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Prez on Microsoft for IT Innovation lecture

Dao Manh Hieu

on 6 May 2010

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Transcript of Backup

Microsoft's dominance of the PC OS market The rise of Microsoft's OS Maintaining dominance Influence on the OS market Opportunity Relative advantage Compatibility Complexity Successful innovation A Winner-Take-All Market Management strategy A defensive strategy Minimum innovation Threats ? Positive Negative Situation of the computer market in the early 80's :
IBM PC architecture becomes dominant design for personal computers
IBM chooses Microsoft to build the operating system of its PC Microsoft DOS reach a huge installed base ! Microsoft's software licensing practices: original equipment manufacturers (OEM) bundle
But not really more advanced than rival products Compatible with many previous software
Compatible with a wide range of hardware Based on similar architecture than previous so:
Customers already familiar with usage
Easy for developers to create new software Low complexity High compatibility No real technical advantage Microsoft's product based on Open Innovation Bill Gates' vision: "a computer on every desk and in every home" Huge effect of network externalities
Relied massively on complimentary goods PC designed for Windows Windows designed for PC More users More developers More Apps OS market has high barrier of entry
Balance between Innovation investment and Running current business Enough time and resources to face new entrants
Users are "happy enough"
Money keeps flowing ! "Microsoft plays it dirty" Licensing agreement
Copyright enforcement
Vendors lock-in
Acquisitions Adding proprietary features to open standards Internet Explorer VS Netscape... Mainly incremental innovation of components
A few radical architecture innovation Stabilization of the market => de facto standard
Set new trends for OS
Competition for better quality
Easier for users and for developers A monopoly bullying the OS market US Europe Undocumented proprietary software => waste of time and money for interoperability
Discourage innovation because few new entrants
Full transcript