“I like to fix things. I always liked to fix things,” Chen said at the latest RBCDisruptors, our monthly conversation on innovation and how technology is changing the way we work, live and play.
He’s had plenty to fix at BlackBerry, the iconic Canadian tech company he took over as executive chairman and CEO in 2013. One of his first tasks back then was to announce a record $4.4 billion quarterly loss. The company got back in the black after a pivot to software and services, which now drive 90% of its revenue. The numbers are far below the good old days — but they’re climbing.
BlackBerry’s CEO says he’s driven to do what others think isn’t possible. Pulling that off takes a clear head and a sharp understanding of the larger trends around you.
He spoke to our audience about trade tensions between the U.S. and China, the future of mobile devices and how artificial intelligence is changing cybersecurity.
Here are some of his insights:
1. Huawei Will Have to Open Up
In the emerging cold war of technology, 5G is the latest battleground. Chen says China’s Huawei will eventually have to surrender its code for examination if it wants to win access to Western markets. “I see no other way for Huawei to get back in the game, without doing that,” he said. The reality is, Huawei isn’t the only supplier of emerging technologies like 5G routers and modems, and Western governments can move on without them. They can turn to other firms like Ericsson.
2. We May Have Seen Peak Phone
Chen says Apple got the inflation curve wrong, and the $1,000 phone isn’t going to be the next big thing. There’s not enough innovation to justify the eye-popping prices we’ve seen on new models.
3. Cars Are the New Smartphones
Vehicles are increasingly technology devices — and they’re going to need secure software to protect them. Chen sees this as BlackBerry’s big opportunity. Its QNX technology is already being used in 120 million cars. Amid concerns about hackers driving cars into ditches and drones into plane engines, BlackBerry’s goal is to make QNX the standard automotive operating system — what Windows is to PCs.
4. The Cyber Battle is Going From Defense to Offence
If you’re focusing on your most recent hack, you will lose. Security is a cat-and-mouse game that’s top of mind from the armed forces to hospitals to major banks, and both the hackers and defendants are turning to artificial intelligence to get them ahead of the other side. BlackBerry made its offensive play last fall, spending $1.4 billion to acquire Cylance — a cybersecurity company that uses AI to predict future attacks.
5. BlackBerry Doesn’t Want Your Data
Going up against giants like Apple and Google means focusing on your strengths. For BlackBerry, that’s security and privacy. It’s the heritage of the company, and its bet for the future. Unlike its competitors, BlackBerry isn’t trying to manage and monetize data. “We don’t take a look at any of the data. We don’t use it, we don’t care about it. We actually have an algorithm to discard it.”
6. Relish Your Losing Hand
Chen’s approach to business borrows from his love for contract bridge. He likes the game because it’s not about having a lucky hand. You get points based on how well you play the hand you’re dealt. “It’s really about, could you do better with what you’ve got.” That’s the challenge that drew him to BlackBerry. It’s a tougher road, but play it well, and it’s a higher playoff.
Smarter technology doesn’t mean we can sit back and let Alexa take the wheel. It means making our own pivot, and ensuring our society is not only tech-dependent but tech-savvy.
More from the RBC Thought Leadership Series:
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.