An Investment Strategy Checklist For RIM's New CEO, Thorsten Heins

RIM co-CEOs Jim Balsillie and Mike Lazaridis have stepped aside to let a new leader pilot RIM through the straits. Thorsten Heins, a hardware executive from Siemens, has been COO for about a year now. Welcome, Mr. Heins, to a rough sea and dark night. But there is light in the depths of the hold. (Okay, enough ship references. Down to business.)

Here's the straight story: RIM has been focused on the wrong assets for the past three years, competing in a consumer market against the most powerful consumer brands in the world and suffering from tablet night terrors. It's not working. Forrester's data is clear: Based on a survey of 5,000 US information workers in May 2011, RIM's share of employee smartphones has dropped from around 90% to only 42% in the US in the past three years. Apple and Android together now have 48% of that installed base.

Stop fighting the consumerization battle. Fight a battle that takes advantage of what made RIM a fabulous company in the first place: its secure data delivery network. Here's the differentiated asset analysis:

With this analysis in hand, the challenge and the opportunity become clear. It's the business and government IT relationships and the RIM secure global data network that differentiate RIM products and services, not the consumer market demand. No other mobile supplier in the market has foreign governments asking for access to its data network in the interest of their national security. (That government interest is a good thing -- it signals just how potent RIM's network is.)

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Big Brother? Or Big Mother? Depends If You Get It Right ...

What am I even talking about? Think about how you use your mobile phone. Do you contact your closest friends? Do you shout and swear at your local telecom provider's IVR because your new home Internet service isn't working as advertised? Do you shop? Bank? Read books? As a result, your phone knows if you are happy or sad. Your phone knows where you live, how fast you drive and where you spend money. Creepy? Maybe if your phone tells you your wife isn't going to like that shirt you are buying. Less creepy if your phone knows you are a Starbucks addict and they are giving away free coffee today. What defines creepy to some extent lies in how much value you perceive in a service. We call this context - what an individual's situation, preference and attitudes are. How you use it will define how creepy it can be.

Your phone will know more and more about you based on some technology that will be in the phone that can sense what you are doing or your feelings, for example. Your phone will also understand your preferences based on how you use the phone. We wrote a lot about this in 2011 - re what is means to you as an eBusiness professional. (See report)

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