Where does Innovation come from? Anywhere - Innovation is a phenomenon that can come from anywhere Product Groups Employees Research Customers & Partners Labs
Taxonomy of innovation
Examples of Product Group innovation New Features within an existing Product Group Windows Search, Office Ribbon, Hotmail drag & drop support New Marketing / Packaging or Bundling Effort Office Suite, Enterprise Agreements Revitalized service offering / New Partnerships Ford Sync, Mergers & Acquisitions New Member for and existing Product Family OneNote, SharePoint
Characteristics of startup businesses Build new market capabilities. Create real options in the face of market shifts that ensure long-term leadership Build new technology capabilities Seed new growth areas for the company Venture Capitalist Initially funded by senior leaders –chief software architect or chief of research and strategy
Challenges of startup businesses Disruptive models face resistance from existing product groups Tendency to address new markets with ‘proven’ mindset and technology Gray line between product adjacencies and ‘new technology’, must ensure high-powered teams are being aimed at innovation Need strong sponsorship to build and maintain momentum. Struggle to raise funding in performance metric-based budgeting process
Examples of startup businesses Development Concept Center Under the CSA – grow ideas from concept to product. Examples: New storage solutions, Simple Sharing Extensions Unlimited Potential Group Integrates new business models, technology solutions, and expanded citizenship efforts to address the needs of people in developed and developing nations Microsoft Start-up Labs An entrepreneurial new product group that develops ideas and prototypes into early-stage, market-proven products.
Characteristics of exploration innovation
Microsoft Research (MSR) Established in 1991 - with over 800 employees
Looking 10-15 years beyond current product-development
Collaborating with the entire research community
Tech Transfer - incorporate the latest innovations into the company’s products
Academics - Building relationships with key universities
ThinkWeek Twice a year anyone can submit a paper to be reviewed/commented on by Bill Gates and other Technical Fellow/ Distinguished Engineers Several examples (including Tablet PC, Silverlight, etc were made into products) Social Networking site that anyone in the company can read and comment on papers
Tool for collecting ideas and sharing them with peers
Bill Gate’s time away from Microsoft to “think” about new ideas for the business
A think tank for evolving ideas and concepts
The neutral party for enhancing collaboration and new ideas in Office
Communities Of Practice
Microsoft ResearchWorldwide Presence 16 MSR India Redmond MSR New England Redmond, Washington Sept, 1991 San Francisco, California Jun, 1995 Cambridge, United Kingdom July, 1997 Beijing, China Nov, 1998 Silicon Valley, California July, 2001 Bangalore, India Jan, 2005 Cambridge, Massachusetts July, 2008 MSR Cambridge, UK MSR Asia (Beijing) Silicon Valley, California
Microsoft ResearchOur Mission 17
Expand the state of the art in each of the areas in which we do research
Rapidly transfer innovative technologies into Microsoft products
Ensure that Microsoft products have a future
Microsoft Research Notable Areas20 years of innovation Natural Language Office: grammar checker + SmartTags + language detection + document translation; Bing Translate; KnowledgeBase translation; product localization tools Vision and Graphics Technology Progressive mesh libraries for DirectX and Xbox; water and texture rendering for Xbox games; Image-based rendering in DirectX, Xbox, Photosynth, Bing Maps: 3-D aerial view + street view; Office image editor; Windows Live Photo Gallery face recognition and Photo Fuse; Tag; Xbox Kinect Machine Learning Office answer wizard; Spam filter for Outlook, Exchange & Hotmail; Xbox TrueSkill + drivatars; HIV vaccine design; Bing InstantAnswers; Bing Maps ClearFlow Development Tools Analysis tools (code & protocols); Testing tools; Performance tools; C# generics; F# Database Technologies Auto Administration; Index generation; Indexed views; Data mining algorithms Information Retrieval Bing; Windows Desktop Search Surface Computing 18
Microsoft Research Product Impact20 years of technology transfer 19 DOS Disk Compression Algorithms 1992 Windows and Office Performance Tools 1995 Windows Media Audio encoding 1996 Office Grammar Checker 1997 Terraserver (leading to Bing Maps) 1998 Windows IPv6 2000 ClearType 2001 Office Speech Recognition 2001 Tablet PC 2001 Spam Filter (Outlook, Exchange, Hotmail) 2003 SQL Server Data Mining 2003 Xbox “Drivatars” 2004 MSN/Live/Bing Search 2006 Windows Desktop Search 2006 Xbox TrueSkill Player Matching 2006 AdCenter Pricing Algorithm 2007 MultiPoint Mouse 2007 Robotics Studio 2007 Bing Translate 2007 Surface 2007 F# 2007 Bing Maps Clearflow 2008 Kodu 2008 Bing Maps 3-D Aerial View 2009 Tag 2009 Bing Maps Street View 2010 Windows Phone Virtual Keyboard 2010 Kinect 2010
Scope of Microsoft Research Significant Investment Investing > $9B in R&D (MSR & product dev) Staff of over 850 in 55 research areas International Research lab locations : Redmond, Washington (Sept, 1991) San Francisco, California (1995) Cambridge, United Kingdom (July, 1997) Beijing, People’s Republic of China (Nov, 1998) Mountain View, California (July, 2001) Bangalore, India (January, 2005) Cambridge, Massachusetts (February, 2008) - Xbox Kinect
Microsoft Research HEALTH AND WELL-BEING INITIATIVES Computational Modeling of Immune System Processes Medical Image Analysis Microsoft Biology Initiative Stochastic Pi Machine Domestic 2.0: Constructing Ideas of the Family Connecting and Partitioning the Domestic Space Healthcare Privacy Participant in the mHealth Summit 2010 - Xbox Kinect
What is Kinect? Combination of RGB camera, depth sensor and multi-array microphone RBG camera delivers three basic color components Depth sensors “sees” the room in 3-D Microphone locates voices by sound and extracts ambient noise Software makes all the magic possible - Xbox Kinect
Where can Kinect go? Consumer Air Guitar Hero Shopping in 3D Remote Control Replacement Dance Instructor Education Personal Trainer Physical Therapy Commercial/Government Identity authentication Conferencing Simulation Training - Xbox Kinect
Innovation Success Inhibitors
Several teams with competing ownership of the technology and/or product
Too many managers pushing their own agenda’s
No single team owning the problem and working towards a common cross group solution.
Too much too fast.
Too many people on it all at once, before we really figure out the problem.
Inadequate product or service that gets plagued with bad reviews and taints all future versions.
10 ways to help you fail 5 things to watch out for before you start Ideas are cheap. Ideas without action are even cheaper. Waiting for someone to give you resources to get started. Not having a good story that is meaningful. Trying to figure out the best business model. 5 things to watch out for after you start Not building momentum. Trying to be perfect. Over engineering. Assuming you know. Solving world hunger.