What should Microsoft Teams' product strategy be for the next 3 years?

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Here's a framework I came up with to answer this product strategy question.

Understanding of the Product

Microsoft Teams is an app which helps people chat, connect, do voice and audio calls one on one or in a group. There are some live-colloboration features where people can work and scribble together.

Clarifying Questions

  1. I assume the goal is to make more users use Teams. [Interviewer]: Yes
  2. Also, are we focusing on any segment, geography, demographics ? [Interviewer]: You decide
  3. Also since MS vision is to make everyone more productive, I would not think on the lines of Teams becming whatsapp/TikToK which is more entertainment than productivity. [Interviewer]: Makes Sense
Environmental Scan
Let me do a SWOT analysis to identify strategic options.
Strenghts
  1. Miscrosoft Brand Name and Trust It Evokes
  2. Huge Client List
  3. Microsoft Windows and Azure
  4. Microsoft Office
  5. Tie ups with Laptop Manufacturers
Weaknesses
  1. Not much hold of mobile/tablet market
  2. Lack of leadership in browser market
Opportunities
  1. Digitization/WFH will pick up more pace in workplace
  2. Education will also move towards more Hybrid approach
  3. Network Speed/Bandwidth will get comoditize
  4. IoT things will become more pervasive
  5. AI/ML to figure out and solve challenges which were difficult before.
Threats
  1. Competitors like Meet, Slack etc.
 
Strategic Options
  1. Become more like slack which is basically a just a communication tool with lots of apps plugged into it.
  2. Go after education sector and build product which makes students and teacher use it more often
  3. Focus on business enterprises and instead of just colloboration, try replicate/recreate virtual office.
 
Evaluation Criteria
  1. Does the path align with mission ?
  2. Is the market attractive enough ? (Current, Future Potential)
  3. Is there a problem big enough to be solved ? 
  4. Ability to execute & innovate to differentiate itself (On the basis of Strenghths & Weakness)
Evaluation
 
IdeaCriteria#1Criteria#2Criteria#3Criteria#4
#1YesHigh (All enterprise/Business)Medium. Tools will keep on changing with time and there is no limit to itLow
#2YesMediumHigh
High
->Schools/Student mainly use laptops/Desktops with Windows
-> Integration of AR/VR can open up new use cases
-> AI/ML can be used to solve some pain points of virtual world
#3YesHigh (All enterprise/Business)High
High
-> Already existing clients
-> Potential to integrate Teams into MS
-> Potential to use Linkedin
-> AI/ML can be used to solve some pain points of virtual world
 
Reccomendation
 
Since we are looking for 3 year plan, I would reccomend going after education sector since it is the most impacted sector and bothe students and teachers have a need to connect/colloborate online. Also I believe we can do sufficent innovations using  AI/ML and build-in in-class and out of class colloboartion features within 3 years.
 
From long-term perspective, I believe virtualization of office atmosphere/process might be the way to go forward.

 

 

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Approach:

1. Ask follow up questions to understand the scope and area of focus

2. Brainstorm 3-5 potential strategies

3. Discuss prioritization

4. Success metrics

Follow up questions

Candidate: Can our strategy include aquistion of other companies to make advances in technology quickly?

Interviewer: up to you

Candidate: Can the strategy include the invention of new hardware device to create novel experience for microsoft users?

Interviewer: Yes

Candidate: Do we want to focus the strategy around desktop or app?

Interviewer: upto you

Brainstorm potential strategies

Strategy one: Offer live/on demand translation features to faciliate communication between people from different language background to use microsoft team to drive top of the funnel metrics; 

Strategy two: Create an omni-channel experience where users can access microsoft team from any device such as smart displays, cars, voice assistant devices such as alexa/cortana/google home; this will allow to increase the user base

Strategy three: Enrich the video-conferencing experience by reproducing the person in 3D that it should appear that users are sharing the same pyshical space; it is like simulating in-person user interaction; this will help to unlock new realm of possibilites in the field of tele-communication technology  

Prioritization

Based on the evaluation of the business strategies in terms of market opporunity, competitors and company fit, I would prioritize the goal to create a new harware technology using depth sensor and advance camera that creates an in-person communication experiences for the users. 

Because 3D video conferencing would have biggest market opportunity when millions of people work remote and live apart from the loved ones.

There are no other competitors that offer the similar product in the market, thus it would create a first-mover advantage that helps in user adoption and retention 

This strategy fits well with the mission of product which is to offer the communication tools for the user for colloboration. The logical next step to video communication is the simulation of in-person communication experience where we will reproduce the 3D live image of the people on the call.

Success metrics

Number of users that purchased the new hardware that create in-person communication experience

Number of users that communicate using the device

Average number of days in a year that the users use the device to communicate with others

Revenue from the breakthrough communication device sales

 

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  1. Clarifying Questions:

    1. Are we considering any specific geography- its geography agnostics

    2. Is there any metrics in focus i.e user growth, monetisation, engagement → we want to grow user base which in turn will give us monetisation opportunity-grow users base B2B from current 20 out of fortune 500 to 100 fortune 500 companies

  2. Describe the company and the product 

    1. As a company microsoft is one of the biggest enterprise company which touches the lives of every professional in or of other manner

    2. We have outlook in almost every laptop you can think of

    3. Teams is professional video call service which competes with zoom and google meet

    4. The broader goal of microsoft would be to have as many teams user as we have for outlook 

    5. Teams as a product offers group video, 1-1 video-audio, chat feature and has the advantage of being a ms product

    6. Current team users are limited to select companies which have a complementary offer as Teams as part of deal or enterprise which are price conscious and do not want to spend money on zoom

    7. This could related to data privacy as well- MS is well established compared to zoom which  new in the game

    8. In order to increase the user adoption of MS teams , MS would have to look at some game changing 

    9. Lets briefly talk about zoom and google meet

      1. Zoom has first mover advantage 

      2. Companies which are already on zoom may have multi year so not easy to establish a new partner

      3. Migration would incur cost as well as technological bandwidth

      4. Zoom is really great in user experience , any new platform will have a learning curve for users

      5. Supports features like chat and whiteboard

    10. Gmeet

      1. Mostly used by smart ups and small companies

      2. Google perception is more of a b2c company bcoz of successful consumer products i.e maps, search etc

      3. Difficult for google to compete 

    11. Teams have an opportunity to dent zooms monopoly and get market share by proper roadmap planninng

  3. Strategic choice

    1. Improved UI  –current teams UI is inferior compared to zoom. The UI looks cluttered and not very user friendly. Screen sharing , pause, background changes. The product still doesnt looks refined and looks more of MVP 

    2. AR/VR- given that remote work a  new norm, people have started spending significant amount of time on zoom. This kind of brings a gap and real meeting feeling is missing. MS can build experience where people can feel that they are seating ina meeting room. Option to pick seat , raise hand etc

    3. Zoom creates fatigue and people stay away to relax. MS can partner with wellness company which etertain users as soon as they end up meeting– music, light mediation

    4. Collaboration focus– still when it comes to collaboration , people move to other tools . inbuilt collaboration tools for whiteboarding, collaboration, polling 

    5. Note bot– its always difficult to gather notes and send minutes and key action items. An AI bot to note down the summary with key action items and option to edit and send as soon as meeting if over thereby saving time for the organizer. This should be optional

    6. Live translation - covid has breached the geography and people are working more remotely. Live audio  translation into preferred language will break the language barrier and this will be one of most preferred product among people meeting cross language and geography

  4. Evaluate each strategic choices

    1. Of all the options I am leaning towards building a AR/Vr meeting experience. This is where microsoft has advantage. It has been doing experiments in this space for some time and is really capable to build this. This has high entry barrier and not easier for competitor to replicate easily.

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Teams - Product that helps connect and collaboration hub among teams in the workplace. Chat, meet, share etc via the product.

 

Ask and clarify few assumptions:

What is the organizational Goal for Teams. From the below Matrix

Product

New

NA

Could be Open

Curent

Improve for Personas

Expand into new prospective Markets

Market                                                     Current                       New

As we see above assume the goal is both:

  • Improve

  • Expand into new Markets

 

Personas and Markets :

For Improve:

Persona:

  1. Millennial Enterprise Worker - Age group 20 - 25, Also a global trend in economies

  • Prefers to work from anywhere and believer of workaction

  • Loves to connect to his team virtually and be productive 

Looking for creating a “Virtual First” Workplace to enable them eg - Virtual onboarding and team connect, suggest off hours, team lunches, off hours to them. Creating an end to end remote first experience for users. 

For Markets:

  • Expanding into Markets which are focussed on collaboration and work might get done anywhere and being able to customize and simplify teams for their use case. 

  • Eg: Field Services - Connect the technicians on the field with back office and need constant communication and Support. Needs

  • Connected and offline support with low areas of connectivity

  • Share lot of data back and forth

  • Simple to use interface 

  • Support Integrations to be able to achieve the business process via teams itself

Looking for creating the capability to achieve completion of business process for the users of these markets via Teams. 

 

I would recommend starting with persona 1 and then expand to 2 as that will have high impact as well as less dev time. 

To Summarize my strategy will be: 

  • Create Virtual first experience 

  • Expand to markets which are focused on collaboration and can customize experience for their business needs 

 

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