Strategy Implementation

SUBMITTED TO

Dr. Harsh Mishra

By Rohan Pai (10PGHR29)

Management Development Institute Gurgaon 122001

Acknowledgements
I would like to thank Prof. Harsh Mishra for being such a strategic guide throughout the strategy formulation and strategy implementation courses. Sir was a constant source of inspiration in doing our readings and projects. His lectures and discussions helped us think strategically and would be useful for us in the future as well.

Contents
Acknowledgements.................................................................................................... 2 Contents..................................................................................................................... 3 Introduction................................................................................................................ 4 Key Points of Google Strategy Formulation................................................................4 Strategic Recommendation........................................................................................5 Application of Android based Internet of Things ........................................................5 7-S analysis for Google Strategy Implementation.......................................................7 Systems and Controls...............................................................................................10 Action Plan for Google..............................................................................................11 Conclusion................................................................................................................ 12 Challenges & Suggestions........................................................................................12 References................................................................................................................13

Introduction
Google Inc. is a public Internet search engine that is popularly used world over. In addition to its core search engine, Google has expanded its portfolio both through internal development and external acquisitions and joint ventures to include some of the most popular and widely used products and services like Google Ads, Google Analytics, Gmail, Orkut, YouTube, Google Earth, Maps, Google Chrome, Picasa, Google Talk, Google TV, Google Docs, Google Translate, Google Apps, Google Books, We will briefly discuss the suggested strategy formulation for Google and then discuss the strategy implementation.

Key Points of Google Strategy Formulation

In addition to its niche focus in web search engine, Google has created a strategic fit over the long run by adding more and more upcoming and differentiated web-based data and technology services. Google has made the trade-off of revenue generation with cost leadership by providing free and low cost services that are world class. Thus the Google strategy is hybrid with Niche/Focus, Differentiation and Cost Leadership. Google has been concentrating on developing Core Products that will give it the strategic advantage. For example it has moved from a browser plug-in for Google search to its own browser Chrome, since then, Internet Explorer has been struggling to keep up its market share. It has entered the portable device domain with introduction of the Android mobile OS. The OS being a core product will give Google a lot of control in the mobile market. CEO Eric Schmidt said in a statement. "Our vision is that the powerful platform we're unveiling will power thousands of different phone models."

Strategic Recommendation
Googles strategy should be to provide data management and communication based services for all kind of devices. By this we expand the scope of devices that would be on a network from PCs, laptops and mobiles to all kind of objects and devices like TVs, PDAs, vehicles, industrial and domestic machinery, security systems, medical systems, transportation systems, the power grid, help kiosks, etc. The recommendation relates to smart objects that would be part of the Internet of Things. The smart objects would be what those the world has been using so far, but in addition they will be on the Internet of Things, have storage and processing capacities and would be running on services and software provided by Google. Googles Android OS would play an important role. Android being open source software, is setting portable device standards. Standardization is required because when there are a variety of objects available, it would be difficult for software applications to be developed for them unless they is some sort of standardization in terms of the OS and the protocols which it will run. It would be just like how Windows became a standard for personal computers and all the applications were being developed for it, same should be for Android as an OS for portable devices and smart objects. Also storing, retrieving, searching, manipulating and sharing data and information which is Googles specialty, would be an important part of this.

Application of Android based Internet of Things

It would provide possibilities for many day to day domestic, industrial and personal activities to be automated or simplified.

Consider scenario where the vehicles supporting Google android and associated applications would be able to provide real time information on locations, maps, landmarks, restaurants, malls, traffic information, accident zones/accidents and slow down vehicle automatically, alternate routes, distance and time estimates, etc. Consider portable devices that would be able to schedule/reschedule meetings/travel bookings by communicating with other devices based on your personal schedule, with or without your intervention.

The smart power grid would be able to communicate with devices and manage power consumption/saving and even switching of power sources like renewable energy depending on the demand. Industrial machines and devices would be able to manage demand end to end from procurement to production to quality management to dispatch. Consider how convenient it would be if your Android mobile would be able to inform you that an old friend from your phone-book or addressbook is somewhere in your proximity.

And many such applications that would change the way the world does business. In the next 2-5 years Google would have to focus on joint ventures and standardization efforts with portable device manufacturers so that the Android OS is able to support a broad range of devices and conversely. In the next decade or so as more and more devices become a part of Internet, Google can provide more products and services, like the ones described above, to make the Internet of Things a reality. Googles current progress as far as growth of mobile phone market using Android OS looks promising. In Q2 2009 that Android had a 2.8% share of worldwide smartphone shipments. By Q4 2010 this had grown to 33% of the market, becoming the top-selling smartphone platform. In early October 2010, Google added 20 countries to its list of approved submitters. By midOctober, purchasing apps was made available in a total of 32 countries. In February 2011, during the 2011 Mobile World Congress, Eric Schmidt announced that Android has reached 350,000 activations per day.
Fig. Mobile OS Market Shares

Such market popularity would make it possible for Google to guide standardization efforts in the portable device industry towards the long term goal we have suggested for Google.

Fig Android version share Nokias recent struggle to retain its market has been because it hasnt adopted the ever growing Android OS. Nokia CEO Stephen Elop said that Android was an option but they ultimately chose Microsoft because they felt that if all the device providers provided Android Ecosystem then how would they differentiate? So in order to be able to differentiate, both the hardware and software level differentiation will be required which might potentially mean that the devices supporting Android wont be able to support Windows OS and Nokia wont be able to support Android.

7-S analysis for Google Strategy Implementation

Let us study the implications of our strategy on the other 6-S Fig. McKinsey 7-S Framework
7

The most important S would be Staff and Skills. In order to implement the strategy, it would require a sound team of technical and management professionals. An isolated effort might not be enough because it would require all the functions from marketing to IT to HR to R&D to make it happen. Neither would the technical aspects for such innovative applications be simple nor the product management or marketing. Hence it would be extremely important to have the right mix of Skills and Staff both from outside as well as developed within the organization. Support from outside would be from the open-source community and the application developers interested in the project. Shared values, Structure and Systems would clearly have to go beyond organizational boundaries. It would be a co-operative effort of Google, the Linux community, the Open-source community, the hardware community and the device manufacturers. Below are the alliances made and in blue are those we suggest should be made Google Alliance with T-Mobile, Sprint Nextel, NTT Docomo, China Mobile, Telefonica, Telecom Italia, Motorola, Samsung, HTC, Status Open Handset Alliance Purpose Android OS, middleware and application support for handsets Products Smart phones

Qualcomm, Intel Intel, Sony, Logitech Dell IBM Launched in US Launched in UK Active Internet based interactive entertainment and networking solution Device sized between the Smart phone and Netbook Platform for development of Android applications Bring together OEMs, device manufacturers, integrators, custom builders, and the Android and Linux kernel developer communities Smart TV

Tablet Eclipse Android SDK Android Kernel and Middleware to support a host of smart devices All types of Smart Objects

Linux community

In state of friction, resolution scheduled at Android Builders Summit this month No alliance yet

ITU

ITU is undertaking standardization efforts for Internet of things.

Systems and Controls

Unlike the traditional Google search engine and services, this strategy requires that a lot of alliances and JVs be undertaken because the Linux kernel developers, system software developers, the application developers, integrators, designers, device manufacturers, chip manufacturers and other hardware manufacturers are also involved. Hence, it would be vital to have appropriate Human and Information Resourcing systems in place as to how much human capital is required within Google, both technical, managerial and project coordinators and how the information is shared between them to create desirable products and services. Moreover, earlier Google hasnt had expertise with system software like OS, so it is necessary that Google chooses the right kind of personnel for further developing its capabilities. Also with thousands of applications being developed by hundreds of developers and hundreds devices using Android, it is necessary to have proper systems in place both for the organizational development as well as for the information sharing. Similarly, how much capital needs to be employed and by which of the partners is critical to the success of the joint ventures.

10

Appropriate controls need to be employed such that optimum utilization of resources take place but these should not restrict the innovation taking place. Rather the controls should be used to ensure that resources remain focused. As far as product development is concerned, there is a lot happening. However the challenge to integrate the myriad of electronic and electromechanical devices over the internet of things needs standardization and collective effort (what has been suggested in blue in the list of alliance tables), only then can enough value can be brought to the consumers. The demand management and service fulfillment will also need to be kept in mind as the Android OS becomes a part of myriad of widely used devices. The systems and devices that could be supported by Android in the future would be vehicle controls and navigation dev ices, industry sensors and actuators used for controlling machines, traffic signals, neon displays, climate and environment sensors, security and supports systems, power equipment, robots, household equipment like TVs, washing machines, geysers, ACs, all inter-connected and smart, to give you a unique living experience.

Action Plan for Google

Year Span Action Caution to Observe

2 yrs

Establish joint efforts with Linux and opensource community to develop the Android Ecosystem Broaden the range products supporting Android beyond mobile phones Collaborate with ITU to develop standards and protocols for telephony and IP based devices

Do not lose competency to come up with innovative products and services while collaborating Over-emphasis on the profitable mobile sector may lead to neglect of a variety of other potential products In process of supporting a variety of devices, Google may neglect the standardization effort that would be critical for variety of devices to be able to
11

2 yrs

5 yrs

communicate to each other 10 yrs Target to make atleast 4 out of 5 of our suggested applications ( and the Internet of things ) a reality Not only implementation but also marketing of these applications is important to create a demand by adding value to the customers

Conclusion
The Google strategy in the future would be to broaden the scope of products and services to a variety of smart objects that would make the Internet of Things possible. Google will have to enter into a variety of alliances in order to make this possible. There are certain challenges that need to be overcome in the process.

Challenges & Suggestions

The Android market is a place where third party applications are made available for users. There have been many reported viruses and malware in the Android market. So security remains an issue to be handled. The Android market should be closely monitored for security of applications uploaded and only then it should be made public. The variety of manufacturers and hardware make standardization efforts necessary if the Internet of Things has to be made a reality. Google should start the standardization effort early so that the devices of the future are compliant and able to communicate with each other to provide more automation and enhanced functionalities that are not possible today.

12

References
http://edigitales.org/now-android-the-worlds-largest-platform-and-then-symbian/ http://en.wikipedia.org/wiki/Android_(operating_system) http://en.wikipedia.org/wiki/Comparison_of_Android_devices Hammersmith group, NY. The Internet of Things: Networked objects and smart devices. http://www.businessworld.in/bw/2011_02_18_The_Next_Spurt.html

http://www.itu.int/itunews/manager/display.asp? lang=en&year=2005&issue=09&ipage=things&ext=html
http://www.google.com/intl/en/press/pressrel/20071105_mobile_open.html

13