Schumpeter: Microsoft blues

This is why Windows 8’s poor performance matters. It was an attempt to solve the innovator’s dilemma by creating an operating system and a user interface for both PCs and mobiles. Mr Ballmer hoped that consumers would want to move effortlessly from PCs to tablets to smartphones—and that Microsoft would be able to invade the mobile markets while simultaneously reigniting demand for its core PC products. But so far the reverse has happened: Microsoft has reinforced suspicions that it does not understand hand-held devices while simultaneously alienating its core PC users. It is possible that Microsoft will be able to solve this problem with future iterations of Windows 8. But it is looking likely that the two types of device need different operating systems. Microsoft’s biggest rival, Apple, has kept the two devices separate. That bodes ill for Mr Ballmer’s strategy.

The comparison with New Coke actually understates Microsoft’s problem. Nothing forced Coca-Cola to introduce New Coke: tongues and throats do not change much. And all the firm had to do to rectify its error was to bring back the old version. Technology firms, in contrast, must innovate to survive. Restoring the start button will not restore Microsoft to its former glory.

Schumpeter: Microsoft blues | The Economist.

Clasica dilema a inovatorului. Iar stocul creste si creste. Cand va incepe caderea, voi fi acolo sa shortez.

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