Thorsten Heins - Globe and Mail Interview
- RIM will
RIM will ‘empower people like never before’: Heins
Don't count BlackBerry out.
In recent weeks, it's become fashionable for pundits and market watchers to alternately eulogize Research In Motion as a fallen pioneer and demonize management for not chopping up the company to sell for parts.
As President and CEO of RIM, I understand the frustration and impatience of RIM's shareholders and their eagerness to see the company start to surface the underlying value we all know exists at RIM. But we do not believe RIM is a company at the end. Nor do RIM's current challenges hint at a larger Canadian problem of not being able to sustain successful technology companies.
Technology, and particularly mobile computing, is a globally dynamic industry where innovation is as likely to occur in Waterloo as it is in Seoul or Palo Alto or Stockholm.
Rather, we believe RIM is a company at the beginning of a transition that we expect will once again change the way people communicate. In technology, it is not if you have to change, but when you have to change, and we are in the earliest days of truly mobile computing - an era in which people interact with the world around them in ways we could barely imagine just a few years ago. With BlackBerry, RIM created the framework that gave people their first taste of an untethered yet completely connected life.
As we prepare to launch our new mobile platform, BlackBerry 10, in the first quarter of next year, we expect to empower people as never before. BlackBerry 10 will connect users not just to each other, but to the embedded systems that run constantly in the background of everyday life - from parking meters and car computers to credit card machines and ticket counters.
Those are big promises, I know; and some doubt whether RIM can pull it off. I am the first to admit that RIM has missed on important trends in the smart-phone industry - especially in the consumer domain, focusing on its core value system for successful products and services. We are working diligently on BlackBerry 10 in order to provide a compelling experience for our loyal enterprise customers and consumers. While we are in a very competitive and constantly changing market, customers benefit from this competition and continued innovation.
As this market grows and includes more people in more countries, there is more room - a true need, really - for alternatives. We see this every week with our developer community, who are attending sold-out BlackBerry 10 developer sessions around the world to leverage our platform and ecosystem in order to create and innovate for their communities. That is why RIM has chosen to pursue a strategy that eschews the homogenized sameness of competing ecosystems. To help with that task, we have reshaped the executive team and recruited telecommunications industry veterans with proven track records of success.
Innovation is never easy and rarely understood - but it is exciting.
To that point, some of what I read and hear is thoughtful and insightful; some, frankly, is just plain wrong. But the facts about RIM's business provide reason to believe that we can succeed, even as we take painful but necessary steps to focus our resources and build a lean, nimble organization focused intently on bringing BlackBerry 10 to market.
As some pundits write RIM's obituary, the company's global subscriber base continues to grow, to more than 78 million people in 175 countries. In many of those countries - some of the fastest growing markets in the world - RIM is the top smart-phone; and in some, RIM devices account for the top three spots. We have relationships with 650 carriers around the globe; RIM's reliability and security make it the first choice for countless government agencies and are part of the reason more than 90 per cent of Fortune 500 companies deploy BlackBerry in their enterprises.
RIM has no debt. The company also has more than $2-billion in cash on its balance sheet, and generated $710-million in operating cash flow in its first quarter.
Simultaneously, RIM is undertaking a corporate overhaul that we expect will reduce annual operating expenses by more than $1-billion by the end of our fiscal year. Unfortunately, that requires us to become a much more focused and smaller organization.
These are just the steps we're ready to announce. As has been reported, RIM has hired outside advisers to help me and the other members of the executive team think about the business in new ways and to explore a range of alternatives that leverage our core strengths and build on the BlackBerry brand.
When I became CEO just over six months ago, I knew this would be a difficult and challenging job. RIM was - and remains - at a crucial juncture in its history. In response to our tough quarterly results last week, our employees received thousands of e-mails from around the world from retail customers, carrier partners, developers, family, friends and neighbours expressing their support and loyalty to BlackBerry. They are - like many of us - BlackBerry people by choice.
It reminded me just how much opportunity and promise there is within RIM, and how much of what makes BlackBerry special stems from our status as a small-town Canadian company.
While some who have never made the drive to Waterloo pontificate about software they have not seen or devices they have not touched, developers around the world are getting increasingly excited about the possibilities BlackBerry 10 offers. They see that innovation remains a core principle stretching back to RIM's earliest days above a bagel shop.
Article from The Globe and Mail.Last edited by Alex_Hong; 07-03-12 at 10:45 AM.
07-03-12 10:41 AMLike 9 - I like that this is an interview from him, and not some analyst or pundits "blogging" their thoughts or predictions. I especially like the last few paragraphs.
Though honestly, he is the CEO. We can't expect him to say negative things about the company. But he did present a good case about the company not being in debt, developers being excited about BB10, etc. These are of course things that we have already known and heard.
When you look at the subscriber base, the cash reserves they have, and the operating cash flow they have generated. Its definitely not Apple or samsung-like, but it looks decent enough. At least decent enough for the company to put up a good fight, a final stint. Like the game "Final Fantasy" which was supposed to be SquareSoft's final product, the final fantasy of the company before they go bust. Little did they know it brought the company back to life.
This article definitely will not change the perception of the general public, but its still nice to see. BB10 could be, if it was truly a solid product.
He's definitely not wrong about BB10 being a big promise.Last edited by Alex_Hong; 07-03-12 at 11:02 AM.
07-03-12 11:00 AMLike 0 - RIM is far from done. They have so much to offer it's existing customer base and those out there fed up with with devices that cannot even type properly. It is amazing how many text/email messages I get from iphone or droid users that are full of mistakes....these are seasoned users too, most of which came from BB and know how well the devices worked for that function. That function is a defining mark of the brand, I am sure BB10 will be even more so.
Bottom line is RIM is hear to stay IMO. Thanks for the post OP.
Oh and lets try and keep this thread positive and not full of rubbish that naay sayers love to post. It contributes nothing as we have heard it so many times before!
BenAlex_Hong likes this.07-03-12 11:04 AMLike 1 - Superfly_FRRetired ModeratorQ: What does "putting things" together means ?
Q: Why did you bought QNX instead of going Andro�d ?
Q: What is your ecosystem vision ?
T. Heins
BlackBerry 10 will connect users not just to each other, but to the embedded systems that run constantly in the background of everyday life - from parking meters and car computers to credit card machines and ticket counters.
Hey, Thorsten, thanks.07-03-12 11:05 AMLike 2 - I like that Thorsten is more open to the press!
It's great to see their plans and nexts steps. We, the crackberry nation, are used to be patient with new releases.
I know that BB10 has have a great lauch to restore the trust of the share holders, the loyal fans and also for people who went to an other plattform like iOS or Android or so!
I'm sure there are still A LOT of people out there who still look "back" to RIM/Blackberry, what they bring out to come back.
So, the new delay is understandable to bring out a OS that works 100%.
Don't get me wrong, the playbook is an awesome device, but it's OS was just half-backed as it came out - so it was just bought by costumers who are hardcore BB-fans - it took over a year to improve it to a acceptable OS version (OS 2.0).
It got a lot of bad press and I think Thorsten and his team want to avoid things like that with BB10!
It's too important to bring it out "half backed".
I have got a new OS 7 device, I love it and have no problems to keep it some more months until a awesome BB10 will replace it.
What's a bit more shocking for me is the fact that RIM really had some big trouble (or maybe they rested on their success the past few years).
When I think back to the Mikes interview from "all things at d" (back in 2009), when he talked about the new plattform and how awesome it will be. That's almost 3years from now and tells me that Mike and his team had "almost nothing" at this time!
I'd also be glad when the bring some OS7-device updates out, like a Bold 9900 with autofocus and a bigger battery or so...
But this are just my thoughts.07-03-12 11:25 AMLike 0 - As we prepare to launch our new mobile platform, BlackBerry 10, in the first quarter of next year, we expect to empower people as never before. BlackBerry 10 will connect users not just to each other, but to the embedded systems that run constantly in the background of everyday life - from parking meters and car computers to credit card machines and ticket counters.
Those are big promises, I know; and some doubt whether RIM can pull it off.
Holy mother of all understatements...
-CFOT07-03-12 11:26 AMLike 0 -
- Pete6Retired ModeratorGood news and big statements. I like it.
This is a significant truth I feel.
RIM has no debt. The company also has more than $2-billion in cash on its balance sheet, and generated $710-million in operating cash flow in its first quarter.Sith_Apprentice and kbz1960 like this.07-03-12 11:31 AMLike 2 -
The problem is the methodology being used to sustain it. No debt comes from deep cuts to balance the losses; hyperbolically analogized it's like a person having some blood drained to lose weight...
I'm concerned that the previous acknowledgements of reality are starting to fade into defense delusions. RIM can't afford that if it's going to survive...
-CFOTDrew808 likes this.07-03-12 11:43 AMLike 1 - Pete6Retired Moderator(Apologies-the Heins debt quote disappeared above)
The problem is the methodology being used to sustain it. No debt comes from deep cuts to balance the losses; hyperbolically analogized it's like a person having some blood drained to lose weight...
I'm concerned that the previous acknowledgements of reality are starting to fade into defense delusions. RIM can't afford that if it's going to survive...
-CFOT
I understand ypu point though to pay off debts so's you can say that you have none. The quiestion is, as you again say, what will it do to you?
It seeems tha RIM does have a lot of cash but that could be used against them in a takeover bid.
I just hope they make it out of this, I really do.07-03-12 11:57 AMLike 0 - It depends, RIM has had no debt for a while stemming from its early days so to use the analogy of draining blood to lose weight is not entirely accurate. It is more like RIM was healthy and had 0% body fat and the current cuts can be considered a reduction in carbs.
The absence of debt does allow them a massive ability to lever up (finance people will understand the benefit of this) but yes as was pointed out, the decent level of cash and cash equivalents does open RIM up to a leveraged buyout (God forbid a corporate raider). The cash flow generated of $710m could be their operating cashflow (there are others like financing and investing). The end result after all three types could result in the increase from $2b to $2.2b. I'm not fully sure as I haven't read their financial reports.
Back to the article, I like it a lot! Thorsten is honest and effective in what he is saying both in admitting their faults but stressing their capabilities and worthiness. The last few paragraphs were great for me as he was taking a diplomatic but direct approach to address all the naysayers with a rather dignified "Go f*** yourselves.".
Respect Odinson.Cesare21 likes this.07-03-12 12:20 PMLike 1 -
- RIM can deliver all the inter-connect capabilities it wants, but others need to want to connect for that to be of real benefit. Resources naturally flow to entertain the largest audience. The ramp time for BB10 to be a serious contender with a real ecosystem is huge.
Nice words, nice vision. And that's it. A Powerpoint would have more substance.
I am sooo disappointed.
- R.07-03-12 12:27 PMLike 0 - As we prepare to launch our new mobile platform, BlackBerry 10, in the first quarter of next year, we expect to empower people as never before. BlackBerry 10 will connect users not just to each other, but to the embedded systems that run constantly in the background of everyday life - from parking meters and car computers to credit card machines and ticket counters.
Those are big promises, I know; and some doubt whether RIM can pull it off.
Holy mother of all understatements...
-CFOTShlooky likes this.07-03-12 12:29 PMLike 1 - I'm glad that Heins is doing the right thing. Last week was bad to say the least but even if I try to find another smartphone device, I just can't leave BlackBerry. I have so many great memories, this phone changed my life. If RIM is going down, I'm going down with it.
I think Thorsten is doing a amazing job and I have a lot of faith with the work he's doing. I think RIM needs to do more of these open press, people aren't aware of whats going on and they need to know that they are doing something to correct this bad situation.
Once again....good job Mr.Heins!07-03-12 12:37 PMLike 0 - Just more babbling by a RIM exec.
They have yet to back up their statements with something tangible for the last 3 or 4 years.
Didn't he say BB10 would be released in Q4 2012? Weren't they spreading these lies only a few weeks ago, all the while knowing there was going to be a delay?
He's just promising things that other companies have been actually provided that last few years. There's nothing visionary in what he's saying and there's no reason to believe in what they're saying.
Only sheep would fall for the lies once again.07-03-12 12:40 PMLike 0 - As we prepare to launch our new mobile platform, BlackBerry 10, in the first quarter of next year, we expect to empower people as never before. BlackBerry 10 will connect users not just to each other, but to the embedded systems that run constantly in the background of everyday life - from parking meters and car computers to credit card machines and ticket counters.
Those are big promises, I know; and some doubt whether RIM can pull it off.
Holy mother of all understatements...
-CFOT
Rickroller you are only thinking of mobile devices. But what OS is will be running the parking meters, credit card machines, car infotainment systems. More than likely will be QNX07-03-12 12:42 PMLike 0 - He just needs to deliver and so far, he has talked the talk better than Jim and Mike, but he hasn't delivered. Why is BB and RIM late, again. Missing the back to school and the Holiday seasons are unforgivable.
I'd rather see less cash on the balance sheet and BB10 arriving this Fall. Why they can't get that done or understand the importance of getting it done is really beyond me. If you have 2.0B on your balance sheet, go out and get it done!!! Time is against you, yet you delay and delay, I don't get that.
I just want to know where the sense of urgency is with this company. I've never seen it but technology is passing it by. The hardware will be second or third best by Spring and the the OS software can't make up for 2nd or 3rd best hardware and lack of apps. Alec Saunders seems like the only guy in Waterloo who gets it. Hopefully he can convince the devs to stick with RIM. So far the new CEO just hasn't delivered and that is a shame.07-03-12 12:45 PMLike 0 - Nice that he felt the need to explain himself to us. Nice that he felt the need to mention parking meters. Nice that his neighbor likes RIM.
How about shutting up and getting back to work? How 'bout that, eh?
As you can see, I'm still pissed that BB10 was delayed. Nice cutesy letters from him doesn't seem to ease my pain, funny enough. Guess that's my problem, though.OMGitworks likes this.07-03-12 12:47 PMLike 1 - Linux and Windows already offer embedded systems in cars.
Linux News: Community: Linux in Cars, or Why Toyota Chose Freedom
Automotive Solutions | Connected Services | Windows Embedded Automotive 707-03-12 12:49 PMLike 0 - No other Platform is doing this right now. Google Wallet seems to be the front runner in mobile payments but there will be other especially when the Credit Card Companies get involved.
Rickroller you are only thinking of mobile devices. But what OS is will be running the parking meters, credit card machines, car infotainment systems. More than likely will be QNXCairnsRock and Drew808 like this.07-03-12 12:51 PMLike 2
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Thorsten Heins - Globe and Mail Interview
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