Decades ago, Banana Republic was a mail order outfitter with a very cool catalog. It had lots of khaki; hats suitable for jungles and deserts; battered leather pouches, web belts and multi-pocketed vests for carrying the bits and pieces of paraphernalia you’d be likely to need when visiting snake or scorpion-infested territory; and the paraphernalia itself.

Somewhere along the way that formula stopped working, and Banana Republic turned itself into Just Another Clothing Store. It’s been successful, so from the perspective of fiduciary responsibilities to shareholders, it Did The Right Thing. But from the perspective of What’s The Point? Well, that’s the question, isn’t it?

There comes a time in the history of most companies when the old model stops working. Too often, the choices seem to be either vanishing from the landscape or, like Banana Republic, becoming a generic, personality-free enterprise.

When personal computers first burst onto the corporate scene, all of the players … and that includes Microsoft, but also Apple, Digital Research, Software Arts, Micro Pro, Novell, and Don Estridge’s PC division at IBM … were, at heart, revolutionaries.

They supported, not corporate America, but subversives inside corporate America — end-user-department innovators who needed to automate workgroup processes, model alternative business scenarios, or to otherwise solve small-scale challenges quickly, without going through the swimming-through-molasses procedures required by the corporation to get IT support.

The result was an outpouring of creativity that dramatically changed how businesses operate. For those readers too young to have lived through the transition, here’s just one of the changes, to serve as a proxy for all the rest: Before the PC, every manager had a personal secretary. Post-PC, many managers wouldn’t even know how to keep a secretary busy.

While Microsoft took a bare-knuckled approach to competitors, it kept sight of who its customer was — the individual corporate cost-center manager and end-user, not IT. That its operating system didn’t lend itself to central control, and its design was indifferent to security was not accidental. Corporate IT cares about control and security. End-users care about getting things done quickly, without bureaucratic overhead.

And then, somewhere along the way, the world changed and corporate IT became the customer. Microsoft adapted and thrived, but in much the way Banana Republic adapted and thrived — by forgetting what it was.

In microcosm: End-users wanted .bat files, interpreted BASIC and a macro “language” that wasn’t much more than a glorified keystroke automator. Corporate IT wanted standardization, restriction of administrative rights, and enough limitations on what end-users could do to assure the security of corporate information assets.

That was the end of .bat files and interpreted BASIC, while macro languages gave way to Visual Basic for Applications — a language learnable only by those who understand the philosophy of designing and coding software objects.

This is what is sad about some forms of success: Whether the subject is the personal computer industry, the Internet, Linux, or the Olympic games, it seems to drain the charm out of just about any business that achieves it.

And, there are times success results in abandoning a small but still-very-real market. The PC is, we’re told so often it has become tiresome, a business computer and not really a “personal” one. Which leaves open the question of who is going to serve the customers who used to look to Microsoft and the other small systems companies.

It won’t be Apple. Apple makes cool technology; not end-user-programmable technology. It probably won’t be the open source movement either. Those adept enough with technology to create open source solutions aren’t, for the most part, interested in creating tools simple and prosaic enough for average end-users.

The best candidate right now is (of course) Google. Its provides applications with novel capabilities, and because it delivers them via the browser, IT will have a hard time keeping them out of the enterprise.

In the meantime, Bill Gates has left the game, to devote his attention to the Bill and Melinda Gates Foundation. The Foundation is genuinely admirable, both in its goals and its execution (and has redeemed Mrs. Gates from having been the force behind Microsoft Bob).

Except … is anyone else concerned about what the Bill and Melinda Gates Foundation might turn into once Mr. and Mrs. Gates are gone? It’s an organization with a budget rivaling that of some governments, with no public governance or oversight.

I’m not entirely sure that in the long run this will prove to be an entirely good idea.

If you want to stir up controversy among IT professionals, all you have to do is to say something complimentary about Bill Gates and Microsoft.

Or, say something critical. Either will do.

Last week’s column, in general complimentary, resulted in quite a bit of disagreement, in particular on the question of whether Microsoft has ever innovated. You’ll find some of the exchange chronicled in Advice Line (“Microsoft innovation, or not,” 7/8/2008).

My assessment hasn’t changed. A view of innovation limited to product features earns Microsoft a D, and that’s being generous. If the best it has to offer in the way of innovation are Microsoft Bob and the Ribbon … the word that springs to mind is “ugh.”

To help focus its R&D efforts, here are two useful features missing from Word. The first is easy: If I write, “Microsoft code is flabby, insecure and buggy,” and decide to reorder the list to, “Microsoft code is buggy, flabby, and insecure,” I have to fiddle a lot to keep the commas and “and” in the right places. Intelligent and unobtrusive list re-ordering would be quite useful.

Far more useful (and far more challenging to develop) would be a true intelligent assistant — one that scans and analyzes my writing to learn my style, so I can tell it, “Send a diplomatic-sounding nastigram to Senator Bupkis about his position on the Digital Millennium Copyright Act. In it, make these points:” followed the specific evidence and logic I want to include.

If you’re part of the Open Office project, feel free to beat Microsoft to the punch.

To put Microsoft innovation in a more useful context: Its impact on the software industry has parallels to the impact of the Roman empire on Europe, the Mideast, and North Africa.

Not everyone at the time appreciated being conquered. On the other side of the subject … well, George Bernard Shaw on his worst day was more eloquent than I am on my best, and so, from Julius Caesar:

APOLLODORUS

I understand, Caesar. Rome will produce no art itself; but it will buy up and take away whatever the other nations produce.

CAESAR

What! Rome produces no art! Is peace not an art? Is war not an art? Is government not an art? Is civilization not an art? All these we give you in exchange for a few ornaments. You will have the best of the bargain.

Microsoft’s “art” … its innovation … isn’t about its products. In its early days it won through “conquest” (exploiting the mistakes of less canny competitors, and sometimes encouraging them — for example, WordPerfect’s focus on OS/2 instead of Windows). Now, it wins through “civilization” — pre-built integration of complete infrastructure solutions so customers don’t have to glue things together.

In that vein, correspondent Ted Johnson made this excellent point (edited for space):

As a small business IT director, I see Microsoft’s play for the future being the integrated system stack. When I look at the ease of integration of Server 2008, SQL 2008, SharePoint, Office, the various BI tools, and the Dynamics ERP/CRM line, it is hard to argue with on a limited budget.

The main competition I see to Microsoft is open source. I would love to take a deep look at Compiere, but … I don’t have the time to learn the system well enough to do the gap analysis and determine the cost savings over 5 years of switching to Compiere from Dynamics NAV.

So, I need a BI solution. SQL 2005 is already installed and running my ERP. We’ll start there.

I need an intranet/content solution (very small scale). My guess is it will be SharePoint as it will already be a display target for the BI solution and the future version of Dynamics NAV.

[Since I’d have to] hire more IT staff to work through the technologies in the open source community, it’s hard to see how I will leave Microsoft. I have proposed replacing Office with Open Office on our Citrix servers. I’ve looked at Drupal for an intranet site, but with the integrations mentioned above, why would I invest in server and expertise to go there as opposed to SharePoint?

The lock-in seems even tighter today.

All of which illustrates the original point: There is as much genius and artistry in adopting and integrating the good ideas of others as there is in figuring things out on your own.

If there wasn’t, you wouldn’t take the time to read Keep the Joint Running every week.