Googles Innovation Lund Uni

Google Confidential and Proprietary

Google @ Innovation

By Aida, Carrie, Emily and Kaiji

Nov 7, 2008

Google Confidential and Proprietary 2

Agenda

Brief of applied innovation theories

Innovation context of internet industry

Case Study: A brilliant innovation company

• Google’s understanding of innovation

• Google’s innovation achievement

• Google’s innovation management


Innovation theories applied in this presentation

Innovation dynamics

Creative destruction

Innovation management


Industrial and innovation evolution phases

Industrial Evolution Phases

Fluid Phase

Transitional Phase

Specific Phase


Characteristics in the fluid phases

:Phase Consumers Firms Market

Fluid Phase

Consumers have not developed their own sense of ideal product design

Firms try to supply satisfied service based on their innovation to feed consumers’ request.

They are learning as they move along.

Market appears as a big potential to every person and firm.


Characteristics in the transitional phases

:

Phase Consumers Firms Market

Transitional Phase

Consumers grow and have their acceptance of product design (dominant design by leading firms in this industry ).

Leading firms propose the dominant design to cultivate their loyal consumers.

Other companies catch up by copy successful product, process and business model innovation.

Successful firms were selected by invisible market rule.


Characteristics in the specific phases

:

Phase Consumers Firms Market

Specific Phase:

Consumers are mature and picky to select better and humanistic service by companies.

Incremental innovation are done to improve product and process by firms.

New wave of innovation may be come by some new ideas.

Market becomes specific and may meet bottleneck; calls for new innovation wave.


Product innovation is competence of companies

Fluid Phase1990 - 2000

Transitional Phase2000 - 2010

Specific Phase2010 -

Product Innovation

Multiple Platform of all web service

• Search Engine• Blog/ Community• Instant Messenger• Etc.

• Portal Site• Bulletin board• Electronic mail • Etc.

Innovation Dynamics of Internet Industry


Product innovation is competence of companies

Fluid Phase1990 - 2000

Transitional Phase2000 - 2010

Specific Phase2010 -

Product Innovation

Innovation dynamics of internet industry

Multiple Platform of all web service

Why ?








A creative destructive initiated the SE website

1995: A research project at Stanford University



Organize the world’s information and make it universally accessible and useful.

A Compelling Mission make innovation possible

1. Focus on the user and all else will follow

2. It's best to do one thing really, really well

3. Fast is better than slow

4. You don't need to be at your desk to need an answer

5. There's always more information out there

6. The need for information crosses all borders

7. You can be serious without a suit

8. Great just isn't good enough

Google’s Innovation Philosophy – Some Points

Creative Destruction

Google has introduced revolutionary changes in the way any type of information is managed, shared and made useful.

How? Google has developed these products:

• Google Search

• Google Earth

• Google Desktop

• Google Maps

• Google Videos

• Google Groups

• Google Mail

• Google Trends

Creative Destruction

Before

-Web-based search was limited in extent and diversity

-Addresses and maps were not available and were inaccessible

- Sharing of various types of info was not possible

- Trends related to various fields was impossible to access

- Satellite imaging was highly impossible

Now

- Possible to search for written info, graphics, photos etc. in many languages.

- Possible to find addresses and contacts in interactive maps

- Possible to share videos, photos etc.

- Possible to follow trends in many fields like finances etc.

- Possible to get high-resolution satellite images of any point at Earth






Joint IBM Google Announcement

IBM Almaden Research

Google

U. Of Washington

Universities participating in initial pilot

• Train future workforce with next generation computing skills

• University initiative to promote open standards and emerging parallel computing model

• Jointly provide compute platform of the future including hardware, software, and services to support new parallel computing curricula

• Three active “clouds”

Explosion in Internet Usage and Content

• IBM and Google jointly announcing an academic initiative to

promote new software development methods

− Accelerate academic skills and research needed to address

the challenges of internet-scale applications

• Growth fueled by global use, mobile device access and user-

generated content

• New emerging architecture needed to expand the Internet to

become the compute platform of the future

− From one-server, one application model to browser based

parallel application model

− IBM sees opportunities for commercial offerings in cloud

computing

What is Cloud Computing?

4+ billion phones by 2010 [Source: Nokia]

Web 2.0-enabled PCs, TVs, etc.

Businesses, from startups to enterprises

An emerging computing paradigm where data and services reside in massively scalable data centers and can be ubiquitously accessed from any connected devices over the internet.

Characteristics of Cloud Computing

• Virtual – Physical location and underlying infrastructure details are transparent to users

• Scalable – Able to break complex workloads into pieces to be served across an incrementally expandable infrastructure

• Efficient – Services Oriented Architecture for dynamic provisioning of shared compute resources

• Flexible – Can serve a variety of workload types – both consumer and commercial

Example of How the Cloud Drives Innovation

Speed time to market for new offerings by exploiting collaboration technology to co-create and gather rapid feedback on new offerings

Expand sources of innovation with a network of partners, customers, researchers, and academia

Innovation Factory

Lower barriers to IT by leveraging Cloud to provide incubation environment for new prototypes

Virtualized Cloud Incubation

Environment

Leverage Cloud’s powerful combination of Web 2.0 collaboration platform and dynamic, secure computing environment to drive business transformations.

Examples of Cloud Computing Workloads

• Web 2.0 applications

• Provide rich user experience including real-time global collaboration

• Enable rapid software development

• Software to scan voluminous Wikipedia edits to identify spam

• Organize global news articles by geographic location

• Data-intensive workloads based on scalable architectures, such as Google’s MapReduce framework

• Financial modeling, real-time speech translation, Web search

• Next generation rich media, such as virtual worlds, streaming videos, Web conferencing, etc.

• New services can be created and published via a completely integrated Eclipse-based environment

Customer View of Cloud Computing

• Governments see value in leveraging Cloud Computing technology as a catalyst for innovation and economic growth

• Accelerates creation of new service offerings

•Enabling startups, research, and new ventures with automated incubation environment for rapid prototype development

• Cultivates skills for next generation workforce

• Reinforces country’s thought leadership with first-of-a-kind innovation enablement platform






- BUSINESS MODEL INNOVATION

- INNOVATIVE WAY OF MANAGING PEOPLE

Everybody knows that Google’s innovations in search technology made it the No. 1 search engine.

Simple interface WITHOUT Advertising . But…how to make money?

27

Results of organic com

pounds - algorithm

Sponsored Links

Cost-per-click on

• Secret is… auctioning adsSecret is… auctioning ads

Advertising today accounts for 99% of the revenue of a company whose market capitalization tops $100 billion.

Business Model Innovation of Google

Google's goal to make their targeted ads at least as relevant and useful to users as the search

results themselves.

Perfecting the nature

of targeted ads

Google not only has created a highly effective revenue

generator, it has produced

what it hopes to be a better experience

for its users.

It’s about people and how to structure

Google provides nearly everything… these people need from clothes (new T-shirts are placed in bins for people to grab *twice* a week!) to food – three, free, all-you-can-eat meals a day. Plus on-site health care, dental care, laundry service, gym, etc.

Management Structure – Flat Organization

BIGGEST CHALLENGE NOW

Bartiromo: Fascinating. So what's the biggest challenge that you're facing today?

Schmidt: In Google's case, I think it's internal. It's the ability to manage the creative process, deal with the complexity in what is a relatively large company, in terms of people, who's doing what. We have 50 development centers all around the world, people in different time zones, `Are you doing that? Are you doing that? Do I work with you? How do I check in my code?‘ Those sorts of things.

MANAGEMENT IS ABOUT HUMAN BEINGS. MANAGEMENT IS ABOUT HUMAN BEINGS.

ITS TASK IS TO MAKE PEOPLE CAPABLE OF JOINT ITS TASK IS TO MAKE PEOPLE CAPABLE OF JOINT PERFORMANCE, TO MAKE THEIR WEAKNESSES PERFORMANCE, TO MAKE THEIR WEAKNESSES IRRELEVANT.IRRELEVANT.

– PETER DRUCKER– PETER DRUCKER

Good summary of Google’s innovation

Thank You !

Technology

Googles Innovation Lund Uni