TechCrunch (Kyle Wiggers, 7/14) reports that Salesforce has launched a Code Builder, presumably, so that users can customize, add ‘apps’ & leverage (crowdsource) the collective efforts of a talented user base.
For Context: A decade ago, Leading ‘smart’ phone maker A recognized the potential of that talent pool, opened up their platform, leveraged those possibilities. Another leading smart phone brand, B, saw only risk & threats, kept development very limited and chiefly in-house.
A decade later: Where is (A) Apple? Where is (B) Blackberry?
Leveraging outside talent is risky; if caution isn’t taken, some apps will be awkward, irresponsible, flawed,… perhaps even bad for the brand rep. Salesforce is limiting access during this next (beta) phase & who can blame ’em? But the upsides of a creative motivated talent pool, speed to market & customized capabilities, seem worth the risk to a successful firm that evidently aims to stay ahead, risks & all.
In June, Forbes, CNN & others reported on the Kellogg will split into 3 firms:
1. Plant-based food production/tech; 2. a Snack firm; and 3. a Cereal firm. https://www.forbes.com/sites/qai/2022/06/22/what-kelloggs-stock-split-means-for-investors/?sh=71aad8176aad
While some pundits & promoters may be keen to call this ‘visionary’, one might remind stockwatchers the business world, like any other, is subject to ‘fad & fashion’ cycles.
Samsung, 3M, Berkshire, J&J, Hitachi, Nestle, Mitsubishi, Siemens & (pre-Welch) GE: huge diverse firms-ie conglomerates- that succeeded.
Splitting up companies is now ‘in vogue’ –but read up, study up, find facts not just fashion imo since Plant-based manufacturing has relevance beyond a few food categories (Cereals & Snacks), I get that move. Cereals & Snacks, although in separate grocery & convenience store & mass merch aisles, DO share sales channels, however, imo the Cereal-Snack split is less compelling.
Consider the #Brand management complications: Sharing brands? If the Cereal firm aims to use a brand to convey ‘health/wholesome’ but the Snack firm wants to portray it as ‘indulgent/decadent/irreverent’?
Good luck. This is more complicated -and maybe more problematic – than pretty press releases about ‘splitting up the biz to release the untapped value‘ may indicate.