Google Innovation and Business Model

Superior Innovation

Innovation is wildly important in the business world; it is the essence of understanding customer needs and wants and being able to serve them effectively and efficiently (Rajapathirana & Hui 2018). Innovation is the ability to adapt to a dynamic and ever-changing market, which leads to increased competitiveness and generally increased profitability as well (Gloet & Samson 2013; Rajapathirana & Hui 2018).  

Just consider where we would be without innovation; no TV, radio, microwave, oven – we would still be in the caveman times! 

A great business example of superior innovation is Google. When you hear the name Google you may automatically think of the search engine and you may wonder what makes Google so special… Google now offers a range of digital services, products and advertising opportunities as seen in the table below (Google Store 2019).  

Digital ServicesProducts
Google Search Engine
Google Scholar  
Google Play 
Google Drive 
Google Photos
Google Maps
Gmail
Google Home 
Mobile Phones 
Accessories 
Google Nest
OS Google (watch)
Google Chromecast

Innovation is about considering current problems of a product or service. Safety, privacy and well-being are all current issues facing the developments of digital technology and services. Let’s explore these further.

Safety and Privacy 

A current issue is the use of personal information gathered by sites. For example, Facebook was recently under fire for not protecting user’s data and not having an opt in consent to using bio-metric facial data among other personal information (Singer 2018). Google is currently working to creating a safer space by more assertively blocking the use of fingerprinting and giving users more information about the use of cookies (Schuh 2019). 

Products are also being created that improve safety not only online but, in the home, such as the Google Nest – a device that alerts user to intruders in the home via cameras, microphones and activity sensors (Nest & Google 2019).

Wellbeing 

Another increasing concern of consumers is the psychological and physical side effects of over consumption of digital products such as a decrease in well-being.  Google now offers a setting that can track your digital well-being and also view other devices such as children’s devices (Google Support 2019). This is very important to consumers as over use of digital devices has been linked to many negative health consequences such as back problems, depression, poor eye sight and stress (Zheng & Lee 2016). 

A video that Google posted about Digital well-being.

Business and Revenue Model

A business model involves looking at what creates revenue for a company, where that revenue comes from and strategies related to business operation (Chaffey & Ellis-Chadwick, 2019).  Google made over 25, 682 million dollars in Q1 2019 alone (this includes January, February and March) (Alphabet First Quarter 2019 Results 2019). You may be wondering where this money comes from, the number ONE money maker is from advertising through Google (Alphabet First Quarter 2019 Results 2019). Advertising on Google is typically from paid clicks and cost per click. The second most profitable endeavour is Google properties or products (Alphabet First Quarter 2019 Results 2019).

A revenue model is more specifically to understand the methods for organisations to create profit (Chaffey & Ellis-Chadwick, 2019). This might involve increasing the value of a product or service in the eyes of consumers. For example, Google is constantly trying to create practical and helpful products and services to make the consumers life easier. A great product example of this is Google Home, a device that can do various things for the user by voice commands. Google’s performance can be traced back to their superior innovation and the though they put into their business and revenue models.

References

Alphabet First Quarter 2019 Results. (2019). [ebook] Available at: https://abc.xyz/investor/static/pdf/2019Q1_alphabet_earnings_release.pdf [Accessed 5 Sep. 2019]. 

Chaffey, D. and Ellis-Chadwick, F. (2019). Digital marketing. Harlow: Pearson. 

Facebook Q1 2019 Results. (2019). [ebook] Available at: https://s21.q4cdn.com/399680738/files/doc_financials/2019/Q1/Q1-2019-Earnings-Presentation.pdf [Accessed 5 Sep. 2019]. 

Gloet, M. and Samson, D. (2013). Knowledge Management to Support Systematic Innovation Capability. Hawaii International Conference on System Sciences, [online] (46), pp.3685-3694. Available at: https://ieeexplore.ieee.org/abstract/document/6480290 [Accessed 5 Sep. 2019]. 

Google Store. (2019). Google Store. [online] Available at: https://store.google.com/ [Accessed 5 Sep. 2019]. 

Rajapathirana, R. and Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, [online] 3(1), pp.44-55. Available at: https://www.sciencedirect.com/science/article/pii/S2444569X17300409 [Accessed 5 Sep. 2019]. 

Schuh, J. (2019). Building a more private web. [online] Google. Available at: https://blog.google/products/chrome/building-a-more-private-web/ [Accessed 5 Sep. 2019].  

Singer, N. (2018). What You Don’t Know About How Facebook Uses Your Data. [online] Nytimes.com. Available at: https://www.nytimes.com/2018/04/11/technology/facebook-privacy-hearings.html [Accessed 5 Sep. 2019]. 

Sok, P. and O’Cass, A. (2011). Achieving superior innovation-based performance outcomes in SMEs through innovation resource–capability complementarity. Industrial Marketing Management, [online] 40(8), pp.1285-1293. Available at: https://www.sciencedirect.com/science/article/pii/S0019850111001581 [Accessed 5 Sep. 2019]. 

Store.google.com. (2019). Nest & Google – The best of Google. The best of Nest.. [online] Available at: https://store.google.com/category/google_nest [Accessed 5 Sep. 2019]. 

Support.google.com. (2019). Manage how you spend time on your Android phone with Digital Wellbeing – Android Help. [online] Available at: https://support.google.com/android/answer/9346420?p=wellbeing_site&visit_id=637032405481170140-2751896600&rd=1 [Accessed 5 Sep. 2019]. 

Zheng, X. and Lee, M. (2016). Excessive use of mobile social networking sites: Negative consequences on individuals. Computers in Human Behavior, [online] 65, pp.65-76. Available at: https://www.sciencedirect.com/science/article/pii/S0747563216305751 [Accessed 5 Sep. 2019]. 

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