An Analysis of Innovation in Microsoft Company Operations

This research paper provides a comprehensive analysis of innovation within Microsoft Company. It begins with an executive summary and introduction that highlights Microsoft's significance as a leading software developer and its reliance on innovation for success. The paper defines innovation, emphasizing its role in meeting new needs and adding value, and then identifies key elements essential for innovation within Microsoft, such as vision, risk management, capability development, resource allocation, structure establishment, and communication. It outlines Microsoft's innovation framework, focusing on the roles of individuals, including architects, and explores the gaps in their current approach. The report then examines the challenges Microsoft faces in new product development, including social, technological, legal, and distribution issues. The research concludes with recommendations for improving innovation within Microsoft, ensuring its continued effectiveness in the competitive business landscape.

Running Head: INNOVATION IN MICROSOFT COMPANY 1
Innovation in Microsoft Company
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INNOVATION IN MICROSOFT COMPANY 2
Executive summary
Innovation process in every corporation is the backbone of every success they are able to
attain in different business sectors. Innovation in most instances is what sets the business apart
from the competition and help companies such as Microsoft to grow and prosper in the current
competitive business sector. Historically, it had been reported that the company focuses on
creating the product to fill the need and want in its immediate marketing sector. As the
corporations’ progresses in their operations, they expand the marketing section until the product
is marketed in global business settings. Therefore, this research paper examines innovation
within the operations of Microsoft Company. This paper explains what is meant by innovation in
a detailed manner. Besides, this research paper discusses various elements that are regarded to be
fundamental for innovation for Microsoft Company. Different roles of innovation in Microsoft
Corporation are also determined in this research work. Additionally, the report examines the
different challenges that companies such as Microsoft face in the development of new products
by the use of innovative approaches. The research in this paper concludes by addressing some of
the recommendations that are essential for the improvement of innovation in Microsoft Company
to operate effectively.
Introduction
Microsoft Corporation refers to the American multinational company that deals with
software. The company deals with operations of developing, manufacturing, licensing, as well as
supporting the extensive range of products along with services that relate to the process. Besides,
Microsoft Company is known to be the world’s largest software maker. The operations of this
company affect millions of computer users in the international community in their daily

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operations (Milutinovic & Stosic, 2013). The company recorded all-season high revenue
collection bringing in seventy-three point seven billion dollars for the fiscal year 2012. The
company continues to dominate the world of the computer. Its operations cannot be attributed to
their innovation strategy that is set in place. The innovation enables Microsoft company to
develop and environmental culture in which workers are encouraged to venture outside their
duties, minimal time pressure, and high security of a job to give positive feedback for imitative
that they use to support their operations (Barsalou, 2017). The innovation strategy that is used at
Microsoft Company refers to the Clouds on the Horizon. Therefore, the primary objective of this
research paper is to examine innovation in Microsoft company y focusing on its various aspects
such as definition, key elements, roles, challenges, and recommendation of its use in operations
of Microsoft Company.
Describing framework (Innovation)
Innovation in modern meaning refers to the “new idea, creative thought, and advance
imaginations in the form of method or device.” Innovation is always viewed to be the application
of appropriate solutions that meet new requirements, existing needs or markets, or unarticulated
needs around operations of organizations or individuals. Innovation refers to several descriptions
that consist of the application of ideas that are useful and novel (Yeşil & Doğan, 2019). It
consists of the idea of staying relevant in the operations and introduction of new products and
services that add value to the corporation. As reported by Forbes (2016), innovation refers to the
particular instrument of entrepreneurship that involves the act that endows resources with the
advance capacity to develop wealth. Other researchers such as Dodgson (2016) recorded that
innovation to mean the significant positive change in operations. Therefore, an innovation n has
stayed to be something original as well as more effective. Innovation simply refers to the

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production or adoption, exploitation, and assimilation of the value-added novelty in financial
together with social spheres (Liu, & Pei 2014). It also encompasses of renewal and enlargement
of services, products, and marketplaces, enhancement of advanced techniques of production, and
the establishment of fresh systems of management. Hence, innovation is both the process
together with the outcome of an operation.
Key elements with reference to innovation in Microsoft
The unique operations of Microsoft Corporation rely greatly on the process of innovation.
The company is one of an organization that applies the most innovative technique in its
operations in the global society. In a more particular manner, innovation governance is critical to
allow any innovation initiates (Dougherty, D 2016). Innovation is nothing more than the device
that allows the companies to attain unique and strategic goals. Some of the key elements of
innovation for companies are diverse. These elements comprise of exclusive and pertinent
strategy, innovation is a method to attain planned goals, alongside innovators are managers.
Innovators execute, disappointment is an option, environment of trust, and autonomy among
other elements (Nagar & Srikant, 2016). Some of the elements of innovation comprise of vision,
manage risk, develop capabilities, and allocated resources (Park, Swanstrom, & Price, 2018).
Other aspects consist of the establishment of structures and communicate to the concern parties.
Key elements for framework
Vision
At the heart of innovation, authority is precision on the function of innovation in the
future success of an organization such as Microsoft. The role of innovation comprises of
prioritization of objectives during the operations (Dahlander & Jeppesen, 2014). Therefore,

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trough the focus on the element of vision, corporations that do good innovation are finding that
they have to master the advanced type of management of knowledge.
Managing danger
Since innovation essentially needs risk, commencing stage must be debate together with
an explanation of organizational danger lenience that is comparative to possible rewards. Such
ideas must be appropriate with the ambition of the corporation (Ollila & Yström, 2016). The
aspect of managing risk helps in assessing the danger of not innovating on equality to the danger
of innovating.
Developing abilities
Given that abilities of innovation remain to be central to all prospect success of the organization.
Therefore, the process of developing capabilities must be the ongoing strategic priority for the
board along with the executive group (Dahlander & Jeppesen, 2014). Such impacts involve the
executive team, architecture of technology, talent strategy, as well as many other critical issues.
Allocate resources
Effective innovation needs resources for it to work. However, traditional financial
measures are massively inappropriate for assessing truly initiatives of innovative. Management
of the portfolio remains to be the central capability of innovation. Besides, in managing the
diversity of initiatives size, domain, timeframe, and scope are essential factors that are put into
consideration (Francisco, Garcia, & Arnoldo, 2014). Boards of different organizations focus only
on being formally involved in particular decisions of large-scale investment. The boards can set
important frames for the process of making decisions across the space of innovation.

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Establish structure
Structures together with processes of innovation comprise of particular concerns. These
issues comprise of platforms and processes to improve operations of a corporation. However,
innovation processes together with structures can also comprise of macro-level organizational
structure concerns (Forbes, 2016). These concerns comprise of the definition of function,
decentralization, the formalization of functions of innovation, together with the nature of value
development in outer relationships.
Communicate
Innovation power posses value mainly in how well it is addressed to involve different
gatherings. Frameworks of high-level innovation supremacy must be explained to every
individual in the corporation so they can change behaviors (Dodgson, 2016). Besides, effective
governance of innovation will also mandate road transparency together with communication
concerning initiatives of innovation.
Description of Microsoft’s framework (innovation)
Individuals in the operations of Microsoft Corporation are the most important resource in
the process of innovation. The success of innovation relies heavily on creativity, support, and
acceptance by individuals. Of course, workers and manager are essential roles within the
organization, but external stakeholders such as suppliers, customers, and partners also have
essential key functions to perform (Muok & Kingiri 2015). The introduction of innovation
management means that an individual need to think about various roles some of the roles of
innovation in Microsoft Corporation consists of being an architect. The changing customs can
comprise of changing minds, and that takes duration. However, with initiatives, the clear sense of

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the target assists in speeding up the process of making new ideas in place to increase the
productivity of a company. Setting the mission of the organization straight can help in the
process of organizing and direct the creativity of its people (Xia, 2012). The establishment of a
clear sense of direction can help the management in understanding what is needed to add to
attain a value of customers to existing services and products of Microsoft Company. Therefore,
the need for having a clear articulated message allows every individual in the company to
concentrate on innovation where it can convey the best value. A logic of having a clear duty help
in giving clarity to the direction of performance and helps in the determination of the best idea
that the company needs to focus on its operations.
Gaps and what areas need improvement
For long duration, companies develop the product to fill the need in its immediate
marketing sector. There are gaps on the best approaches that the company need to improve their
operations. As the organization expands its operations, it advances the marketing section until
the product is market internationally (Öberg, 2019). There is aneed to imporove the operations of
organizations in the manner in which it operates or develop its products to reac various
customers. Development of products in most cases refer to whole procedure of conceptualizing
designs, ideas, mounting, and finally setting up the advance service or product in the marketplace
so that it does not just outdo opponents but also receive huge profit for the corporation. The
establishment of an advanced product certainly raises the aims of consumers that look ahead to
something that attain their needs and also does not blaze a hove in concise. The number of
organizations believes that all products have limited lifecycle (Frederiksen & Knudsen, 2017).
Therefore, organizations need to develop a new product that focuses on keeping the business

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running. However, in some cases organizations fail to recognize necessitates of the consumers as
well as tackle the pain points to accomplish their vital wants.
Challenges companies face in new product development
Some of the challenges faced by companies in new product development comprise of
social issues, technological elements, legal and regulatory challenges (Tseng, 2013). Other forms
of these challenges in product development include distribution and promotion challenges
Social challenges
Different products are developed to meet the particular want or needs of targeted clients
around the global markets. Just because an organization needs to have the want and need in the
business society, it does not mean that need or want is universal (Yankovsky, Shirobokov, &
Dyment, 2018). Diverse countries are at a diverse level of financial progress and the requirement
or want the individual to have may not have progressed in other nations. The idea is targeted to
develop a feasible target marketplace. Other countries comprise of diverse customs along with
different preference of food, preparing behaviors, living residence, leisure chances, routines, and
clothes. For instance, English orators might be small in number as compared to native speakers
that need to understand the operations of the company (Nugroho, 2017). Brand titles may fail to
translate appropriately. Nations may have no interest in specific goods or services that are
conducting operations well in global markets.
Technological challenges
Different companies such as Microsoft Company in the US have attained the appropriate
job of regulating technology, although it has different nations with individual values do not
always complement. Standard powers differ from one nation to another. The difference in power

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between nations makes it possible for products that are newly produced to be designed to run on
diverse powers (Hash, 2018). So there is the need for newly developed products to be designed
to run on varied powers. The products being produced need different plugs to fit various
receptive.
Legal as well as regulatory challenges
Different nations prohibit the importation of various products to protect their domestic
companies. Other nations might need government endorsement to operate or need the company
to work with local associates. Trademark, official documents, together with patent defense
regulations might be absent (Painem & Soetanto, 2018). Diverse environmental regulations
might have to be observed for different companies to operate leading reduction in the process of
implementing different ideas in operations. Specific products might be banned for reasons that
depend on political or regional needs making the process of innovation to reduce (Francisco,
Garcia, & Arnoldo, 2014). The company may not be capable of overcoming some of the legal
and regulatory challenges, so it is necessary to understand major challenges before they invest
resources for innovation.
Distribution and promotional challenges
It is reported that in Americ if the company can get Wal-Mart as well as Target to
conduct the company’s product, the company can have an instant national distribution. Most
other nations fail to have that kind of channel of national distribution present in their operations.
Therefore, companies such as Microsoft Company based in different nations need to work with
dozens of regional chains, distributors, along with independent stores (Barsalou, 2017). The
company focuses on a real challenge in the process of aiming at getting their services from the

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import docks to the place where the clients can buy the goods. The companies need to form
effective methods to assist them in promoting the product and communicate with their
customers. However, many other countries lack the ideal promotional methods making
companies that base their operations on such companies to lack an ideal way of improving their
services (Liddy, Zelaznik, Huber, & Haddad, 2016). The company finds it tough to embrace new
ideas as they are required to use various promotional methods that they have no experience with
to achieve correct results. In most cases, innovation makes companies to spend many resources
on their operations.
Recommendations for improvement of innovation in Microsoft Company
Sustainable innovation comes from a collective sense of purpose. The need to get a staff
of organizations to think creativity is not always easy. To be successful in operations, innovation
needs to be improved, and its support must come from the organization, workers, and all other
business partners (Muok, & Kingiri 2015). There is the need for the management to ensure every
individual in the business is operation towards better practices of business and improving
business efficiency and performance. The management can improve innovation of the Microsoft
Company by increasing competitiveness, more efficient use of every resource, improving
retention of staff, using a proactive approach to business operations, and attracting new
customers by improving existing products and services.
Other recommendations that can be used for the improvement of the company consist of
increasing investment in the generation of ideas, developing a deep understanding of targeted
customers, and ensuring executive level focus together with sponsorship. There is the need to
establish a favorable culture of the company, focus on the use of outside resources of ideas

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appropriately, and partner with suppliers for new ideas (Dougherty, 2016). Besides, the focus on
partnership with different suppliers for advance ideas and provision of incentives and rewards for
innovation are some of the essential recommendations that can help in improving the process of
innovation within Microsoft Company. The management of the company can ensure that the
company truly understands the different needs of their customers. The process of establishing
such understanding can be effective in ensuring that the company focuses on producing products
and goods that are in high demand.
Open communication
The idea of having open communication between management together with workers
helps in setting the phase for the mood of trust. The need to create a new credulous society can
help in motivating the workers to take the necessary steps to use new ideas in operations
(Dougherty, 2016). Company leadership can focus on the process of initiating the process of
open interaction by the process of distributing information with workers on a timely basis. The
company can create the policy of assuring information to lead it to whether the sudden increase
in costs of production. The company can use the idea to sustain innovation offer for multiple
opportunities for sharing operational messages (Liu & Pei, 2014). Therefore, every company can
offer an open-door policy for its senior executives for the major purpose of allowing front-line
workers to feel heard.
Instilling a sense of ownership
The ownership mentality develops a powerful incentive for inventive thinking on their
own to improve operations of an organization. When workers are aware of how their interests are
aligned with those of the corporation, they can then have a firm reason to go extra way to

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advance the mission of operations (Forbes, 2016). Stock right is valuable, if not important, the
motivation for workers. The company can focus on the design and implementation process to
assist in the process of reducing the amount of input (Nagar & Srikant, 2016). The reduction in
input can help in making the company to be effective in its operations.
Engaging the company’s workers
The workers of a company are the most creative possessions in their business operations.
By making the setting within the business that cheers innovative idea along with the act, a
company will then be able to inspire its workers to share their understanding, skills, experiences,
recommendations, and suggestions (Francisco, Garcia, & Arnoldo, 2014). Therefore, the
company can engage their workers in the process of innovation by encouraging the innovation
culture. There is a need to have recognition in the workplace that not trying anything new is
often the biggest risk. Therefore, companies can improve their innovations by encouraging
workers to be open and honest (Hash, 2018). They can also encourage workers to share ideas
freely and explore different initiatives without fear of retribution.
Effective management of products
Failing to organize as well as define the process of managing product well is the primary
cause of incapacity of various companies to start superb production views on the marketplace.
Without the proprietor of the product, no outcomes can derive from the original brainstorm
(Milutinovic & Stosic, 2013). Therefore, the need to have effective product management is
important to improving how effective an organization plans its operations in launching new
services or products. The organizations need to ensure that they are on similar track and their
goals are well described (Yankovsky, Shirobokov, & Dyment, 2018). The company can improve