2 Google Innovation

8/13/2019 2 Google Innovation

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Harvard Business Review

Bala Iyer and Thomas H. Davenport


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The Roots..

Vision

Technology and Strategy are inseparable and mutually permeable

Technology should do more than just support the business Technology should engender strategic opportunity

Mission

Category-killing Search Engine

Massive, scalable IT infrastructure

Technology explicitly architected for innovation

Well-considered organizational and cultural strategy


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Practice Strategic Patience

Exploit an Infrastructure Built to Build

Rule Your own Ecosystem Exercise Architectural Control

Build Innovation into Organizational Design

Support Inspiration with Data

Create a Culture Built to Build


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Short-time profitability doesnt seem to matter

Ubiquity first, Revenues later..

Strategic Patience itself is NOT ubiquitous. Why?

Google monetized consumers intentions search and others

Not so for everybody else..

What makes it work?

Strong monetization of consumers intention cash cows

Clarity of purpose

Attention to detail


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Foundations

Strong market equity from principal productsearch engine

Persistently developing proprietary technologyoperating systems,

database systems

Highly scalable infrastructureservers, networks, services

What do these yield? Accelerated product development lifecycle for in-house innovations

Support for third party developments, mashups and other innovations

Where has this led to?

An ecosystem of:

Developerswho use the ecosystem infrastructure to launch their products

Content providerswho need an eco system to reach out to markets

Content consumerswho use search as the starting point for a variety of

their own needs


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Googlethe Keystone Component

The component that holds all others in place

So, all else is dependent on you!

How does Google control the ecosystem?

Every transaction is performed through its platformsHence:

Claim a large share of the value created

Have access to all the data and processes and events

Result:

Very effective market analyses

Accurate forecasts and predictions

Crowd-sourcing in a controlled manner


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Ability to track the performance of mashups

Negotiate relationships from strong competitive positions

Hedge the risks faced by third-party developers

Customers get: faster access to innovations

Google gets: more ways to increase traffic to its platforms

Developer gets: ability to tryout without contractual entanglements

As a result: Avoid the appearance of competition.

Vulnerabilities Keep the traffic going amidst competition

Keep the ecosystem players trust


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Budget innovation into job descriptions

Eliminate friction at every turn

Allow the market to choose which innovation will work

Cultivate a taste for chaos


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Technocratic culture Individuals prosper by intellect

consequence: Prediction markets! Budgeted time for innovation

Regular stimulus tech-talks

Focus on:

People as the most important assets

Learning and continuous improvement

Results: Knowledge-work environment

Design and occupancy of offices

Approach to interviewing and hiring

In exchange for the privileged treatment: Expects hard, almostobsessive work!


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Documents

2 Google Innovation