A Kodak moment for Microsoft

With all the noise around Microsoft / Yahoo, I can't help but think of parallels. Is this part of something truly transformative for the Redmond gang, or will they follow in the footsteps of Kodak? Defending your business is one thing -- always being on the defensive is another, and usually indicates disruptive innovation at work:


© 2008 DLTJ / Peter Murray

a. A disruptive innovation reaches the point where it can satisfy the least demanding customers; least demanding customers drop the established, higher performing option on the basis of other factors (cost, convenience, etc.).

b. The established product exceeds the needs of the most demanding customers; sustaining innovations now fuel “performance oversupply.”

c. The disruptive innovation meets the level of performance required by the most demanding customers; those customers drop the established option on the basis of other factors.

Forces such as Open Source and Social Networking are far more profound than a shiny new search engine and portal site. Google is clearly seen as a threat, but is Microsoft aiming at the right target?

Or will Redmond, WA transform into another Rochester, NY?