GROUP ASSIGNMENT 1MIS750

PREPARED BY :

NOR HARYATI MOHAMAD SUFFIAN NORHAIZA ABDULL HAMID

HALINA HUSSIN

TOPIC 1. FOUNDERS 2. CORE BUSINESS3. BUSINESS MODEL4. IT APPLICATIONS5. SUCCESS STORIES6. LESSON LEARNT

FOUNDERS Google was started by foundersSergey Brin and Larry page.

Both of them met at Stamford University where they inventeda search engine for the school’s Computers systems called Backrub.

Sept 4 ,1998 – Google filed officialIncorporation papers in California When they decide to make further search engine name Google and got first check investment 100K .

The first office set up in garage at Menlo Park

FOUNDERS Sergey Brin and Larry page choose Google to namely their search engine because of it related to the enormity of the task of organizing the immense amount of information that was available of the internet.

History of Google From mathematical term of ‘googol’ meaning that 1 followed by 100 zero by Hilton Sirotta Google first employers – Craig Silverstein ( graduate student of Stamford in computer sciences.Purpose hired to help in build and develop Google to become World Largest search engine.

MISSION

To organize the world information and make it universally accessible and useful

PHILOSOPHY

‘’ The Perfect Search Engine ’’

FOUNDERS CORE PRINCIPLE GUIDE

A.Focus on user and all else will follow B.It’s best to do one thing really-really wellC.Fast is better than slowD.Democracy on the webE.You Don’t need to be at your desk to need an answersF.You can make money without doing evilG.There’s always more information out thereH.The need for information crosses all bordersI.You can be serious without a suitJ.Great just isn’t good enough

CORE BUSINESS - Search Engine - core technology - specific services as image search, Google maps, Google video which allowed to search, upload and watch. - Advertisement - central of business proposition - 99% of Google revenue is derived

-2 part of advertising program which is Ad Words and Ad Sense

Applications - web based software that we can access anywhere, anytime - it’s an online suite of communication and collaboration tools.

CORE BUSINESS

Google AdWords -allows advertisers to display their advertisementin Google content network-cost per click or cost per view scheme

Google AdSense-allows website owner to display these advertisement on their website-Earn money every time Ads are clicked

CORE BUSINESS

llllllhhhhhhhCORE 70%• Search

•Advertisement

20%

Gmail

Local Search

AdSense

Google Video

Google Talk

Google Earth

BookSearch

10%

Google Pack

GoogleCode

OrkutGoogleMovie

BUSINESS MODEL

DEFINITION :‘’ A business model is what a does and how it makes money.’’

set of planned activities designed to result in a profit in a marketplace.

BUSINESS MODEL

KEY ELEMENTS OF A BUSINESS MODEL

1. Value Proposition

What the customer gets from what the customer paya.Value is not limited to product and servicesb.Value recipients are not limited to customersc.A value proposition is not tied to the sources of revenue

Example VP in Google :

BUSINESS MODEL

VALUE PROPOSITION

USERS - Very large VP and always provided for freeNETWORK PARTNERS – Give revenue s in return for relevant ads on their sitesDEVELOPERS – provides platform such as GWT for free to enable development of rich contentBUSINESS OWNERS-Data on Popular search terms to better formulate value propositionLIBRARIES- Digitizing all parts of book collection to create full-text searchable online catalogsAUTHOR AND PUBLISHER – Make book out of print available for purchase in digital format.EMPLOYEES – Working condition, “on time” job security)GOOGLE OWNERS- GrowthSOCIETY – Free tools such as blogs and localized versions of google in developing countries.

BUSINESS MODEL

REVENUE MODEL

Google generated 99% of total revenue in 2007 and 97% of total revenue in2008 and the latest 2009, 95% of total revenue in 2009 due to expanding the rivals in the marketplace.

BUSINESS MODEL

Subscription

Extension of the traditional media broadcast model

Provide purchase-point click- through to the merchant. eg: Google AdWords

Subscription and advertising are frequently combined. Fee to subscribe to a service.

Online payment processing that aimed simplifying the process of paying for online purchases, eg Google Checkout.

BUSINESS MODEL

Example : Ad Words – how Google generate revenue ???????????

-Pay advertising program - under affiliate-Design to allow advertiser display their advertisement to user.-When user query the info related to advertisement – adv for relevant words shown At sponsored link-An advertisers has to pay every time his advertisement receive the click.This is how Google generated Reveneu

BUSINESS MODEL

GOOGLES’S OPPURTUNITY TO INCREASE THE BUSINESS OPERATION

• Creation of their own browser to speed up download times• Upgrade system offering real-time feedback to clients.• Readdress privacy issue – set industry standards on privacy and

become a leader in privacy protection.• Assure consumers that their personal information is secure and

will not be sold to other companies.• Growing relationship with government organizations.• Future expansion into television aspects of multimedia• Continued wireless network expansion• Continued expansion into 3D with 3D messaging market and 3D

gaming• Local news portals and support for small town news through

Google News.

MARKET OPPORTUNITY

BUSINESS MODEL

COMPETITIVE ENVIRONMENT

BUSINESS MODEL COMPETITIVE ADVANTAGES

The special advantages that bring to the marketplace

LATEST ! COMPETITIVE ADVANTAGES 2010SPEED,SPEED,SPEED…..Provide method in Googles Updates Web App tolls kit for speed ( Google Chrome Browser)

a.EXTRA DATA – Give more alternative and valuable information to user

b.GOOGLE KNOWS A LOT ABOUT YOU – through Gmail, Toolbars, Doc and others it will give the clues about your personality, interest, like and dislikes

c.GOOGLE OFFERS UNIVERSAL SEARCH – Goggles not only crawl the web, blogosphere, press release and book but also crawl with real world with google earth and Google map

d.GOOGLE IS EVERYWHERE – example : If you use Firefox, safari or Opera then Google is your default search provider, homepage and subscriber

BUSINESS MODEL

MARKET STRATEGY

Refer to How Google plan to promote product and services

a. Provide a simple, clean, clear, minimalistic user interface.

- No frills, just the logo & search box- easy and fast to load- Make the user happy

b. Most of the time Google provide Reliable search result.

c. Google got the advice toward improving their market strategy as well as law regulation.

d. Google Introduced a smart, innovative and quite risky business model.

- Ad words – pay per click concept

BUSINESS MODEL

MARKET STRATEGY

e.Become a powerhouse with an impressive pipeline of the new great product .

- Google Map, Video, Earth and etc

g.Google was innovator of the business model- Delivered all great product basically free, enticing

and luring million of users world wide.

h.Google offers advertising with Ad words, Earning revenue company’s website with Ad Sense and etc

i.Google also offer a wide variety of education material s for its product through internet.

- Online seminar, video presentation

BUSINESS MODEL

• The market for phones, TV, computers, handheld gaming, and music is continuing to merge into one product. All with digital data and more of it needing to be organized and accessed. Research and development in these areas of technology is needed to be the market leaders with continued online advertising technology usage and implementation. This is important since most of the ability to present additional options to online advertisers.

• Continuing to make free wifi and broadband internet usage available will stimulate increased desire for products that can use this such as conferencing, music and video.

• Design demographic search sites• Continued focus on enhanced advertising targeting.• Expand multimedia product offerings• Continued expansion of free wifi in key cities.

ORGANIZATIONAL DEVELOPMENT

BUSINESS MODEL

MANAGEMENT TEAM

-Refers to the employees in the various department

The company has grown to more than 10,000 employees worldwide, with a management team that represents some of the most experienced technology professionals in the industry.

Eric Schmidt joined Google as chairman and chief executive officer in 2001.

BUSINESS MODEL

IT APPLICATIONS

• IT at Google depends on complex software components and architecture design.

• Search engine is a program that helps find information stored on computer system.

• 3 important steps are essential for developing web based search engine:

1. Web page crawling2. Indexing3. Searching

IT APPLICATIONS

User Query

Google Web Search

Conversion Tools

Spell Checker

Ad Servers

News Servers

Image ServersDocument ServersText Servers

Google Search Query Architecture

SUCCESS STORIES Offers “free use" and "fast speed”Google was rated first in the following categories: Success in provide The Best Search EngineNo. 1 Overall Opinion of Site: 97 percent of users rated Google as excellent or very good.No. 1 Site Recommended to a Friend: 94 percent indicated that they would recommend Google to a friend.No. 1 in Comparison vs. Other Sites: 98 percent rated Google either much or somewhat better than other sites.No. 1 in Frequency of Delivering the Information Sought: 97 percent of users surveyed reported that Google found the relevant information every time or most of the time.No. 1 for Relevant and Accurate Search ResultsNo. 1 for Comprehensive Results

SUCCESS STORIES Success in provide The Best HR Practices#Up to $8,000/year in tuition reimbursement#On-site perks include medical and dental facilities, oil change and bike repair, valet parking, free washers and dryers, and free breakfast, lunch and dinner on a daily basis at 11 gourmet restaurants#Unlimited sick leave#27 days of paid time off after one year of employment#Global Education Leave program enables employees to take a leave of absence to pursue further education for up to 5years and $150,000 in reimbursement.#Free shuttles equipped with Wi-Fi from locations around the Bay Area to headquarter offices.#Classes on a variety of subjects from estate planning and home purchasing to foreign language lessons in French,Spanish, Japanese and Mandarin.

LESSON LEARNT ADVANTAGESA. EASY TO SEARCH DATA AND INFORMATION

User in University ( Lecturer- Journal/ article/ dissertation – Google Scholar)

( student – Do the Assignment)

Tourism – using Google Map – Guiding to certain place

- safe time and cost

B. PLATFORM TO BUSINESS Ad Words, Advertising

C. GOOD WAY TO COMMUNICATIONGmail, Video Mail

LESSON LEARNT DISADVANTAGES

A. COPY & PASTE ACTIVITIESB. PEOPLE DEPENDENCE WITH THE SEARCH ENGINE TO GET

THE DATA – Not Look At Primary data/ observationC. SIBER CRIME - Hacking