NMDL Final Microsoft
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The document discusses Microsoft's position in a changing market and opportunities for expansion. It notes that Microsoft established in 1975 and its IPO created billionaires and millionaires. In 2011, Microsoft purchased Skype for $8.5 billion to open new doors. The document considers utilizing social media to complement existing markets and partnerships to help people grow. It identifies markets with potential for penetration and whether Microsoft should start its own social media site or partner with an existing one.
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H W13109 IBM’S DIGITAL INFLUENCE PROGRAM .docx
H
W13109
IBM’S DIGITAL INFLUENCE PROGRAM
Asha Kaul and Varun Thappa wrote this case solely to provide material for class discussion. The authors do not intend to illustrate
either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other
identifying information to protect confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written
permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies
or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University
of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected]
Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-04-16
In the first week of August 2011, Sumita Bajaj, director of Marketing and Communications, IBM India,
was reassessing the growth and development of the Digital Influence program, which had been
conceptualized in the fall of 2009. The project’s aim was to use social media to increase the share of voice
and reach of IBM’s five software brands (Rational, WebSphere, Tivoli, Lotus and Information
Management). In the past year, planned and concentrated work had shown positive results. Now, the
challenge was to engineer sustainability into the approach. On August 16, 2011, in dialogue with
Roshni Sengupta, Digital Strategy and Marketing manager, IBM Software Group, India/South Asia, (see
Exhibit 1), Bajaj asserted that IBM’s achievements, though commendable in such a short time, were not
unexpected. However, the objectives of the digital influence strategy—an increase in brand perception
and the creation of technology evangelists— remained to be achieved.
The Digital Influence program had been launched in February 2010, after almost eight months of
planning. Seventy-five software subject matter experts (SMEs) were selected to help the firm achieve its
desired objectives. Within a year, in 2011, share of reach for all the brands had improved substantially.
Lotus had the maximum rate of increase at 1,933 per cent, followed by Information Management (IM)
with 421.8 per cent. Although the percentage increase was as per the projections, Bajaj was hesitant about
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technical evangelists?
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456rot27628_minicase04_456-458.indd 456 120617 0319 PM.docx
456
rot27628_minicase04_456-458.indd 456 12/06/17 03:19 PM
How the Strategy Process Killed Innovation at Microsoft
to match that of other tech companies such as Google,
Apple, and Amazon because they created entirely
new areas of computing from scratch, and as a con-
sequence, their stock prices have soared. One reason
Microsoft’s fell and flattened in the 2000s was that
it saw its mission differently. Protecting its existing
portfolio, Microsoft largely failed to commercialize
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Top-Down Strategy Process Killed
Bottom-Up Strategic Initiatives at Microsoft
Microsoft actually came up with some major break-
throughs, but failed to successfully commercialize
them. The root of the problem seemed to lie with
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dows became the industry standard in 1990, Micro-
soft’s strategy was defensive: Any new product or
extension had to strengthen the existing Windows-
Office franchise; if not, it would be “killed.” Here
are some great products and services that Microsoft
invented, but never commercialized.
SINCE MICROSOFT LAUNCHED Windows 3.0 in
1990, it has dominated the industry for PC operating
system (OS) software with a 90 percent market share.
Microsoft’s huge installed base of Windows operating
systems on PCs and its long-term relationships with
original equipment manufacturers (OEMs), such as
Dell, HP, and Lenovo, create tremendous entry bar-
riers for newcomers. Intel’s semiconductor chips are
the perfect complement to Microsoft’s operating sys-
tem. Every time Microsoft releases a new operating
system, demand for Intel’s latest microprocessor goes
up, because new operating systems require more com-
puting power. Because of the complementary nature
of their products, Microsoft’s and Intel’s alternating
advances have created a virtuous cycle, benefiting
from network effects. The successful combination of
Microsoft’s Windows and Intel’s processors has pro-
duced the Wintel (a portmanteau of Windows and
Intel) standard in the PC industry. By 1999, Microsoft
was the most valuable company on the planet.
Fast-forward to 2017, two years after Microsoft
released Windows 10, its latest version of the ubiqui-
tous operating system. For the past quarter century,
Microsoft’s business model was to establish and main-
tain the dominance of the Wintel standard in the PC
industry. With this standard, Microsoft made money
off consumer and business application software such as
its Office Suite. Microsoft remains hugely profitable:
With some $85 billion in annual revenues in 2016, it
generated over $20 billion in profits! Windows and
Office still generate about 40 percent of Microsoft’s
total revenues and 75 percent of profits. The gross margin
of “classic” Office is 90 percent, while the new cloud-
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H W13109 IBM’S DIGITAL INFLUENCE PROGRAM .docx
H
W13109
IBM’S DIGITAL INFLUENCE PROGRAM
Asha Kaul and Varun Thappa wrote this case solely to provide material for class discussion. The authors do not intend to illustrate
either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other
identifying information to protect confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written
permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies
or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University
of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected]
Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-04-16
In the first week of August 2011, Sumita Bajaj, director of Marketing and Communications, IBM India,
was reassessing the growth and development of the Digital Influence program, which had been
conceptualized in the fall of 2009. The project’s aim was to use social media to increase the share of voice
and reach of IBM’s five software brands (Rational, WebSphere, Tivoli, Lotus and Information
Management). In the past year, planned and concentrated work had shown positive results. Now, the
challenge was to engineer sustainability into the approach. On August 16, 2011, in dialogue with
Roshni Sengupta, Digital Strategy and Marketing manager, IBM Software Group, India/South Asia, (see
Exhibit 1), Bajaj asserted that IBM’s achievements, though commendable in such a short time, were not
unexpected. However, the objectives of the digital influence strategy—an increase in brand perception
and the creation of technology evangelists— remained to be achieved.
The Digital Influence program had been launched in February 2010, after almost eight months of
planning. Seventy-five software subject matter experts (SMEs) were selected to help the firm achieve its
desired objectives. Within a year, in 2011, share of reach for all the brands had improved substantially.
Lotus had the maximum rate of increase at 1,933 per cent, followed by Information Management (IM)
with 421.8 per cent. Although the percentage increase was as per the projections, Bajaj was hesitant about
declaring victory at this point.Was the model sustainable? What challenges did IBM face in the
implementation process? Would the current plan of operations help IBM gain market space and create
technical evangelists?
BEGINNING AND CONCEPTUALIZING
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expected that 7,000 chief information officers (CIOs) and their team members would attend. In June, the
marketing group met to organize and address issues related to social media ...
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Addresses 8 social media trends that impact business: social analytics, video, social commerce, chat bots, mobile first, enterprise collaboration, employee advocacy and need to focus. Recommends how different types of businesses should focus their social media marketing on different social media platforms.
456rot27628_minicase04_456-458.indd 456 120617 0319 PM.docx
456
rot27628_minicase04_456-458.indd 456 12/06/17 03:19 PM
How the Strategy Process Killed Innovation at Microsoft
to match that of other tech companies such as Google,
Apple, and Amazon because they created entirely
new areas of computing from scratch, and as a con-
sequence, their stock prices have soared. One reason
Microsoft’s fell and flattened in the 2000s was that
it saw its mission differently. Protecting its existing
portfolio, Microsoft largely failed to commercialize
any category-defining products or services. Why? The
answer: Microsoft’s strategy process killed innovation!
Top-Down Strategy Process Killed
Bottom-Up Strategic Initiatives at Microsoft
Microsoft actually came up with some major break-
throughs, but failed to successfully commercialize
them. The root of the problem seemed to lie with
Microsoft’s top-down strategy process. Once Win-
dows became the industry standard in 1990, Micro-
soft’s strategy was defensive: Any new product or
extension had to strengthen the existing Windows-
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are some great products and services that Microsoft
invented, but never commercialized.
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1990, it has dominated the industry for PC operating
system (OS) software with a 90 percent market share.
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systems on PCs and its long-term relationships with
original equipment manufacturers (OEMs), such as
Dell, HP, and Lenovo, create tremendous entry bar-
riers for newcomers. Intel’s semiconductor chips are
the perfect complement to Microsoft’s operating sys-
tem. Every time Microsoft releases a new operating
system, demand for Intel’s latest microprocessor goes
up, because new operating systems require more com-
puting power. Because of the complementary nature
of their products, Microsoft’s and Intel’s alternating
advances have created a virtuous cycle, benefiting
from network effects. The successful combination of
Microsoft’s Windows and Intel’s processors has pro-
duced the Wintel (a portmanteau of Windows and
Intel) standard in the PC industry. By 1999, Microsoft
was the most valuable company on the planet.
Fast-forward to 2017, two years after Microsoft
released Windows 10, its latest version of the ubiqui-
tous operating system. For the past quarter century,
Microsoft’s business model was to establish and main-
tain the dominance of the Wintel standard in the PC
industry. With this standard, Microsoft made money
off consumer and business application software such as
its Office Suite. Microsoft remains hugely profitable:
With some $85 billion in annual revenues in 2016, it
generated over $20 billion in profits! Windows and
Office still generate about 40 percent of Microsoft’s
total revenues and 75 percent of profits. The gross margin
of “classic” Office is 90 percent, while the new cloud-
based Office 365 only has a 50 percent profit margin.
Although Microsoft ...
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Download PDF here: http://yousend.it/zfl5rM
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Elevating Tactical DDD Patterns Through Object Calisthenics
Elevating Tactical DDD Patterns Through Object Calisthenics
Key Trends Shaping the Future of Infrastructure.pdf
Key Trends Shaping the Future of Infrastructure.pdf
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
Assuring Contact Center Experiences for Your Customers With ThousandEyes
Assuring Contact Center Experiences for Your Customers With ThousandEyes
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
A tale of scale & speed: How the US Navy is enabling software delivery from l...
A tale of scale & speed: How the US Navy is enabling software delivery from l...
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Free Complete Python - A step towards Data Science
Free Complete Python - A step towards Data Science
NMDL Final Microsoft
- 1. Goliath of a company in an always changing market By: Billy Horgan
- 2. Established on 1986 – IPO made 3 April 4, 1975 Billionaires and 12,000 Millionaires from Microsoft employees March 10, 2011: Microsoft purchases Skype for $8.5 Billion
- 3. “Build a Pipeline of Future Leaders” B uthow . . .
- 4. Utilize social media in complimentingmarkets Purchase of opens new doors! Microsoft controls the business software market but can it be expanded?
- 5. PARTNERSHIPS All helping people grow and develop
- 6. Strong social media presence www.facebook.com/microso @Microsoft www.linkedin.com/c ft mpany/microsoft Strong blogging topic Easily searchable
- 7. Markets with potential penetration! Start their own or partner with a Social Media website?
- 8. Linkedin has over 100 million users and growing Currently has a strong hold of business profiles But…… What’s missing?
- 9. Video conferencing and video interviews + =
- 10. Measuring success and budgeting Microsoft annual revenue of $60 Billion - Purchase of Skype for $8.5 Billion = Couple Billion to spare on social media market development or partnership… I think so! Just about ANYTHING