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There was a time when Sony was on the edge of technological advancements. Since then, it has fallen behind. Apple has become the new “cutting edge” brand. Even one former Sony executive said, “Apple is the Sony of the 21st century.” In an attempt to revitalize the Sony brand, Sony’s Chief Executive Howard Stringer hired Tim Schaaff, a top lieutenant of Apple CEO Steve Jobs, three years ago. The idea behind his hiring was to bring the change Schaaff has displayed at Apple to Sony. Schaaff, was one of the software engineers of Apple’s QuickTime software, a foundation of products such as the iPod and iPhone.

Change was needed at Sony. There were both external and internal forces leading the force for change. Externally, the marketplace created a need for change in Sony. Consumers began to see Sony as the past and Apple, as well as other brands, as the future. Internally, Sony had divisions in the company that would not collaborate to create new and innovative products. Also, when Stringer hired Schaaff, there was opposition to the decision. In an attempt to combat the opposition, at a 2006 management meeting, Stringer instructed all the young software engineers to the front of the room and all the older, senior executives to the back.

There are organizational changes going on currently at Sony. Starting with structure, while it is still departmentalized, many of the departments are beginning to work together to accomplish a single goal for the company. When Sony wanted to begin the PlayStation Network, a network where users could download movies to their PlayStation 3 system, Schaaff’s group, the PlayStation, and Sony’s film division all worked together to get the network online on July 15, 2008.

People are also changing at Sony. The attitudes that attributed to the division of its departments are being eliminated. When PlayStation chief Ken Kutaragi was critical of sharing power at the company, Stringer moved him into a different role in the company; Kutaragi later resigned altogether. Stringer brought in new executives whom he worked with over the years to oversee divisions such as mobile phones, PlayStation, and the Sony Reader (Sony’s attempt to break into the digital book market). These new executives were more accepting of change, and have been working well with Schaaff. However, one of Schaaff’s friends and also a former Apple executive, Ty Roberts said that “Tim [still] has to do things very gently.” Things must be done gently because if a large change happens very abruptly, some divisions could see sales drop further, or worse.

Over the past three years, a noticeable difference has come over Sony. The changes can be seen in its newest VIAO laptops (they are now sleeker, rounded, and have Apple styled keyboards), in its PlayStation 3 (with the integration of other divisions of the company), and in its mobile phones (breaking down barriers and opening up to Microsoft software). All that is left now is for Sony to accept the change as ongoing, and to manage and plan accordingly.

NOTE: This is about organizational change based on a November 10, 2008 BusinessWeek article titled : Sony Chases Apple’s Magic

Jeremy

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