In last couple of months, I have noticed that suddenly people started talking about possible next revolutionary company in IT as social media has become one of the major business model for most and they have dragged pure IT business at nearby corner. Now it’s time for IT companies to come out with a bang which can again get them in mainstream of talks & discussions.
Most of the forums, discussion tables, corporate strategy meets and VC meets are having one hidden agenda despite of non-acceptance – Which are the companies who are having large potential of growth inherited and which are the one’s who would be at loosing end? Topic is little controversial and that may be the reason companies are not willing to shed focus on this openly. There may be various obligations or dissatisfaction between the people on the union outcome of this. But one things is sure, there are companies who are going to shout and few will become silent.
After reading many articles, posts, having opinion from various IT gurus I was literary surprised to see the sight of people & mentors. While picking up few biggies one by one, most of the people having positive & strong opinion about their future growth and high-rise excluding one, Google. Google is a name which people praise, pray and think of being a part these days. The way Google changed the algorithm of Internet its really amazing. Many Case studies talk about Google culture, work environment, potential & vision now. Again and again books was published about Google. Then what is wrong with these people who are shorting Google ?. May not be, because it’s not just an opinion of one forum or independent blog, it’s a mass which formed it in a same fashion. While drilling it down there were few facts which was based on insight of Google and made people & mentors to thumbs down. So what are those ?
- Recently we heard about Erick Tseng, the senior product manager of Android – Google’s critically important mobile initiative, who left the company. Google is facing severe talent pool retention issue from last few years. Their many initiatives or acquired models are also getting affected due to this. Although Google has been known as Employee oriented company, people are leaving Google to join recent hyped business model based business like Facebook. It’s also not a problem of number of people who are leaving, its type of people who are leaving and why are they leaving. Such people always have passion to do something different which can be recognized easily and instantly. They are finding this with Facebook and Zygna as hot places to work. With changing culture at Top Management, people need to search for old working environment and entrepreneur culture inside the company which is also a major reason for people to quit whose prime reason of joining google are drying off now.
- Company has also running out of easy growth opportunity and need to find out various new chunk of revenue initiatives. Since the core search business is slowly reaching to its maturity level, company need to find few new business model immediately which can replicate the the success of their search business and have potential of growth pocket. It’s not like Google never tried. In recent past Google’s acquisition of AdMob in Mobile Ad domain is an example of company’s thought process and seriousness. In fact the recent acquisition of ITA, a mid size acquisition, shows how Google is desperate and now targeting mid size business to transform in a huge business model. Over and above of all company need to find some immediate business market to sustain the growth rate with better numbers or equally. This will allow people to have long-term sustainability mindset inside the Google.
- Lack of coherent strategy, specially in mobile initiates, is also one of the major reason behind the Google shorting. Mobile is a core future and IT companies must have properly defined, well-balanced strategy to handle its technological future needs. Since there are not many enterprise level acquisition available in mobile market currently, it will take significant time for Google ( and other companies also ) to have sizable revenue model to bet on that instantly. Specially after the acquisition of AdMob, one of the biggest Mobile Ad Network management company, choices are very limited. Google may have to look at medium size of mobile business companies which have their own set of challenges to sort that out at first place.
- Finally, it’s all about People and People. With Engineering dominated and influenced culture inside the Google people are finding them self uncomfortable to cop up. Google invention and background has been highly influenced with Engineering to Engineer concept as their prime business model was an invention from engineering thought process. That’s why company has a long history to recruit the people who have Masters in one specific profile which is creating a discomfort specially when recession hit the market or company look for cost cutting. Those people are always limited to company’s need and can’t be mobilized easily to other process. A huge number of such people are also giving a second thought towards company, specially after effect of recession experience.
Engineering or science degree from top university is must for product managers inside the Google now. But number of drop-outs tuned success Entrepreneur culture is increasing, its a requirement to discuss whether google can sustain with such requirements in future. with non consideration approach on such candidates are keeping Google away from various new innovations opportunities, developed by non engineers. It’s often been a discussion point “why Engineers always be behind engineering process, product developement and even after marketing initiates in Google”.
whenever company has failed, such as with Google waves and Google Radio, it’s always been asked whether company really understand the culture of people, specially those who are young and much more ambitious these days. For many similar reasons, people started talking and observing whether Google is turning out as next Microsoft who also failed to replicate the success of its OS and Office despite of launching bundle of products time to time in market. Not much different from Google, Microsoft also failed to produce innovative products, besides Xbox, in near past. One thing is certain, if Google does not realise all these issues and put it openly on discussion table, though days are ahead and probably it would be late when company wont be having any other option besides addressing all these issues.
What do YOU think about Google’s future potentials ? Lets us know your views in comment section below.
Compiled & Analyzed By : AM