Where Was Management When Motorola was on Top? – #39
Lack of planning and a MANAGEMENT TEAM that lived in the past Resulted in Motorola being split into two companies – One of which seems to have some insight of what Managements responsibilities are when it comes to survival in a very competitive environment:
Motorola Solutions is actively recreating its mission through a shift in product and market addressed at software capabilities that merge recognition of a wide variety of sources providing info in the form of videos and pictures that represent capabilities that require matching these visuals, storing the data and work with the data being captured. The amount of present and growing data is limited in its present value, due to processing the exponential growth of this data. Motorola Solutions is addressing these issues through quickly acquiring capabilities that they need to capture a share of this growing market. Motorola Solutions has the global marketing infrastructure in place as a result of serving law enforcement, both on a public and private basis , but now needs a full product pipeline to serve these new and growing markets. CEO Greg Brown knows that the speedy method of growth is through acquisitions. Nine acquisitions in three years has shifted the product mix to 31% software/services while still maintaining focus on 50% of the revenue coming from radios and other communications equipment.
For example they just acquired VaaS International Holdings which produces cameras and software used for license plate recognition and analysis and is currently working with ballistics. MS paid $445Million for Sales of $100 million. A year ago, MS bought Avigilon for one $1B, a Canadian company that makes video-surveillance equipment and software. They definitely have a plan, and it reflects about where they think the technology needs to go.
The prize lies in the software that will even become more important because of First Net, the first nationwide wireless network for public safety, which will carry pictures, data and other information from smart-phones, laptops and other digital devices. State-of-the-Art dispatch centers are now able to interact with citizens through social media, not just phone calls. If I were a betting man, my bet on MS would be that they will roll out a cloud-based records management software system to allow, public and private companies to do their business more efficiently. Therefore, the risks that MS will face will be many:
How many other Companies would be taking Market Share?
While the acquisitions mode might be a fast way to add new products to the pipeline, the assimilation of these high tech personnel into a cohesive unit will be a huge challenge. In a tight labor market MS will be vying for top talent. How will the old “analog” mentality match the “millennial” drive towards high tech solutions?
How will MS provide stability to its network of global locations in such key areas as communications, quality, defining innovation, training, and the need for personnel to be flexible to move to Salt Lake City, Krakow, Poland, Bangalore, India and Chicago. After all, wer’e not dealing with the WWII walky-talky, nor the reliable police car radio. High tech requires that they surround themselves with smart and highly skilled personnel. Not easy to find, and when you do, you will have to compete in hiring them and provide an environment that will allow them to motivate themselves.
MS will have to stay on track and be focused on do-ability, speed to market, above all understand competition and future trends. The area of document management is a very complex area and far from the scope of Software. Every Customer will require special treatment, therefore, careful evaluation of all advantages/disadvantages will require a special and realistic effort. Distribution channels could represent the most challenging factor.
Keep the pipeline line full of new and relevant/innovative products in Order to maintain and grow market-share and also provide an environment for consistent building of the BRAND.
The need for plans will be directly correlated to the success of MS. If they would have had a plan when they were “on the top of their game”, they would have not opted for analog vs. digital, nor avoid follow-up technology to the “FLIP” Phone, or mishandled Irridium an RFID technology that had unlimited potential.
Please review Contents for a simple one-page plan found in BLOG #?
Good Luck Mr. Brown – so far so good!