RIM Case Study

I.How important is it for RIM to grow its pool of software developers?
It’s very important that RIM grow it’s pool of software developers for a number of reasons:

With ’07 revenues up 98% YoY, the current team of 1.400 software engineers are less than 50% of the figure required to drive engineering innovations and technological advances – required to maintain current growth rates and profit margins

Similar to its competitors – RIM’s policy is to maintain its R&D spending as a consistent percentage of total sales. Investment analysts often looked to this number to gauge the sustainability of revenue growth

R&D expenses are often seen as a proxy for new product or service development and therefore used as a key indicator of future revenue potential

II.What are the different options for substantially increasing the number of software developers?

RIM faces 3 key options – in its quest to increase the number of software developers which it can hire

Change or Optimize Hiring Practices
Recruit aggressively from Waterloo and other nation –wide campuses, in Canada. (by expanding its co-op programs to more universities and creating incentives for more students to join the co-op program

Form a global scouting group – dedicated to finding the best talent worldwide and bringing them into RIM (value proposition would be RIM’s org culture, which is very favorable to engineers – and the allure of Waterloo / Canada

RIM can vastly Improve its hiring processes by better managing the qualified pool of candidates who apply for engineering jobs, every year. RIM can utilize online job sites, exec search firms which specialize in technology jobs and even revamp its own career website in order to make its overall hiring experience, more efficient

Grow & Expand Existing Geographies
RIM can expand its existing Product & Tech Devpt facilities, across Canada and the U.S – and actively recruit engineers for those locations.

Increase Acquisitions
Bring has already had some success by bringing in new people through acquisitions. In order to maintain its current rate of innovation and support revenue growth, RIM may need to consider some strategic acquisitions – in geographic locations which attract strong engineering talent. European technology companies offer good opportunities – many eastern European nations have a lot of engineers and these markets are often hard to penetrate because of the nationalistic tendencies of European consumers

Go Global? Not possible – RIM’s technology is too valuable and it may be at risk, if RIM were to allow engineers across south east Asia, to have access to it. RIM could outsource some project mgt and process driven work to Asian subs – but that may not help with the engineering (R&D) problem.

III.
Which option(s) should RIM pursue? Why?

RIM should pursue the following options

1.Change or Optimize Hiring Practices: Clearly there is an opportunity to improve efficiency in the hiring process and capture more talented technologists. This opportunity exists today and does not require significant investment – just some progressive thinking and better organizational structure
Recruit aggressively from Waterloo and other nation –wide campuses, in Canada. (by expanding its co-op programs to more universities and creating incentives for more students to join the co-op program. Expand this initiative to include aggressive recruitment of engineering students at the undergrad and postgraduate level, from U.S & European Universities.

Form a global scouting group – dedicated to finding the best talent worldwide and bringing them into RIM (value proposition would be RIM’s org culture, which is very favorable to engineers – and the allure of Waterloo / Canada ( RIM should Start developing relationships with the top 20 technology universities in Europe, N/America, Asia and Africa)

RIM can vastly Improve its hiring processes by better managing the qualified pool of candidates who apply for engineering jobs, every year. RIM can utilize online job sites, exec search firms which specialize in technology jobs and even revamp its own career website in order to make its overall hiring experience, more efficient

2.Grow & Expand Existing Geographies – (Increase Acquisitions & technology develop partnerships): Strategic acquisitions help RIM solve two key issues – the company can gain almost instant access to new engineering talent – and if the purchase is a strategic one – they can mine the geographic regions where the companies are located, for more talent). RIM can expand its existing Product & Tech Devpt facilities, across Canada and the U.S – and actively recruit engineers for those locations.

Bring has already had some success by bringing in new people through acquisitions. In order to maintain its current rate of innovation and support revenue growth, RIM may need to consider some strategic acquisitions – in geographic locations which attract strong engineering talent. European technology companies offer good opportunities – many eastern European nations have a lot of engineers and these markets are often hard to penetrate because of the nationalistic tendencies of European consumers
IV.
How would you recommend Yach begin to implement the option you recommended? (Be as detailed and specific as possible.)

The Challenge: Yach needs to expand the base of engineers at RIM who would be focused on research, product development of hardware and software applications for the future. Given RIM’s 98% increase in revenue and positive forecast.

First: Yach needs to review his current plans and commitments for R&D and Product Development and determine his priorities for the next 2 years – he must do so, taking in to account RIMs 1st quarter revenue projections of $2.2B and the fact that another $2.2B in revenue from new subscribers, is expected in the next fiscal year.

Next, Yach must immediately determine the level of resources required to maintain the existing RIM infrastructure (hardware - handsets, software and services). Next – he must determine his big bets for the next 2 years and boldly outline the amount of resources he would need in order to accomplish his goals. (1000 new engineers, 2,500, 3,000? (How many of these engineers could be new graduates vs. leaders/experienced technologists who would be thought leaders in the RIM organization

Once Yach has determined the number of engineers required and the mix of youth vs. experience – he can share that vision with Mike and the senior leadership team. Yach should recommend that the company undergo a two tier approach in order to recruit the necessary talent.