The Information Systems Triangle & RIM’s FailureJanuary 23, 2012
As part of an in-class assignment I and a friend on mine prepared this article based on the Information Systems Triangle and how the three corners collapsed for the company.
The three corners of the Information Strategy Triangle provide an intriguing insight into how RIM has tried and not been able to compete with their peers and have failed to regain their lost market presence.
For a technology company, RIM had unique selling points for the core product (mobile phones). Secure communication through email and instant messaging helped RIM penetrate the enterprise and consumer markets respectively. However, blindsided by products from Google and Apple, RIM was slow to react. Their Information Systems failed to realize the reasons why Apple, Samsung and Google succeeded. User experience is considered to be the primary reason behind Apple’s success and Google’s OEM partnerships that allowed others to offer an experience similar to the iPhone helped Samsung, HTC and others. The lack of innovation and relying on their laurels, RIM’s information systems failed the company. This led to RIM trying newer business strategies and products.
RIM, impacted by the lack of rapid innovation and products, decided to branch out into newer mobile computing market segments like tablet computing. The product did not meet the expectations since the company’s Information Systems still weren’t able to grasp the market demands. The company then looked at alterntive business models like licensing their software to become a software & services player. This consideration was accompanied by them looking at a possible sale of their hardware manufacturing division. Unfornately the leadership, the investors were not on board which led to a major organizational shift in RIM.
Trying to keep up with the loss of brain power, the company felt they needed a new vision and restructuring from the top. As a result the CEOs of the company asked to stepped down. The failure to adjust the three corners of the Info Strategy Triangle at the same time, RIM has not been able to adopt and adapt.
Drafted with inputs from Varun Kumar