Please enable JavaScript.
Coggle requires JavaScript to display documents.
1.4C Foley, F.C., Mayfield, S. E., Boland, K.F (2017). Transformation of…
1.4C Foley, F.C., Mayfield, S. E., Boland, K.F (2017). Transformation of Microsoft Click for more options
Windows 10, due to be released in a few
months, would be the first version to continuously update.
perpetual license toward Office 365, a
subscription service. Microsoft's cloud computing platform Azure
-
Although
it had been a leading technology firm for decades, it failed to capitalize on several recent trends.
it failed to capitalize on several recent trends. In
search, Bing struggled to gain market share against Google; in messaging,
-
Microsoft originally distributed many products to customers through computer and software
retailers like Egghead.----2012
Microsoft was divided into five distinct segments: the Windows and Windows Live Division, Server and Tools, the Online Services Division, the Microsoft Business Division, and the Entertainment and Devices Division.
Approximately 75% of the revenue from this division came from OEM sales, as many PCs came with Windows pre-installed. Windows Live was a set of software products and web-based services like Windows Live Messenger and Windows Mail.
Microsoft had a substantial presence in server and network offerings. Server offerings could be run at a customer's site or in the cloud. The Server and Tools Division developed and marketed server software, such as the database management system Microsoft SQL Server, as well as software
developer tools, services, and solutions, including the cloud computin service Windows Azure and the prduct support and consulting service Enterprise Services.
Microsoft Office system, which included Office, SharePoint, Exchange, Lync,
and Office 365, generated over 90% of the division’s revenue.
Each segment was structured with its own management team, including its own CFO, controller,
and marketing team.
Microsoft as having a “Windows first” outlook and claimed that products that threatened Windows
would not be released
Performance Metrics Internally, the firm’s performance was closely measured relative to a
detailed set of metrics. The notion of “revenue per socket”
-
culture
Company Culture Microsoft’s culture of the early 2000s had some critics. They asserted that
some individuals exhibited a know-it-all mentality and that hierarchy
2013 Reorganization
Between 2011 and
2013, worldwide PC shipments fell from more than 350 million units to about 320 million units,
significant reorganization so that it could pursue
the strategy of being a devices and services company
After the reorganization, operations were split into two kinds of segments, Devices and Consumer
segments and Commercial segments.
The Commercial Licensing segment offerings included server products, such as Windows SQL Server, volume licensing of the Windows operating system and Microsoft Office for business, Skype, and most of Microsoft Dynamics.
In September 2013, the strategy of being a devices and services business got a boost when Microsoft announced its intention to acquire Nokia’s devices and services businesses for roughly $7.2 billion in cash.18
As this restructuring took place, Microsoft share price increased. After hovering in the twenties for
more than a decade, its 2013 closing price was $37.41. In
On May 8, 2013 Amy Hood was named Microsoft’s new Chief Financial Officer.
Later in 2013, surprising many company insiders and observers, Steve Ballmer
Among the list of possibilities was Ford Motor Company’s CEO Alan
Mulally, but the job went to insider Satya Nadella in early 2014.
Microsoft in 2015
CEO, Nadella began to articulate a “mobilefirst,
cloud-first”
The Nokia acquisition that had occurred just two years earlier had not yielded the results that were hoped for, and Microsoft’s phone business had failed to meet its sales volume and revenue goals.
Windows 10 upgrade licenses should be given away at no cost for a period of time for devices with genuine editions of Windows 7 or 8.
Microsoft took an impairment charge of $7.6 billion and anticipated that restructuring
costs would be in the $650-$750 million range.
Office applications could be purchased for about $180 under a perpetual license,
while the Office 365 version of those same applications would cost about $100 a year.
-
In addition, Amazon Web Services (AWS) had developed a dominant position
in cloud services, and Microsoft would need to invest billions in data centers to compete.
At a 2015 retreat for senior Microsoft executives, Hood gave a speech in which she articulated the
need for what she labelled performance and power metrics.
Culture Transformation
Kathleen Hogan, who was leading Microsoft’s global consulting and support business, to
become the firm’s Chief People Officer
-
At a 2015 retreat, senior leaders became part of what was called the
culture cabinet.
For example, one initiative that was introduced would move the firm from an annual
budgeting process to a rolling set of forecasts.
-