A Case for Innovation: Microsoft vs Apple

A Case for Innovation:  Microsoft vs AppleI believe strongly that the ability to lead innovation will be incredibly important in the coming decade.  This belief was reinforced by a brief piece I heard on the radio last week about Microsoft.  It was about Microsoft’s ability to stay competitive. It got me thinking about the impact innovation leadership can have on a company.

So, I did a little comparison between Microsoft and Apple.  From a pure numbers perspective, back in 2001 Microsoft was the 800 pound gorilla. In many of its product categories it owned 90% of the market.  Today, Windows just dropped below 90%. In 2001, Apple owned just fewer than 3% of the computer market and the markets it currently leads in didn’t exist.

Over the next decade, Microsoft introduced Windows XP and Vista, new Office suites, and other software solutions — none of which were a grand departure from the previous.  It entered gaming with Xbox and Xbox 360.  It tried to enter the MP3 player market with an unsuccessful Zune and reports are it is having great difficult entering the tablet market.  In early 2001, its stock was trading at 30.53.  As I write this it is trading at 27.16.

Since 2001, Apple decided to do some different things. Over the decade it created products and markets that we hadn’t really seen before, introducing us to the I-technology suite and lexicon:  Ipod, Itouch, Iphone, Ipad and now Icloud. It entered the retail world and totally changed the technology shopping experience with Apple stores.  In early 2001, its stock was trading at 10.81.  It is currently at 404.76.

The differences between the two companies are many but I think the heart of the matter is the drive to innovate with products and services that are truly different.  Leading innovation is not like leading any kind of growth.  It is about looking forward, integrating seemingly disparate perspectives, creating a truly aspirational vision and engaging everyone’s capability and commitment to make it happen.  I work with many leaders and teams who are working hard to adopt innovation leadership and innovation thinking.  It will be fascinating to see where innovation leaders will take us in the next decade

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