Microsoft CEO Switch Not Enough Change: Christensen

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Nov. 19 (Bloomberg) -- Clayton Christensen, professor at Harvard Business School, discusses what’s next for Microsoft as the company closes in on a new CEO and whether or not large corporations can truly be disruptive. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

They had a great ceo who was good about running the existing business.

What they did not understand or appreciate is that when you want to catch the next wave of disruption, you cannot do it from within the existing business.

You cannot beat existing players in their own game.

They invested over and over again in sustaining innovations, trying to make better products than their competition rather than disrupting them.

You are wonderful about the geography and landscape of a how you do not set it up in silos.

Does microsoft have to set up a separate j.v? you can do it within the corporate umbrella.

The business unit has to be completely different because they need to earn profitability through a different formula.

Different margins, different kinds, different channels to the market.

You cannot do it from the monolithic market that has brought you to success at this point.

Now they have dropped the ranking system, does that bring in the kind of fresh talent and a viewpoint the company needs to start new businesses and products?

I do not think the problem is with the people.

The people who are they are are bright people.

It is the system in the company and the resource allocation process that says we will put this much behind this initiative and this much around another one.

The system is more powerful than the ceo.

What is a successful system now?

Isn't alan mullally at fort?

-- is it alan mullally at ford?

Which one has a system clay christiansen can believe in?

There are not many.

Give me a name.

Give me some help.

Clay christiansen it's a build by the syllable.

Give me a company that seems to be doing the right thing.

I think salesforce is doing a great drop -- great job in catching the next wave.

I think into it does -- intuit does a great job.

I think ge has a tough time ahead because they grew by disrupting wall street through ge capital.

They run resources out of the industrial businesses.

Now they have to rebuild it.

That is right.

It is from the bottom up.

How do we suicide -- how do we decide where the capital goes in?

Is the disruption happening at the big companies?

We have not seen the kind of disruption that you're talking about at the big companies.

Why spend money there?

This text has been automatically generated. It may not be 100% accurate.

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