Business Week: “Indeed, for a generation of managers weaned on the rigors of Six Sigma error-elimination programs, embracing failure — gasp! — is close to blasphemy.”

Microsoft often talks about our willingness to let people fail and take big risks. I know it is part of our history, but it makes me wonder about what big risks we’re taking today and where we’re likely to succeed (or fail) in a spectacular way. When I look at the other “big” companies in software and on the Web today, I don’t see anyone doing anything particularly risky or disruptive. Am I missing it, or is this innovation driven by smaller players with less to lose?

On the web today, business models are driving innovation as much as new technology. New ways of connecting with customers and enabling them to leverage your tools and services are just as important as the technology you build on, your APIs, and your unique use of new technologies to deliver your solution. Will the big companies on the Web embrace new ways of doing business and monetizing their work to drive the innovation, or will we be waiting for the next Microsoft or Google or Yahoo to come along and show us a new way?

With the rapid rate of change that we’re seeing on the Web, will companies have time to adapt and evolve their businesses to keep up or will the cycle continue to be driven by the new players?