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
300 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 implemented to include public
Chief innovation officers from 10 Microsoft largest accounts for two-day innovation brainstorming conference- asked to look 5 years ahead (LT ignore ST)
Steep believed this would drive innovation b/c had two critical flows of information done in product groups & Microsoft research labs
1. Top-down guidance
2. Bottom-up expertise
The 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 & enterprise licenses for software products
’08 operating income $22.5B on rev of $60.4B (15% growth rate)
New technologies threaten importance of Windows operating system as a universal platform, undermining traditional licensing model used by Microsoft for so long
Microsoft business model relied heavily on product