- and how they innovate
MSIN7013: Innovation Management
(Word count: 1321)
This essay is a discussion around Google’s innovative strategies looking at the innovation process, business model and the infrastructure they have built in order to test and deliver innovative products to their users.
Table of Contents
1. Brief background of Google3
2. Why are Google Innovators?4
2.1 Google’s Strategy of Innovation4
2.2 Optimising Use of Technologies and Merging Services Into One Platform5
2.3 The Google Platform6
* Today, some people claim that it is impossible to innovate without using the Internet, although this is a rather controversial statement and not entirely true, the Internet has proved to be an excellent distribution channel for innovations to reach a large number of people. This essay will examine Google and a number of their products to understand why the company is innovative. The discussion will be around their organisational strategies concerning product release, their business model and their powerful infrastructure. 1. Brief background of Google
* Google was founded in 1998 by PhD students Larry Page and Sergey Brin; two math fanatics’ with a mission – “to organise the world’s information and make it universally accessible and useful”. The two students saw a need to differentiate the growing amount of information available on the web and therefore invented a method called PageRank. PageRank was a new technology of organising and finding content online and was patented in 2001. Today, Google offer a variety of products and services, free of charge for their users and the company is ranked as the number one search engine in the UK and US. No one could predict, at the start, the impact Google would come to have in terms of changing the process of online search engines and the range of innovative services and products they would come to offer.
2. Why are Google Innovators?
* Innovation emerges from creative ideas that are initiated by an identified need in the market. As the creative thought is developed, produced and marketed the commercial success of the invention determines the innovations impact and success. A company can innovate in different ways and take advantage of several innovative products and services and how Google has managed to do this will be further investigated. 2.1 Google’s Strategy of Innovation
* Google is perceived as a very innovative company, as the company has changed processes and behaviours by understanding the needs of their users. Google is not a radical innovator; it has have not yet produced a breakthrough technology that creates the emergence of a completely new market. Instead their strategy for innovation is incremental and re-innovative; two terms that will be explained more in depth to emphasise the difference. Incremental innovations are improvements of existing technology within an existing market; i.e. new features to a product are introduced to provide greater value for users. Re-innovations are products or services that use breakthrough technology within an existing market, commonly but not necessarily, introduced on a new platform. Google search engine can be seen as re-innovation. When Google entered the market, search engines like AltaVista and Yahoo were already established providers. By introducing the new process of PageRank, a breakthrough technology, the Google search engine produced more accurate search result. As a result of this Google quickly grew as users found better value in their service compared to the existing search engines at that...