Group 3 - Blackberry Storm - Final Project
Group 3 - Blackberry Storm - Final Project
Group 3 - Blackberry Storm - Final Project
A Project Research
Submitted to the School of Management
University of Asia and the Pacific
In Partial Fulfillment
Of the Requirements for the Course
Project Management (MGT280H)
Midyear Term
S.Y. 2020-2021
Submitted by:
Agustin, David Vincent
Anastacio, Gian Franco
Miranda, Mary Esmeralda
Santos, Alicia Allyson
The Blackberry Storm 9530 is a smartphone that has a high resolution of 480 x
360-pixel screen. It displays over 65,000 colors which bring life to videos, games, and
pictures altogether. The phone was first announced in September of 2008 and was
released in November of the same year. The company aimed to deliver a genuine
iPhone rival despite knowing its product has shortcomings when it came down to its
performance and quality development. The smartphone did well when it came to sales
at the start due to the BlackBerry brand's power and Verizon’s marketing efforts.
However, as individuals began to use the phone, things quickly deteriorated. According
to the chief marketing officer of Verizon, John Stratton, every one of the 1 million Storm
phones shipped in 2008 needed replacing; although, many of the replacements were
returned as well. To cover the carrier's losses Verizon urged RIM to reach a $500 million
settlement. The product was launched to rival the iPhone at the time but when it came
down to it, the product lacked in product development. The Blackberry Storm 9530
smartphone was focused on battery performance, limited usage of carrier network
resources, improving keyboard functions, and securing messaging and email. These
were their focus points which are in line with the grey areas of the iPhone.
II. OBJECTIVES
Description of the Project Deliverables and Outcomes
The Blackberry Storm 9530 smartphone was an initial success as it sold one
million units in the first two months of its release. Distributors couldn't meet the demand
due to the high influx of customers flocking to obtain the initial product. After reaching
the end-user, the company Verizon had to replace nearly every unit sold due to the
product’s internal and external defects. Blackberry is unable to pay the $500 million
Verizon settlement due to lack of funds, they resolved the issue by offering free repairs
and other concessions in its stead.
Mission Statement
The mission statement of the project is to create a device that offered the four
pillars of the company which was battery, security, keyboard, and efficiency.
The 2 CEOs were supported by a Chief Operating Officer, Larry Conlee, who
worked with both sides and was crucial in unifying both groups in the company. He was
crucial in ensuring that the deadlines and deliverables were met. Another critical leader
was Chief Technology Officer, David Yach.
The work-life balance of their employees was also important to the co-CEOs. The
company offered on-site massages, flexible work hours, and subsidized continued
education opportunities for the employees.
Organizational Relationships
When the company was new, the 2 CEO set-up worked. There was a lot of direct
management and involvement from the top management with the employees. Sense of
unity and engagement and belongingness was high.
This sense of division within the company also worsened when the Chief
Operating Officer, Larry Conlee, also retired in 2009. He was considered to be the real
operational executive who was able to get the teams to hitting commitments and goals.
A complacent attitude permeated through the organization.
Further split in the company happened when co-CEO Jim Balsillie had left and
cut all ties to BlackBerry when he and co-CEO Mike Lazaridis had two major
disagreements. One was Lazaridis’ disagreement with Balsillie’s idea to make BMM
cross-platform usable, and the other was Balsillie’s disagreement with Lazaridis’ belief
that BlackBerry 10 would help BlackBerry gain its market dominance.
This deep division within the organization, plus the pressure from its depleting
market share and profits, pushed BlackBerry to announce in July 2011 its plans to
reorganize. By January 2012 Thorsten Heins became the CEO. With him were his
newest executive recruits, Frank Boulben as Chief Marketing Officer and Kristian Tear
as Chief Operating Officer. The company’s managing style and structure became
horizontal with a single CEO as an adaptive move towards environmental changes.
By November 2013, John S. Chen was appointed Chairman of the Board and
CEO of BlackBerry Ltd. He is responsible for the company's strategic direction and
relationships, as well as, organizational goals. Chen remains to be the company’s CEO
until today with the following executive team and senior leaders:
EXECUTIVE TEAM
SENIOR LEADERS
Neelam Sandhu Senior Vice President and Chief Elite Customer Success
Officer
After TCL Communications, Onward Mobility took over the license and partnered
with FIH Mobile as its appointed manufacturer. The first 5G BlackBerry running on
Android was planned to launch in 2021. The new phone was intended to be released
during the first half of 2021 but it is currently delayed.
OS Solution Partners
For its security software, BlackBerry Limited enters into various agreements
different capacities:
SOLUTIONS PROVIDER
ISVY PARTNERS
OEM PARTNERS
DEVELOPERS
CLOUD PARTNERS
AWS Marketplace
Azure Marketplace
For the project’s schedules and milestones, we based the work breakdown to a
different phone WBS since the Blackberry Storm’s schedules and milestones are not
available to the public. The Milestones are as follows:
1. Product Specifications
a. Market research
b. Overall product specifications
c. Hardware
d. Software
2. Supplier specifications
a. Hardware
b. Software
3. Product design
a. Battery
b. Display
c. Camera
d. Outer cover
4. Product integration
a. Hardware
b. User interface
c. Software coding
d. Prototype testing
5. Subcontracting
a. Suppliers selection
b. Contract negotiation
Milest 1a b c d 2a b 3a b c d 4a b c d 5a b
ones
Weeks 2 4 4 4 4 6 1 2 1 4 5 4 4 4 10 2
As said earlier, this is NOT the actual Work Breakdown Structure of the
Blackberry Storm project. This is from a different company which has a similar nature of
the project. The critical path of this project would be P1-P2-P3-P4-S1-D2-D4-I1-I4-V2.
Following this fact, the project would last for 35 weeks or more than 8 months.
According to the 2009 annual report of Research In Motion (RIM), in the year that
Blackberry Storm was launched, the corporations’ expenses amounted to 2.38 Billion
USD. The account ranges from the capital to operating expenses. In addition, the cost
of manufacturing the products is not yet included in this expenses account. The cost of
sales of the whole company had amounted to 5.97 Billion USD. We estimate that the
Blackberry Storm project is 25% of the whole company’s operations since Storm was
not the only project that they had during that year, however, it contributed a lot in terms
of expanding the consumer base and even the subscription base of Blackberry.
Applying this to the overall expenses of the corporation, the Blackberry Storm project
had an estimated expenditure of $2.09 Billion.
Capital Expenditures include fixed costs, which are beneficial to the company for
more than a year. Some examples of these are plant and equipment purchases, and
vehicles for transportation of products. The total expenditure that RIM made for
long-term investments (property, plant, and equipment) is $721 Million. On the other
hand, operating expenses are expenditures that are necessary for the business to
operate in their day to day activities. These kinds of expenditures include salaries, rent,
utilities, and even research. However, the cost of sale is separated from the operating
expenses. The company’s total operating expenses were $769 Million. In terms of the
project, it would be $180.25 Million and $192.25 Million for its CAPEX and OPEX
respectively.
Project Budget
There is no available data for the actual budget for this project. However, we can
derive the budget from the real data that had actually happened from 2008-2009 when
Storm was launched. The revenue and net income from 2008 to 2009 has surprisingly
doubled. The project budget would be $372.5 Million, which is the sum of both CAPEX
and OPEX.
VII. PERSONNEL
Workforce
In accordance with the Blackberry Careers (2021), the company has various
Departments of Opportunities that the workforce personnel may vary:
Engineering / IT / Research
At their essence, a technological enterprise, with engineering and intelligence at
the center of all they do. They rely significantly on their team of industry-leading and
inspiring technology professionals for everything from UI to infrastructure to product
design and coding.
Sales/Support
Personal connection is essential to the organization. The team collaborates to
help customers and partners provide and leverage next-generation AI-based security
solutions that forecast, prevent, and protect, with some on the front lines and others in
support roles.
Marketing
Website development, interactive webinars, digital ad campaigns, events, online
video content, and traditional print materials are among the marketing programs and
assets developed by the organization using the most up-to-date research, tools, and
data.
Legal Compliance
Analytical thinkers and visionaries with a keen eye for detail who are calm and
serene. The firm is up to date on the most recent laws and the nuanced subtleties that
guide their interpretation. The members of the team accept the concept of risk without
putting anyone in danger.
Consulting Services
The company employs some of the best technical professionals in the market.
They effectively collaborate with our clients to analyze their cybersecurity needs and
build comprehensive solutions based on prevention-first techniques.
Accounting/Finance
The company is meticulous, inquisitive, and enthusiastic about data analysis and
issue resolution. Collaboration, inclusion, creativity, opportunity, and high performance
are all part of their culture. BlackBerry is a rewarding place to work for anyone with an
inquisitive mind.
Human Resources (HR)
The company recruits a diverse and inventive workforce. The department also
provides assistance to current employees, ensuring that they have the resources they
require to thrive in their jobs.
Necessary Training
Blackberry provides training and exams to ensure that people have the
knowledge and skills needed to build, deploy, support, and maintain BlackBerry
software and services (Blackberry Training, 2021). Accreditation paths have been
designed by-product to support the BlackBerry Partner Program's requirements by
facilitating the ability to build unique and complementary capabilities and providing a
wide variety of training courses and assessments that an individual requires to
successfully achieve Accreditation (Blackberry Training, 2021).
Each Technical Accreditation path specifies the training courses and assessment
requirements for Partner Authorization and includes both instructor-led and web-based
training (WBT). BlackBerry's Learning Portal is required to complete web-based training
and assessments. All BlackBerry Trainer-Led Training must be performed by a
BlackBerry Trainer or one of BlackBerry's Authorized Training Partners (Blackberry
Training, 2021).
Pre-Work
Instructor-Led Training
Instructor-Led Training
Blackberry UES
Table 4: Blackberry UES Training
Blackberry AtHoc
Blackberry AtHoc Systems Integration Professional (BASIP)
The Technical Accreditation path for BlackBerry AtHoc Systems Integration
Professional (BASIP) includes a blend of videos and Instructor-Led Training (ILT), and
online Assessments.
Pre-Work
Instructor-Led Training
Application Development
Blackberry Applications Integration Professional (BAIP)
The Technical Accreditation path for BlackBerry Applications Integration
Professional (BAIP) provides beginner-level BlackBerry UEM MAM and BlackBerry
Dynamics SDK competencies to the learners. The primary goal of this Accreditation is
to provide key competencies to System Integration and/or App Dev Engineers: allowing
them to have preliminary BlackBerry Dynamics discovery discussions on BlackBerry
Dynamic App development with Enterprise IT, App Developers, and LOB. Additionally,
the learner will be able to help the Enterprise Developer “get started” with the
BlackBerry Dynamics SDK and provide guidance on developing a sample app. The
Technical Accreditation path for BlackBerry Applications Integration Professional (BAIP)
includes a blend of Web-Based Training (WBT), Instructor-Led Training (ILT), and an
online Assessment.
Pre-Work
Instructor-Led Training
This newly enforced time phasing for employees is designed to make people feel
safe is crucial in your return-to-work program at this period of the worldwide pandemic,
according to the Blackberry Athoc Work Safely (2021). As the company returns to
physical offices and public areas, a better communication strategy helps preserve our
most valuable assets — people and workers – while limiting extra business interruption.
BlackBerry® AtHoc® for government and BlackBerry® Alert® for businesses can help
you execute emergency protocols, health checks, and contact tracing with automated
2-way communications (Blackberry Athoc Work Safely, 2021). In terms of personnel
phasing during the pandemic, the government offers the following:
● A centralized approach
● 24/7 access to scheduling an appointment
● Comprehensive training according to your flexible schedule
Any of the following risks might have a material and detrimental impact on the
Company's business, financial condition, and operating performance, in whole or in part.
The risks and uncertainties listed here are not the only ones that the Company must
deal with. Additional risks and uncertainties, including those of which the Company is
unaware or presently considered insignificant, could have a major impact on the
Company's business, financial condition, and operating results. The following risk
factors of the company must be considered (Blackberry Annual Report, 2021):
The Company's future success depends on its ability to enhance and integrate its
current products and services, including the BlackBerry Spark platform (Blackberry
Annual Report, 2021). The Company may be required to invest significant resources in
the development of new products, software, and services before knowing whether such
expenditure will result in market-acceptable products or services. If the Company fails to
provide a compelling customer experience or accurately predict emerging technological
trends and changing needs of customers and end-users, the Company's business,
results of operations, and financial condition will suffer (Blackberry Annual Report,
2021)
The Company is at a higher risk of being targeted because of its reputation for
security and the nature of its network operations, as well as its involvement in the
identification of organized cyber adversaries. To reduce cyber risk to its systems,
endpoints, and data, the Company invests heavily in network security, encryption, and
authentication technology (Blackberry Annual Report, 2021). It develops new security
and reliability features, releases software updates to address vulnerabilities, and
maintains a security architecture to secure the Company's network, products, and
services. The Company has not suffered any major financial or other losses as a result
of technology failures, cyberattacks, or security breaches to date. However, the
methods used to gain illegal access or stop or degrade service are continually growing
and getting more complex. The Company may not be able to predict these techniques,
implement adequate preventative measures, or identify and respond to them in a timely
manner (Blackberry Annual Report, 2021). Any such event could harm the Company's
reputation, which is based in large part on the security and reliability of BlackBerry
products and services.
The Company's goods and services may have design flaws, bugs, or security
vulnerabilities that are difficult to detect and fix (Blackberry Annual Report, 2021).
Defects, mistakes, or vulnerabilities in the Company's software and services could result
in the delay or denial of their services. If errors are detected, the Company may have to
spend a large amount of money to repair them (Blackberry Annual Report, 2021). The
Company's solutions may inaccurately suggest the existence of a cyber threat that does
not exist.
The Company’s success depends on its continuing ability to attract new
personnel, retain existing key personnel and manage its staffing effectively
The Company's continued ability to find, recruit, develop, motivate, and retain
skilled individuals is critical to its continued success. The Company's failure to attract
and retain important workers might have a major negative impact on its company,
results of operations, and financial condition (Blackberry Annual Report, 2021). It may
lose business continuity and accumulated knowledge, as well as internal compliance
gaps or other inefficiencies, during periods of internal reorganization.
The Company must comply with a variety of laws, standards and other
requirements governing health and safety, accessibility, hazardous materials usage,
packaging and environmental matters (Blackberry Annual Report, 2021). The Company
is also subject to SEC disclosure requirements applicable to issuers that have
contracted to manufacture products containing minerals that are mined from the
Democratic Republic of Congo and adjoining countries (Blackberry Annual Report,
2021) There can be no assurance that the direct or indirect costs of complying with such
laws will not adversely affect the Company's business, results of operations or financial
condition. If the Company fails to comply with these requirements, it may face regulatory
or civil liability, fines or other additional costs, and reputational harm.
The Company has acquired and continues to seek out opportunities to acquire or
invest in, businesses, assets, products, services, and technologies that expand
complement, or are otherwise related to the Company's business or provide
opportunities for growth. The Company is increasingly collaborating and partnering with
third parties to develop technologies, products, and services, as well as seek new
revenue through partnering arrangements (Blackberry Annual Report, 2021). If these
fail to perform as expected, or if the Company fails to execute the transactions or
arrangements needed to succeed, the Company may not be able to bring its products to
market successfully or in a timely manner. The Company may not be successful in
generating revenue, income, or other returns to the Company. An acquisition may have
an adverse effect on the Company's cash position if all or a portion of the purchase
price is paid in cash. As business circumstances dictate, the Company may also decide
to divest itself of assets or businesses. The Company's inability to address these risks
could adversely affect its business and financial condition (Blackberry Annual Report,
2021).
The Company expects its quarterly revenue and operating results to fluctuate.
The Company's revenues can change from one quarter to the next, including due
to unexpected developments late in a quarter, such as lower-than-anticipated demand
for the Company's products and services (Blackberry Annual Report, 2021). The
Company's gross margin and operating margin percentages, as well as overall
profitability, may be adversely impacted as a result of a shift in product/service,
geographic or channel mix, component cost increases, price competition, or the
introduction of new products (Blackberry Annual Report, 2021).
Adverse economic, geopolitical, and environmental conditions may negatively affect the
Company.
A slowdown in capital spending by end-users of the Company's products and
services, coupled with existing economic and geopolitical uncertainties globally could
substantially reduce the demand for the company's products. Current and future
conditions in the domestic and global economies remain uncertain, and it is difficult to
estimate the level of economic activity for the economy as a whole (Blackberry Annual
Report, 2021). In addition, acts of terrorism, political unrest, the outbreak of hostilities,
and armed conflicts have created and may continue to create uncertainties that may
affect the global economy. A significant natural disaster, such as an earthquake, fire, or
flood could have a material adverse impact on the Company's business and operations.
The Company may be unable to continue its operations and may endure system
interruptions, reputational harm, delays in its development activities, lengthy
interruptions in service, breaches of data security, and loss of critical data. The
company's insurance may not cover such events or may be insufficient to compensate
the Company for the potentially significant losses it may incur (Blackberry Annual
Report, 2021).
The Chief Risk Officer reports on the Company's risk profile and the RMC's
actions on a regular basis to the Board and the Audit and Risk Management Committee.
The Company's risk identification, assessment, management, monitoring, and reporting
operations are ultimately overseen by the Board (Blackberry Annual Company Report,
2021). The Audit and Risk Management Committee aids the Board in overseeing the
Company's enterprise risk management, which includes risk assessment, risk
compliance, the internal audit function, and the controls, processes, and policies in
place to manage risk. The Board's Compensation, Nomination, and Governance
Committee also aid the Board with risk management and controls related to the
Company's compensation policies and practices, including the administration of
equity-based compensation programs (Blackberry Annual Company Report, 2021).
ISO 27001
Involves establishing an information security management system (ISMS), which
brings together people, resources, and regulations to generate a series of measurable
security protocols to secure information assets.
ISO 27018
The standard is intended to serve as a “reference for selecting PII protection
policies as part of the process of adopting an ISO/IEC 27001-based cloud computing
information security management system.”
ISO 9001
Customer focus, leadership promoting quality engagement, applying the process
approach, and ongoing improvement are among the most widely used global quality
standards.
Ensures Compliance
Alongside, in compliance with the best grading system, standards, and
procedures of Blackberry phone models there are high standard organizations and
institutions that ensure this effectively and efficiently (Blackberry Certifications, 2021).
NATO Restricted
For the storing and transmission of data classified up to and including NATO
restricted.
Cyber Essentials
A cybersecurity standard was developed by the Communications-Electronics
Security Group (CESG), the information security branch of the United Kingdom's
Government Communications Headquarters (GCHQ). It specifies the security measures
that an organization must have in place to have confidence that it is properly handling
cybersecurity and limiting the risk posed by Internet-based threats.
QNX® OS
The International Electrotechnical Commission (IEC) standard 61508 Safety
Integrity Level 3 has been certified to meet the requirements (SIL3). It's also certified to
meet ISO 26262 Automotive Safety Integrity Level requirements (ASIL D).
X. CONCLUSION
Comparison between theory and reality
We have seen a great performance at the start of the project. The planning stage
of the project had been satisfactory. As seen in the data of the 2009 report, the project
brought about a huge improvement in the first year. However, the reality that the
company has failed to keep up with the fast-paced trend of smartphones still happened
to RIM. Blackberry was late in introducing their own touch-screen technology, and they
seem to underestimate the power of their rivals, Apple and Samsung, due to its
popularity when they first launched their mobile devices. It is still commendable that
they tried their best to keep up with smartphone technology. The rise of new software
and applications was one of the main reasons why Blackberry was left behind. They did
not adjust well enough to the trend and were stubborn in their own software
development. The reality gradually let the company become bankrupt. All in all,
Blackberry Storm was a one-hit-wonder that didn’t have the consistency to pull up the
corporation’s already sinking performance.
XI. RECOMMENDATION
If the group were the project manager of the Blackberry Storm, they would give
more importance to the sectors of product development and quality management. With
regards to external product development, the group would redesign or reinvent the
glass panel of the touch screen as it gave off a different feel when clicked on by the
users. Internally, the group would focus on fixing the bugs of the phone such as its slow
responses and it experienced many system crashes. Alongside this, the group would
also look into the product’s quality management since the actual product was returned
by most end-users due to its defective nature.
XII. LEARNINGS
Many learnings can be gleaned from BlackBerry’s successes and failures.
In the world of technology, fast beats big. Speed and agility are important to stay
ahead of the competition.
BlackBerry also didn’t understand that the current market highly values modern
designs. Before Apple became more popular with its iPhones, it already disrupted the
desktop computer market with its attractive design and colors, which became a huge
success. This was a clear sign that customers like modern and attractive designs, being
perceived as being innovative. BlackBerry always had traditional, horrible designs. They
were also heavy and bulky.
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Peer Rating Evaluation
Anastacio 1.00
Santos 1.00
Agustin 1.00
Santos 1.00
Agustin 1.00
Santos 1.00
Agustin 1.00
Miranda 1.00