MBA Marketing

Miami August 08, 2018.

Google Innovations in the

management of operations
JORGE YESHAYAHU GONZALES-LARA

BUSINESS OPERATIONS & MANAGEMENT

PROFESSOR: JOHN NOBLE MASI
 Google Innovations in the management of operations
JORGE YESHAYAHU GONZALES-LARA

 Introduction

This essay deals with the discussion of the factors in the innovation processes in the operations
management decisions of Google. Google manages continuous innovation in a rapidly changing
world. Google has challenged the thinking of conventional management. Today, most
companies face significant challenges in terms of innovation. The products and services that
generate current income must be continuously replaced by new and improved offers for
customers. The process of innovation in Google is structured in different innovation
strategies. From an external perspective, Google seems to have successfully combined into two
different competencies: computer engineering skills and scientific experience in human
capital. Google has built an unorthodox management model that is based on six management
principles.

 Dynamic capabilities. The company’s ability to integrate, develop, and reconfigure internal
and external competencies in order to meet rapidly changing surroundings.
 A continuously changing organization. If you delay taking action until problems arise, you

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will act too late. The organization should be permeated with a proactive approach to change.
 A people-centric approach. The company is people-centric, focusing on the individual and
liberating his or her innovative power. This principle is based on a belief that people want to
be creative and that a company must provide them with a setting in which they can express
their creativity.
 An ambidextrous organization. Continuous innovation must combine two different forms of
organizational logic within the same organization. These are daily production, which works
best with a conventional planning-and-control approach, and innovation, which requires
greater freedom, flexibility, and a more open attitude toward experimentation.
 An open organization that networks with its surroundings. A company can be more or less
open to integration with its surroundings. Continuously innovative companies have permeable
limits and have a constant and conscious exchange of information with their surroundings.

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 A systems approach to work differs from the conventional linear way of working. A systems
approach requires a holistic view and understanding of the whole corporate system (that is, the
organization) and how the different components in the system influence each other.

Innovation can be defined as the combination of its human, intellectual, physical, and leveraged in
the market and financial resources that are considered assets of Google. Innovation is: production
or adoption, assimilation and exploitation of a value-added innovation in the economic and social
spheres; renovation and expansion of products, services and markets; development of new
production methods; and establish new management systems. It is both a process and a result.

Google’s leadership style

The Google model, with its ‘googley’ leadership, innovation culture, emphasis on people, and
semi-structure is based on the six management principles. What follows are three examples that
demonstrate this:

1. At Google, there are many signs of dynamic capabilities. The management has frequently
demonstrated skill and insight with regard to determining what the next important area for
Google will be. In addition, when new projects threaten existing products, Google is not
afraid to develop them. The management decision to assign several hundred engineers to
develop Google+ is a third example. The company’s culture facilitates dynamic capabilities
through the constant expectation of external change present in the minds of management

Google Innovation in the management of operations e

and other employees.
2. Google apply the principle of a people-centric approach. The culture emphasizes
transparency and openness, and therefore also trust in employees. In its recruitment
process, Google places a great deal of emphasis on hiring the right people—people who
can manage in an environment of rapid change and where there is a high level
of empowerment. Many of the company’s offerings to its employees in the form of
education are voluntary, and employees can decide whether to opt in. Each year, Google
removes unnecessary bureaucratic features in order to give each employee more freedom
and to facilitate communication and collaboration between colleagues.
3. A third example is the company’s application of the principle- an ambidextrous
organization. At Google, both these orientations coexist in symbiosis and are elements in

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 a strong culture. Google applies the 70–20–10 percent rule, which means that 70 percent
of employee’s time should be spent on core business, 20 percent on projects related to core
and 10 percent on projects on projects not related to core business. Engineers are entitled
and expected to use time for their own projects according to the 20% rule. When employees
in other units have ideas that they wish to develop they are most often given the freedom
to realize their

This document analyzes the different innovation strategies in different stages of the innovation
process; in the organizational structure Google, turned innovation into a daily process instead
of using it as a strategy in times of crisis. Google followed a unique innovation
process. Google's strategy is to trust its employees to increase their culture of innovation. The
mission of Google is to organize information from around the world and make it accessible and
useful universally.

 Products and services offered by Google

Google Corporation. It is a US public corporation, which obtains advertising revenues related

to its Internet search, email, online mapping, and productivity in the office, social networks and

Google Innovation in the management of operations e

video sharing services, as well as the sale of non-publicized versions thereof. Technologies. It
was founded by Larry Page and Sergey Bring while they were students at Stanford University. A
series of new product developments, acquisitions and partnerships has always sustained Google's
continued growth. Positive relationships with employees, and environmentalism. They have been
important traits during the growth of Google.

The utility and ease of use of Google have made it one of the best known brands in the world
almost entirely by word of mouth of satisfied users. As a company, Google generates revenue by
providing advertisers the opportunity to offer measurable and profitable online advertising that is
relevant to the information displayed on a given page. This makes advertising useful for the
advertiser who places it.

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Services and Products Google:

Google is mainly known for its search engine. Google offers a wide variety of Internet-related
products such as Google Earth, Google Mail, Google News, Google Phone, Google Calendar,
Google Groups, Google translate, Google images, Google books and other Internet-related
services.

Innovation

Innovation can be defined "as an approach or an innovative idea that can be completely new or
an improvement of something that already exists, it is a refreshing perspective that will challenge
many who simply cannot see beyond what their own experience tells them that think or do "

Google keeps innovation as its priority. Google understands that everyone is looking for
something different because of the diversity in culture, traditions and standards. To understand
the needs of 597 million customers, Google offers the best possible offer products.

Google launched "33 different search innovations in 67 days". Google has been known as the
number 1 in the world for its innovation in search technology. But Google did not make money
until they started bidding on ads that appear next to the search results.

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Now 99% of the company's revenue is generated through the web ads that made the capital now
exceed $ 100 million. In order to make employees give more power to the new areas of their
choice, Google gives 20% of employee’s time to unleash an enormous intellectual capacity to
solve existing problems through innovative solutions. All products launched after 2005 and 50%
of Google products are produced in this 20% of independent project time. Products like Google
Mail, see go ogle calendar, all are the result of employee creativity.

All this type of innovations is because Google is based on certain values and principles that are
committed to society or the world. The Google innovation is the operating system.

The Google Chrome operating system is lightweight and has an open source OS that will initially
work in notebooks, but will eventually work in PC The main features of Google Chrome are

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speed, simplicity and security. This operating system is designed as a quick and easy system to
start and access the network in a few seconds. The main advantage of the
Google Chrome operating system is that the user does not have to deal with viruses, malware and
security updates. "Google is reaching this conclusion and, since it is based on a set of services
that reside on the web, it is the first truly post-web operating system, designed from scratch and re-
conceptualized for a web world"

 What is your process and how is it unique or different from competitors?

The remarkable progress of Googles is in its process, the organizational structure and
organizational culture

 First, Google has created a strategic Vision. Creating and expanding knowledge is the key
word for Google's success and they believe that fundamentally improving knowledge and
sharing it with others shows their knowledge management skills.
 Google is one of the few companies that shows how technology can be combined with
organizational culture. The organizations are structured according to their objectives and
their culture. The organization is structured as different departments with employees for

Google Innovation in the management of operations e

different functions and responsibilities.
 Google maintains a minimum hierarchy and redefines management with small teams,
innovation and decentralization. The products are being developed by small teams and each
team is looking for the next breakthrough. Studies and organizational management are
treated with an organizational culture that includes attitudes, beliefs and values, experiences
of an organization.
 Google is the organization that does not take anything more seriously than
search. Generating the idea that the work must be challenging and the challenge must be fun.

Eric Schmidt, CEO of Google defined " Google's culture is unlike any in the corporate world,
and is not due to the extravagant lava lamps and big rubber balls, or the fact that one of the chefs

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used to cook for the Grateful Dead, but in a simple way Google places users First, when it comes
to online services and employees, first when it comes to everyday life in their offices.”

 Google is very innovative in its products and services, providing its customers, as well as
employees. Google realizes that its employees have diverse needs and that diversity requires
flexibility and direct individual support. The priority is to offer the customizable program
that can be adapted to the specific needs of each individual.

In Google there are basic principles that any employee should practice, that over the years have
been profitable and have helped them to generate innovative ideas. This is unique and different
from Google's competitors.

1. Think 10 x 10 This It is the essence of most of the activities that are carried out in
Google. Try to improve something 10 times instead of just 10%. This will help you
rethink an idea completely, improve existing models and completely re - imagine the
challenge to be solved.

2. Launches, tribute to the customer's listening A Clear example of this principle is

Android. This operating system, popular today, was presented to the market in a strategic
way. Google made a pre- launch for a specific group of people, who, during that year,
received feedback and shared with the experts of the search engine company the things that
were useful to them and those that were not. At the beginning of 2008, Google had an

Google Innovation in the management of operations e

innovative and profitable product that became a success in the operating system market.

3. Share everything you can. The big ones Organizations believe and practice
collaboration and teamwork because people who work together give better results. That is
the essence of innovation. Sharing and being transparent with employees will help build
trust. It does not mean that each key strategy of the company is shared, but in a transparent
way, knowing the forms and the results of each action that takes place. It is very common
in Google that meetings of company leaders can be observed by any employee through
digital platforms.

4. Hire the right people without any doubt, having the best staff for each activity that is
necessary for the company is the basis of success. Knowing in detail each of the skills
that the staff has will allow, in addition, to exploit the talent and focus it towards the

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 improvements that are needed. It is not uncommon for Google to have graphic designers
working in the Systems area.

 How do they measure success / quality?

The capitalization of Google broke a record $260 billion. Since his CEO in 2004, actions have
increased more than 900%. The success of the company is due to its continuous innovation and
management practices.

The practice of human resources management refers to all aspects of how people are employed
and managed in organizations, principle is applied to measure success, the quality of their products
and services. Achieve success through people.

The main principle of managing human resources is to make sure that the organization achieves
success through people. HRM aims to increase the efficiency and capacity of the organization
and the ability of an organization to achieve its objectives making the best possible use of available
resources.

Human resources management is mainly concerned with organizational behavior, the design and
development of the organization, the allocation of human resources, performance management,

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learning and development, the reward of people and relationships with employees.

In the organizational context, performance is generally defined as the extent to which an

organizational member contributes to the achievement of the organization's
objectives. Performance management is a regular process to improve the performance of the
organization by improving the performance of individuals and teams. The performance
management strategy is practical to be the procedure of providing the study on employee
performance and is considered to be the important tool in decisions made by the human resources
department. Performance management is defined as "Performance management is a strategic and
integrated approach to provide sustained success to organizations by improving the performance
of people working in them and developing the capabilities of individual teams and
collaborators" (Armstrong and Baron, 2004).

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"The overall goal of performance management is to establish a high performance culture in which
individuals and teams take responsibility for the continuous improvement of business processes
and their own skills and contributions in a framework provided by effective leadership"
(Armstrong, 2006).

The objectives of performance management we can point out the following:

 To keep employees looking for the knowledge and skills to do their job well,

 Encourage the ability to improve an employee's work performance standards.

 For employees to work towards defined objectives.

 For employees to receive frequent feedback on performance and

 For employees to achieve personal growth through the acquisition of knowledge, skills
and significant attitudes.

In the current business environment, the bottom line of the company is to obtain more long-term
benefits by attracting, retaining and motivating the most talented people for maximum
performance. Approaches for profit companies are offering the best rewards in the industry. The
company that is on that list is Google Inc.

In the early years of Google, the search engine attracted an increasing number of trusted users,
which eventually led to an initial public offering that values Google at US $ 23 billion.

Google Innovation in the management of operations e

Google, under the professional leadership of CEO Eric Schmidt, has grown enormously and
continues to innovate and expand into a number of industries, such as communications and web
applications. The modern environment in which Google operates is very competitive. According
to Google employees and their technical knowledge is the biggest advantage of the
company. (NYU IBA, 2008).

Plans and performance agreements:

This process helps people to take action so they can achieve planned and agreed results. This
process briefly focuses on the elements such as what should be done and how it should be done
and what should be achieved. And this process is equally focused on the development of
people; helping them learn and giving them the support they need to perform well. Managers

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and people jointly carry out a performance and development plan. This planning should lead to
agreement on what two parties should do.

This process is concentrated in

 Role profiles

 Configuration objective

 Measurement of performance and evaluation

 Performance Planning

 Development planning

Management by Objectives

Where the company uses formal processes to manage performance and where results can be
measured accurately.

 Google comment program

Google implements a formal and informal feedback system to evaluate its employees. At
Google, the employee manager's report and individual reports are considered for the
evaluation process. Its formal evaluation system uses the 360 degree revision
method. The employee will also select three or more officials to review their
performance. These reviews are done twice a year and this will be reflected in the

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performance review with an employee bonus. Anyway, there is nothing surprising
because the periodic performance check is a form of informal feedback system and they
are more complete than a formal review that takes place twice a year (NYU IBA, 2008).

 Google reward program:

Google's reward system makes extensive use of these formal and informal assessments,
where the bonuses are based on the combined performance of the company, the team and
an individual. He obtained a complex structure of promotions and options on actions
within the organization. In addition, there is a strong clan’s society within the organization
and a comparatively flat organizational structure, making the company more a fusion of
the reward system.

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One of the most stimulating rewards of Google employees is their ability to offer stock
options. Stock options are usually to exercise the option and buy shares on a certain date or not,
however, Google has decided to adopt a more innovative approach for its reward. The options on
transferable shares are a compensation program that Google developed for the purpose of allowing
employees to exchange their options with a bidder. In this way, Google not only increases the
value of each stock option granted to its employees but also improves the valuations of its options
(NYU IBA, 2008).

 Google process changed over the years,

In just under 20 years, Google has transformed from a small garage company with a handful of
employees to the ultimate global business empire. Along with its many parallel projects in other
industries and fields, Google remains the market leader with its initial input product: the online
search engine. Since the Google search first appeared in 1998, the company has become the most
valuable brand in the world. And the goal remains the same as always: to show the user the most
relevant search results possible. But what has changed is the kind of information that Google users
require and with it the technical challenges of the search itself. If you compare the original Google

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search engine with the current features and functions, you will see the incredible number of
changes that have occurred.

A central goal that remains at the center of the universal search program: Google wants to provide
the right search results regardless of the type of content required; the only prerequisite must be that
this content is somewhere in the World Wide Web.

But, at the same time, the search should be made as simple and fast as possible for the
users. Google has accelerated and simplified the web search process several times in recent years
with many new features and functions, including:

 Google Instant (results are shown during the typing process)

 Google Suggest (search terms are predicted and offered in real time)
 Improved interpretation of search queries
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  Advanced Search Alternative suggestions
 Autocorrect for spelling errors
 Inclusion of synonyms ... and many more

Since 2008: information processing that is constantly improving. Google has become an incredibly
complex universal search engine. To help sort out the immense amount of information and data
needed for the millions of daily searches of documents and content on multiple devices, Google
has devised many new methods for processing information in recent years.

What does the future hold for this business?

By mid-century, there will be 9 billion people on the planet who will consume more and more
resources and lead increasingly complex lives technologically. Services like Google Earth have
the potential to turn ordinary people into oceanic conservationists

Google is on the verge of a technological advance that can transform your relationship with
us. Google is recognized as the world leader in the search for information. Handles about 90
percent of Internet searches. When we want to know something, most of us turn to Google. The
rapid evolution of mobile technology has brought new opportunities to a company that generates

Google Innovation in the management of operations e

annual revenues of over $ 50 billion. It started, just 15 years ago, as a service that allowed you to
enter a request on a personal computer and receive links to sites. Associated webs Things have
changed. Soon Google expects to have the omnipresent presence of a personal assistant that never
stops working, able to converse naturally in any language.

 What changes, if any, would you make to your current process, products and / or
services to ensure success?

Personally, I think Google culture is an idea about the human condition. People look for meaning
in their work. People want to know what is happening in their environment. People want to have
some capacity to shape that environment, Google has cultivated a creative and passionate
workforce that holds the key to the company's innovation.

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Any company can benefit by learning how to attract and better manage innovators, encourage
commitment and, ultimately, lead to success.

Miami August 08, 2018.

Bibliography and References

 Stieber, Annika. The Google Model. Managing Continuous Innovation in Rapidly Changing
World. Kindle Edition Abril de 2014.
 Savola Alberto, Copeland Patrick. Entrepreneurial Innovation at Google. Published by the IEEE
Computer Society 0018-9162/11 2011.
 Gregory, Lawrence. Business Management, 10 Decisions of Operations Management Productivity.
University of Illinois, Champaign, Illinois, USA). 2004.

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