Microsoft Reorganizes The Corporation Structure

by Anton Shilov
09/21/2005 | 03:18 AM

Microsoft Corp. announced a broad reorganization plan for the company in a bid to better fight rivals by executing and making decisions more rapidly than before. From now on, the company will consist of three core divisions that will be dedicated to certain products and directions, being headed by their own presidents.

“These changes are designed to align our Business Groups in a way that will enhance decision-making and speed of execution, as well as help us continue to deliver the types of products and services our customers want most,” said Steve Ballmer, chief executive officer at Microsoft.

The three core divisions are the following:

• Microsoft Platform Products & Services Division will be responsible for development of Windows Client, Server and Tools as well as MSN software services. The new division’s mission is to enable “exciting user experiences and drive customer value” through innovation in the software platform and software services delivered over the Internet. The group will be headed by Kevin Johnson and Jim Allchin initially, but the latter announced plan to retire once Windows Vista ships.
• Microsoft Business Division will combine the Information Worker business (which develops such applications as Microsoft Office) and Microsoft Business Solutions (MBS) groups and will deliver software and software-based services that enable organizations to succeed in today’s constantly evolving workplace by amplifying the impact of their people. Microsoft said it already had new division’s programs, servers and software-based services to address the spectrum from structured business processes to personal productivity needs. The division will be headed by Jeff Raikes.
• Microsoft Entertainment & Devices Division, which combines the current Home and Entertainment Division with the current Mobile and Embedded Devices Division, is said to consolidate Microsoft’s industry engagement around devices “to deliver even richer and more relevant scenarios” for individuals at work, at home and when they’re mobile. It will also bring more focus to the company’s efforts in entertainment and related devices and services The group will be headed by Robbie Bach.

One of the main changes that Microsoft makes by the move is transiting its MSN group into the Platform Products division. This emphasizes the importance of web-based services for the software giant and also highlights that MSN and future Internet-based apps and services are indivisible parts of Windows operating system.

“Our MSN organization has great expertise in innovating quickly and delivering software-based services at scale,” Mr. Ballmer said in a statement.

Though, web-based and software-based services and products will not be limited to MSN, but will be leveraged through all the three newly formed groups. The company said Ray Ozzie will expand his role as chief technical officer by assuming responsibility for helping drive its software-based services strategy and execution across all three divisions.

It remains to be seen whether reorganization is set to help Microsoft to develop new and advanced products that are helpful, efficient and easy to use, but that is what Microsoft implies on.