CASE 2
NOTES:
Case Summary:
case study:
1. Transformation to a Cloud Services Company:
Microsoft aimed to transform itself from a traditional software company to a cloud services
company.
This transformation was driven by the need to better understand and respond to customer
needs, which is crucial for effective cloud services delivery.
2. Data-Driven Initiatives:
Starting in 2014, Microsoft undertook three data-oriented efforts to facilitate its transformation:
a. Enriching performance management with new metrics to monitor cloud services and market
needs.
b. Consolidating and reengineering business processes to work more efficiently and evidence-
based.
c. Introducing self-service business analytics tools, such as Microsoft Power BI, to promote data
and analytics best practices and evidence-based decision-making.
3. Positive Impacts by 2017:
By 2017, Microsoft had made significant progress in its transformation efforts:
61 percent of the workforce was using Power BI monthly.
Product revenues from Microsoft Azure had grown by 93 percent.
The company's stock price had nearly doubled.
4. Enriching Performance Management with New Metrics:
Microsoft's shift to cloud services required new performance metrics beyond traditional unit
sales figures.
They needed to understand customer engagement and product usage to gauge performance
and forecast growth.
Identifying and sourcing data for company-wide metrics was challenging but necessary for
effective monitoring.
5. Consolidating and Reengineering Business Processes:
Microsoft's product-based organizational structure was restructured to encourage a more open
and collaborative approach.
Business units consolidated and reengineered processes to align with a service-oriented
strategy.
Employee incentives were adjus
