Monday, September 04, 2006

Microsoft : Nothing soft about this company’s new initiatives

IIPM BEST MBA INSTITUTE
In the 21st century, where companies are struggling and striving for lowest cost per product, a company like Microsoft has been focusing on lowest cost per innovation since it started off in 1984, with an initial tie-up with IBM. It is Microsoft’s continuous innovation on the software and product fronts such as the newly released game console XBOX 360, that has helped it to sustain its leadership and at the same time maintain a sizable distance from its competitors who have even tried the free approach of open source codes such as Linux. In spite of long product cyles, the companies innovative streak can be credited to the extraordinary league of software engineers at Microsoft – and not surprisingly, one fifth of those happen to be Indians. In 2005, the company spent 15.5% of its revenues on research and development globally, which aggregated to $6.18 billion. Last year the company spent a whopping $7.78 billion, which was 21.1% of its revenues. Whether it is their renewed focus on their web business through Windows Live or the long awaited Vista, the companies products are feared by competition. Even in India, their innovation of now exploring selling their products through retail shops across various target markets, has rewritten the rules of competition. But if one were to vote on their biggest innovation, that would be of the enterprise moving away this year from the legacy of the man who started it all... William Gates!

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Source :
IIPM Editorial, 2006, Arindam Chaudhuri’s Initiative

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