration and almost impossible browsing experience (slow!). I still choose to use it because of its qwerty keyboard, great battery life and very reliable messaging service, however many have switched.  What has all this got to do with bad decisions and analytics?

RIM made some bad choices in product focus and feature release over last few years, which is very evident from its loss of enterprise market share in North America and Europe. My only question is: could this have been avoided? A quick Google search on historical BlackBerry issues supports my hypothesis that it possibly could have been. Had the product folks at RIM been listening to the voice of the customer through – internal data, internal and syndicated surveys, social chatter – using effective analytics framework to understand what the customer (not only the CIO’s but also the end users) really wanted, they may have spread their bet on security to improve Microsoft exchange integration and other much needed innovation in their products. Quick look at last year’s earning alone suggests these bad decisions have had impact in $100’s of millions.

On the other hand, I have seen smarter data-driven decisions with direct positive impact to the top line. More on that next week.

Meanwhile, what does a bad decision cost in your organization? To learn smarter and better decision making using data married to gut, register for one of our upcoming “Data to Decisions”™ boot camp today!

2 Responses to What is the cost of a bad business decision?

  1. Rumi says:

    the reality is in a culope months, kik will be an also ran to BBM just like whatsapp and ping are. it’s an inferior product that happened to go viral only because some media outlets picked up its story. but the viral is gone. you can do the math. kik went from 0 to 1 mln in just over two weeks after launch. at the peak, it was adding 40k users an hour (company stats). but then with all the media attention gone, it drifted away. in the next almost three weeks, instead of adding millions of users, it only added 1.5 mln (according to Ted, they’re only at 2.5 mln as of yesterday). the hype was great, but once people played withit, they realized there’s really no difference between kik and whatsapp and ping and yahoo messenger and google messenger and whoever comes and goes next.BBM has gone viral and has stayed viral for a reason. it’s different.sorry Kik.

  2. Sydney says:

    There’s issues auornd RIM capitulating on the corporate side. How would they force businesses to upgrade to get new less secure features? The carriers are another big hassle, as even with a BES they still control which device OS is running. Never mind the market share loss. I can’t see it being a win no matter how they slice it. But hey, I’ve seen companies do dumb things before.One thing RIM can do without restructuring is Open Source license their client for Android devices. That would be all kinds of awesome. Corps can manage Android from their existing BES (and buy the per hand-held licenses necessary) and we get greater choice of devices while maintaining RIM mindshare and brand. Win-win. But they won’t do that, it’s too smart

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