Simon  Fraser  University  Course  BUS  237  

Expedition  Internet  Everywhere  An  Analysis  of  Google  X’s  Project  Loon  

Tink  Newman  9/30/2013  301116260  TA:  Mark  Yip  

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Expedition  Internet  Everywhere  By  Tink  Newman  September  29,  2013  

In  today’s  knowledge  economy,  only  2.7  billion  people  out  of  7.2  billion  people  (Worldometers,  2013)   have   access   to   the   internet   which   is   approximately   one   third   of   the  world’s   population.   The  internet  provides  people  with  a  way  to  grow  their  knowledge  and  have  access  to   friends,   family  and  communities.   According   to   Mark   Zuckerberg,   CEO   and   Founder   of   the   social   networking   site,  Facebook;   the   internet   “has   also   accounted   for   21%   of   GDP   [gross   domestic   product]   growth   in  developed   countries   in   the   past   5   years,   increasing   rapidly   from   just   10%   over   the   past   15   years.”  (Zuckerberg,   2013)  The   lack  of   internet  provides   a  huge  barrier   to  developing   countries   joining   the  knowledge   economy.   One   company,   the   most   prominent   leader   in   internet   technology,   Google,   is  tackling   this  problem  by   trying   to   fix   the  “world’s  broadband  problem.”   (Levy,  2013)  Google  Loon   is  working  towards  their  goal  of  bringing  internet  to  the  world  through  designing  their  balloon  service,  using  a  step  by  step  decision  making  process,  and  undergoing  business  transformation.  

Google’s  quest  is  to  design  a  low-­‐cost  internet  service  broadcast  to  the  world  to  get  more  users  online.  Project  Loon   is   the  classified  project  of  Google  X,  a   research   lab   founded   in  2010,  devoted   to  new   projects.     “Project   Loon   is   a   network   of   balloons   traveling   on   the   edge   of   space,   designed   to  connect  people   in  rural  and  remote  areas,  help  fill  coverage  gaps,  and  bring  people  back  online  after  disasters.“   (Google,   2013)   They   want   to   make   all   of   the   world’s   information   accessible   to   all   the  world’s  people.  Google’s  primary  activity  is  it’s  ability  to  generate  revenue  from  the  pay  per  click  ads  from  the  future  billions  of  new  users.  The  core  idea  and  supporting  activity  of  the  business  is  to  have  weather   balloons   circle   the   globe,   directionally   controlled   by   catching   wind   currents   and   altering  altitude.   The   goal   is   to   broadcast   wifi,   powered   by   solar   panels.   The   first   prototype   was   tested   in  August  2011,  using  a  Linux  computer  with  a  wifi  radio  pointing  downwards.  The  first  fleet  of  balloons  and   their   tests   were   called   “Icarus   tests”   (Levy,   2013)   were   hosted   at   the   San   Luis   Reservoir   in  California’s  Central  Valley.  Four  latex  balloons  were  bought  online,  costing  $100  each,  and  were  filled  with   helium   purchased   from   a   welding   supplier.     Each   balloon   successfully   communicated   with  receivers  on  the  ground  via  a  small  wi-­‐fi  transmitter  and  moved  quickly  in  the  air.  “People  connect  to  the   balloon   network   using   a   special   Internet   antenna   located   on   their   building.   The   signal   bounces  from   balloon   to   balloon,   then   to   the   global   Internet   back   on   Earth.”   (Google,   2013)   This   project   is  increasing  Google’s  effectiveness  by  not  only,  offering   the  world’s   leading  search  engine,  but  also  an  improved  expansion  of  the  wireless  internet.    

The   team  used   a   6   step   decision  making   process   beginning  with   1.   intelligence   gathering,   2.  alternatives  formulation,  3.  choice,  4.  implementation,  5.  review  and  6.  process  awareness.  The  focus  of  this  article  was  on  intelligence  gathering.  Firstly,  Google  X  gathered  information  from  their  past  pilot  projects   that   included   their   “own   high-­‐speed   networks   in   cities   like   Kansas   City;   Missouri,   Austin;  Texas  and  Provo;  Utah”  along  with  “lobbying  to  allocate  unused  slices  of  the  television  spectrum  called  white  spaces,  for  internet  access.”  (Levy,  2013)  They  learned  that  their  own  high  speed  networks  and  white   spaces   were   too   expensive   or   logistically   daunting   for   the   parts   of   the   world   that   were   still  unconnected  by   the   internet.   An   essential   part   of  Google  X’s   intelligence   gathering   is   to   crunch   “the  voluminous  data  about  wind  currents,  past  and  present,  available  from  the  US  government’s  National  Oceanic   and   Atmospheric   Administration”.   They   are   matching   the   data   with   meteorological   skill,  simulation   and   computation   to   analyze   the   information.   Google   learned   from   lessons   of   Lockheed  Martin,   an   American   global   aerospace,   defense,   security,   and   advanced   technology   company   with  worldwide   interests.  Lockheed  tried   to  get  around  the  problem  of  winds  with  a  giant  solar-­‐powered  

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dirigible,  a  “lighter-­‐than-­‐air  craft  that  is  both  powered  and  steerable  (as  opposed  to  free  floating,  like  a  balloon)”.  (Airships.net,   2013)   Lockheed’s   prototype’s   voyage   failed   to   reach   altitude   and   they  discontinued  any  plans  to  further  continue  the  project.  Google  X  looked  at  the  Lockheed  criteria,  and  US   government   data,   and   surmised   the   need   to   steer   the   balloons   while   taking   advantage   of   wind  currents.   Secondly,   this   research   lead   Google   X   to   analyze   past   alternatives   and   thirdly,   chose   an  experimental   plan   to   steer   balloons  while   taking   advantage   of  wind   currents.   They   are   choosing   to  bring  internet  to  the  world  via  wireless  internet,  versus  through  cell  phone  networks  and  data,  which  Facebook  is  attempting  to  do.  (Zuckerberg,  2013)  Fourthly,  they  are  able  to  complete  implementation  of  experiments  successfully,  leading  them  to  fifthly,  review  their  data,  perform  a  2nd  iteration  and  then  have   public   unveilings   such   as   the   first   one   in   Christchurch,   New   Zealand.   Sixthly,   Google   is   using  process  awareness  to  see  their  project   in  terms  of  the  bigger  picture.  At  the  public  unveiling,  Project  Loon   was   serving   approximately   50   local   families   with   internet,   but   Google   X   continually   asks  themselves,  “could  this  number  expand  to  50,000?  50  million?  Billions?”  Google  X  believes  this  version  1.0   project   has   future   value   in   making   the   internet   better,   cheaper   and   safer,   beyond   the   scope   of  computing  and  ballooning.  

   Google   X   is   one   of   the   few   companies   in   the   world   that   is   spending   millions   of   dollars   on  Internet  Ballooning.  Such  an  expensive,   space-­‐bound  project   is  a  business  process   transformation  at  the   highest   level   of   intensity,   however;   their   success   hinges   on   the   age-­‐old,   still   elusive  mastery   of  ballooning.   Such   business   activities   create   radical   changes   to   the   industry   and   “Project   Loon  [currently]  has  the  official  status  of  a  Google  “moon  shot,”  a  high-­‐risk,  high-­‐reward  Hail  Mary  effort.”  (Levy,   2013)   Google   has   the   competitive   advantage   of   creating   standards   for   wireless   internet,  developing  the  market  size  and  decreasing  the  price  of  wireless.  They  are  increasing  their  profitability  because   they’re   making   it   easier   for   people   to   connect   and   interact   with   ads.   Google   X   displays   a  sustained   competitive   advantage   specifically   regarding   expanding   the   internet   which   is   an   existing  service.   Their   project   is   taking   significant   time   and   resources   for   their   people   to   gain   necessary  experience   and   skill,   therefore;   it   is   difficult   for   new   entrants   to   enter   the   market.   Google,   a  transformative   “company  known   for   its   algorithms,  has   to  mindmeld  with   the  world  of   Jules  Verne”  (Levy,  2013)  to  complete  the  project.  

In   conclusion,   Google   X   is   designing   and   testing   prototypes   of   Internet   Ballooning   and  broadcasting  wif-­‐i  which  it  hopes  to  scale  in  the  future  to  serve  billions  of  people  in  the  world.  Their  team  uses  a  6  step  decision  making  process  including  intelligence  gathering,  alternatives  formulation,  choice,   implementation,   review   and   process   awareness.   Specifically,   their   analysis   of   alternatives  includes  learning  lessons  from  past  pilot  projects  and  Lockheed  Martin’s  dirigible.  The  Google  X  team  identifies  Project  Loon  as  a  high   risk,  high   reward  project   and   is   embracing   the   concept  of  business  transformation  to  support  their  innovation.  Google  has  leading  position  in  the  world’s  technology,  and  their  chance  of  success   is  high  because  they  have  a  competitive  advantage.   It  would  be  hard  for  new  entrants  to  enter  the  worldwide  wireless  internet  market.  Google’s  goal  is  to  have  internet  everywhere.  

 

 

 

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Bibliography  Airships.net.  (2013,  July  8).  Dirigibles,  Zeppelins,  and  Blimps:  The  Differences  Explained.  Retrieved  September  29,  2013,  from  Airships:  The  Hidenburg  and  Other  Zepplins:  http://www.airships.net/dirigible  

Google.  (2013).  Google.  Retrieved  September  29,  2013,  from  Project  Loon:  http://www.google.com/loon/  

Levy,  S.  (2013,  August  13).  The  Untold  Story  of  Google's  Quest  to  Bring  the  Internet  Everywhere  -­‐  By  Balloon.  Retrieved  September  29,  2013,  from  Wired:  http://www.wired.com/gadgetlab/2013/08/googlex-­‐project-­‐loon/    

Worldometers.  (2013,  September  29).  Population  Growth.  Retrieved  from  Worldometers:  http://www.worldometers.info/world-­‐population/  

Zuckerberg,  M.  (2013,  August  21).  Is  Connectivity  A  Human  Right?  Retrieved  September  29,  2013,  from  Facebook:  https://www.facebook.com/isconnectivityahumanright