Google, as an internet-based company founded in 1996, which has done a tremendous progress in the past 13 years, is particularly successful and innovative. In 2007, Google surpassed Microsoft as the most visited site on the Web (Kopytoff V, 2007). The company's influence on the Web is undeniable. Many would ask: How did Google manage to grow up from a nobody to a giant of internet-based companies in such a short time? The answer has much to do with one of the most important elements of Google's organizational culture - Innovation. This paper will begin by discussing the innovation ecosystem built by Google, it will then show how Google works under this innovation ecosystem and why Google deploy this type of management, finally, it will consider what it brings to this company. Google is a company that floods with innovation, and the source of those innovations is the innovation ecosystem. This innovation ecosystem is a type of management that involves organizational innovation and open innovation. “Organizational innovation can be considered as the processes of developing new products or services, technologies, systems,
business models and ideas” (Samson & Daft 2009, pp.223). Open innovation means “extending the search for and commercialization of new ideas beyond the boundaries of the organisation”(Samson & Daft 2009, pp.414). This ecosystem consists of four major parts of people: content providers, consumers, innovators, and advertisers. All elements within the framework affect each other. The most important part of this ecosystem is consumers. Google has an enormous amount of users, there are 47.3% of total internet population uses Google as their main search engine, which is about “132 million unique visitors per day (as of 11/2007)” (Lyer & Davenport 2008, pp.62) and over 304 million searches per day(US core search report 2009). These users search information and reveal interests, which the company could consume targeted advertising on targeted group of users. On the other hand, these users could contribute ideas for improvements of Google‟s services and products, and become potential commercial users of the new products. For instance, Lyer and Davenport(2008) states that when Google wants to launch a new product, the company could test and market the product to its large amount user community, and get feedback from it. In this way, those users become an essential part of the development team as new products take shape and grow, furthermore, they would transit from testing to using the new product and become the consumers of Google terms. Hence, it is a very creative way of testing
and promoting new product and services without costing much on market surveys and statistical analyses. The content provider are media companies and individuals. They create information, stimulate consumers‟ interest, and provide delivery mechanism for targeted ads. Using the Google platform, over 1 million companies and individuals would become the advertisers, on the one hand, they could get the ad to relevant customers whose interests are revealed through their search terms (Lyer & Davenport 2008); On the other hand, those advertisers could help Google‟s innovators to promote their new ideas. Innovators is a core part of this system. It includes mashup creators, independent software developers, Google‟s engineers, and open source community(Lyer & Davenport 2008). Using the Google‟s operating platform, those innovators gather together to create a diverse development network, developing new products and services that can continuously capture consumers‟ heart. By doing so, those innovators will generate large amount of revenue for both Google and themselves. Specifically, for engineers in this company, Google has a unique way to exploit innovation from them—“budget innovation into job
description”(Lyer & Davenport 2008, pp.64). Unlike Apple which somehow tends to be a bureaucratic company, “new ideas at Google are often generated...
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