Sack Ballmer? Break Up the Company? How Microsoft Could Innovate

number of customers with almost everything it does. Shaw writes, “We think about innovation in relation to its ability to have a positive impact in the world.”

Trying to dismiss Brass’s claims, Shaw cites the widespread availability of Microsoft products and features like ClearType (as part of Windows), OneNote (part of Office), and Project Natal (an upcoming part of Xbox 360). But frankly, these examples pale in comparison to how far behind the company seems in areas like mobile software and devices, social networks, Internet services, and digital media.

Overall, Microsoft’s official response leaves a lot to be desired. It doesn’t address any of the deeper issues Brass raises. But part of the problem is communication: the term “innovation” largely has lost its meaning and has become a buzzword for big companies to use whenever they want to sound competitive and forward-thinking. Whereas it should reflect the most creative, surprising, and specific game-changing ideas a company has to offer.

So what should Microsoft do? Maybe it’s simply too big to be truly innovative anymore. Some people, like 10-year Microsoft veteran Hillel Cooperman (now at Seattle startup Jackson Fish Market), would suggest breaking up the company. Others undoubtedly want to see CEO Steve Ballmer replaced—but by whom? It’s not clear who within the company could conceivably succeed Ballmer, but perhaps an outside candidate might emerge.

It would be quite telling to compare and contrast the way other tech giants like Amazon, Apple, and Google deal with similar issues as they grow, and to examine their leadership style, corporate culture, and product world view as compared to Microsoft. Then maybe we’ll get somewhere with all of this.

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.