Google Presentation Final

7/31/2019 Google Presentation Final

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TECH STRATEGY OVERVIEW

DONT BE EVIL


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Overview

Google Israel: TheCompany

Google Israels Technology

Google Israels Strategy

Google Israels

Operations

Google Israels Sales

The S Curve

Google Israels

Benchmarking

Inside Google Israel: Tel Aviv

Notice the Google-colored Mezuzah!


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The Company

Google (big Google)Highlight & History

Google is one of the leading internet technology and advertising companies in the

world Google was co-founded by Larry Page and Sergey Brin while they were studying at

Stanford University

It Specializes in Internet Search engines

It currently employs 22,331 peoples

Recorded revenue of $23,651.6 million in FY 2009

Primarily generates revenue by Online Advertising through Adsense Competitive advantage of Google comes from its Hardware and Software Engineering


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The Company

Google IsraelHighlight, History & Main Processes

One of leading R&D centers for leading internet search engine in the world

Handles many of the major functions that make Google a successful company.

Engineers develop and launch key products globally while sales team finds

solutions for clients advertising needs. Technology expertise enabled it to launch a number of new products and develop

new processes pertaining to

Search -- Google Autocomplete, Live Results, Google Instant

Analytics -- Google Insights for Search, Google Trends, Website Optimizer,Google Chart Tools, In-Page Analytics, Google Analytics

Applications -- got the wrong bob, Gmail Priority Inbox


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Market Overview Tech R&D centers in Israel

Numerous technology giants including Yahoo, Microsoft, CiscoSystems, Intel, AT&T, and Hewlett-Packard also have offices orresearch centers in Israel.

Content wins out, no matter the gateway The internet is about content. Whoever has the content wins, no

matter the gateway. Apple owns significant chunks of online content.Microsoft has many partnerships (Netflix on Xbox and WindowsMedia). But Google, starting from scratch, has won the challengeagainst a giant like Microsoft and against the previous search engine

market leaders Yahoo, Lycos, Altavista, Excite. Some hidden players

ex. local cable companies such as

The Company


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SWOT Analysis ScorecardStrengths

Most frequently used search engine globally

Brand equity

Thriving advertising schemeReady access to capital

Opportunities

Can try to influence new regulatory structure

Cloud computing

Can draw on MSFTs unpopularitySocial Media Services

Developers Conferences and Incubator

eBooks

Telecommunication Products

Weaknesses

Technology Limitations

Ineffective filtering of material sparks

security and privacy concerns among usersConstant legal scrutiny

Threats

Economic crisis worldwide

No real hardware expertise

Apple

Micro-blogging

Yahoo, Bing and other small players in the

market

The Company


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The Company

Search/Ad Business

(Adsense)

GmailGoogle Docs

YouTube

Social media

services (ex.

Google Buzz)

Google Video

Most Web 2.0

Acquisitions

Main Products BCG Model


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Key Performance Indicators

User Satisfaction with Search

As measured by customer satisfaction surveys, R&D search experiments A/O 2012, Google has 200MM searches/day 57% of the current market,

followed by Yahoo at 21% and MSM at just 9%.

Search Efficiency and Effectiveness

Mobile Computing Technology Use Android Activity Worldwide

190MM Android users and growing by the dayOver 500K Android devices activated daily

Total Advertising Revenues Revenue increased by about $7B/year over the past 3 years without

compromising users needs, Google Website Revenues, Google NetworkWebsite Revenue

Total Overall Revenue

Went from 9% in 2009 to 25% in 4th

quarter of 2011


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KPI -- Efficiency

Courtesy of Yossi Matias and R&D Team, Google Israel


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Explanation of experiment

Key Performance Indicators



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Overview Highly diversified portfolio

R&D Products and solutions are to developers and consumers: Easy to use

Provide lots of documentation

Provide lots of examples

Have various levels of complexity

Massive scalability and storage solutions

Creative algorithms in order to make one of the worlds largest networks workmore effectively

Helps drive the great experience users get from Google products

Networking systems

Google Israels R&D teams are also working extensively on networkingsystems, advertising systems, and complex transaction systems in consumer

applications. They are leading many projects as well as working with teamsglobally.

Research

Focused on algorithms, machine learning, game theory, computer vision anddata mining, but Google Israel also employs techniques from other branchesof computer science.

Special Projects

R&D Googlers are encouraged to spend 20% of their time on their own ideas.

Technology

h l


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Special Projects (Continued) Some other Google Israel project ideas worth

mentioning include: Periodic Table The legend tells that a similar gadget at

the states received 3 millions users

Math Equation gadgets enter data and gets shapes

diameter, area, quadratic equation etc. Time Zone gadget

Currency exchange gadget

Pregnancy calculator/followup/countdown gadget

Movie show time gadget for seret.co.il TV listings

Any major sports result gadget

Flight take off and landing gadget

Music hit list

Technology


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Technology

History/Trends R&D Centers in Tel Aviv/Haifa home to software engineers who want

to develop the next-generation technologies and push the limits.

April 2009 Google Autocomplete was created which allows users to

receive suggested searches as they type within the search box on

Google

October 2009 Got the Wrong Bob -- Turn on "Got the wrong Bob?"

and Gmail will check if you meant to include Bob Smith rather than

Bob Jones based on the groups of people you email most often. Building global products and innovating on a large scale

January 2011 Live Results, Google Instant

Developing and launching key products globally

August 2010 Gmail Priority Inbox


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Technology

Future Trends

Always looking for the next great innovation Incubator to be launched in 2012 in Israel

To make something you never thought could bebetter and easier to use

Google Maps with Israel Street View

Advanced Computer Vision Technologies

Tech expertise and recent acquisitions provide

it a right base for future growth


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Technology

Interfaced Technology that may affectTech/Products/Processes Open Source technology products and APIs

Google Maps API, Google Data API, Google Ajax API,Google Gadget API and over 35 more APIs

Gadgets Cross-browser compatible, utilize open-source XML

databases to power Flash GUIs and JavaScript API,working with remote content: RSS feeds, text/HTML

Google Instant, ex. required new technologies includingnew caching systems, the ability to adaptively control therate at which we show results pages and an optimizationof page-rendering JavaScript to help web browsers keepup with the rest of the system


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Technology

Interfaced Technology that may affect Tech/Products/Processes

(Continued) Multi-language support

Increase success in other countries

Video Annotations

Now used in YouTube clips

Partnership with Yad Vashem

Make Holocaust archive accessible and searchable to a globalaudience

Teaching open source and web technologies at

universities

Supports and encourages good web technologies for developersworldwide:

Open source projects taught include:

Hosting open source projects on Google Code Google Summer of Code

Google Gears (browser offline capabilities)

Googlers contributing to OSS: Linux, subversion, GCC


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Technology Strategy Trends/Changes

Make the internet the new PC

Reduce the PC to an old-style terminal

Eliminate the need for local OS or apps put them all on the web.Offer net storage of data to eliminate the need for local hard

drives, etc. Its all about the people and the culture

Having smart and highly innovative individuals working in small teams in astartup-like environment to tackle the most exciting technologicalchallenges

The engineers and scientists at Google Labs develop innovativetechnologies that have high impact on many people world-wide

Collaboration is key to developing next-generation technologies andpushing the limits

Building global products and innovating on a large scale

The Company Strategy


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Technology Strategy Trends/Changes(Continued)

Organize information from around the world and it

make universally accessible and useful Ex. Google Toolbar, Google Chrome, and Gmail, all of which

are inexpensive, straightforward and continuouslyupdated.

Self-service delivery model AdWords and AdSense -- enabling company to establish a

customer relationship with over 160,000 advertisersworldwide



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Tech Successes

Dead Sea Scrolls Enabled them to be

accessible online

Yad Vashem Online photo archive

Google Live Results

Google Insights for

Search

Tech Failures Adwords Lawsuit

Tel Aviv Court ruled that Google hadeffectively allowed a doctorscompetitors to hijack his reputation

for their benefit Social Media Services

Entry sparked by ad revenues slowing

Facebook and Twitter venerablemarket leaders

Google + is their 4th attempt atentering the social media market

Lack of Integration Too many products feel like disparate

standalone entities

Ex. Contact and Profiles are not evenfrom the same data source.


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Core Proficiencies Google Search

Teams in Haifa/Tel-Aviv advancing the Search experience for usersworldwide

Devote more engineering time to search than to any otherproduct

Research and Development

Develop innovative technologies that have global impact

Highly talented leadership team and work force

Focus on hiring highest quality individuals

Culture emphasizes teamwork, flexibility, transparency, andinnovation.

Organic structure

Aggressive and non-discriminatory hiring policy favors ability overexperience

Operations


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Operations

Outsourcing

Technologies that are not their core proficiency Quiksee

Israeli startup that allows users to create location-based interactive mediacontent.

LabPixies A leading developer of personalized web gadgets "widgets" including iGoogle,

Android and the iPhone.

Google Gadgets May be outsourced to independent contractors and contracting groups,

professional developers who write gadgets for a living, teenagers andhobbyists writing gadgets because theyre fun

Networking systems, advertising systems, and complex transactionsystems in consumer applications Could be outsourced so R&D teams can devote more attention to

developing Search capabilities


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Partnerships Mergers and acquisitions with other related businesses

Allows Google to quickly adopt new technologies andprocess rather than trying to develop them internally

Academic research centers and universities Collaborate on the development of technological commerce

technologies

Red Bend software (Israel)

Mobile software management

Other incubator-like initiatives worldwide Red Hat (Israel)

UpWest Labs (Silicon Valley)

Genesis Partners -- The Junction (Israel)

Operations


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Customer Expectations; Current & Future Trends

Continue to introduce products that customers will use,are interesting and cool

Continue to be innovative Innovator of the Business Model to deliver great new products

basically for free, enticing and luring million of users worldwide,with the result of building the Brand in an outstanding, quiteunbelievable way - and did it extremely fast.

Continue to deliver products that make customers livesmore efficient

Platform is ready and easy for developers to learn

Operations


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Operations

IT Main Processes/Modules

Infrastructure Solutions unique to Google

MapReduce System

Converted search indexing systems to MapReduce system in 2003,and currently processes over 20 petabytes of raw web data perday

Google File System (The GFS) Distributed file system designed to provide efficient, reliable

access to data using large clusters of commodity hardwarecodenamed Colossus

BigTable

Database built on GFS


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Operations

Challenges

Many acquisitions of companies at different stages of

their development

Integration into culture

Change Implementation


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Sales

Customer Analysis/Forecast Sources

User-powered Services Googles content offerings consist of what its users supply (ex.

YouTube)

Google Network members Expanding its presence in Israel, which would enable it to strengthen

its leadership position

Forecast sources Goal: To maximize eyeballs to Googles search engine and ad

machines Growing online ad spending would have a positive impact on the

financial performance of the company

R&D experiments on predictability of search trends Mean absolute prediction error, max absolute


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Seasonality and Deviation Experiment

Forecast Sources



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Customer Analysis

Forecast Sources



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The S Curve

New technologies,approaches,and businessmodelsemerge tobe the "thenext newthingtrigger anew S curvethat willovertake theold one.

Google Autocomplete

Gmail Priority Inbox

Google Buzz

Google Video

New technologies,

approaches, and business

models that could be the "thenext new thing" triggers a

new S curve that will overtake

the old one (YouTube, Google

Instant, Live Results, Open

Source Technologies, etc.)


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The S Curve

Technology Limits Government regulations which could limit Googles

technology

Has run into conflict with regulatory agencies in the past

Willing to influence government to set regulationsbeneficial to Google

Creating lobbying effort and attempting to influence govt

Privacy and complexity

Byproducts of the engineering-centric culture

Can't always predict how users will react to products andservices

Ex. Google Buzz tested internally and everyone liked it, so they justhad no idea it would cause the fear it did.

Enterprise growth limits

Stakeholders fail to cooperate for the greater good


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Benchmarking

Internal Where are we now vs. where do we want to be?

Google Instant, Autocomplete

Who is doing what?/who is capable of doing what?/Do we need any extrapersonnel?

People/Culture Management/HR Practices

Hire and retain excellent employees, measured by employee turn-over, jobvacancies, customer satisfaction

Interoffice Culture Comparisons

Systems (Google vs. Blackle) Healthy financial indicators

Cost efficiency, Quality, Service, Technology, Marketsegments/performance


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Benchmarking

Competitive Non-core Niche product/service

Track the number of competitors entering and/or leaving the niche.

Gmail, Maps

Is the cost of entry into the market high or low?

Google+ social media service Biggest attempt to rival Facebook which has over 800 million users

Market leader or follower or challenger, and what is your relative marketposition and why?

Are you able to support that position if under 'attack'?

Chrome, Android; Yahoo, Bing, etc. Telecom Number of new customers per year

Android

Number of lost customers per year


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Benchmarking

Functional

80/20 rule

R&D Googlers encouraged to spend 20% of their time on

own ideas. Concept was adopted from 3Ms Organizational Innovation

concept among other similar ones.

Developed in order to stay ahead of competition by continuing

to be innovative.


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Benchmarking

Generic

Google Plus Art

Creates visual appeal

Makes search fun!


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References

http://www.google.co.il/jobs/http://www.fastcompany.com/1699742/google-israel-yossi-matias

http://www.globes.co.il/serveen/globes/docview.asp?did=1000697285&fid=1725

http://blogs.wsj.com/venturecapital/2011/11/15/israeli-start-ups-now-have-google-to-incubate-ideas/

http://www.israelnationalnews.com/News/News.aspx/149797#.TzJtZcVSSuo

https://sites.google.com/site/haifardcenteropenhouse/about-the-r-d-center (includes video)

http://www.israel21c.org/technology/google-to-incubate-israeli-startups

http://www.ynetnews.com/articles/0,7340,L-4147682,00.html

http://www.t3technion.com/2011/11/google-search-for-innovation-result.htmlhttp://www.israelnationalnews.com/News/News.aspx/147805#.TzJtbsVSSuo

http://searchengineland.com/my-friendly-meet-up-with-google-israel-16723

http://www.israelnationalnews.com/News/News.aspx/152100#.TzJtecVSSuo

http://www.globes.co.il/serveen/globes/docview.asp?did=1000696872

http://www.broadstuff.com/archives/2108-Google-from-a-digital-strategists-point-of-view.html

http://www.niallkennedy.com/blog/2008/01/google-mapreduce-stats.html

http://www.israelnationalnews.com/News/News.aspx/147064#.TzJtdMVSSuo

http://research.google.com/archive/google_trends_predictability.pdfhttp://www.pcworld.com/article/146101/top_10_google_flubs_flops_and_failures.html

http://ishitech.co.il/0406ar4.htm

http://www.physorg.com/news11268.html

http://www.israelnationalnews.com/News/News.aspx/148356#.TzJtacVSSuo

http://www.chiefmartec.com/2008/04/a-new-s-curve-f.html

Google Presentation Final

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