Analysis of Google: Mission, PEST, Strategy and Innovation
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Published: Wed, 13 Sep 2017
Chosen Company: Google (Hub of Innovation)
Google was started by two Stanford University project students. Both these students led this project to a success almost two decades ago. Google’s project became very popular in a very little time, to the point where they provided almost 500,000 searches per day. The growing number of searches became 7 million per day in the next year of start following 15 million searches per day on the third year. In five years company not only recovered the loss of 14.7 million but they made net profit of 1.5 billion USD (Sugano, Gonçalves, & Figueira, 2009). One of the key advantages of Google is that Google is doing something what anyone else is not doing. Managers are required to spend some time on Innovation, 70% of the time doing the core business activities, 20% to related but different projects and 10% to entirely new business and projects (Iyer & Davenport, 2008).The current report is based on the innovation strategy and the plan to implement this strategy. This report contains the existing mission values and innovation strategies applied by Google as a successful IT company with more than 100 value platforms and portfolio.
Google’s Company Mission
Google’s mission and vision reflects the power of the organization in terms of what and how the company wants to achieve. The Vision of Google is “to provide access to the world’s information in one click”. Mission of Google is “to organize the world’s information and make it universally accessible and useful”. Google is organizing information through its proprietary programs. Ever since the beginning of the organization Google is striving to provide accessibility of information throughout the world. Therefore Google is very effectively follows its mission statement (Thompson, 2017).
Google’s Core Competencies
Google consecutively utilized its core competencies challenge the world’s leading tech companies like Microsoft. Google’s is readily providing information without any charge to the end users. Google not only provides information in more than 130 languages but also owns the domains in more than 160 countries. Google’s android version of mobile software has provided end-user with wide range of services which itself is unique in the market. One of the most important core competencies of Google is that it has maintained very effective cordial relationship with internet providers, end users, advertisers and website. Google’s main strength is the proficient and Innovative employees, who makes the search engine and applications user-friendly (George, 2014).
Corporate Strategy of Google
Google’s strategy unlike their competitors has never been on advertising and marketing the brand instead their main strategic focus was to innovate and develop better search engine. Google has constantly worked hard to develop user friendly product, correct information and multiple access platforms to users. Apart from these core business strategies Google is now widening its horizon by implementing 3 basic business level strategies. These three strategies are Start-ups employees in Google spend 20% of their time in new projects, second is Acquisitions Google’s products are derived from acquisitions such as Docs, Earth and You tube and third is Alliances it is interesting to note that Google and yahoo explored the horizon of advertising together but federal judges threatened hence Google backed out (Bhatia, Deep, Sachdeva, & Bahra, 2012).
Factors affecting Google’s Innovation:
Political/Legal Factors: Formal institutions have not affected the Google’s operation although company has been receiving political pressure on the archived data treasures. Innovation to overcome such government policies is that Google don’t have copy rights as the company stores the third party copy rights (George, 2014).
Economic Factor: The importance of information informed to people and constantly being innovative has provided the company with a strong shield against recession (George, 2014).
Social Factor: Google is now in every one’s hand in form of cell phones which is providing information on the go; hence the cultures and societies are now getting together with use of Google. Hence socially Google is present in, more than 130 languages which is benefiting different cultures in their own way hence such innovation and continues improvement is tackled by Google in its own innovative way (George, 2014).
Technological Factors: Increasing technology in everyday life Google is continually improving its geography which in return increasing technology with innovation Google will create wider share in the technology sector (George, 2014).
Internal Factors: Google’s employee engagement and further technological mergers and acquisitions are leading Google to further success in technology field (George, 2014).
Innovation Strategy of Google
Google has created an environment of innovation within its roots. For Google Innovation comes from anywhere. Play to win strategy is when you are already a leader and launching a new product. The innovation strategy that we would suggest is Play to win strategy as Google has created a culture of continues improvement for example in 2004 Google books project was to put all books together under one digital roof not only Google has been successful in doing it but they have managed to organize each and every book ever printed. We would suggest Google a mix of radical, incremental and revolutionary change for example Google earth, Google maps and street views made Google engineers to think of self driven and cars Google has successfully tested the prototypes of that. Such revolutionary change is an example of radical and revolutionary innovation. If the company and its leader work every day to improve 10 times this cannot happen without radical innovation strategies (Reeves, 2015).
Communication Strategy at Google:
Google is the most innovative company in the whole world, the main reason behind this is the communication strategy used by the Google Company. We communicating the play to win strategy by using these concepts:-
- Keeping the message simple and in good meaning which is to be understood by every employee in the whole organisation.
- We build the behaviour on the basis of customer perception.
Google uses many types of strategies to make the new product. Google always use the play to win strategy. We choose the communication approach to make substantial growth of the business. Google Company use incremental and radical type of innovation to make different products in the market. Google developed the nine principles of innovation to achieve the aims and goals of the company. Google implement the first principle of innovation that is maintain the culture of whole organisation in which every person has the right to give their own idea to helping in the main project (Jones, 2008).
Communication Approach at Google
Every company is facing the problem of communication strategy. Google made his own strategy in which whole company is working on the same project. We set a communication approach at Google which is classical approach. Classical approach is that approach in which whole management work in unity to achieve the goals. In the communication approach we inspire and educate employees by creating the events and seminars in the workplace of Google. Google Company gives reward to whole employees of the company (Miller, 2012). Google launches a project named oxygen project which is the communication project inside the organisation. Oxygen project is the program in which the data is collected by the effective managers and then implemented to the whole management of company. There are two points which are used by Google Company to implement the strategy of communication (McGuire, 2014).
1 Clear Vision and Strategy for the Team: Google setup the clear vision that means every message or order to be simple which gain some information in it. Whenever Google start a new project then the strategy is send in the whole organisation (McGuire, 2014).
2 Career Development and Behaviour: In the world of technology Yahoo Company is the main competitor when Google start their business. With the help of communication and unity strategy Google build their career and make a good platform in the market. Google internal behaviour is so cooperate to each other but in other companies like Amazon the behavioural environment is so stressful (McGuire, 2014).
Google make a good communicate strategy by which all the employees get motivation to do work in a better way (Miller, 2012).
Seven Rules of Innovation:
In the world of technology Google is the most innovator company. Google is the company which invests large amount of money to raise the research and development. Google implement the seven rules of innovation to create new profitable products in the market to fulfil the needs of customer. Google make strong leadership network through which they take the decisions to increase the growth of company. Second rule of innovation implement by Google thinking is to maintain the value at the top of market by creating more innovate products. Google Company has made his own strategy of nine rules of innovation which are to be implemented. Google create new innovative or creative products which capture the value not making the profit to company. Google take new innovative ideas from inside the organisation as well as from the outside network. Google create more strategies to make the new innovative product and it will give more benefit to the whole company (Chandra, 2017).
Now a day’s Google implement his own nine principles of innovation. Innovation or new idea is comes from anywhere is the main principle of Google company. The main example of this principle is Google search engine. The main thinking of Google Company is not getting more profit from the new innovative products. Google always make dramatic change in the whole world for example Google launches the project to give the facility of Wi-Fi in remote areas. Google has its own unique techniques to implement the new product for example Google Earth. Google launch the product earlier in the market to make some changes in the product to become better for example of Google Chrome. At last Google main principle is that set a achievable goal which have some positive impact in the market (Waldron & Kassing, 2011).
Creativity and Commercialisation:
Creativity and commercialisation are two different aspects but shown a good relationship to make innovation market. Google uses the commercialisation strategy to launch the product in a very efficient and quickly manner. Google creativity strategy is to launch more new innovative products to acquire the whole market (Davila, Epstein, & Shelton, 2006).
We balance the creativity and commercialisation to make better innovation in the market. Google implement the sixth principle of innovation to make more creative products in the market. The sixth principle is related to creativity that means every employee spends 20% of work time on their project. This principle gives more benefit to the whole company and gives creative thinking (Waldron & Kassing, 2011). The main examples are Google Maps, Google News. Google launches new products like Google X, Google Video and Google Glasses that are accepted in the market but these products are failed and hit the profit to the Google (Clifton, 2012). These creative products are failed due to imbalance between creativity and commercialisation. These products are failed to enter in the market in the phase of launching. The modern concept of creativity and commercialisation is open and wide. Copyrights are given to every creative idea and innovation to protect from misuse by the opponents. All the creative and innovative ideas are too protected in the Google innovation lab. Patent rights are the main part of commercialisation which decreases the value of failure of new innovative product. Google Company uses the fifth principle of innovation to balance the portfolio of commercialisation with the creativity. Google Company is more responsible for balancing the creativity and commercialisation to give more valuable products for the customers (Stamm, 2008).
Maximisation of Innovation at Google
Organisational structure of Google: Google’s organisational structure is technically a matrix based structure with a considerable degree of flatness. It has main three components.
1. Function-based definition: Google uses function as basis for grouping employees. For example, it has different teams like sales operation team, an Engineering & Design Team and a product management team, among others (Smithson, 2017).
2. Product-based definition: Google also uses product basis group employees. It means some group of employees are working on developing Nexus devices and others are working on fibre business (Smithson, 2017).
3. Flatness: Also, Google has a considerable flat organisational structure. It means Google’s employees; teams or groups can bypass the middle management and directly meet to CEO. (Smithson, 2017).
Google is the company that maintain a spirit of innovation in every year. In Google, 26,000 employees work in more than 60 offices. As Google believe in sharing the ideas and everything that comes to the mind of the employees. As the result of this, Google launched unexpected and innovative products. Google follows the classic innovators’ dilemma in which they invest in brand new products and try to improve those products that are already existed in the market. Moreover, they start work in the new area which is important and no one has not been solved it. Gmail is the best example of this. It was created to address the web email that function well and had more storage. Not only has this, Google considered the continual innovation rather than instant perfection. For this statement, they are still working on Ad-Words which were launched in 1999 and were unsuccessful. Every year they do several researches and ads quality experiments. They launched more than dozens of new formats in the past year. Innovation system of Google is going well as Google always try to be innovative at each step either, it is launching new product or improving the existed products (Wojcicki, 2011).
Systems of Innovations in Google Company
Google has already developed many systems of innovation. One of them is that Google consider that innovation comes from everywhere. Google learn from everything that helps in innovation. Also, Google want radical and revolutionary innovation, that’s why it thinks 10 times of betterment rather than 10% of improvement. Moreover, Google allows their employees to work on the favourite idea at the workplace and employees can use 20% of their work time to do their favourite project. It also leads to innovation in Google. The other system of innovation in Google is that learn from the failures. Also, employees of Google have strong sense of mission and purpose. They believe that their work has impact on the millions of people in a positive way. So, they always try to do their best for innovation in Google (Leong, 2013).
Measurement of Innovation at Google
Google measures its innovation by using different methods. For example, Google use annual R&D budget to measure innovation as it gives the percentage of annual sales. Innovation can be measured by the how many projects are activated. The more number of projects are activated it means more innovation. Moreover, Google can estimate innovation by the number of ideas that are given by the employees. Google takes the idea from the employees. Similarly, more ideas mean more innovation. Also, it measures from total R&D headcount or in other words budget as a percentage of sales. These are some methods of measuring innovation which are used by Google Company. (Kaplan, 2017)
Google Incentives of Innovation Strategy
Google is known the world over for its innovative polices and people are well aware of its employee centric. The reason behind the success of the organization is that it fosters employee creativity. Google encourages it employee to give 20% of their time to projects which would benefit the company. This provides them an outlet for creativity and working on innovative ideas and projects (On fro, 2015). This although is not part of a formal company policy but it is a way for employees to work on something different and extra in order to fulfill their creative needs. If the employees feel motivated at their workplace they are much more likely to be loyal and productive for the same (Coleman, 2016).
The company is always willing to push boundaries of what it is common practice in the corporate world to accommodate employees in terms of compensation and leaves. It allows people to take their full leaves for their personal issues so that they can focus on their company work in a better way when back and hence innovate more. The company which has one of the best talent pools in the world also makes sure that the people get all the office perks they need, so that they are satisfied and willing to push the boundaries on innovation. The growth opportunities are also quite lucrative making people feel valued and motivated to give their best to be at the best position. Most importantly, the employees are aware of how their work can help makes people’s lives easier (Raymund, 2014).
Google Innovation Initiatives
At Google, the mission of the organization” organize the world’s information and make it universally accessible and useful” is central to what it plans to achieve. Whenever it begins work in a new area, it looks to solve issues which are still prevalent. One of the key innovation initiatives is about not just improving upon things by 10% rather by 10 times, to put in simple words to make a change that revolutionizes the industry rather than just the next step in the cycle. An example of this would be Project Loon where, the company used balloons to help remote areas in getting access to W-Fi connections (Brands, 2016).
When Google launched Ad-Words, a method of advertising for companies on Google Search in 1999, it was not a big success. The people at Google kept on working on me to make it better and today it is a vital revenue generator for the organization. The process Iterating is what helped Google grow and learn faster from its competitors in order to survive and prosper in the market. One of the reasons, for its success over this time has been its understanding that Failures are part of the process but a Good Failure is one from which an organization not only see the mistake it is making but allow learns fast to make sure it does not repeat the same mistake. The company learned from this when it tried to add thumbnail pictures of the WebPages next to the results; the result was a slower user experience. Google did away with it and has not looked back since (Hammonds, 2003).
Google’s Company Culture
Google is organisation which is at the forefront of technology thanks to its culture of Innovation. It has been successful because it believes innovation can happen in every company organisation in almost all the processes (He, 2013).We constitute the Google Company’s culture in three sections which are as follows
1 Empowerment: – Google is organization which is at the forefront of technology thanks to its culture of Innovation. It has been successful because it believes innovation can happen in every company organization in almost all the processes. One of the ways to create a culture of innovation is to allow employees the freedom to make decisions. This allows one employee to work on several projects which gives them a chance to express themselves and show their creativity. Since work forms a major part of people’s daily lives they like to find meaning in the same and by giving them the chance to work on their passions project which are in line with company’s plan, the organization makes it possible for them express themselves freely which motivates employees and the company gets the best out of them (He, 2013).
2 Small starts: – Innovation at Google is an ongoing process and not about creating the perfect product or service. It is about starting small on project and looking at ways to make it Big, a good example of this would be the Google Books project which was started by Larry Page and now has more than 100 million books on it (Wojcicki, 2011).
3 Values: – The organizations culture is built on values like transparency and sharing information, it is about working with people in order to do good for all. People have option of freely voicing out what they think about certain project or the company altogether which makes them feel valued and therefore motivated (Salazar, 2016).
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