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Microsoft Is the Creative Spark Burning Out

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Submitted By phoenixsilver
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While old rivals and new players are able to successfully commercialize their innovations and grow their companies Microsoft struggles to do the same (Exhibit 1).
Microsoft can’t effectively commercialize its innovations; Windows Mobile, TabletPC, Zune and e-Reader were not successfully brought to market and its “Online Service Business” and “Entertainment and Devices” divisions are not profitable. Where they continue to succeed is in the Server & Tools, Client and Business Divisions.
Microsoft needs to do the following: 1. Fire Steve Ballmer. Under his leadership the company can’t make business divisions profitable, commercialize innovation, or return value to shareholders (Exhibit 2). Bring back Gates for inspiration while searching for a successor. 2. Rebrand the “Business Division” the “Applications Division” and make applications available on all platforms (iOS, Android, Windows, Cloud…etc.). Mobile markets are growing 70%/year and can’t be ignored because they don’t run windows. 3. Merge the “Client” and “Server and Tools” divisions to create a “Platform” division. Develop platforms for all technologies (PC’s, Social Media, Servers, Cloud, Phones, Tablets…etc.). The merged unit will reduce internal competing. 4. Spin-off the “Online Services Business” and “Entertainment and Devices” divisions. These as stand along companies will be smaller and more nimble and may innovate successfully on its own, as they are not able to innovate within Microsoft. 5. Cut R & D by 75%. Use the cash from the savings, spin-off and holdings to acquire complementary companies (increase quality, expand platform, add features) to the remaining divisions.
The new CEO needs to ensure that the employees work cohesively together, understand their purposes and that markets are changing. He needs to focus the company on its core strengths and

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