QUOTE said:Despite its iconic brand, Sony Corp. remains out of step with the rest of the global technology world and its talent for crowd-pleasing innovation has largely evaporated.
A hacking scandal in April that exposed more than 100 million accounts on its online gaming network to possible data theft not only hurt its image but threatens an online strategy meant to unite a disparate corporation and could upset a carefully crafted succession plan for when chief executive Howard Stringer steps down.
It wasn’t so much the security breach itself but the delays in informing customers of the problem and Sony’s subsequent inability to quickly close other weak spots vulnerable to hackers that has left a stain.
“Too big to succeed comes to mind,” a former senior manager involved until recently with Sony’s PlayStation game console told Reuters, declining to be identified because of the sensitivity of the comments. “I was at PlayStation, considered the most flexible of the Sony units, but ironically that was crippled by over-secretive IT security, a lack of a coherent management structure and a lot of deadwood at the top. It was harder to work across Sony units than to work with outside partners,” he said.
It isn’t only former insiders who see the magnitude of the problems.
A procession of top executives at U.S. technology companies who spoke at a Reuters Global Technology Summit last week didn’t mince their words when asked about Sony. Robert Glaser, chairman of Internet media software company RealNetworks Inc., likened Stringer’s task of rehabilitating Sony to “introducing capitalism to a Soviet-bloc country after 50 years of communism.”
The erosion of Sony’s standing is a graphic warning of what can happen to technology companies when innovators move on. Back when Sony, led by co-founder Akio Morita, launched the Walkman, it proved an inspiration to the founders of the then little known startup company: Apple Computers....(Continued)
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