1. Research in Motion: Managing Explosives Growth
Donny Marthen Sitompul – Jonas Mario Hajadi –
Pamela Indrajati Suryoputro –
Stevanus Sendy

2. RIM: Research in Motion Ltd.
Founded in 1984 and based in Waterloo, Ontario, Canada.
Founded by Mike Lazaridis
The first Blackberry device came to market in 1999.
Since then, RIM has consistently introduced many new and innovative products and services that are used by business and consumers around the world.
R&D believed to be the heart and soul for the company’s success
The company operates offices in North America, Europe, Middle East and Africa, Asia Pacific, and Latin America.

3. Industry Overview High competition Fast paced
Driven by engineering innovations
Evaluated by technological advances

4. Case background Timeline – January 2008
David Yach as CTO for Software at RIM
Meeting with Mike Lazaridis to discuss R&D plans
Current model of organic growth was not keeping pace and engineers were strained
Double edged sword

5. RIM Growth
# of R&D Employees Year 2000 Year persons 2100 persons Annual Revenue Year 2003 Year 2008 $306.7 millions $ millions Blackberry Subscriber Account Base 0.5 millions 14 millions

6. Competitive R&D Spend in 2007
Revenue in US$
Percent of R&D Spend
Nokia
80 Billion
10.20%
Microsoft
51 Billion
13.93%
Motorola
36 Billion
12.09%
Apple
24 Billion
3.26%
RIM
6 Billion
5.99%

7. It is Important for RIM to Grow its Pool of Software Developers
Mike Lazaridis:
“If you really want to build something sustainable and innovative you have to invest in R&D.”
Continue innovation in a rapidly changing technology
Competing Platforms
Given the rapid advances in the mobile communications industry, no technological platform had become the industry standard. In light of the dynamic market situations, RIM needed to ensure that its investment in R&D kept up with the pace of change in the industry.
Keep up with the competition
Investors Expectation
Investment analysts often looked to the number of R&D spending as a percentage of total sales to gauge the sustainability of revenue growth.
R&D expenses as a key indicator of future revenue potential
R&D expenses were seen as a proxy for new product or service development.
As of March 1, 2014, the Company’s R&D team consisted of 4,353 full time employees. Research and development expense was approximately $1.3 billion in fiscal 2014, compared to $1.5 billion in fiscal 2013.
The Company dedicates a major portion of its R&D investments to software for the BlackBerry wireless solution. This includes
device and platform software as well as device applications, server software and infrastructure with an emphasis on satisfying
the needs of both corporate IT departments and individual customers.

8. Managing Explosive Growth
Do what we do now, only more of it
Focus on home market (Waterloo)
Recruiting strategy
Grow and Expand Existing Geographies
Establish R&D operations beyond Waterloo
Increase Acquisitions
Purchase or collaborate with other companies
Portal to new markets
Go Global
Expand to new areas

9. The Pro and Cons of the Different Options
Pros
Cons
Do More of It
More candidates are attracted
Easier to apply jobs online
Big talent pool in Waterloo
Finding the right job was often a daunting task for the candidates.
Potential loss on good leads
Currently no recruiting strategy using the “waves hiring”
Grow and Expand Existing Geographies
Better exposure to available talented software engineers.
Able to expand its successful co-op programs and graduate recruitment initiatives
More cost
More intense competition
Internal resistance
Increase Acquisitions
Potential opportunistic acquisitions for both technology and software engineering talent
Financial fallout
Large cost
Integration Issue
Go Global
Reaching out global centers of innovation
Establishes partnerships with major research institutes
Logistic issues
Legal issues due to source code loss, software piracy and product imitations.
Local governments requirement for encryption technology
Additional challenges on organizational design, communication, and integration due to disperse geographical locations.

10. What does RIM value most?
Security - keeping secure coding
Innovation
Sustainable Growth
Risk Management
Mutual Consideration of short-term/long-term profitability
Increasing market share

11. Recommendation & Action Plan
Do What We Do Now, Only More of It
Focus on the roots of R&D, the workers
Establish a pool of international workers
Establish recruiting/scouting groups
Increase advertisement for job seekers
Give incentives to employees
Have annual competitions for students
Support neighboring universities
Keep geographical intimacy
Increase Acquisitions
Acquiring new technology
Portal to new markets
Ease of acquiring potential collaborators
Analyze various industries to seek new opportunities
Work close with R&D to prevent off course motion
Focus on strategic organization, risk of investment
Why not the other options?
Avoid high risks
Cost expense
International issues
Restricted markets

12. The Impact of Decision Made in 2008 to Existing Performance of Blackberry

15. Recommendations as Consultant
Focus on software and services, i.e. mobile video conference feature on its messaging app, BBM Meetings, New Blackberry Application World – more friendly and innovative interface.
Create more partnership with mobile application developer to enrich the Blackberry Application World
In addition to recruitment from the university, do more professional hire to grab more experienced R&D
Not be dependent on handsets that made the company famous but rather rely on sales of software.
Sideline the playbook – reduce the priority
Open blackberry owned retail stores around the world – increase brand image globally and marketing purpose
Continue acquiring talented firms into RIM’s portfolio and working together with 3rd parties to develop better products

16. Focus on corporate and government where security, high productivity, and a tactile keyboard are more valued.
Work with Apple’s iOS and Google’s Android operating systems.
Partner with more smartphone vendors like what they did recently with Samsung for stronger Android security.
Go after business users in industries such as banking, healthcare, government, insurance, who relies on their device to do their jobs. (Apple are seen more as an entertainment device rather than a tool)