The End Of Google's Pasta-On-The-Wall Product Development?

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spaghetti.jpgExpect less pasta-on-the-wall product launches from Google says Stuart Smith, Google's new New York-based strategic planning director of Creative Labs:

What typically happens [at Google] is it is just a load of engineers producing a load of things and then refining until it finds an audience. What they have never really done is to look at audiences and understand audiences and say 'perhaps there is a need over here -- let's meet that need'. Now I think they have seen an opportunity to come at it from an audience perspective and that is part of what any planners' job is -- to understand audiences. Particularly going into a recession, it is going to be very interesting because we are going to have to justify our actions.

The idea that Google develops new products like the rest of us determine if pasta is ready to eat -- by throwing a load of them against the wall and seeing what sticks -- was always more Google PR-created myth than reality. (Pssst, "20% time" is bogus, too).

Two of Google's most recent large product launches, Android and Chrome, took years of planning, for example.

But it is true that some Google products -- Google Reader, Gmail and Google's failed video rentals service come to mind -- were launched by the company on something close to a whim.

It's too bad it took an economic meltdown, but shareholders must take solace knowing Google now plans to focus its resources on making things people want -- bad enough to pay for or bad enough that advertisers will pay to be seen supporting.

See Also:
Google Finally Starts Firing Slackers?

Google Collapses, Analysts Get Bearish

Photo: gluemoon



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4 Comments

stone said:
It's too late for now. The stock is broken and may not come back for years. They shot themselves in the foot quite frankly. This may have been avoided with better management.
togilvie said:
I'd call zero to $100 billion in 10 years a "decently managed" company.

I'm also not aware of any management team that's been able to systematically identify and build multi-billion dollar businesses from scratch. In that context, I think their bets were/are pretty good ones.
Maybe 20% time was not only a PR move but also a recruiting tactic. Google did snatch away a ton of great developers/people. Now I guess with the pressure as a public company to perform, they have to switch gears. I don't think they have much to worry about from a cash flow perspective but I certainly don't think the stock will be moving back up quickly.
AV said:
@togilvie: Agree. 0 to $100 billion in 10 years is an achievement and required good management.

What I disagree with is: "I'm also not aware of any management team that's been able to systematically identify and build multi-billion dollar businesses from scratch. In that context, I think their bets were/are pretty good ones. "

Lets say, tomorrow Schmidt woke up and adds extra sugar in his coffee and said 'lets shut down Adwords and AdSense'. If so, is Google diversified enough to survive? I know this is hypothetical but what their management has not done a good job is to identify other areas of business to turn a profit for the next decade.

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