Everyone
knows Microsoft, a well-known software company which develop a wide range of
software product for various computing devices. It develops operating system
for servers, server application for client/server environment, business
solution applications and software development tools. The major business
segments of this company include Desktop and Enterprise Software and Services,
and Devices and Consumer Commerce Investments.
As
technology was rapidly changing, the company was facing many underlying risks.
With this advancement in technology, Microsoft shifted from PC-based
applications to Web-based application converting its proprietary software to
open source software. Thus Microsoft faced many powerful competitors which
include IBM, Sun Microsystems and Oracle.
The
major areas of risks were:
- Technology risks: Managing new technology was very critical activity as it had cost them much more than their expected budget.
- Operational risks: Piracy was high on track, where software were easily copied on to a medium such as Compact Disc or moved electronically. Maintaining security and quality was a challenge for Microsoft.
- Intellectual property risks: Copying of risk caused significant loss to company's revenue.
Microsoft
managed technology risks through internal development which gave freedom to
identify which modification is most important and can be implemented. To deal
with operational risks, Microsoft decided to send out the product update
release or make it open source to correct this problem. Microsoft educated its
customer on benefits of using licensed products and created awareness among
lawmakers to develop environment where these rights are adequately protected.
Questions:
1. What were the risks encountered by the
Microsoft?
2. How
did Microsoft overcome the risks related to technology and operations?
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