Sunday, November 06, 2005

 

Google's Business Model as a Conversation Point in Boardrooms

Microsoft was feared by other software companies. Most software companies developed their business strategies with an explicit (if not implicit) reference to Microsoft. Should they compete directly against Microsoft? Should they develop complementary products that ensure interoperability? Should they create formal partnerships and alliances with Microsoft?

In short: every software company had to figure out the best way to comptete-and-cooperate with Microsoft during the last decade.

Companies beyond the software sector saw the growing importance of Microsoft as we shifted to an information age but were not directly impacted by Microsoft. Their business models were not directly threatened by Microsoft; on the contrary, many companies in different sectors benefitted from superior operational and administrative efficiency.

But Google is different.

It is not just forcing companies like Microsoft, Yahoo eBay and Amazon to reassess their business strategies. It is forcing companies in many different sectors to think seriously about their business models. what will newspapers be like in the future if Google News become the pervasive model of customized news? what will media and entertainment business models with pervasive search and near-instant delivery of content to different devices?

New York Times today carried an article that begins to highlight why Google is to be taken seriously in other sectors.
http://www.nytimes.com/2005/11/06/technology/06google.html

This follows an earlier article about Google's potential role in advertising.
http://www.nytimes.com/2005/10/30/business/yourmoney/30google.html?ex=1131426000&en=e9c1a176c78c30b7&ei=5070


I am starting to understand business innovation challenges in the age of Google. Specifically, I am interested in how Google is redefining business models in different sectors so that we can develop principles of business models in a widespread networked era.

Welcome reactions, suggestions, interesting links and blogs.

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