An interesting op-ed by Dick Brass, a former Vice President at Microsoft on how their internal structure can get in the way of innovation, and citing specific examples. The first relates to ClearType and the difficulties of getting it integrated into other products:

Although we built it to help sell e-books, it gave Microsoft a huge potential advantage for every device with a screen. But it also annoyed other Microsoft groups that felt threatened by our success.

Engineers in the Windows group falsely claimed it made the display go haywire when certain colors were used. The head of Office products said it was fuzzy and gave him headaches. The vice president for pocket devices was blunter: he’d support ClearType and use it, but only if I transferred the program and the programmers to his control. As a result, even though it received much public praise, internal promotion and patents, a decade passed before a fully operational version of ClearType finally made it into Windows.

Or another case in attempts to build the Tablet PC, in stark contrast to Apple’s (obvious and necessary) redesign of iWork for their upcoming iPad:

Another example: When we were building the tablet PC in 2001, the vice president in charge of Office at the time decided he didn’t like the concept. The tablet required a stylus, and he much preferred keyboards to pens and thought our efforts doomed. To guarantee they were, he refused to modify the popular Office applications to work properly with the tablet. So if you wanted to enter a number into a spreadsheet or correct a word in an e-mail message, you had to write it in a special pop-up box, which then transferred the information to Office. Annoying, clumsy and slow.

Having spent time in engineering meetings where similar arguments were made, it’s interesting to see how that perspective translates into actual outcomes. ClearType has seemingly crawled its way to a modest success (though arguably was invented much earlier with Apple ][ displays), while Microsoft’s Tablet efforts remain a failure. But neither represent he common sense approach that has had such an influence on Apple’s success.

Update: A shockingly bad official response has been posted to Microsoft’s corporate blog. While I took the original article to be one person’s perspective, the lame retort (inline smiley face and all) does more to reinforce Brass’ argument.