2013-07-11

In Transforming Our Company [Microsoft memo, July 11, 2013] the following high-value activities based on devices and services delivery were defined:

Reinventing expression and documents. People love and need to express themselves in new ways. Documents are going from being printed to being experienced. There are many high-value needs for personal creative expression — some just for fun, others at work or at school. We will reinvent the tools and form of expressing oneself (and expressing things as a group) from paper and slides to online. We will ensure that the tools handle multimedia (photos, videos, text, charts and slides) in an integrated way and natively online. These documents/websites will be easily sharable and easily included in meetings. They will offer complex options such as imbedded logic and yet be easy to author, search and view. These documents will be readable from a browser, but the experience will be infinitely better if read, annotated or presented with our tools.

Next-generation decision-making and task completion. Our machine learning infrastructure will understand people’s needs and what is available in the world, and will provide information and assistance. We will be great at anticipating needs in people’s daily routines and providing insight and assistance when they need it. When it comes to life’s most important tasks and events, we will pay extra attention. The research done, the data collected and analyzed, the meetings and discussions had, and the money spent are all amplified for people during life’s big moments. We will provide the tools people need to capture their own data and organize and analyze it in conjunction with the massive amount of data available over the Web. Bing, Excel and our InfoNav innovations are all important here. Decision-making and tasks mean different things in personal versus professional lives, yet they are important in both places.

Social communication (meetings, events, gathering, sharing and communicating). Social communications are time-intensive, high-value scenarios that are ripe for digital re-imagination. Such innovation will include new ways to participate in work meetings, PTA and nonprofit activities, family and social gatherings, and more. We can reimagine email and other communication vehicles as the lines between these vehicles grow fuzzy, and the amount of people’s digital or digitally assisted interaction continues to grow. We can create new ways to interact through hardware, software and new services. Next-gen documents and expression are an important part of online social communications. We will not focus on becoming another social network for people to participate in casually, though some may use these products and services that way.

Serious fun. This expression may sound like an oxymoron, yet it encapsulates an important point of differentiation for us. There are many things people do for light fun, for example play solitaire, spend three minutes on a word game or surf the TV. Although we will enable these activities effectively, our biggest opportunity is in creating the fun people feel most intensely, such as playing a game that lasts hours and takes real concentration, or immersing them in live events and entertainment (including sports, concerts, education and fitness) while allowing interactive participation. Interactivity takes engagement and makes things serious; it really requires differentiated hardware, apps and services. People want to participate at home and on the go, and in gatherings with others. We see a unique opportunity to make experiencing events with others more exciting with interactivity. We also see opportunity in fitness and health because, for many, this is serious fun much more than it is a task.

The rationale behind is best represented by following excerpts from:
[1] One Microsoft: Company realigns to enable innovation at greater speed, efficiency
[2] Transforming Our Company

[2] we realized our strengths are in high-value activities, powering devices and enterprise services.

[2] The bedrock of our new strategy is innovation in deep, rich, high-value experiences and activities. It’s the starting point for differentiated devices integrated with services. It’s at the core of how we will inspire ourselves all to do our best work and bring to our customers the very things that will make a difference in their lives.

[1] We will plan across the company, so we can better deliver compelling integrated devices and services for the high-value experiences and core technologies around which we organize. This new planning approach will look at both the short-term deliverables and long-term initiatives needed to meet the shipment cadences of both Microsoft and third-party devices and our services.

[1] services core technologies in productivity, communication, search and other information categories [within Applications and Services Engineering Group]

[1] We will see our product line holistically, not as a set of islands. We will allocate resources and build devices and services that provide compelling, integrated experiences across the many screens in our lives, with maximum return to shareholders. All parts of the company will share and contribute to the success of core offerings, like Windows, Windows Phone, Xbox, Surface, Office 365 and our EA offer, Bing, Skype, Dynamics, Azure and our servers. All parts of the company will contribute to activating high-value experiences for our customers.

[1] We will pull together disparate engineering efforts today into a coherent set of our high-value activities.

[1] Our focus on high-value activities — serious fun, meetings, tasks, research, information assurance and IT/Dev workloads — also will get top-level championship.

[2] people also turn to technology for more important tasks in their lives — and we will focus our energies on creating new, memorable and even extraordinary experiences across our family of devices and services. Think of the student stuck on that term paper looking to display all his creativity in ways that will get him an A+; the family that’s getting together for a reunion and wants the delightful memories to last forever online; the gamer who is taking his fantasy team to the playoffs; or any of us who could be faced with a tough medical decision and needs to plan care and finances.

Such high-value activities include the full breadth and depth of areas like personal expression, decision-making and tasks, social communication, and serious fun — and we have both the drive and the capacity to reinvent these experiences for people across the globe.

[2] Our devices must support the same high-value activities in ways that are meaningful across different device types.

[2] We will be on a new path centered around delivering high-value activities on a family of devices with integrated services.

[2] We will engage enterprise on all sides — investing in more high-value activities for enterprise users to do their jobs; empowering people to be productive independent of their enterprise; and building new and innovative solutions for IT professionals and developers.

[2] Building upon Windows, Xbox and our growing suite of consumer and enterprise services, we will design, create and deliver through us and through third parties a complete family of Windows-powered devices — devices that can help people just as much in their work life as they do after hours. Devices that help people do more and play harder.

[1]  The evangelism and business development team will drive partners across our integrated strategy and its execution.

[1] Our marketing, advertising and all our customer interaction will be designed to reflect one company with integrated approaches to our consumer and business marketplaces.

[1] As devices become further integrated into everyday life, we will have to create new and extraordinary experiences for our customers on these devices. We are going to focus on completely reinventing experiences like creating or viewing a creative document and what it means to communicate socially at home or in meetings at work. We are going to immerse people in deep entertainment experiences that let them have serious fun in ways so intense and delightful that they will blur the line between reality and fantasy. And as we develop these new experiences, we will also support our developers with the simplest ways to develop apps or cloud services and integrate with our products. We will help businesses that find themselves in a new world of ever-mounting information to manage that information through greater enterprise information assurance. We will make these high-value activities priorities in our strategy.

Finally, this lead to the following functional organization as per [2] which is replacing the previous divisional organization:

Business Development and Evangelism Group. Tony Bates will focus on key partnerships especially our innovation partners (OEMs, silicon vendors, key developers, Yahoo, Nokia, etc.) and our broad work on evangelism and developer outreach. DPE, Corporate Strategy and the business development efforts formerly in the BGs will become part of this new group. OEM will remain in SMSG with Kevin Turner with a dotted line to Tony who will work closely with Nick Parker on key OEM relationships.

Operating Systems Engineering Group. Terry Myerson will lead this group, and it will span all our OS work for console, to mobile device, to PC, to back-end systems. The core cloud services for the operating system will be in this group.

Devices and Studios Engineering Group. Julie Larson-Green will lead this group and will have all hardware development and supply chain from the smallest to the largest devices we build. Julie will also take responsibility for our studios experiences including all games, music, video and other entertainment.

Applications and Services Engineering Group. Qi Lu will lead broad applications and services core technologies in productivity, communication, search and other information categories.

Cloud and Enterprise Engineering Group. Satya Nadella will lead development of our back-end technologies like datacenter, database and our specific technologies for enterprise IT scenarios and development tools. He will lead datacenter development, construction and operation.

 

Dynamics. Kirill Tatarinov will continue to run Dynamics as is, but his product leaders will dotted line report to Qi Lu, his marketing leader will dotted line report to Tami Reller and his sales leader will dotted line report to the COO group.

Advanced Strategy and Research Group. Eric Rudder will lead Research, Trustworthy Computing, teams focused on the intersection of technology and policy, and will drive our cross-company looks at key new technology trends.

COO. Kevin Turner will continue leading our worldwide sales, field marketing, services, support, and stores as well as IT, licensing and commercial operations.

Marketing Group. Tami Reller will lead all marketing with the field relationship as is today. Mark Penn will take a broad view of marketing strategy and will lead with Tami the newly centralized advertising and media functions.

HR Group. Lisa Brummel will lead Human Resources and map her team to the new organization.

Finance Group. Amy Hood will centralize all product group finance organizations. SMSG finance, which is geographically diffuse, will report to Kevin Turner with a dotted line to Amy.

Legal and Corporate Affairs Group. Brad Smith will continue as General Counsel with responsibility for the company’s legal and corporate affairs and will map his team to the new organization.

Filed under: Cloud Computing strategy, consumer computing, Enterprise computing Tagged: high-value activities, high-value experiences, Microsoft, Microsoft reorg, Microsoft strategy, new Microsoft functional organization, rationale for Microsoft reorg

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