Microsoft Failing in Innovation, Former Executive Asserts
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On Feb. 3, a former Microsoft executive named Dick Brass published an op-ed piece in The New York Times that suggested his ex-company was "failing" due to a combination of infighting and an inability to innovate. Those issues, Brass said, had led to Microsoft losing the lead on a number of technological developments, including e-reader technology, that if carried out successfully could have potentially led it to greater market share in various areas. For example, Brass suggests that work on a tablet PC was effectively hamstrung in 2001 when "the vice president in charge of Office at the time decided he didn't like the concept" and "thought our efforts doomed." To this day, he asserts, "you still can't use Office directly on a tablet PC." Microsoft responded (responding is basically your own response, when an ex-employee gets their hands on a megaphone as large as the Times) on the official Microsoft blog. "Former Microsoft employee Dick Brass has an op-ed in the NYT arguing that our better days are behind us," Frank Shaw, corporate vice president of corporate communications, wrote in a Feb. 4 posting. "Obviously, we disagree." Shaw went on to argue that Microsoft aims first and foremost to deliver technologies with "broad impact." When it comes to things like tablet PCs, he argued, "You could argue that this should have happened faster. And sometimes it does. But for a company whose products touch vast numbers of people, what matters is innovation at scale, not just innovation at speed." He highlighted Xbox 360 as "the first high definition console" and cited the upcoming Project Natal as "the first to deliver controller-free experiences" for gamers. Microsoft CEO Steve Ballmer has insisted at several points that he wants the company playing to the broadest possible audience. "You can't be high priced," he told a gathering of financial analysts back in July. "That doesn't get us to the high volume that we aspire to." When it comes to tech, you don't necessarily need to be first out the gate--both the iPod and the iPhone were late entrants to the portable media player and smartphone markets--but you do need to produce something that offers a differentiator of some sort if you want to build and sustain a competitive advantage. Every time a company announces an upcoming "game-changing" product, you wait to see whether that device or software platform will indeed hit that sweet spot between the radical and familiar, and become one of those objects that reorganize your whole world. It's possible for any company to offer a technology like that, but the larger ones run the risk of becoming calcified in their habits and self-destructive at their core--something that Brass seems to allude to. What do you think? Is Microsoft "failing," as Brass asserts? Or does the company have something going in this supposed focus on disseminating technology to a wide base through its massive channels? |


Comments (5)
Microsoft is failing in publicly measured or observable arena, such as lack of a new Windows Mobile OS, loss of IE market share, 16-year old unfixed vulnerabilities, etc ... while on the developer side, it has been innovating so fast that developers (or their bosses) want Microsoft to take a breather so they can catch up with the base technology.
Posted by Saratoga Sam | February 5, 2010 5:28 PM
Brass wins on the weight of evidence. Shaw has a minor point with the scale challenge.
Posted by Paul | February 5, 2010 8:31 PM
Microsoft has the same problem, that many other companies have: A marketing guy as a CEO. Marketing guys do not tend to be innovative (at least not those I know).
Posted by Leon Caverne | February 6, 2010 9:22 AM
The main problem is that Microsoft has a bunch of highly entrenched VPs running multi-billion dollar product fiefdoms who care more about maintaining their position that advancing their products or honouring innovation with their employees.
The potential those VPs sit on is enormous. Dick Brass was one of the few who tried to direct it rather than squelch it.
If you read Brass' comments carefully you can see that many of the criticisms are directed against Steve Sinofsky, who will basically murder any product he doesn't own regardless of the way this impacts the company, its products and customers. See how his tune changed as he moved from Office to Windows...
Posted by Mike | February 10, 2010 8:26 PM
Microsoft's biggest problem and the real reason for failure is NOT the fight for resources to innovate, but the fundamental problem of extremely buggy products NOT designed for the human race.
Microsoft's products are a house of cards. Their OS and other products/applications prompt users for question they could never understand let alone answer correctly. They don't develop software for people, they go about 70% of the way and run out of time and money and release.
Microsoft is lost, they are no longer cheap either - $400 for Windows 7 Ultimate??? That's two iPhones ;)
Steve Ballmer is so ignorant about his companies problems, that all he can say is we need "volume"?? Oh brother! His thinking is backwards -- Mr. Ballmer you need to BE in control of your company before you can think about volume.
Sourcing much of your efforts outside of the US to cheaper programmers (65,000+ H1B1 Visas) hasn't really paid off has it?
Posted by Rob Ainscough | March 1, 2010 11:37 AM