Design / Redesign

I like The Big Picture for a good econ/market read. I trust Barry Ritholtz - blogs are all about perspective, and if you are not a fan yet, you should be. Anymore, I have the time to read about 2 blogs a day, and The Big Picture is one I see 3x weekly.

So, back from a long traveling period and I have a few blurbs to write. But first, read Barry on Microsoft in Crisis?

Cut into action here: >>

However, I am still an objective observer, and I believe that Mister Softee is not what most investors think it is: They are hardly innovators; rather, they copy other people's work relentlessly, until by default they own the standard. Their products are kludgy, bloated and anti-instinctive; They are hardly the elegant, easy to use software first dreampt up by science fiction writers decades ago.

From an investing standpoint, their fastest growth days are behind them, yet they are hardly a value stock -- yet. (Cody and I have disagreed about this for some time). The leaders of the last bull Market are rarely the leaders of the next. ...

Many people think of them as this well run money machine; In reality, they are very poorly managed by a group of techno-nerds with very little in the way of management skills. Even their vaunted money making abilities are profoundly misunderstood: Its primarily their monopolies in Operating Systems (Windows) and Productivity Software (Office) that generates the vast majority of their revenue and profits. Their Server software and SQL Database make money, but hardly the big bucks of Windows or Office. MSN is a loser, MSNBC is a dud, their Windows CE is hardly a barn burner -- even X-Box has cost them billions more than it is likely to generate in profits over the next 5 years.

Its not news that MS aren't innovators - as a firm, they are an old economy-style monopoly, working platforms and channels that ride on "other people's knowledge." They sink a LOT into R&D these days, so it should be interesting to see what innovations that buys them. Its not here yet ... Please correct me, quickly, if I'm wrong about this. Because to most people this is counter-intuitive, I find they are a great whipping boy in innovation articles. Like this 2002 article in the Design Management Journal: When Successful Products Prevent Innovation.