Posts
Monday, September 6, 2010
Summer...what summer?
Here it is September 6th...labour day and I'm wondering where the summer went. My last post was at the end of May and I'm trying to figure out where 3 months went. I'm working on a project for a major telco that has kept me busy as well as making sure my son has a great summer. Tomorrow he goes back to school and hopefully with a head full of great memories of what we did this summer. I certainly enjoyed it. So much so that I haven't done much blogging over the past few months.
It's so easy to get caught up in the work thing and lose sight of the really important things that we work for...to enjoy the time we spend with the people we care about. Life happens while we're busy doing other things!
Some highlights from my summer....camping with my son for the first time, seeing my son do a flip off the diving board at the local pool, learning that things have a way of working out and helping my sister celebrate 30 years of marriage.....what an accomplishment.
Stay tuned for more telco related blogging in the next few weeks. I hope everyone had a great summer. Certainly we couldn't complain about the weather, it was awesome!
It's so easy to get caught up in the work thing and lose sight of the really important things that we work for...to enjoy the time we spend with the people we care about. Life happens while we're busy doing other things!
Some highlights from my summer....camping with my son for the first time, seeing my son do a flip off the diving board at the local pool, learning that things have a way of working out and helping my sister celebrate 30 years of marriage.....what an accomplishment.
Stay tuned for more telco related blogging in the next few weeks. I hope everyone had a great summer. Certainly we couldn't complain about the weather, it was awesome!
Thursday, May 27, 2010
Things I've Learned......
After 20 years in business you have the benefit of hindsight. What I thought was a brilliant idea back then, well....really wasn't. Okay, nobody's perfect. But along the way you pick up a few sound bites of knowledge that you just feel compelled to pass along.
Such as:
1) CEO's inflict more pain on an organization than they realize. Things that a CEO says in passing or in a meeting with his/her direct reports gets taken at face value and used as leverage more often than not. I can't tell you how many times I've been in a meeting where a peer has said...."well George (the CEO) wants it done that way"...and off goes the organization trying to satisfy his wishes despite the fact that it might be off strategy.
2) Winning in technology is about great execution not great strategy. It has often been said that executing a weak strategy brilliantly is much better than doing a weak job executing a brilliant strategy. I've seen countless hours/days/weeks wasted by marketing and product people trying to refine a strategy/positioning statement to get it perfect only to realize that they burned up too much time and have now got to compress the back end execution to meet their launch date or they've let a competitor grab their window of opportunity. Get the strategy to 80% and run hard....perfecting the other 20% won't make a difference.
3) Companies are like hockey teams...you need a good coach and everyone needs to play position. If there's one thing that can undermine a company faster than a bad product, it's having a bad organization structure. Businesses need decision makers and doers. The problem arises when doers think they're decision makers and decision makers start to do execution. In well run organizations every employee knows where their responsibilities start and end and there's no confusion. In poorly run organizations, the businesses have too many hand-offs and there is a lack of clear accountability. Not everyone on the team can play center.....only one person at a time.
4) When you have momentum...don't take your foot off the gas. In highly competitive industries like technology and telecommunications it's hard to generate business momentum. However, when a business does have an innovative new idea/product it's imperative that they use it to create momentum beyond the initial launch. Follow-on products or extensions is a natural way to maintain interest in your brand or product beyond the initial market activity.
A few things that stick with you along the way.
Such as:
1) CEO's inflict more pain on an organization than they realize. Things that a CEO says in passing or in a meeting with his/her direct reports gets taken at face value and used as leverage more often than not. I can't tell you how many times I've been in a meeting where a peer has said...."well George (the CEO) wants it done that way"...and off goes the organization trying to satisfy his wishes despite the fact that it might be off strategy.
2) Winning in technology is about great execution not great strategy. It has often been said that executing a weak strategy brilliantly is much better than doing a weak job executing a brilliant strategy. I've seen countless hours/days/weeks wasted by marketing and product people trying to refine a strategy/positioning statement to get it perfect only to realize that they burned up too much time and have now got to compress the back end execution to meet their launch date or they've let a competitor grab their window of opportunity. Get the strategy to 80% and run hard....perfecting the other 20% won't make a difference.
3) Companies are like hockey teams...you need a good coach and everyone needs to play position. If there's one thing that can undermine a company faster than a bad product, it's having a bad organization structure. Businesses need decision makers and doers. The problem arises when doers think they're decision makers and decision makers start to do execution. In well run organizations every employee knows where their responsibilities start and end and there's no confusion. In poorly run organizations, the businesses have too many hand-offs and there is a lack of clear accountability. Not everyone on the team can play center.....only one person at a time.
4) When you have momentum...don't take your foot off the gas. In highly competitive industries like technology and telecommunications it's hard to generate business momentum. However, when a business does have an innovative new idea/product it's imperative that they use it to create momentum beyond the initial launch. Follow-on products or extensions is a natural way to maintain interest in your brand or product beyond the initial market activity.
A few things that stick with you along the way.
Thursday, May 20, 2010
Sunset on RIM's License Fees??
Research in Motion has enjoyed 15 years of competitive advantage and the revenue streams that come along with it. Competition has been relatively non-existent which has allowed them to establish a price leadership position with relative ease.
As new competitors, mostly Apple, challenge their market position they may be losing their ability to sustain their exclusive revenue streams. A good example of this is the all the extra fees that a business customer must pay to use RIM's BlackBerry service versus say Apple's.
To begin with, there are monthly relay fees that a wireless carrier has to pay RIM for the privilege of selling the service. These fees run anywhere from $6-$9/month/subscriber. On top of that a business customer must buy a Customer Access Licence (CAL Fee) for every user of the BB service in the company. These fees run about $65/employee depending on how many employees are on the service. There's a price break for more users. And then there are BES (BlackBerry Enterprise Service) support fees that RIM charges to provide technical support to a business customer. When you add all this up it's no wonder that RIM is raking in the money. The problem is whether this is really sustainable in the new environment of cost consciousness.
Apple doesn't charge to push their email service and do you really need access to your desktop calendar and extra security when all you really need is to read your email? This could explain why RIM is coming up with less expensive BIS (BlackBerry Internet Service) options as well as bundling in BES & BIS access for the same price. BIS customers give up a little security and access to a few desktop features but they get the core service...email, voice & data service on a device that is easy to use.
All said, to penetrate the small business market RIM will need more cost effective options than the "full fat" version of BES to attract these owner/operators because they won't be able to afford the high cost.
Apple on the other hand is looking pretty good as a viable alternative for the Enterprise customer who wants a more cost effective wireless device for their mobile workforce.
As new competitors, mostly Apple, challenge their market position they may be losing their ability to sustain their exclusive revenue streams. A good example of this is the all the extra fees that a business customer must pay to use RIM's BlackBerry service versus say Apple's.
To begin with, there are monthly relay fees that a wireless carrier has to pay RIM for the privilege of selling the service. These fees run anywhere from $6-$9/month/subscriber. On top of that a business customer must buy a Customer Access Licence (CAL Fee) for every user of the BB service in the company. These fees run about $65/employee depending on how many employees are on the service. There's a price break for more users. And then there are BES (BlackBerry Enterprise Service) support fees that RIM charges to provide technical support to a business customer. When you add all this up it's no wonder that RIM is raking in the money. The problem is whether this is really sustainable in the new environment of cost consciousness.
Apple doesn't charge to push their email service and do you really need access to your desktop calendar and extra security when all you really need is to read your email? This could explain why RIM is coming up with less expensive BIS (BlackBerry Internet Service) options as well as bundling in BES & BIS access for the same price. BIS customers give up a little security and access to a few desktop features but they get the core service...email, voice & data service on a device that is easy to use.
All said, to penetrate the small business market RIM will need more cost effective options than the "full fat" version of BES to attract these owner/operators because they won't be able to afford the high cost.
Apple on the other hand is looking pretty good as a viable alternative for the Enterprise customer who wants a more cost effective wireless device for their mobile workforce.
Sunday, May 2, 2010
RIM Symposium A Hit
RIM's annual symposium in Florida last week was a timely opportunity for the company to reinforce its commitment to the Enterprise/business market. With a goal of reaching 100 Million customers, more than double where it is today, the company has laid a strong foundation for sustainable growth for the next few years.
RIM's technology is a competitive advantage in a wireless industry that is in a constant state of change. As carriers wrestle with increasing migration of customers upgrading from feature phones to smart phones they will have to look for cost effective ways to manage network traffic.
As we all know, the iPhone is a popular tool for downloading bandwidth intensive video data from sights like YouTube. This type of traffic is causing fits for many carriers to the point where they have to actively manage their subscriber acquisition activity. The BlackBerry on the other hand is a network efficient device for email and web surfing which is what the business market is primarily interested in.
RIM is well positioned in the business market and would be foolish to take its eye off of that prize given its entrenched position. A key message delivered last week was just that, RIM will continue to continue to focus on the lucrative business market but with updated software and a fresh handsets that capture the imagination of its customers.
Perhaps it's time to take another look at the stock after bouncing around in the $70 range.
RIM's technology is a competitive advantage in a wireless industry that is in a constant state of change. As carriers wrestle with increasing migration of customers upgrading from feature phones to smart phones they will have to look for cost effective ways to manage network traffic.
As we all know, the iPhone is a popular tool for downloading bandwidth intensive video data from sights like YouTube. This type of traffic is causing fits for many carriers to the point where they have to actively manage their subscriber acquisition activity. The BlackBerry on the other hand is a network efficient device for email and web surfing which is what the business market is primarily interested in.
RIM is well positioned in the business market and would be foolish to take its eye off of that prize given its entrenched position. A key message delivered last week was just that, RIM will continue to continue to focus on the lucrative business market but with updated software and a fresh handsets that capture the imagination of its customers.
Perhaps it's time to take another look at the stock after bouncing around in the $70 range.
Tuesday, March 2, 2010
Ooops, where did February go?
See what happens when you get wrapped up in the national spirit of competitive sports....you completely neglect your business duties. The winter Olympics was a grand spectacle to watch. We got off to a bit of a shaky start with a tragic accident but we sure ended with a BANG! In the midst of all this I just didn't get to the blog posts, so here I am trying to make up for it.
Well, we're two months in to the new year of 2010 and what has happened? Public Mobile is no where to be seen, Wind Mobile is up and running and the rest are playing catch up.
The Consumer Electronics Show (CES) was a bit of a bust.....no real breakthrough ideas. Some interesting 3D products but nothing really leading edge.
The Apple announcement on their iPad was also a bit if a bust if you ask me. Looks like a giant iPhone and certainly under-delivered on expectations. It remains to be seen whether it can make an impact in the market at an expected price point of $799.
GSM World (Feb 15th to 18th) in Barcelona didn't really add much news to the category. Google is being disruptive, the market is shifting from a traditional focus on voice to data and from hardware/phones to software/apps. Mobile banking in North America is starting to take hold and mobile operators are realizing that the category is maturing.
So where does that leave us? The successful companies will continue to push the envelop on innovation and make investments in new business opportunities. We're well past the point of cost cutting our way to profitability, we have to get back on the growth curve. Investment is what gets you there.
We're not out of the woods yet but 2010 is certainly looking better than 2009......Olympic gold medal in hockey certainly put us on the right track.
Well, we're two months in to the new year of 2010 and what has happened? Public Mobile is no where to be seen, Wind Mobile is up and running and the rest are playing catch up.
The Consumer Electronics Show (CES) was a bit of a bust.....no real breakthrough ideas. Some interesting 3D products but nothing really leading edge.
The Apple announcement on their iPad was also a bit if a bust if you ask me. Looks like a giant iPhone and certainly under-delivered on expectations. It remains to be seen whether it can make an impact in the market at an expected price point of $799.
GSM World (Feb 15th to 18th) in Barcelona didn't really add much news to the category. Google is being disruptive, the market is shifting from a traditional focus on voice to data and from hardware/phones to software/apps. Mobile banking in North America is starting to take hold and mobile operators are realizing that the category is maturing.
So where does that leave us? The successful companies will continue to push the envelop on innovation and make investments in new business opportunities. We're well past the point of cost cutting our way to profitability, we have to get back on the growth curve. Investment is what gets you there.
We're not out of the woods yet but 2010 is certainly looking better than 2009......Olympic gold medal in hockey certainly put us on the right track.
Sunday, January 31, 2010
Lack of Innovation Forces Carriers to Use Extra Fees
Every once in a while I come across something that irks me enough that I feel compelled to write about it. In this case it's the creative use of extra fees telecom carriers apply to beef up their bottom line.
In my most recent experience I was hit with a $2.oo charge to receive a paper invoice from my wireless service provider. Now, I don't know about you but I don't see this type of charge on any other utility invoice I receive. Why is it that telecom companies, in this case the largest national carrier in Canada, think this is acceptable?
In another example, the service provider I use for TV, Home Phone and Internet Service seems to think that charging an extra fee for Message Relay and a nicely disguised CRTC LPIF Fee is a reasonable thing to do. Now extra fees have been around for a long time and the airlines are the biggest users but this all points to one critical factor.
Companies that rely on extra fees to increase revenue lack innovation. Rather than trying to develop a sustainable new product or service the consumer will see value in they resort to extra fees to prop up their bottom line. As an investor I start to worry these companies have reached a plateau and have no where else to go to drive growth in the business. If these companies must rely on incidental charges to grow their revenue then they must be in trouble. I don't think it's a coincidence that the carrier charging for a paper invoice also has a stock price that's been languishing in the depths of despair for the past 10 years.
Innovation is the cornerstone of business growth. Without it a business will cease to exist at some point. One doesn't have to look too far to see that companies like Apple that have embraced innovation as a critical part of their business are growing at a significant pace. Charging extra fees removes some of the pressure for other companies to be innovative because their revenue line shows some growth....but it can't replace it. Extra fees are an indication of lazy thinking and a lack of creativity.
The telecom landscape is getting more competitive, not less, and the large incumbent carriers will probably have to learn the hard way that extra fees is not a replacement for innovation. Only time will tell but you may be wise to avoid these stocks.
There, it's off my chest. On to more creative & innovative pursuits.
In my most recent experience I was hit with a $2.oo charge to receive a paper invoice from my wireless service provider. Now, I don't know about you but I don't see this type of charge on any other utility invoice I receive. Why is it that telecom companies, in this case the largest national carrier in Canada, think this is acceptable?
In another example, the service provider I use for TV, Home Phone and Internet Service seems to think that charging an extra fee for Message Relay and a nicely disguised CRTC LPIF Fee is a reasonable thing to do. Now extra fees have been around for a long time and the airlines are the biggest users but this all points to one critical factor.
Companies that rely on extra fees to increase revenue lack innovation. Rather than trying to develop a sustainable new product or service the consumer will see value in they resort to extra fees to prop up their bottom line. As an investor I start to worry these companies have reached a plateau and have no where else to go to drive growth in the business. If these companies must rely on incidental charges to grow their revenue then they must be in trouble. I don't think it's a coincidence that the carrier charging for a paper invoice also has a stock price that's been languishing in the depths of despair for the past 10 years.
Innovation is the cornerstone of business growth. Without it a business will cease to exist at some point. One doesn't have to look too far to see that companies like Apple that have embraced innovation as a critical part of their business are growing at a significant pace. Charging extra fees removes some of the pressure for other companies to be innovative because their revenue line shows some growth....but it can't replace it. Extra fees are an indication of lazy thinking and a lack of creativity.
The telecom landscape is getting more competitive, not less, and the large incumbent carriers will probably have to learn the hard way that extra fees is not a replacement for innovation. Only time will tell but you may be wise to avoid these stocks.
There, it's off my chest. On to more creative & innovative pursuits.
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