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Google and Its Innovative System

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Google and Its Innovative System
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



Bibliography: ComScore Releases June 2009 U.S. Search Engine Rankings, [Online], 2009, Available: http://comscore.com/Press_Events/Press_Releases/2009/7/comScore_ Releases_June_2009_U.S._Search_Engine_Rankings Google Finance, [Online], 2010, [2011,March 26]. Available: [2011, http://www.google.com/finance?fstype=ii&q=NASDAQ:GOOG March 27] Lyer, B. & Davenport, T. H. 2008, „Reverse Engineering, Google‟s Innovation Machine‟, Harvard Business Review, April., p. 59-68. Kopytoff, V.2007, Google surpasses Microsoft as world 's most-visited site, [Online]. Available: http://articles.sfgate.com/2007-04-25/news/17240342_1_google-coms core-unique-visitors [2011, March 27]. Samson, D. & Daft, R, L. (eds) 2009, Management, South Melbourne, Melbourne. Zee, M, K. 2010, Google Surpasses Coca Cola to Become the Second Most Valuable Brand on The Planet, [Online]. Available: http://thenextweb.com/socialmedia/2010/02/18/google-surpasses-coc a-cola-valuable-brand-planet/ [2011, March 25].

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