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Ian Lamont, author of Google Drive and Docs in 30 minutes, discusses office compatibility mode for Google Docs, allowing users to edit Microsoft Word documents without the need for Microsoft Word. However, there are limitations to be aware of. To use this feature, you need to install a special extension called "Office Editing for Docs, Sheets, and Slides" through the Chrome menu. This extension acts as a plugin for Chrome, enhancing its functionality.