Date:June 24, 2010
To:Dr. Duane Truex
From:James J. Wald, CIS8090
Subject: Deliverable #1: Trial Model - Operating Model and Core Diagram Draft
The Company and Operating Unit
Founded in 1975, Microsoft Corporation is a global company specializing in software products for a variety of computing devices. While Microsoft originally focused on the development of software, they have branched out since their conception to include footholds in other markets including media (MSN and MSNBC), computer hardware (mouse and keyboard), and home entertainment (Xbox 360, Zune, etc.). In 2002 Microsoft organized itself into 7 core, financially independent business groups and in 2005, further consolidated these groups into 3 divisions: Microsoft Platform Products and Services Division, Microsoft Business Division, and the Microsoft Entertainment and Devices Division. For the purpose of scope, I will concentrate on the operations within the Microsoft Business Division support community.
Operating Model - Unification
Following several years of branching out its product offerings and acquisitions of other companies, Microsoft has become a highly-diversified player in the technology world yet maintained its sense of unity and centralization. Within Microsoft’s support departments, a high degree of both integration and standardization are followed, making this particular unit resemble a Unification Model of operation.
Resources, customer information, and operational data are shared across departments such as billing, support, and marketing, fostering a high degree of integration. This allows for easy referral and “passing” of the customer between departments as needed. It also allows each individual department to easily address issues with any part of the product the customer may have from the understanding of how it may benefit them and their business to the selling and implementation of an upgraded software version. A shared database houses customer and individual support case information on a common and easy-to-use platform. This integration and sharing of information accessible to all involved departments and support teams regardless of their location enables Microsoft to maintain centrally located databases increasing efficiency and accuracy while reducing costs. Repetitive functions are automated allowing employees and resources to be focused on better serving the customer. Employee timekeeping and pay, for example, was tracked by simply logging into the corporate networks. The fact that resources such as buildings and infrastructure are shared enables the individual support departments to focus their finances on their core business: servicing the customer and resolving their issues.
Customer handling and service steps have also been standardized ensuring accuracy, ease of monitoring of customer relationships, and giving management a tool in which they can use to evaluate and compare their metrics. Activities such as required information when recording case notes, the escalation process, and reporting procedures have all been standardized.
Based on the levels of integration and standardization in place across Microsoft’s Business Division support group, it is clear that they adhere to a Unification Model.