Over at the New York Times there’s a great article on built-in term limits for high-tech companies. But what it really is is a restatement of the Innovator’s Dilemma. It focuses on Microsoft and their dilemma of how to be #1 in the Internet Era. My belief is that Microsoft could own a new era, but it requires such a radical departure from what they are that they can’t. A private company probably could, but not a public one. They have to protect what they have, so they come up with half-hearted attempts. What we keep seeing emerge from Microsoft is just that, half-hearted attempts that keep things tied to the existing crown jewels. For MS to compete with Google effectively — or any Internet-based firm — they have to compete against themselves. And to do that means a loss of profits, which will drive down the stock, which will drive away some employees. To say nothing of what shareholders will do once that starts happening. But there is a way out: the solution is not focusing on the current era — The Internet Era — but focusing on the next one. That type of strategy will work, but it
