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Ian Lamont, author of Google Drive and Docs in 30 minutes, discusses Google Docs' office compatibility mode, allowing editing of Microsoft Word documents without needing Microsoft Word. To access this feature, a special extension called "Office Editing for Docs, Sheets, and Slides" needs to be installed in Google Chrome. This extension acts as a plugin to enable editing of Word documents within Google Docs, providing a useful alternative for those without Microsoft Word.