Google Moonshots

REINVENTING THE FUTURE – GOOGLE MOONSHOTS

Sub Theme: Innovation Strategy

KHAN FIRDAUS M.R.Associate Professor, ICBM-SBE –

Hyderabad

Overview of the Presentation

• Learning Objectives• Case study - Google’s dilemma - Case questions• Case study’s fitment in management course• Case Assessment• Bibliography

Learning Objectives of the Case study

LEARNING OBJECTIVES

• To introduce the concept of ‘Moonshots’ or innovating for future markets.

• To serve as an activity sheet that - simulates management decision-making,- encourages self-learning and critical analysis,- develops team spirit and lateral thinking.

The Case Study

Predicting the future…

• “The best way to predict the future is to invent it” – Alan Kay (1971)

• Kay is an American computer programmer whose invention Smalltalk inspired Macintosh, Windows and other operating systems.

Inventing the future…

• To be willing and able to invent its own future an organization should have both roots and wings:

• Roots of core competencies and leadership • Wings of creativity and risk-taking

Competing in fast-changing, turbulent Industries

• Innovation as a strategy for growth is used by industry leaders such as Google, Amazon, Apple, 3M

• The challenge is to stay ahead by ‘effecting change’ rather than by being ‘affected by it.’

“Goooooooogle it”

• Due to its expansive reach and unmatched service quality, Google has come to epitomize search.

• It also is the face of ‘relentless innovation’• Google TV, self driving cars, Google Buzz,

Wave, Street View, Google Reader, Android, Nexus phones, Google Glass, Goggles …….Calico (Sept 2013)

Not 10% more, 10 times more!

Not 10% more, 10 times more!

• “... a big part of my job is to get people focused on things that are not just incremental. Take Gmail. When we released that, we were a search company—it was a leap for us to put out an email product, let alone one that gave users 100 times more storage than they could get anywhere else. That is not something that would have happened naturally if we had been focusing on incremental improvements.” – CEO Larry Page

Google’s Moonshots• Projects that attempt to invent its future

growth trajectory. Explore 99% virgin territory • Pros: Building future markets; first mover

advantage; proprietary technology.• Cons: no imminent financial cash inflows;

guzzling up of cash reserves in terms of R&D, product development and market research; entrepreneurial splintering.

Reaching for the Moon…..falling short?HITS

• Android• Youtube• Chrome• Google Maps• Google Books• Google TV• Google Crisis Response• Google Person Finder

MISSES• Orkut• Wave• Reader• iGoogle• Click-to-call• Google Buzz• Google Health• Nexus phones, Chromebook

Current Moonshots

• Calico• Project Loon• Google Now• Web Designer

Gray-zone of Moonshots

Huge Problems

/latent Customer

needs

Radical solution through

breakthrough

technology

Moonshots Conundrum

• Starting point: disregard the impossible, apply innovation and lateral thinking, arrive at workable, practical solutions.

• Dual threat: money & attention guzzlers as well create management blind spots regarding the readiness of the market to recognize the latent need & accept the new unconventional solution (eg driverless cars & Google Glass)

Moonshots: old Wine in new Bottle

• AT&T = “Idea Factory”• Poured huge amount of capital and high calibre

talent into its subsidiary Bell Labs in order to shape and refine future products and technology.

• Outcomes: transistor, the laser and Unix operating system.

• But the curse of tunnel vision has rendered AT&T ‘an also-ran’.

Google’s Googly• Few disgruntled shareholders: Reader, Moto X

& Nexus, Calico• Google needs to focus on increasing its

success rate and its moonshots need to deliver.

• Which moonshots can Google bet on? Which current business lines should it harvest? Which ones should it divest?

ANNEXURES supplementary information to attempt the case

GOOGLE PRODUCTS & SERVICES• WEB BASED PRODUCTS: Google search, Snapshots, SEO, Multiple Languages, Google

Alerts, Google Books, Google Scholar, Google Shopping, • ADVERTISING SERVICES: Admob, Adsense, AdWords, Google Grants, G-Think Insights• COMMUNICATION & PUBLISHING TOOLS: Google Keep, Google 3D Warehouse,

Google Cultural Institute, Google Art Project, Feed Burner, Google Apps Google Drive, Google Hangouts, Youtube, iGoogle, Orkut

• DEVELOPMENT TOOLS: Google Code, Google Go, Google App Engine, Google Swiffy • MAP-RELATED PRODUCTS: Google Map Maker, G- Maps, G-Street View, Google Sky• STATISTICAL TOOLS: Google Analytics, Google Consumer Surveys, Freebase,

Trendalyzer • OPERATING SYSTEM : Android, Chrome OS, Google TV .• DESKTOP APPLICATIONS : Adwords Editor, Chrome, uProxy , Google Earth, Picasa • MOBILE APPLICATIONS: Google News, Google Offers, Google Wallet, Google

Translate Google Youtube • MOBILE STANDALONE APPLICATIONS : Goggles, Hangouts, Google Now, Google+ • HARDWARE: Google Driverless Car, Motorola Mobility, Nexus phones, Galaxy

Nexus Google TV, Chromebook, Chromecast, Project Glass • SERVICES: Google Crisis Response, Google Fiber, Google Person Finder

The Three Horizon’s Model

Case study Activity sheet

ACTIVITY #1ATTEMPT EACH OF THESE QUESTIONS AS A TEAM OF 3

• Read through Annexure 1 or alternatively visit the webpage http://en.wikipedia.org/wiki/List_of_Google_products which provides a comprehensive list of Google products and services. Draw a timeline of at least 15 Google products and services (of your choice) inclusive of launch/purchase and expiry dates, explaining in brief the reason the product/service continues to thrive or was killed. Comment in brief on the risks involved in emergent technologies.

• Read through Annexure 3 to understand the 3 Horizon’s Model. Assess Google’s innovation strategy using this model and highlight at least 2 Google products or services that lie in each of the 3 horizons.

ACTIVITY #2ATTEMPT EACH OF THESE QUESTIONS AS A TEAM OF 3

• If you were in Larry Page’s shoes, brainstorm to arrive at 2 ‘moonshots’ that you would aim at. (Be creative and original) Justify your choice by preparing a brief business plan, especially stating the market potential of this emergent technology.

ACTIVITY #3ATTEMPT EACH OF THESE QUESTIONS AS A TEAM OF 3

Case Study’s fitment in Management Course

Course Topics Teaching objective

Strategy - Growth Strategy- Innovation- Industries in fast-moving,

turbulent markets- Business planning - Tactical vs Strategic Planning- Emergent technology

- Highlighting features of the industry in which Google operates.

- Exploring the need for & risks involved in emergent technology.

- Correlating Leadership & Strategy- Understanding timelines in Strategy

implementation using 3 Horizon’s Model (moving from tactical to strategic to ‘long-term bets.’)

Decision Theory - Lateral Thinking - Brainstorming to ‘disregard what is possible’.- Providing unconventional perspectives on any 2

current problems or offering innovative solutions for the same (creating 2 hypothetical moonshots)

OB Team building and decision – making

- Experiential learning

Business Communication

Presentation of a timelineOrdering of argumentsNegotiating with others to gain support for one’s ideas.

- Experiential learning. - Communicating assertively & making formal

presentations (timelines, brief business plans)

Leadership Influence of founder-CEO on organizational culture.

- Delving into formative experiences of Larry Page & Sergei Brin.

- Highlighting attitude towards quality during their PhD & consequent launch of Google. Importance given to innovation and work ethic.

Case Assessment

Case Assessment• The case is open-ended offering multiple

discussion points and opportunities to think out-of-the box.

• The focus will be on understanding the emerging technologies and preferences of consumers.

• The ability of the candidate to work in a team, think analytically and laterally will be the focus rather than the ‘right solution’ to the case at hand.

Data Sources

• http://www.wired.com/business/2013/01/ff-qa-larry-page/

• http://timkastelle.org/blog/2010/08/innovation-for-now-and-for-the-future/#lightbox/0/

• http://www.mckinsey.com/insights/strategy/enduring_ideas_the_three_horizons_of_growth

• http://www.forbes.com/sites/haydnshaughnessy/2013/07/08/googles-moonshots-innovation-or-desperation/

• http://www.forbes.com/sites/chunkamui/2013/01/22/fasten-your-seatbelts-googles-driverless-car-is-worth-trillions/

Q&ATHANK YOU!