Then, someone somewhere must have said, "Hey, let's try to package this stuff up and sell it to smaller
ISPs and telephone companies." Thus, ISBU was formed. Many engineers from MSN moved to join
ISBU and a number of smaller companies were acquired to build up what would become Site Server,
Commerce Server, and Microsoft Commercial Internet Server (MCIS). Instead of a Product Unit
Manager (PUM) or a General Manager (GM) acting as the engineering manager in charge of each
product team, we had a small handful of Business Unit Managers. That's how all of us engineers in
ISBU ended up working for a bunch of BUMs.
Microsoft invests in internal incubation projects such as our IPTV, Auto PC, and robotics projects as
well as all the work done by Microsoft Research (http://research.microsoft.com). We also invest in
projects that can help spur change in the software industry as a whole. In April 2007, with more than 10
partners we launched the Microsoft Software as a Service (SaaS) Incubation Center Program.
In Microsoft, there are many models for incubations. Established products often incubate features in the
larger organization. For example, the Office 12 ribbon, a new feature that changed the Office user
interface, and the Windows Vista shuffle feature were incubations. The code coverage tools that ship in
the latest versions of Visual Studio were based on concepts developed first as internal tools projects in
Microsoft Research and Windows.
Another approach we've used to incubate innovations is using an internal venture capital team. Any
employee can submit an idea, and the venture capital team will examine the feasibility of the idea using
a process much like an industry venture capital firm would use. Just like in industry, very few ideas get
funding through this mechanism.
The Bill Gates ThinkWeek is another source of ideas that can become incubations. Microsoft
employees can submit white papers detailing new ideas and innovations, and during ThinkWeek, which
occurs approximately twice each year, Bill reads and comments on scores of papers. At the end of the
week, Bill's notes, once hand-written, are shared with the company. In 2005, the Wall Street Journal
described ThinkWeeks in this way:
It's a twice-yearly ritual that can influence the future of Microsoft and the tech industry. A
Think Week thought can give the green light to a new technology that millions of people
will use or send Microsoft into new markets. One week in 1995 inspired Mr. Gates's paper,
"The Internet Tidal Wave," that led Microsoft to develop its Internet browser and crush
Netscape. Plans to create Microsoft's Tablet PC, build more-secure software and start an
online videogame business were also catalyzed during Think Weeks.
[1]
For the Fall 2008 ThinkWeek, 375 papers were submitted and Bill was able to comment on 125 of
them. This program was established to encourage employees to submit innovative and forward-
thinking ideas. Many of the more promising ideas receive funding for initial development. Bill also
publishes his recommended reading list to the company. Recently, a white paper I wrote on how to
improve our software services testing made Bill's recommended reading list, and for me it was like
receiving a stamp of approval on what until then was just theories.
From the Minds of Employees…
The concept for the Microsoft Surface (http://www.microsoft.com/surface/) was once a white paper
written by a few folks in Microsoft Research. After Bill read that paper, a Product Unit Manager joined
the team and began to drive the process of turning the idea into a viable product. The result is a
computer built into a table where the computer screen is the table surface. I think they look a lot like
the tabletop video games that showed up briefly in bars during the 1990s. Users can interact with
Surface by using hand gestures as well as placing physical objects such as a business card or a Zune