Innovation Strategy at Microsoft
Innovation Strategy at Microsoft: Clouds on the Horizon
Microsoft Corporation is an American multinational software corporation that develops, manufacturers, licenses and supports a wide range of products and services related to computing. Microsoft is the world’s 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 year 2012.
After analyzing this case, I have concluded that the main problem for Microsoft is that their deep 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 innovation strategy. To address these problems I suggest that Microsoft alter their environment to better simulate innovation. Microsoft should create an environmental culture in which employees are encouraged to venture outside their tasks, minimal time pressure, and high job security give positive feedback for initiatives taken.
These recommendations are based on specific concepts from the book. Current environment inside Microsoft does not currently provide positive feedback. Their current environments sets commitments for each division and employees are faced with performance evaluations. When employees failed to meet 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 organization’s success requires innovation. This is why it is recommended that Microsoft focus on simulating innovation.
We saw that innovators derive from individual developers and thereby can be considered the true source of innovative products. While an organization system model and creative individuals are key
Microsoft Corporation is an American multinational software corporation that develops, manufacturers, licenses and supports a wide range of products and services related to computing. Microsoft is the world’s 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 year 2012.
After analyzing this case, I have concluded that the main problem for Microsoft is that their deep 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 innovation strategy. To address these problems I suggest that Microsoft alter their environment to better simulate innovation. Microsoft should create an environmental culture in which employees are encouraged to venture outside their tasks, minimal time pressure, and high job security give positive feedback for initiatives taken.
These recommendations are based on specific concepts from the book. Current environment inside Microsoft does not currently provide positive feedback. Their current environments sets commitments for each division and employees are faced with performance evaluations. When employees failed to meet 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 organization’s success requires innovation. This is why it is recommended that Microsoft focus on simulating innovation.
We saw that innovators derive from individual developers and thereby can be considered the true source of innovative products. While an organization system model and creative individuals are key