GOOGLE IT STRATEGY CASE STUDYInstructor: Prof. Martin KnahlPresented by: Nguyen Minh Tuan

Nguyen Vo Huy Bao

AGENDA1. THE EVOLUTION OF GOOGLE2. MISSION, VISSION3. CORPORATE STRATEGY4. TECHNOLOGY INNOVATION5. INFORMATION TECHNOLOGY

1.THE EVOLUTION OF GOOGLE

THE EVOLUTION OF GOOGLE1998

Google wasestablished

2000GoogleDotcom

2001Google Images

2004 Gmail

2005 Android

Source: https://www.google.com/about/company/history/

THE EVOLUTION OF GOOGLE2006

Acquisition ofYoutube

2008GoogleChrome

2010 Cars

20123.5bn searches per day

2015 Alphabet

Source: https://www.google.com/about/company/history/

2.MISSION, VISION

VISION“To provide access to the world’s

information in one click”- Google-

MISSION“To organize the world’s information and

make it universally accessible and useful”

- Google-

3.GOOGLE’S CORPORATE STRATEGY

DIVERSIFICATIONThere is an ambiguity in either Google is still operating in a single business.

Google explores new opportunities constantly through a solid base of research and development

Google products & services: https://www.google.com/about/products/

ACQUISITIONS

Strategic global & local acquisitions in Digital and traditional Advertising

GOOGLE’S ACQUISITIONS

2004

20052003

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source: http://www.telco2research.com/articles/Connected_Home_Google_Nest

STRATEGIC PARTNERING

World presence with local focus on content acquisition

Revenue

Google Adwords Google Adsense

4.TECHNOLOY INNOVATION

PROMOTE CREATIVITY AND INNOVATION

GOOGLE LABS

70-20-10 INNOVATION RULETECHNOLOGY

INNOVATION

GOOGLE LABS ○A site demonstrates new experimental

products developed by Google employees.○User can play around and give a sense

of satisfaction that his ideas turn in the product.

GMail Calendar

Map

INNOVATION RULE

○ 70% on core business

○ 20% on related projects to core

○ 10% on projects unrelated to core business

source: http://escholarship.org/uc/item/0nj460xn

TECHNOLOGY INNOVATION

○Encourage development own software○Internship programs○More than 2/3 company employees

are engineers and scientists○Google’s innovative thinking is

attributed to its work atmosphere “Googleplex”

5.INFORMATION TECHNOLOGY AT GOOGLE

INFORMATION TECHNOLOGY AT GOOGLE

• Build high-performance systems that scale to massive workloads

• Develop custom libraries to support programming of massively parallel systems

• Commodity hardware & free software are seeds of empire.

Vision: Organizing the world's information and making it "universally accessible and useful.”

Unconventional IT strategy: Building an unmatched distributed computing platform to support wildly popular search engine.

THE SECRET BEHIND THE SEARCH ENGINE

○ Pimp the Server○ Custom Tailored○ Keep It Interesting○ Culture Of Choice

A unique mix of internally developed software, open source, made-to-order hardware, and people management.

PIMP THE SERVERS○Google orders computer systems to

its own specifications. ○Use open source software to keep secrets of Google infrastructure (no software license, no code license)

○Organize machines which run Linux into “cells” as a kind of disk drive for internet service so programmers decide how much redundancy

CUSTOM TAILORED○Write a lot of custom software

(MapReduce, BigTable, Sawzall, Google File System & Google Workqueue)

○Modify Linux kernel to solve data corruption bottleneck problems so computer clusters can communicate more efficiently.○Created its own Web server instead of using the open source Apache Web server

○Built own CRM to support its business of selling internet Ads

KEEP IT INTERESTING○Employs a matrix management

system where managers have many direct reports, and engineers report to multiple people.

○Can change projects every three months

○Don’t keep people working on the same problems for very long.

CULTURE OF CHOICE○Linux, Mac OS, and Windows can be

used on desktop computers, depending on needs and desires.

○Software can be requested through the company intranet.

○Encourage “Talk a lot, use data, not intuition, automate wherever you can”

Let’s review some concepts

Business Strategy- Vision “To provide

access to the world’s information in one click “

- Mission “To organize the world’s information and make it universally accessible and useful “

- Cooperation Strategies : Diversification, Acquisitions & Partnering

Technology Innovation- Google Laps- Innovation rule (70-

20-10)- Technology

Innovation (use open source, 2/3 employees are engineers & scientists, good working environment like “Googleplex”

IT Strategy- Pimp the servers- Custom tailored- Keep IT Interesting- Culture of choice

REFERENCES Chen, Rex, Lam, Oisze Kraemer, Kenneth ,Strategic Use Of

IT – Google, http://escholarship.org/uc/item/0nj460xn, last accessed March 08 2015

https://en.wikipedia.org/wiki/Google Labs, last accessed March 07 2016

Thomas Claburn, Google Revealed: The IT Strategy That Makes It Work, http://www.informationweek.com/google-revealed-the-it-strategy-that-makes-it-work/d/d-id/1046472?, last accessed March 08 2016

The history of Google, http://www.telegraph.co.uk/technology/google/11984555/Rise-of-a-tech-giant-the-history-of-Google.html, last accessed March 04 2016

THANKS!Any questions?