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Googles Nine Principles of Innovations

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Googles Nine Principles of Innovations

Even as a large company, Google continues to take risks and expand into new markets. Innovation is at the core of their enterprise. Sergey Brin and Larry Page, the founders, declared in Google ’ s IPO prospectus, “We would fund projects that have a 10% chance of earning a billion dollars over the long term. . . We place smaller bets in areas that seem very specula- tive or even strange. As the ratio of reward to risk increases, we will accept projects further outside our normal areas.” They add that they are especially likely to fund new types of projects when the initial investment is small.

Google promotes a culture of creativity and innovation in a number of ways. It encourages innovation in all employees by allowing them to spend 20% of their time on a project of their own choosing. In addition, the company offers benefi ts such as free meals, on‐site gym, on‐site dentist, and even washing machines at the company for busy employees.

Despite an open and free work culture, a rigid and procedure‐fi lled structure is imposed for making timely decisions and executing plans. For example, when designing new features, the team and senior managers meet in a large conference room. They use the right side of the conference room walls to digitally project new features and the left side to project any tran- scribed critique with a timer clock giving everyone 10 minutes to lay out ideas and fi nalize features. Thus, Google utilizes rigorous, data‐driven procedures for evaluating new ideas in the midst of a chaotic innovation process.

Nine notions of innovations are embedded in the organizational culture, processes, and structure of Google: 22

1. “Innovation Comes from Anywhere”: All Google employees can innovate.

2. “Focus on the User”: When focus is on the user, the money and all else will follow.

■ CASE STUDY 1‐2 Google

21 https://www.vmware.com/files/pdf/partners/sap/sap‐vmware‐lego‐cs‐en.pdf (accessed September 11, 2015). 22 Kathy Chin Long , “ Google Reveals its Nine Principles of Innovations ,” Fast Company , http://www.fastcompany.com/3021956/how‐to‐be‐a‐success‐ at‐everything/googles‐nine‐principles‐of‐innovation (accessed March 30, 2015 ) .

c01.indd 31 11/26/2015 6:19:41 PM

http://www.lego.com/en%E2%80%90us/aboutus/news%E2%80%90room/2013/february/annual%E2%80%90result%E2%80%902012
http://www.lego.com/en%E2%80%90us/aboutus/news%E2%80%90room/2013/february/annual%E2%80%90result%E2%80%902012
http://www.lego.com/en%E2%80%90us/aboutus/news%E2%80%90room/2013/february/annual%E2%80%90result%E2%80%902012
http://thelegocasestudy.com
https://www.vmware.com/files/pdf/partners/sap/sap%E2%80%90vmware%E2%80%90lego%E2%80%90cs%E2%80%90en.pdf
http://www.fastcompany.com/3021956/how%E2%80%90to%E2%80%90be%E2%80%90a%E2%80%90success%E2%80%90at%E2%80%90everything/googles%E2%80%90nine%E2%80%90principles%E2%80%90of%E2%80%90innovation
http://www.fastcompany.com/3021956/how%E2%80%90to%E2%80%90be%E2%80%90a%E2%80%90success%E2%80%90at%E2%80%90everything/googles%E2%80%90nine%E2%80%90principles%E2%80%90of%E2%80%90innovation
http://www.fastcompany.com/3021956/how%E2%80%90to%E2%80%90be%E2%80%90a%E2%80%90success%E2%80%90at%E2%80%90everything/googles%E2%80%90nine%E2%80%90principles%E2%80%90of%E2%80%90innovation
32 The Information Systems Strategy Triangle

 

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