25 Oct 2010

Google and innovation

In Jeff Jarvis’s 2009 book titled "What Would Google Do" we learn a lesson about how Google has changed innovation, arguably for the better. Jarvis’ book is taking benchmarking to a new level by reverse-engineering the success of one of the fastest growing companies of the Internet Age and applying Goggle’s lessons to other industries from carmakers over universities to restaurants.

In essence, Jarvis suggests forty new rules for innovation and business that Google has largely been responsible for establishing. Among these are the following themes (summarized from Charlie Alter's article on allbusiness.com):
  • New Relationships with Customers: Your worst customer is your friend, if you listen and solve their problems they will tell others about you; Give people control and they will use it, if not you will lose them.
  • Join, Network and Be a Platform: Only do what you do best and link to the rest.
  • New Publicness: Life is increasingly public, so is business; Your customers are your ad agency; If you’re not searchable, you can’t be found.
  • New Commodity Economy: Google commoditizes everything, so what value do you really provide? The mass market is dead, long live the market of niches; Join the Open Source / Gift economy.
  • New Business Reality: Middlemen are doomed; Free really is a business model; Decide what business you’re really in.
  • New Attitude: There’s an inverse relationship between Control and Trust so you need to listen and trust people who may be your customers about what they want and find of value.
  • Life is Beta and Life is live: Make mistakes and solve them well, be transparent, collaborate, reply instantaneously.
  • New Imperatives: Beware of Cash Cows, they can blind you about change and doom your business; Get out of the way and simplify; Encourage, enable and protect  innovation.
Reviewer Mary Whaley says the following about the book: “Jarvis, columnist and blogger about media, presents his ideas for surviving and prospering in the Internet age, with its new set of rules for emerging technologies as well as industries such as retail, manufacturing, and service. We learn that customers are now in charge, people anywhere can find each other and join forces to support a company’s efforts or oppose them, life and business are more public, conversation has replaced marketing, and openness is the key to success. Jarvis offers thought-provoking observations and valuable examples for individuals and businesses seeking to fully participate in our Internet culture and maximize the opportunities it offers. It is unclear what role Google played, if any, in the preparation of this book, which provides excellent advertising for the company.”