Innovation Strategy at Microsoft Essay

Microsoft Corporation is an American multinational softw ar fraternity that develops, manufacturers, licenses and supports a wide range of products and work related to calculation. Microsoft is the worlds largest software maker and affects millions of users worldwide every day. The company recorded all-time high revenue bringing in $73.7 billion for fiscal grade 2012.After analyzing this case, I have concluded that the main problem for Microsoft is that their full-bodied silos are inevitably hindering its ability to produce products and/or services to compete with current computing trends in the industry. While Microsoft continues to dominate the computing world, it cannot be attributed to their figure strategy. To address these problems I suggest that Microsoft alter their surround to better simulate innovation. Microsoft should create an environmental culture in which employees are encouraged to venture forbiddenside their tasks, minimal time pressure, and high conjecture s ecurity give official feedback for initiatives taken.These recommendations are based on unique(predicate) c one timepts from the book. Current environment inside Microsoft does not currently provide positive feedback. Their current environments serves commitments for each division and employees are faced with per act uponance evaluations. When employees failed to match designated commitments, employees were penalized. Additionally, employees are penalized for taking on activities unrelated to their commitments. First in chapter 6 we saw that in an industry where growth is slowing and competition becomes stronger, an boldnesss success requires innovation. This is why it is recommended that Microsoft strain on simulating innovation.We saw that innovators extrapolate from case-by-case developers and thereby can be considered the true source of progressive products. While an organization system manakin and creative individuals are advert stakeholders in the blood line, it is not enough to learn innovation. Per chapter 6, there are several(prenominal) effective ways to simulate innovation- of which are the recommendations suggested above.Innovation Strategy at Microsoft Clouds on the HorizonACC Applied Carbon Corporation (large environmental engineering conglomerate) EBC (executive Briefing Center)Innovation team- render was engaged with the engineer and the algorithm, he talked astir(predicate) how the algorithm that could increase the speed of the search This suggestion by provide reduced time used on massive server banks subsequent he proposed an innovation to monetization model that would save corps millions of zip time. Innovation at Microsoft Top-D sustain or Bottom-Up?Innovation drivers harvest-time throngs, Microsoft Research labs, Innovation teams generating grassroots innovation Innovation at Microsoft rightfully was a one-man show, vision and drive of a major(postnominal) leader, i.e. Gates, then would work its way down Gates would send knocked out(p) memos calling for dramatic change in products, services and technologies Microsoft offered Extensions on lively products & services result of product groups New products & services accounted for 1/3 Microsoft RevGrassroot InnovationGrassroot innovation- attempt to tap into diverse ideas of Microsoft employees & turn into profitable new backinges Participated in ThinkWeek, Quest, IdeAgency & Innovation Outreach Program ThinkWeek- technical papers submitted once a year directly to Gates who reviews them for a week & makes comments Quest- akin(predicate) to ThinkWeek but involved Microsofts most senior & accomplished technical minds Thinkweek & Quest tapped into minds of senior technical staff- ignored other employees IdeAgency- to full receive potential in grassroots innovation by all Microsoft employees Executive sponsor (most likely product group leader) identified a prb that needful a solution & all employees through an IdeaExchange tool would submit so lutions breeding by doing- needed more adjustments- submitting ideas wasnt enough.Therefore top ideas of IdeAgency were selected (ie. three hundred first session), form groups, were given a budget & resources to develop a prototype within 8 weeks. ThinkWeek, Quest, IdeAgency- all internal request for info, IOP implement to include public Chief innovation officers from 10 Microsoft largest accounts for two-day innovation cogitate conference- asked to look 5 years ahead (LT ignore ST) Steep believed this would drive innovation b/c had two critical flows of information through in product groups & Microsoft research labs 1. Top-down guidance2. Bottom-up expertiseThe Information Technology Industry Clouds on the Horizon Grassroots innovation initiatives response to increased competition from all sides (apple, amazon, google, linux and others) Microsoft generated most rev from consumer & enterprisingness licenses for software products 08 operating income $22.5B on rev of $60.4B (15 % growth rate) New technologies imperil importance of Windows operating system as a universal platform, undermining conventional licensing model used by Microsoft for so long Microsoft crinkle model relied heavily on product groups within divisions bandage each group tailored its software development process to its core technology & commercialize Product groups worked c omitly with Sales, Marketing & Service division to deliver on customer needs Again, licensing model has been successful for Microsoft but many business analysts that shrink-wrapped software method of generating revenue will be obsolete and lose to cloud computing items 2000 Apple launched MobileMeYahoo implemented online advertising business modelAmazon online service & transaction business modelGoogle online info search leaderGrassroots Innovation under MicroscopeProduct groups focus on ST & Research labs on LTSo many processes running simultaneously with lots of capital tied into them is Microsoft delivering on its process? The ThinkWeek & Quest relied heavily no Gates- so what if he departed? IdeAgency great on paper- while delivered many successes, few drawbacks- immense time required to facilitate withal many hurdles trying to make fruitful collaborations in distasteful environment Too much effort to get anything going crossways the product groups Many employees refused to work on projects beyond their defined objectives and commitments out of fear of receiving poor evaluations Organization Structure & DesignThree divisions programme Products & Services, Microsoft Business & Entertainment & Devices Deep silos that barely communicated or collaboratedThree business divisions, seven business groups & 27 product groups were told to focus on its own individual profit/loss. Business groups didnt have time or incentive to participate in collaborations away from their own group finishing & BeliefsDeveloper-centric company b/c most employees possessed extraordinary standard of tech expe rtise- every employee (even senior mgmt.) had small office with a private policy to concentrate better Culture a result of Gates behavior and mgmt. system driven by 3 core beliefs- 1) individual excellence (believed they had brightest employees in the world) 2) competitive behavior3) take aimed to never accept 2nd best (Go Big or Go Home)These believes lead to extreme point intra- and interfirm competition intensity Competition amongst each other for positionsPersonal shock with Gates & his lieutenants in which major employees are dissected & reviewed (can make or break your career at Microsoft) Culture & BeliefsIndividual & group incentives were primarily influenced by commitments tied to each employees output- detailed objectives stated in form of a contract between employee & supervisor. At beginning of year commitments set in stone & couldnt be changed.