Bloomberg - How Microsoft Plans to Beat Google and Facebook to the Next Tech Breakthrough < 5min

As Nadella, a 24-year veteran of the company, would have known, the process of turning a Microsoft Research project into a product would often happen slowly, if at all. That's partly by design. The company's research group was set up in isolation from the product teams to allow researchers to envision the future without worrying about how their inventions will make money or fit into the company's mission. ... But Nadella's tight deadline left executives with no time to debate the separation of church and state. ... Microsoft is overhauling its research arm and the way it works with the rest of the company. The goal is to quickly identify technology with the most potential and get it into customers' hands before a competitor replicates it. ... To break down the walls between its research group and the rest of the company, Microsoft reassigned about half of its more than 1,000 research staff in September 2014 to a new group called MSR NExT. Its focus is on projects with greater impact to the company rather than pure research. Meanwhile, the other half of Microsoft Research is getting pushed to find more significant ways it can contribute to the company's products.