keeping google googley. harvard case
Keeping Google “Googley”
By:
M. Bertaccini, L. Dovesi,
G. Nicolini, M. Olivieri,
MC. Penna, M. Perini.
The unbelievable success of Google
• Revenue growth
Ø 2004, $3.2 billion
Ø 2013, $60 billion
• Net income growth
Ø 2004, $400 million
Ø 2013, $13 billion
• Employees growth
Ø 2004, 3,000
Ø 2013, up to 55,000
The IPO stock growth from 2004 to 2014
January 2004,
24h after first IPO in
NASDAQ: $100 per stock, public offer $2 billion. October 2008, May 2014, first position on stock price over world most
$1000 each. value company
January 23 ranking with
2008, loss of
$16.3 billion
$159 billion.
November 2007,
$700 per stock.
Critical Success Factors (1)
• Customer-Centered Company
Google’s innovation process begins and ends with the customer to best fit his needs.
• Data-based Approach
Every choice is supported by data, nothing is left to chance.
• Quality of the Algorithm
The search engine measures consumers’ behavior and needs in more than
50 ways and anticipates their following search entries better than any other search engine.
• AdWords and AdSense
95% of Google’s revenues comes from advertising, based on the analysis of customers’ search queries.
Critical Success Factors (2)
Continuous Innovation
Google is making huge investments in technology and R&D projects.
Google’s Research and Development Expense (Quarterly) Chart
Critical Success Factors (3)
• Collective Entrepreneurship
Google is in a collective entrepreneurship with bloggers, advertisers, and viewers, sharing the risks and rewards from the discovery and exploitation of new business opportunities.
• Various Channels for Expression
Google tries to diversificate channels for expression, recognizing that different people, and different ideas, might come up in different ways.
• Optimal Combination between Creativity and Science
Google aimes to combinate the technical and scientifical knowledge of the workers together with their creativity.
Unusualities (1)
•
By:
M. Bertaccini, L. Dovesi,
G. Nicolini, M. Olivieri,
MC. Penna, M. Perini.
The unbelievable success of Google
• Revenue growth
Ø 2004, $3.2 billion
Ø 2013, $60 billion
• Net income growth
Ø 2004, $400 million
Ø 2013, $13 billion
• Employees growth
Ø 2004, 3,000
Ø 2013, up to 55,000
The IPO stock growth from 2004 to 2014
January 2004,
24h after first IPO in
NASDAQ: $100 per stock, public offer $2 billion. October 2008, May 2014, first position on stock price over world most
$1000 each. value company
January 23 ranking with
2008, loss of
$16.3 billion
$159 billion.
November 2007,
$700 per stock.
Critical Success Factors (1)
• Customer-Centered Company
Google’s innovation process begins and ends with the customer to best fit his needs.
• Data-based Approach
Every choice is supported by data, nothing is left to chance.
• Quality of the Algorithm
The search engine measures consumers’ behavior and needs in more than
50 ways and anticipates their following search entries better than any other search engine.
• AdWords and AdSense
95% of Google’s revenues comes from advertising, based on the analysis of customers’ search queries.
Critical Success Factors (2)
Continuous Innovation
Google is making huge investments in technology and R&D projects.
Google’s Research and Development Expense (Quarterly) Chart
Critical Success Factors (3)
• Collective Entrepreneurship
Google is in a collective entrepreneurship with bloggers, advertisers, and viewers, sharing the risks and rewards from the discovery and exploitation of new business opportunities.
• Various Channels for Expression
Google tries to diversificate channels for expression, recognizing that different people, and different ideas, might come up in different ways.
• Optimal Combination between Creativity and Science
Google aimes to combinate the technical and scientifical knowledge of the workers together with their creativity.
Unusualities (1)
•