Microsoft CEO Steve Ballmer anounced organizational changes within the IT giant. Microsoft wants more, so it is transforming the way it organizes, plans and works. The company is re-inventing itself to enable faster innovation, efficiency and capability. The new strategy is to deliver a family of devices and services (versus packaged software) for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most, aligned to its vision: to help people realize their full potential.

Currently, Microsoft has eight divisions: Interactive Entertainment, Business Solutions, Office, Online Services, Servers and Tools, Skype, Windows and Windows Live, and Windows Phone and is changing to the following functional divisions: Operating Systems Engineering Group, Devices and Studios Engineering Group, Applications and Services Engineering Group, Cloud and Enterprise Engineering Group, Dynamics, Advanced Strategy and Research Group, Marketing Group, COO, Business Development and Evangelism Group, Finance Group, Legal and Corporate Affairs Group, and HR Group. There will be also four engineering areas: OS, Apps, Cloud, and Devices. They will keep Dynamics separate as it continues to need special focus and represents significant opportunity.

Microsoft intents to reshape this way how they interact with customers, developers and key innovation partners, delivering a more coherent message and family of product offerings. Improving their performance has three main dimensions: focusing the whole company on a single strategy, improving their capability in all disciplines and engineering/technology areas, and working together with more collaboration and agility around their common goals.