Post on 20-May-2015
description
How Google Grew10 Good Moves In 10 Good Years
Angela Hey, PhD
amhey@techviser.comTechviser
Presentation To Penn State University
Fall 2008
Google is a trademark of Google Inc.Google Logos belong to Google
Why Has Google Grown So Fast?
Innovation
Marketing
Customers
2
The Main Campus
3
Picture Source: Google
2002
2003
2004
2005
2006
2007
2008
e
2009
e0
5
10
15
20
25
30
MS OSBAOLYahooeBayAmazonGoogle$
Billion
s (
US
)Google’s Revenues ($US Billions)
MS OSB – Microsoft Online Systems BusinessAnnual Calendar Year RevenuesSources: Techviser and Annual Reportse - Analyst Estimates from Yahoo! Finance 5
Google Amazon Yahoo! Microsoft eBay0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Past 5 Years Next 5 Years
Average Annual Revenue Growth (%)
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Source: Yahoo! Finance Oct 2008
Google Amazon Yahoo! Microsoft eBay0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Profit MarginOperating Margin
Profitability (%) Operating Profit/Revenues
7
Source: Yahoo! Finance Oct. 2008Based on trailing 12 months from Sept 08, except Microsoft June 08.
Move 1 – Academic ResearchGoogle’s origins
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Stanford
Expertise and Reputation
Advisors and Funders
Commercializing Algorithms
9
Move 2 – Creative Culture
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Don’t Be Evil
Paraphrased fromhttp://www.google.com/intl/en/corporate/tenthings.html
1. Focus On The User
2. Do One Thing Well
3. Fast > Slow
4. Web Democracy
5. Answers Anywhere
6. Can Make Money &Not Be Evil
7. Always More Info
8. Transborder Need
9. Serious, But Suits
10.Great Isn’t Good
Features And Not Products
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~Apps sometimes in 70%
70%
20%
10%
70 Search and AdvertisingCrawl, Index, Ads
20 Strong Potential ProjectsPicasa, Blogger, News, ~Apps (Gmail, Docs)
10 InnovationsWiFi, Offline Ads, Google Transit, Android
Sergey’s Resource Allocation Rule
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Move 3 – Hire Good People
Eric Schmidt
Sergey Brin
Larry Page
Schmidt Joins Founders In 2001: March – Chairman, August - CEO
20,123 EmployeesSeptember 2008
Source of Photos: Google13
“Obviously everyone wants to be successful, but I want to be looked back on as being very innovative, very trusted and ethical and ultimately making a big difference in the world.” Sergey Brin (Source: ThinkExist.com)
“We don't just want you to have a great job. We want you to have a great life. We provide you with everything you need to be productive and happy on and off the clock.” Larry Page (Source: Google)
Founders’ Quotes
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Creativity
Big Visions
High Grades
Unique Achievements
What Does Google Look For?
http://www.topcoder.com/
Why sweat the small stuff when you can change the world, challenge the status quo, impact millions of peoples' lives? Source: Google
http://www.google.com/intl/en/jobs/
Be a winner
15
Move 4 – International 160 Country Domains - .com .uk .de .fr 116 Languages 20 Countries Have Google Offices
61%
39%
3Q04 Revenue Share
49%
51%
3Q08 Revenue Share
Other International 16
Translation
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http://translate.google.com/translate_tools
35 Languages
Google Earth (and Mars)
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Source: Google Earth Outreach Conference
Move 5 – Easy To Use
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Easy For All
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Developers
Searchers
Advertisers
IT Managers
Professionals and
Businesses
Move 6 - Vision
Organize the world's information and make
it universally accessible and useful
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Google From Cradle To Grave Baby
◦ Google Search For Name - Easily Found Or Anonymous?◦ Photos – Picasa◦ Baby Gifts From Froogle Pay With Google Checkout
Child 1st Website With Google Page Creator Teen Makes YouTube Videos Use Android Mobile Phone Blog On Blogger With AdSense Entrepreneur Creates Business With AdWords Tracks Customers With Google Analytics Finds New Offices Using Google Maps & Earth Small Business Uses Google Applications Large Business Uses Google Search Appliance Keep Health Record on Google Health Obituary On Google News
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Google’s Wireless Vision
Open Communications Open Phones Open Networks Open Spectrum
Open networks
http://googlepublicpolicy.blogspot.com23
Move 7 - Analytics
http://analytics.blogspot.com/ See demos on YouTube
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Urchin originally acquired by Google in 2005 Urchin is managed on enterprise servers
and works behind firewalls Urchin is licensed through partners for
$2995 Hosted analytics that enable data
extraction, more drill-down analysis
Urchin
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Source: Google
Move 8 - Branding
2008 Rank
2007 Rank Brand
2008 Brand Value($ Millions)
2007 Brand Value($ Millions)
Percent Change
(in %)1 1 Coca-Cola 66,667 65,324 2 2 3 IBM 59,031 57,091 3 3 2 Microsoft 59,007 58,709 1 4 4 GE 53,086 51,569 3 5 5 Nokia 35,942 33,696 7 6 6 Toyota 34,050 32,070 6 7 7 Intel 31,261 30,954 1 8 8 McDonald’s 31,049 29,398 6 9 9 Disney 29,251 29,210 0
10 20 Google 25,590 17,837 43
Source: Interbrand, Business Week
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Google’s Logo Reinforces Brand
Source: Logos belong to Google27
Move 9 – LeveragePartners
Acquisitions
Ads, Websites
Open Source Code
Coding Contests
YouTube Videos, Maps, 3D Drawings
Documents, Images, News, Mail, Groups
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Year Company Result
2001 Deja Usenet Since 1995 Google Groups
2002 Pyra Labs Blogger
2003 Applied Semantics Advertising Technology
2004 Keyhole Google Earth
2004 Picasa Photo Albums
2005 Urchin Software Google Analytics
2005 2Web Technologies Spreadsheet
2006 Upstartle, Writely Docs – Word Processing
2006 YouTube $1.65B Video Sharing
2007 Postini $625 Enterprise Secure Messaging
2007 DoubleClick $3.1B Advertising
2008 Begun $140M Advertising (Russia)
2008 Omnisio $15M Online Video
Acquired Over 50 Companies
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OpenSocial – Share Friends, Activities, Lifestyle
OpenSocial
/Source: http://code.google.com/apis/opensocial
Move 10 – Environmental Outlook
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Google’s main campus (Googleplex) system featured 9,212 solar panels with a peak generating capacity of 1.6 megawatts when installed in 2006.
RechargeIT.org
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Understanding transportation savings – reducing CO2
http://www.google.org/recharge/
Investments In Energy
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BrightSource Energy, Inc. designs and builds large scale solar plants that deliver low-cost solar energy in the form of steam and/or electricity, at prices competitive with fossil fuels, to industrial and utility customers worldwide.
eSolar Inc. (PDF) specializes in solar thermal power. Solar thermal technology replaces the fuel in a traditional power plant with heat produced from solar energy, and has great potential to produce utility-scale power that is cheaper than coal.
Clean Energy 2030 – see Knol
1 Academic
2 Culture
3 Hiring
4 International
5 Easy
6 Vision
7 Analytics
8 Branding
9 Leverage
10 Environment
Summary
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How Big Can Google Grow?