One of the most common phrases in today's business lexicon is "Change is the only constant in the world". Well, I think our friends at Microsoft would know all about that. A few years ago, from an outsider's point of view, it seemed as though Microsoft could do no wrong. The company and it's business environment seemed to be setup perfectly.
- In the operating systems space, the next competitor seemed lightyears behind. The windows juggernaut seemed to have conquered almost the entire market. Mac's OSX seemed to be reserved for freaks and the Linux / Unix Operating Systems seemed reserved for the nerds.
- Aside from the Operating Systems space, Microsoft's Internet Explorer was also by far the most utilized web browser on the planet.
- The Window's Mobile Operating System seemed to be on the cusp of becoming the next great technology invention. It seemed certain that we would all be carrying smart phones around that were powered by the big M.
- Of course, Microsoft's CEO was the richest person on earth and probably the most recognizable business tycoon in the world.
So, what happened ? How did this company, having attained the mystical throne of being the world's greatest technology company reach where it is today ? And where exactly is it today ?
In the cut-throat universe of technology, the moment you think about slowing down, the world around you changes so much that you're hardly able to recognize it. It seems to me as though Microsoft is a company that is finding it difficult to keep up with the pace of innovation set by it's rivals. Its rivals seem to be rapidly eating away it's lead in the various markets and in the eyes of the general public Microsoft now seems to be a slow moving organization wrapped up in red-tape.
I think Microsoft's road to here has been defined by the following:
- I believe that Apple has done a sensational job in catching up with Microsoft in the last 10 years or so. It appears that Apple was galvanized by the success of it's iPod and that it passed on this success to the other arms of it's business. In the student laptop market, my elementary research at IE shows that there are about as many Macs as there are PCs
- I also believe that Microsoft over-promised and under-delivered with Windows XP and that Windows Vista was a complete disaster for the business. The repeated delays in the release of Vista and the abundant issues in the final product desecrated the reputation of Microsoft.
- The appearance that Microsoft has been trying to emulate Apple in it's user interface has further damaged the reputation of the company.
So, where to from here ? Well, I think Microsoft might do well to take a look at the turnaround of another technology giant, IBM. Through the vision and leadership of a former McKinsey Consultant, Lou Grestner, IBM came back from near bankruptcy to once again being a revered global technology firm. To my knowledge IBM basically transitioned from being a company that sold servers and hardware to being one of the world's pre-eminent IT Services company. I certainly don't mean to say the state of Microsoft is anywhere near the state of IBM in the early 1990s, but perhaps Microsoft can take a leaf or two out of IBM's reinvention story.
On that note, I might love you and leave you but before I do, I am going to cave into temptation and post my favourite Mac vs PC ad:
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