Blog #2 - Every Click You Make

One of the major challenges for any business is balancing customers’ wants and needs with the wants and needs of the business itself. Microsoft had to tackle this challenge when designing its Internet Explorer 8.0 browser. The browser started out based on protecting consumers’ privacy interests but was quickly bombarded with internal and external criticism for limiting advertising opportunities. The article “Microsoft Quashed Effort to Boost Online Privacy” states that Microsoft had to “balance conflicting interests: helping people surf the Web with its browser to keep their mouse clicks private, and helping advertisers who want to see those clicks” (Wingfield, 2010).

As the article’s title suggests, ultimately the advertising interests won. This non-programmed decision sparked much debate inside and outside of Microsoft requiring managers to carefully weigh the alternatives and their consequences. The article, “The future of the future: making knowledge-informed decisions in a flat world” states that there are 3 important steps to making knowledge-informed decisions, and, in my opinion, Microsoft operated those steps: acknowledge the customer, acknowledge the business, and coalesce resources with strategy (Murray and Devlin, 2007).

So how exactly did Microsoft decide whose interests’ to accommodate? Well, Microsoft used structured debate to allow outside organizations and internal departments to voice their opinions. In the end, the “economic forces” represented by advertising, internet, and web-tracking advocates, internally and externally, proved dominant over consumers’ privacy interests (Wingfield). As the saying goes, money talks. At this stage in the game, Microsoft has too much invested in: future technology, advertising revenue opportunities, and with other internet giants to switch focus to consumers’ privacy interests.

Unfortunately, Microsoft did not take advantage of what could have been seen as a major play in the web browser market by launching Internet Explorer 8.0 as the premium browser for consumer privacy. Therefore, their decline in market share is unlikely to change. It seems that Microsoft used satisficing to launch their new product rather than delaying launch and finding a better solution for all parties involved.

Microsoft weighed its options and released a product ultimately acknowledging both the interests of consumer privacy and advertising opportunities but satisfying them to what degree is less clear. Consumers are given more privacy options than in previous editions, but are they even aware of those options? Advertisers, web-tracking companies, etc. have used future revenue generation and current investing to pave the way for Microsoft to continue allowing free access to every click a consumer makes.

Devlin, Jim and Murray, Art. (2007 February 1). “The future of the future: making knowledge-informed decision in a flat world. Retrieved from:http://www.kmworld.com/Articles/Column/Future-of-the-Future/The-Future-of-the-Future-Making-knowledge-informed-decisions-in-a-flat-world-19137.aspx on September 26, 2010.

Wingfield, Nick. (2010 August 2). “Microsoft quashed effort to boost online privacy.” Retrieved from: https://jsu.blackboard.com/webapps/portal/frameset.jsp?tab_tab_group_id=_2_1&url=/webapps/blackboard/execute/launcher%3Ftype%3DCourse%26id%3D_89257_1%26url%3D on September 26, 2010.

3Par...and WWMD (What Would a Manager Do?)

My boyfriend and I took a trip to Milton, Florida this past weekend to celebrate my dad’s birthday. Imagine my surprise when the casual dinner conversation switched from the upcoming seasons of hunting and college football to that of the 3Par-Dell-HP bidding war. I was somewhat surprised that my “regular Joe” boyfriend initiated such a topic, but then, as the saying goes, “money talks.” Apparently, the talk of a $1.8 billion deal had made it all the way to my mamaw’s small-town dinner table.

I must admit I had never heard of 3Par until it was mentioned this past Saturday. So I quickly perused the latest internet news and learned that 3Par is basically like a storage company (Public Storage, for example), but instead of storing people’s stuff, it stores computer/internet data. Storage can be for a short or long term basis and fees vary. The concept of storing computer data and software on the internet in data centers like 3Par is known as cloud computing.

Ok, so what is the $1.8 billion dollars all about? Well, according to the article "3Par Bidding War: Are Dell and HP Crazy?", it turns out cloud computing is seen as a “high growth technology business” because it is less expensive and faster to have data centers, like 3Par manage and store internet data than have major companies like Dell or HP do it in-house, especially for temporary, new, or research endeavors (Goldman, Aug 30, 2010). In addition, 3Par is one of very few major companies, less than 5 actually, that offer cloud storage capabilities and hardware (Goldman). Still, is 3Par, which has not turned an annual profit in the past three years really worth it? What would a manager do?

First, as a manager for either company, why do I need 3Par? Well, for Dell, which currently has no cloud computing technology resources, 3Par is the possible key to future domination of the computing industry (or at least the cloud computing part). As more companies are allowing employees to telecommute, using mobile technology to handle business, and initiating new applications, 3Par starts to seem like a jackpot. For HP, cloud computing is currently outsourced, so to bring 3Par onboard and in-house is definitely a positive factor.

Thus far 3Par seems like a valuable resource, maybe not so much at this exact moment, as in the future. As a manager, am I concerned about the future? Heck yes. HP is out to remain the leader of the computing industry. So strategically, HP needs the 3Par deal simply to block Dell from getting it. Also, HP is operating without a CEO, and this deal shows that business is as usual, even without a CEO leading the way. Dell, who has crept up on HP in the past, needs a big deal to do it again; 3Par is potentially that big deal. The innovative capabilities that 3Par offers could boost either company to new heights, and make no mistake, both companies are obviously willing to pay a lot to go sky high.

Source
Goldman, David. (2010, August 30). 3Par bidding war: Are Dell and HP Crazy? Retrieved from: http://money.cnn.com/2010/08/27/technology/hp_dell_3par/index.htm.