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In this tutorial, Ian Lamont explains the concept of office compatibility mode for Google Docs, which allows you to edit Microsoft Word documents without needing to purchase Microsoft Word. To use this feature, you need to have the office editing extension installed on your Chrome browser. To check if you have the extension, go to the Chrome menu, select window, and then choose extensions. The extension is called office editing for Docs, sheets, and slides. This feature is useful for editing Word documents in Google Docs, with some limitations.