Innovation = Execution and Commercialization

Recently I read an article how Microsoft was never an innovative organization and why they can never be innovative. This was more than enough for me to get started into some research on the topic. This one from Wall Street Journal got my attention

"Is Microsoft Driving Innovation Or Playing Catch-Up With Rivals?"

This is a 2006 conversation between Dave Winner and Robert Scoble. Few highlights are;

• Microsoft made a bet against the Web back about five years ago and Microsoft is struggling with that mistake

• When you see things like photosynth, you realize Microsoft can come back and be innovative. They have a lot of smart people, and huge resources”

• Xbox Live, for instance, is very innovative. I can't see the gamer scores of players on any other system. That is innovation.

• Apple will come out with iTV next year, after Microsoft has been doing Media Center for more than two years. I bet Apple will get credit for their "innovation" first, though, cause it's not fun to give Microsoft credit for innovation.

• People at Microsoft are more interested in keeping things nice and predictable, they care too much about manners, and innovation is anything but predictable, or mannerly

• I hate is Microsoft's URLs, Google definitely out-innovates it there

And they conclude with some interesting observations and I particularly like these.

No one technology company dominates. Lots of individual try out all kinds of things.

Innovation comes from those individuals and is commercialized by companies

Microsoft is known for their success in commercializing innovations, with a proven track record of 54 Billion revenue.

It’s 1 Billon each week… that’s a heck a lot of money.

Ever wonder, if you were to be the CEO how would you get this 1 billion / week ticking and show double digit growth year-on-year?

Looking at history, the secret lies in their acquisitions…

http://en.wikipedia.org/wiki/List_of_microsoft_acquisitions

“An idea becomes an innovation only when it is implemented and cash is generated”

“Microsoft innovation comes from acquiring, integrating, packaging and commercializing”

Otherwise how could they be consistantly on the list of "Most Innovative Companies in the World"?
http://www.businessweek.com/magazine/content/06_17/b3981413.htm
http://www.fastcompany.com/magazine/123/the-worlds-most-innovative-companies.html