Halmstad University

Technical Project Management and

Business Administration

Google

- Case Study -

Product Development and Innovation Management 1

Group 4

Written by

Samer Al-Mimar

Termination Date 11.11.2015

Introduction Google was founded in 1998 by Larry Page and Segey Brin, the initial public offering (NASDAQ) on 2004. Google provides variety of services for people and business. Google believe in ten things which were written in early years of Google creation. However, this list updated from time to time in order to meet the new changes, the points are (Focus on the user and all else will follow, Its best to do one thing really, really good, Fast is always better, Democracy on the web works, You don’t need to be at your desk all the time, You can make money without doing evil, There’s always more information out there, The need for information crosses all the borders, You can be serious without a suit, Great just isn’t good enough). [1]

The verb, "google," was added to the ‘Merriam Webster Collegiate Dictionary’ and the ‘Oxford English Dictionary’ in 2006, meaning, “To use the Google search engine to obtain information on the Internet. [2] “Google has won over most consumer internet users with its powerful search engine, concentrating its content strategies and prospects of success on corporate search market, news aggregation spaces, search, and technology. [3]

Innovation culture

Basic assumption

Innovation: Google basic assumption when they started was the potential opportunity to see if people interested in using google innovation and appreciate it. To make google more effective, they made solution for each requirement, as any simple user can log in and use Google services.

Google connected all the collected information and try to make use of these information from world-wide, google create stunning innovation pattern. Google depend on their users which motivate the firm to innovate and develop products.

Google has been able to hit the target by making continuous changes and build incomparable services, this entire success google relay on google process, action reaching to google goals.

Today one of important innovation tools for google is social networks, such as YouTube, Google plus etc.

Information to the global Google managed to distribute the information globally free of charge, based on being working as third party with other sources. It also specifies to find results in the operating area, finding best result in nearby region. For example, when you search for car repair workshop in Helsingborg, google will show the entire nearby workshop depend on your location.

Advertising Google mostly relay on advertising technology for the revenue and profitability, for example google add words, google key words, advertisements in social network, etc.

With Google AdWords, you can reach people as they search for words or phrases (which we call keywords) or browse websites with themes related to your business. Your ad can appear on Google and its partner websites. With cost-per-click (CPC) bidding, you're charged only when someone clicks your ad. [4]

Technology Google attract customers by offering free of charge services, google has managed to meet the customer needs by continuously updating their services depending on what their

1

customers feedback. We must mention also that google services are free of charge to certain limit, but normal user can enjoy all the services free of charge.

Business information Similar to many firms google depend on simple business information, it may look simple and obvious to others but it’s hard to be copied. Google has their secrets and I believe their business information look simple, but they provide limited information to prevent other imitate google way and let google gain their profits without any problems.

Value and Action

Involvement Google involvement in global events and festivals, google search engine is often design in many different ways for different occasions (festivals, parties, memories etc.).

Google offer variety of products make google involve in almost everything in our life, google products involve in (Web, Mobile, Business, Media, Geo, Specialised Search, Home & Office, Social and Innovation.

Larry Page, our co-founder and CEO, once described the “perfect search engine” as something that “understands exactly what you mean and gives you back exactly what you want.” With all our technologies from search to Chrome to Gmail our goal is to make it as easy as possible for you to find the information you need and get the things you need to do done. [5]

Boundary Google has limited boundary to secure its self from other competitors, due the basic business model can be understand by anyone.

Think 10X The philosophy of "10x" is woven into Google's DNA. Instead of improving something by 10%, the company strives to work on projects that are 10 times better than anything else out there. "A big part of my job is to get people focused on things that are not just incremental," CEO Larry Page. [6] So we can say that Google believes in radical innovation over incremental innovation.

Artifactual Google hires creative people as employees, and the employees of google respective of their position should work together and lead to the innovation. The employee’s works in group of six people which turn out to be very creative, the employees (engineers) got 20% of their working time to work on their privet projects which they like.

Everyone in Google must work creating new things even mangers. Google policy is to work as information provider which getting money from advertising. Google employees always get chances to improve themselves when they fail, google believe in give the employees another chances.

Innovation strategy

Strategic importance (make google different) Google get the profit from the idea of search engine depend on advertising, which the main source of revenue to google. Google managed to present new market to the global when google work hard to build the strategy fully awareness in details. Google develop their services by developing the infrastructure and make productive environment to their employees.

2

Scalability: Google has well-structured podium, that can hold new developing and investments providing services and meet the customers need. Google can present new products to the global as they own the infrastructure and have the capability to release new systems. All of that make it easier to google when more data need to be collected. Google can solve the heavy traffic problems, as they data base administration tools.

Accelerated product development: Google well-structured in order to manage the development around the world, which part of it the life cycle of a product. Google never want to be behind any of the competitors, they never want to be equal with the competitors, google think in creating the best and strong relation with customers.

Support and third party development: In order to be more effective and trustworthy to the users, google create solid platform in database administration managing the information traffic, creating operation system and hardware. Google innovation depends on flexibility in the platform and infrastructure and the internal function.

Eco system Google control the ecosystem as every transaction is performed through it platforms, hence claim a large share of the value created and have access to all the data and processes and events. As result in its payback, very effective market analyses, accurate forecasts and predictions and crowd-sourcing in a controlled manner. [7]

Focus & Scope Google’s broad mission and collection of innovation is mostly based on its search-based advertising. The company never noticed its short-term profits but this does matters in to other companies and the manager concentrate on long-term goal by achieving organizational mission. Google’s mission is to organize world’s information, which takes at least 300 years as estimated by Eric Schmidt, CEO. In Schmidt words

“Ubiquity first, revenues later… if you can build a sustainable eyeball business, you can always find clever ways to monetize them.” [7]

Knowledge and source Google act as 3rd part company which collect information from different sources, while google source is best management data base for search engine in each and different country. The creative and innovative employees do pay important rule in knowledge source.

Google don’t make survey as google has its own data base and record the customer search options. They concentrate on the customers clicks.

Capture The variety of products and innovations made by google attract the attention to the customer which result in bring profits into google. Google has very good knowledge in business strategy and management skills which help google to have a very well equipped infrastructure and business module.

The majority of google profit came from advertising, as well as from social networks and other google tools.

Conclusion Google developed culture based on the fact that people not scared of taking risk and no one scared of fail, therefore innovation can be describe in google very well. Google managed to made huge changes in the fast changing environment, by developing the capacity to deploy

3

and redeploy. Also the small teams design and managing these teams, plus awareness of the management rule in development and success by the employees create better and stronger company.

For that google managed to face the enormous challenge by competitors, moving very fast on strong wheels made by its own team. Despite the fact google grow very fast, but the need in fast moving will be a must to compete with others. As things because slower when company grow up.

Also the fast moving could have negative side, as different teams work on different projects which could result in duplication and waste the effort and time, which can result into pull google back. Google should maintains not only the quality services, but keep their people happy and prevent them from moving out to work with competitors.

Bibliography

[1] G. Company, “https://www.google.com/about/company/philosophy/,” https://www.google.com/, 10 11 2015. [Online]. Available: https://www.google.com/about/company/philosophy/. [Accessed 10 11 2015].

[2] M. Webste, “http://www.merriam-webster.com/,” [Online]. Available: http://www.merriam-webster.com/dictionary/google. [Accessed 10 11 2015].

[3] H. A. Ahmad, “Google’s Case of Innovation; what evidences are there?,” https://www.academia.edu, 2007.

[4] Google, “https://support.google.com,” Google, [Online]. Available: https://support.google.com/adwords/answer/1704410?hl=en. [Accessed 10 11 2015].

[5] G. Company, “https://www.google.com/,” [Online]. Available: https://www.google.com/about/company/products/. [Accessed 10 11 2015 ].

[6] S. Levy, “Big Ideas: Google's Larry Page and the gospel of 10x,” 30 March 2013. [Online]. Available: http://www.wired.co.uk. [Accessed 10 11 2015].

[7] Bala Iyer, Thomas H. Davenport, “Reverse Engineering Google’s Innovation Machine,” p. 2, April 2008.

4