Microsoft increases focus on user experience

Apple: In the competition between PCs and Macs, we outsell Apple 30-to-1. But there is no doubt that Apple is thriving. Why? Because they are good at providing an experience that is narrow but complete, while our commitment to choice often comes with some compromises to the end-to-end experience. Today, we’re changing the way we work with hardware vendors to ensure that we can provide complete experiences with absolutely no compromises. We’ll do the same with phones—providing choice as we work to create great end-to-end experiences.

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Third, we are going to reinvent the search category through user experience and business model innovation. We’ll introduce new approaches that move beyond a white page with 10 blue links to provide customers with a customized view of their world. This is a long-term battle for our company—and it’s one we’ll continue to fight with persistence and tenacity.

Kara Swisher, "Microsoft CEO Steve Ballmer’s Full Memo to the Troops About New Reorg," D: All Things Digital, 23 July 2008, kara.allthingsd.com/20080723/microsoft-ceo-steve-ballmers-full-memo-to-the-troops-about-new-reorg via Rich Goade

Making good things

One telling anecdote in my research into innovation history is this striking observation: inventors, creators, and leaders, the people who earned fame for the work other people call innovative rarely used that word themselves. Instead their vocabularies leaned heavily on words like problem, experiment, solve, exploration, change, risk and prototype. Powerful words. Words that are either verbs, or imply a set of actions. And more to the point, they care less about being innovative than they do about making things. Making good things. Forget creating a breakthrough: it's hard enough to make a really good thing that people will love to use. Most markets are in desperate need of affordable, high quality goods that live up to half the promises their advertising make for them.

Scott Berkun, "Why Innovation Is Overrated," Harvard Business Online, 14 July 2008, http://discussionleader.hbsp.com/berkun/2008/07/why-innovation-is-overrated.html.

learning by doing

“The source of Google’s competitive advantage is learning by doing,” said Hal R. Varian, Google’s chief economist.

In the Internet marketplace, Mr. Varian notes, users can easily switch to another search engine by typing in another Web address, so there is no tight technology control, as there is with proprietary PC software. Similarly, Mr. Varian says, advertisers and publishers can switch fairly easily to rival ad networks operated by Yahoo, Microsoft and others.

But economists and analysts point out that Google does indeed have network advantages that present formidable obstacles to rivals. The “experience effects,” they say, of users and advertisers familiar with Google’s services make them less likely to switch. There is, for example, a sizable cottage industry of experts who tailor Web sites to get higher rankings on search engines, which drive user traffic and thus ad revenues. These experts understandably focus their efforts on the market leader, Google — another network effect, analysts say.

Steve Lohr, "Google, Zen Master of the Market," New York Times, 7 July 2008, www.nytimes.com/2008/07/07/technology/07google.html. Via Items shared by Robert Scoble.