Why Microsoft Doesn’t Get Innovation

Akio Morita, the founder of Sony, said of innovation, “If you ask the public what they think they will need, you will always be behind in this world. You will never catch up unless you think one to 10 years in advance and create a market for the items you think the public will accept at that time.”

As an example of this, he tells a story of when Sony first introduced the Walkman and its salesmen went around to retailers to have the product placed in their stores, to no avail.  The retailers instead responded, “What would people want with a cassette recorder that can’t record?”

Of course, the retailers were right.   The Walkman was a tape recorder that couldn’t record.  But they also completely missed the point.  The Walkman wasn’t meant to be a cassette recorder.  It was a new way to experience music.

As Sony showed with the Walkman, innovation is not about making bigger, faster products.   It’s about seeing the world in ways others don’t, in paying attention to details that others don’t care to and  in designing  products that inspire and make you say “wow!”  In short, it’s about thoughtful, creative engineering.

And Microsoft doesn’t get it.

My favorite example of this is Microsoft Word, in which the default setting converts “(c)” automatically into ©.  Whenever I share this frustration with people, everyone responds in exactly the same way–“you know you can turn that off”–without realizing how preposterous that answer is.  There are perhaps 0.5% of the people in this world, concentrated in the advertising industry, who need a shortcut to ©.  If Microsoft exercised any common sense–or better yet, actually used their own products–they would realize that the default setting should be the reverse, to permit the people to create a shortcut rather than have the shortcut as the standard.

This is a minor annoyance, but precisely because it’s minor, it speaks volumes about the company whose philosophy is more is better.  Contrast Microsoft with Apple, which has, in a mere ten years, revolutionized the music player with its iPod, music retailer business with the iTunes Music Store, phones with the iPhone and tablets with the iPad.  The significance of these products is not so much in the impact that they have had on our lives, but in understanding that they have been so impactful so consistently in so many different industries because their philosophy to make products better by simplication is relevant–and needed–across all industries.

Consider, for example, the magnetic power cord that comes with every Apple notebook.   The power cord attaches tightly to the computer using a magnet, which pops off the moment someone trips on it and thereby preventing the notebook from being dragged with the cord.   I always thought this was rather advanced technology–magnets, after all, are incompatible with hard drives–but my technologically savvy friends have told me that the level of magneticism involved in this feature has little impact on hard drives.   The magnetic cord, then, is not a matter of technology, but rather of thought and creativity.  No one will buy a notebook based on whether it has a magnetic power cord, but I appreciate the care that went into it every day that I use my MacBook.  It’s these small things that adds up to what makes the iPod innovative and the Zune just more features.

To ask why Microsoft can’t be more like Apple is an exercise in futility because innovation and creativity, which drives innovation, is a matter of corporate culture.  The lack of creative thought infects the company, all the way to marketing.  A great illustration is this great video that imagines, rather accurately, what a Microsoft iPod packaging would have looked like.

Or take Microsoft’s game console, the product it unaffectionately named the XBox.  A label with two “x”s is fitting as an internal code name for a product still in production, not for a product that’s released to consumers.   Sony may have lost its luster, but it had enough sense to name its game console “PlayStation,” a catchy yet descriptive name that I love.   Apple understands the importance of product naming as well.  If you browse through their online store, you’ll notice that there is no product with a name like “iMac 6100.”  They distinguish their products by speeds and memories, but the product itself only has the brand name imprinted.  But it wasn’t always so.  My first Mac in 1994, during Apple’s dark ages, was called the “PowerMac 6100.”  One of the first thing Steve Jobs did when he returned to the company was to dump this unattractive practice.

My point isn’t that Apple is perfect.  God knows its recent mouse, the product they introduced to the world, has been God-awful.  Rather, my point is that Microsoft doesn’t try at all, and more fatally, doesn’t seem to know how.  The sins of Apple comes from being too clever by half (and sometimes more), but that’s better than not being clever at all.

P.S.  More than seven years ago, I wrote about this exact topic in the weekly business column I used to write for Boston College’s main student-run paper, The Heights.  Compare and contrast my discussion on innovation then and now by clicking here (and yes, some material is recycled).

 
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