Google's Creativity Tools and Innovation Management - Case Study Example

Google Table of contents Creative tools of Google 3 Management of Innovation 5 Critical Evaluation of Google 8 Recommendation 9 Conclusion 10 10 Reference 11 Introduction Google is considered as the world’s most popular search engine which was established by Larry Page and Surgey Brin on September 4, 1998; the scholar of computer science department of Stanford University. The key factors behind success of Google can be summaries as follows: A constant up-gradation in technology with changing market scenario and customers’ demand. Efficient business model comprising of innovation for its target ads to keep them relevant and useful for the users. The company managed to attain and retain position of world’s highest recognized brand (Knowledge@Wharton, 2001). Creative tools of Google According to the information provided by the company, Googles mission is “to organize the worlds information and make it universally accessible and useful” (Company overview, n.d.). As per Franken (1994, P.396), “Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others”. Yahoo, Wolfram and Cuil can be considered as potential competitors of competitors of Google. As per the new in the market Wolfram Alpha is getting into a partnership with Microsoft; and the other competitor Cuil formed by Ex-employees of Google is also considered a strong competitor of Google. Though Yahoo is also among the competitors of Google, but it might not be so threatening. Different creative tools are used in Google to assist their employees to be innovative and creative. Some of them are Brainstorming, Fishbone and Six Thinking Hats. 1. Six Thinking Hats technique teach the members to distinguish between different kind of thinking and then to relate them with distinct colour (University Of Texas, n.d.). In Google the management understands that Six Thinking Hat often results in great ideals and innovative solution, so they ask their employees to follow this habit (Executive Education Panel, n.d.). Still Microsoft relies more on blue hat think (Fried, 2005). As per Do Bono use of this technique assist the company to be creative (Faulknor, n.d.). 2. Brainstorm is used by the companies for generating alternative and innovative ideas and solutions for prevailing problem (Usability Body of Knowledge, 2005). In Google the brainstorming in applied for determining new products or services which will make the experience of customers better (Chamonix, 2007. p.1-6). None of the competitor of Google practices 80/20 Rule for better brainstorming techniques (Ahmad, 2007). As per the module it results in generation of new ideas. 3. Fishbone Map is a cause-effect analysis tool which is often used by the companies to show interaction in a complex situation or event (Cap Fear community College, n.d.). This comprises of five 5M: Man, Method, Machine, Material and Measurement. This helps the management to analyse the root cause behind any particular problem so it is called “trouble shooting method” (Abdulla, n.d.). This is a creative tool, which is used by Google quite often, is getting adopted by its other competitors like (Mochal, 2007). As per Ishikawa the companies should use this technique to develop creative solutions for the problem (Watne State University, n.d.). Management of Innovation If there does not exist any properly defined corporate goal, it will not be possible for the management to incorporate innovation efficiently. The CEO should have a vision to explore opportunity and failures. The leader should create an environment of openness based on mutual trust among the members (Heskett, 2007). The CEO of Google said that innovation has nothing to do with recession, if people will get better products and services they will obviously go for substitution (Business week, 2009). There are many innovative tools which a company takes into account like: 1. Managing Human Resources: CEO made it clears at present that employee turnover rate is 1 – 3 percent which is quite low as compared to the industry standards (Iyer, & Davenport. 2008). While employing the new employees Google pay more importance toward variety of characteristic and traits (Levan Institute, n.d.). No other competitor of Google managed to attain such innovative HRM, even Microsoft have more traditional form of HRM practices (Ivancevich, 2004, p.55). As per Bresman et al. (1999) innovation should be visible throughout HRM practices in a company (Dickmann, n.d., p. 1) 2. Managing the organizational climate/culture: Though the company is operating in many countries but still it managed a small company culture, the employees have their food in the company café while chatting with employees from other team and sharing their views. The employees function in small teams and use 20 percent of their time in some creative work per week (The Google Culture, n.d.). Failure is of two kinds- an honourable failure which occur due to honest attempt while developing some new idea and the incompetent failure that take place due to lack of effort and dedication (Dickson, 2009, p.5). As per Jarvis (2009), the way in which Google function is just the reverse of other business competitors (Jarvis, 2009). As per Kanter (1988). Culture plays a great role adopting innovation (Dasanayaka, n.d., p. 6). 3. Leadership style: Google’s culture is quite different from other organisations. The CEO of the company has given ample freedom to the employees. In the workplace there exist all forms of entertainment which can assist in rejuvenating the mind of Google’s employees. The employees are asked to solve the problem themselves so that they can learn from their own mistakes and turn self dependent. Undertaking all these dimension of Eric E. Schmidt, it can be concluded that he follows a mixture of different leadership styles like democratic, Charismatic (as he possess vision as well as sensitivity), transformational (being motivator and stimulator for employees) (Scribd, n.d.). Many of the competitors of Google like Microsoft have strong powerful leaders, but their leadership style is not as innovative as Schmidt (Dearlove, 2002) 4. Uncertainty management: To retain its market position, Google continuously innovate new ideas and put in on the experiment. The final decision is taken on basis of all the data collected; such experiments helps Google to understand the changing customers’ need and guide them to develop their next product or service (Damián-Reyeset al., 2008). The new entrants in field of search engine business, like Cuil lacks the experience of managing uncertainty (Anthony, 2008). As per the module the company should heva a well planned uncertainty business. 5. Managing partnerships/alliances: While making any new acquisition, they prefer small companies so that the new employees adjust as per the company’s culture without making any effect to the prevailing cultural environment. Google always followed an aggressive strategy for making partnership and they have plans to continue it (Press Center, 2006). Microsoft has stared adopting the same strategy and developing as a giant competitor of Google (Blandeburgo, 2009). As per module, partnership can be used as an efficient way for managing innovation. 6. Organisational structure: Google has a different organisational structure and it quite complex. Sergey Brin and Larry Page are actually own the company but many share holders plays active role at corporate level, and they actively participate is developing strategies and policies. Flat organisational culture enhances innovation and creativity; it makes communication and decision making process much faster (The Office Board, 2009). Such a organisational structure is absent in Microsoft. As per the module organisation structure plays vital role in managing innovation. 7. Innovative strategy: Google’s products are based on the comfort level of customers and their diversified requirement. They constantly go on updating their products and services to retain high market share and competency. They believe “fast is better than slow”, let the idea fail last at initial level so that it can be modified and can be converted to something innovative and useful (Sosik, 2004, p.38). Google has spent billions of dollars to attain its present innovative position. They have innovation in their organisational DNA, so it cannot be copied by others so easily (Iyer, 2008). Critical Evaluation of Google No doubt that Google is one of the most successful companies in terms of profitability as well as Human Resource Management. But as per the industry critics there exists certain loop holes. For example: The company’s corporate goal is “to organise the world’s information and make it universally accessible and useful” but still is majority of revenue (97%) comes from advertisement. It means the innovative products of the company are not paying much and the future growth is in question. On the other hand it says that employees are free to think wild. They use brainstorming on regular basis to develop new product and ideas, so what is the outcome of such creative tools (ITPRO, 2009). Few employees of Google say that the company try to tailor its product exactly what the customers want, so with passage of time they will turn dull. The company depends too much on engineering and data, so many a times the creativity section of the product or services goes away. (Helft, 2009). The company is too young, its CEO was little know before he became part of Google, so as per may management gurus, innovative leadership style of Eric is still questionable. It has been found the company has a poor expansion management, many of its acquisitions dint prove much profitable and the company is falling behind its competitors for introducing new technology. So does that mean leadership style of Eric is faulty? (Weisenthal, 2009). At present the company is successful but with passage of time, as the number of competitors will go high, it will be difficult for the company to retain their high growth rate and present market share. Recommendation The company need to focus more on their operating cost. It should have a well planned and a proper expanse strategy. It’s a false assumption that extra luxury and comfort will retain employee turnover rate low, there are many other factors will are essential for employees’ satisfaction. The company has to understand competition is growing in the market, and the new entrains are following the same strategy (niche market acquisition). Many new search engines are developing and it might happen that Google lost its monopoly in advertising business to its competitors. So the company should diversify its earning sources as far as possible and instead of relying too much on the engineering and data, some freedom should be given to the employees to introduce their innovative thought and ideas. Conclusion At present Google is at a fast growth rate phase. It is a highly innovative and creative organisation which changed the market dynamics by introducing a new way of searching information on internet. Till data no other company succeeded to compete with Google hence the company enjoys monopoly. The innovative and creative culture of the organisation is part of its organisation culture which has been introduced by the company’s leaders. It has set new benchmarks for others, but the condition may not remain the same in coming future. The new entrants are trying hard to follow the company’s innovative strategy and to launch such products and services which can provide better experience to customers. So the company have to set its future strategy for overcoming existing loopholes and to retain its innovative and creative culture. Reference Abdulla, J. A. No date. Tools of TQM. Bibliotheca Alexandrine. [online] Available at: http://www.bibalex.org/supercourse/supercourseppt/32011-33001/32121.ppt [Accessed on November 12, 2009]. Ahmad, A. H. 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