In our report, we conduct a structured analysis concerning the digital strategy of Microsoft, by utilizing a relevant economic theories and conceptual models. The primary goal is to understand the current business and digital strategy and to propose a new digital strategy that will transform the company in five years. We found that even though Microsoft has become one of the market leaders in the technology industry, an urgent need to enhance customer experience and leverage existing customer relationships remains. Key problem areas in the B2C segment were revealed to be inadequate customer support, besides insufficient customer engagement with current and future customers.Microsoft also continues to face organizational resistance in light of recent structural and cultural changes which may hinder its digital transformation.
The following managerial recommendations are suggested to Microsoft:
As we have seen, there is a lack of awareness with regards to the company’s products and their functionalities, especially in the B2C market. In addition, Microsoft’s customers do not feel overly attached and engaged with the company, but favour its products only based on performance criteria. Therefore, we would suggest increasing the marketing efforts in the following years, and focus on experience-based marketing rather thanMicrosoft’s traditional information marketing strategy. In addition, we would recommend implementing across-media strategy in order to increase the level of customer engagement. These efforts should result in increasing product awareness and in the “creation” of a strong community, which, in turn, will lead to increased customer loyalty.
Second, we would recommend Microsoft to fully exploit its leadership position in the field of AI and machine learning, as well as the company’s data analytics capabilities in order to (1) optimize employees’ knowledge of the B2B clients they deal with; and (2) provide customers with a fully personalized experience during the whole customer journey. By providing a customized customer experience, Microsoft will differentiate itself from competitors and strengthen its position in the market.
Third, it is important to recognize the fact that the technological landscape is constantly changing at a rapid pace. Therefore, Microsoft should make sure to monitor and analyse digital trends on a regular basis, and revises its strategy accordingly. At the same time, the company should ensure that each digital initiative is accepted internally as well by making efforts to decrease barriers to change, and help employees transition into the digital era. HR should make effort to suitably define the organizational culture so that the digital transformation o fMicrosoft remains sustainable, furthermore reckon the digital skills required to maintain competitive advantage and recruit accordingly. Talent management is crucial with the introduction of AI and machine learning which demands professional expertise and a creative, flexible mindset at work, empowering employees to collaborate, share ideas and take risks.
Fourth, Microsoft should consider implementing its own cutting-edge technologies and solutions to internal processes, automate currently outsourced non-core activities, and provide a virtual personal assistant service to employees, enabling streamlined workflows, moreover enhancing the transfer of valuable knowledge within the company. By utilizing the same technologies as its customers, Microsoft will gain unique insight to business operations, moreover the shared platform ecosystem would allow a seamless delivery of solutions.
Finally, based on our insider knowledge and the interviews we conducted, Microsoft does not have a clear written digital strategy, but rather derives it from the company’s business strategy and mission. Thus, we would recommend Microsoft to officially develop a clear digital strategy with well-defined objectives for the following reasons. First, it provides the whole organization a clear vision and goals, making it possible for all regional branches to have a clear understanding of the strategy and work towards the same objectives. Second, ensuring that there is broad support for a digital activity within the company can be difficult which is much easier to obtain if there is a written documentation detailing the aims to accomplish, how it fits with the company’s other marketing priorities, and thus provide a framework to measure its performance.
Summary of the digital transformation project
Guohuibin Li
Minh Quang Nguyen
Tran Truong An Nguyen
Yu Wang
