Alphabet Eyes New Frontiers

Presented by Team
Hemant Kumar
Satish More
R.K.Tripathi
1
 Google

Can Google produce another Google?

2
 The Degooglisation of Google

The company I joined.. The company I left…

*Dual Share structure: the *“21st Century Berkshire
primacy of tech and creativity Hathaway”

*10 years needed for *Selling the Robotics co: ‘’10

Moonshots years is too much to generating
revenue’
“Inventor” “Investor”

3
Restructuring: When Money invades Creativity

Scale of Corporate
Governance

Impact on neophytes

Restriction on free flow of

people and ideas

4
Contain the Fallout of Restructuring

- A three pronged structure

- The S curve of innovation

- The structure of accountability

- creative and commercial

5
Performance Trends
Google
• High employee Turnover
• Increase in Advertising Cost Vs R&D and Decrease in CAPEX
• Share Price Movement

Markets
• Increase in Fund requirements from Start-ups
• Share of Non-Tech IPOs increasing
• Higher attraction for Start-ups due to Flat Share Market

6
 Separating the chaff from the Wheat
High

Other Bets
Market Growth Rate

Google

Proven failures

Low

High Relative Market Share Low

7
 Alphabet : SWOT Analysis
Project Management Promoters’ Age

Weakness
Strengths
Market Reputation

Limitless nature of the Virtual

Opportunities

World

Threats
Supply of young creators

8
 Conglomerate Structure Vs Divisive Leadership

* Creativity α Independence * Each has its Own fiefdoms

Collaborative Leadership

Ques 1
Ques 3
Ques 2

• Harness Cross Company Synergies

• Share Knowledge and other resources

• “20% time” formula

9
Enough Resources to Startups or Stifling Innovation ?

• More commercial considerations for Startups

• Creativity straitjacketed.

Ques 1
Ques 3
Ques 2
Three pronged structure
• More Creative accountability

• “Sweat Equity”

10
 How much Gestation period for “Other Bets”?

• Position on S Curve

• Nature of product: Mix of Digital and Physical

Ques 1
Ques 3

Ques 2
Maturity

Take off

Ferment

THANK YOU
11
 BACK
The Innovation S-Curve

Product is adopted almost

completely by society
New S-Curve pattern can rise

Ability to satisfy a demand of the market

Maximum resources are spent on research and development .

12
 Age of Promoters
Promoter of Age (Yrs)
Microsoft 20
Facebook 20
Google 22,22
Apple 21,26
Amazon 30
Dell 19

Back to SWOT Slide

13
 Exhibit: 3a A selection of Top Innovations at Bell Labs
Innovation Invented Year Application
Data networking Late 1940s Digital subscriber Line (DSL)
Transistor 1947 Computers, radios, Stereo
Cellular network, suggested in Mobile phones
1947, installed
1980
Silicon solar cells 1954 Solar power
Communication satellites 1962 Long distance phone calls, television and radio
Touch tone dealing 1963 Replaced rotary dialling on telephones
Unix c, C++, 1969-1972 The internet, commuter programming.

Exhibit: 3b Top Innovations at Xerox PARC

Innovation Invented Year Application
Laser Printing 1972 Photocopier
Xerox Alto Personal 1973 Apple’s Macintosh Computer
Computer
Ethemet networking 1973 Local area Network
Cut-and –paste and text 1974 Microsoft word
editor
Graphical user interface 1975 Computer user interfaces, popularised by Apple
Multi-beam laser 1986 Advanced printing
16-bit-coding system 1989 Unicode standard, allows computers to
communicate across languages.
BACK
14
 Strong Yrly
Results
Restructuring

Sale of
Boston
Dynamics Uncertain
future of
Moonshots
BACK

15