Google's Entrepreneurial Innovation Culture and Structure

Google's organizational structure is characterized by a flat hierarchy and high involvement of engineers and individual contributors in management, which enables innovation and entrepreneurship. The company has various groups and a culture that promotes innovation, with a focus on hiring the right candidates, providing incentives for successful products, and handling failures. To address challenges such as competition and diversification, Google uses tools like internal labs to provide innovators with market visibility and feedback. The company's entrepreneurial innovation model is highly participatory, requiring significant investment and commitment across all areas.

Running head: BUILDING INNOVATION COMPANY
building innovation company
Google Inc.

BUILDING INNOVATION COMPANY 1
Table of Contents
Introduction......................................................................................................................................2
Analysis of Google’s Innovation Systems Practices.......................................................................2
Structure of Google..........................................................................................................................2
Organizational Processes.................................................................................................................3
Organizational Monitoring Systems................................................................................................4
Challenges........................................................................................................................................5
Approaches or Methods which led Innovations in Google.............................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

BUILDING INNOVATION COMPANY 2
Introduction
The company’s approaches, innovation efforts, funds utilized and fostered directly relates to the
type and extent of the innovation which is achieved by the company. The search platform
designed by goggle and its infrastructural development depicts how interaction and combination
helps Google to innovate and grow itself. The external mythology of Google is one of the most
chaotic but brilliant machine for innovation which produces and developed new features and
products at amazing features. This company is re-inventing the maintenance, releasing, testing
and creation of software.
Analysis of Google’s Innovation Systems Practices
Google has various projects which follow Open and closed model. Chrome OS and Android are
few of the examples of interfaces between outside community and google and will be defined as
an open surface. Both the projects go dark over community for surprising the market. In similar
way, they are closed and open which depends on the needs of the business at a given time frame.
The Google Wave is an example of innovation which is closed as it was generated without any
significant influence from external market (Ashkanasy, et al., 2017). The search platform
designed by goggle and its infrastructural development depicts how interaction and combination
helps Google to innovate and grow itself.
Structure of Google
The translate technology of Google is the example of innovation using top down method.
Language translation is acknowledged like a tough issue in the domain of computer science. As
per the goal of Google for organizing information of world, having an efficient technology for
translation is crucial to the business and mission. In order to report this issue, the corporation
hired various leaders and managers in industry and also gave them sufficient time for making

BUILDING INNOVATION COMPANY 3
innovation at own speed (Auernhammer, et al., 2014). The Google assimilates the innovation of
group in products as they are available; also the corporation has just introduced a feature which
lets the chat users send their instant posts in actual time. Another example of Google’s top-down
innovation is ambitious project of self-driving car led by the Sebastian Thrun of Stanford
University, a forerunner researcher in the area as well as the Street view developer (Ashkanasy,
et al., 2017).
Organizational Processes
The innovation potential of a company is defined and explained as combination of financial,
resources, leverages, market, physical resources, intellectual and human resources. For example,
Google has employed more than 30,000 employees in the organization across many different
functions like sales, marketing, operations an engineering (O’Reilly III, et al., 2014).
Additionally, apart from the expertise and know-how in the field of their job, the Googlers bring
their interest and individual passions to the company which pays a significant role to drive the
innovation.
Intellectual: Google owns significant expertise, know-how and intellectual property in various
areas as well as region-especially in searching, organizing, indexing, string and crawling data
and information on massive scale as well as with extremely furious and fast response time
(Pahnke, et al., 2015).
Physical: The most innovative corporation Google has huge framework of data centers along
with various commercial software and hardware, open source and customer for harnessing the
computer power as well as making it seamlessly easy and accessible to internal tools and
customer facing goods.

BUILDING INNOVATION COMPANY 4
Market: Millions of users are having the access to the products of google almost every day
(O’Reilly III, et al., 2014). Also, these goods develop revenues and income and goodwill which
is beneficial to corporation when it requires to get the feedback over the latest and current
innovations.
Leveraged: AN ecosystem is fostered by the Google which allows and permits all other
corporations to get wealthy by giving an additional content and value over and above its services
and facilities (Phillips, et al., 2015). By reducing the impedance in the outside community and in
itself, the google enables symbiotic association which accelerates and enables the innovation and
improvements for all.
Financial: Google has sufficient ability for investing a significant capital in various innovative
ideas and speculative projects.
Organizational Monitoring Systems
The most highly visible indication of the policy of google for entrepreneurial innovation includes
the structure of google and the managerial philosophy associated with it. Based upon it, the
Google is highly well-managed and organized like various other corporations (Auernhammer, et
al., 2014). It has various groups like sales, product management, operations, human resources,
finance and engineering. In each of this group involved is the project leads, managers, directors,
presidents and vice presidents and many more.
One of the most noticeable things for the new joiners in Google is very flat hierarchy of
management of Google. While corporation has traditional and old job ladder having familiar
titles and ownerships, always it has tried for keeping the ratio of the engineers as well as other
individual donors to the managers quite high (Ashkanasy, et al., 2017). It is very usual for 40-50
people to directly report to their managers and even sometimes the VP or director. Additionally,

BUILDING INNOVATION COMPANY 5
the significant role of the managers involves connecting and guiding the employees in Google
and not controlling them. The google does not give any importance to the seniority or titles like
lit are done at most of the company while at the time of product decision making and assigning
or launching the activities.
Challenges
Apart from the innovation and its high reaching access to multiple individuals all across the
globe, there are few challenges which need attention and successful addressing.
Culture: Google has diversified reach regarding services, products, teams, offices, locations and
employees which require the company to consistently sustain the culture. This can be done by
hiring the right candidate at the beginning and then to make sure that its innovation remain
constant. Innovation Is the DNA of Google along with Think Big (10X) and Smart people who
are the main assets in Google and crux of success of Google (Phillips, et al., 2015).
Diversification Google has subsequently and gradually moved towards social media, wedding
planners, artificial intelligence, google glass, internet cars, solar energy, computer engines,
cloud, laptops, mobile phones, android and robotics. Thus the responsibility of google is to take
care and control of these product lines as well as to know that how it will help in achieving the
mission of Google.
Competition: Baidu, Microsoft, twitter and Facebook are posing high level theta and competition
from all across the directions. Google must derive a strategy for maintaining its lead and
dominance in revenue sources like advertising space and Search space.
Tools

BUILDING INNOVATION COMPANY 6
Google helps in making all the new ideas of internal entrepreneurs accessible and easily
reachable to millions of users externally and many of its coworkers who are completely willing
and ready to try out the applications as well as tell the corporation about their thinking. Labs and
Internal Labs are two early access frameworks that are designed for providing innovators with
developing visibility and exposure of market. As per the name of this software, the inside
employees of Google have the sole access to this internal lab. It provides innovators the
opportunity for obtaining the feedback and outcome from 20,000 individuals over a proposed
application at the time of low expectations (Rowlands, et al., 2008).
Approaches or Methods which led Innovations in Google
One of the significant motivator and promoter of entrepreneurs is prospect of considerable
financial appreciation and rewards on successful execution of their start up. For most of the
Googlers, the significant innovation incentive involves seeing ad looking over the idea and
making it a reality along with making it accessible to millions of customers. The employees
taking innovation through idea for successful product get both honorary and monetary
recognition. The founder’s award by Google established in 2004 for rewarding an outstanding
achievement in entrepreneurship may amount to hug dollars. Approximately three dozen first
reward receivers shared nearly $13 million amount of stock (Steiber, et al., 2013). The co-
founder of Google Sergey Brin stated that this award and reward was created mainly to provide
the people incentives for applying the job at Google after promise to get rich and wealthy from
initial public. Google offers various other awards and incentives that reward and recognize the
internal entrepreneurship. Due to only small number of succeeds in the Innovation; the way to
deal with failures by Google is also as significant as the way in which it handles with its success
(Rowlands, et al., 2008).

BUILDING INNOVATION COMPANY 7
Conclusion
Putting the entrepreneurial innovation model of Google in practice and actual implementation
needs significant participation, investment and commitment across all the areas and functions of
Google. For instance, the annual expense of 20 percent time alone is nearly hundreds and
thousands of million dollars. However, overall, the continuously moving stream of the front-line
features a project which results directly from the entrepreneurial innovation hugely demonstrate
and show the working of model.

BUILDING INNOVATION COMPANY 8
References
Ashkanasy, N. M., & Dorris, A. B. (2017). Organizational culture and climate.
Auernhammer, J., & Hall, H. (2014). Organizational culture in knowledge creation, creativity
and innovation: Towards the Freiraum model. Journal of Information Science, 40(2), 154-166.
O’Reilly III, C. A., Caldwell, D. F., Chatman, J. A., & Doerr, B. (2014). The promise and
problems of organizational culture: CEO personality, culture, and firm performance. Group &
Organization Management, 39(6), 595-625.
Pahnke, E. C., McDonald, R., Wang, D., & Hallen, B. (2015). Exposed: Venture capital,
competitor ties, and entrepreneurial innovation. Academy of Management Journal, 58(5), 1334-
1360.
Phillips, W., Lee, H., Ghobadian, A., O’Regan, N., & James, P. (2015). Social innovation and
social entrepreneurship: A systematic review. Group & Organization Management, 40(3), 428-
461.
Rowlands, I., Nicholas, D., Williams, P., Huntington, P., Fieldhouse, M., Gunter, B., ... &
Tenopir, C. (2008, July). The Google generation: the information behaviour of the researcher of
the future. In Aslib proceedings(Vol. 60, No. 4, pp. 290-310). Emerald Group Publishing
Limited.
Steiber, A., & Alänge, S. (2013). A corporate system for continuous innovation: the case of
Google Inc. European Journal of Innovation Management, 16(2), 243-264.