ASSIGNMENT COVER PAGE

Course Code: BUSM4538

Course Name: Management of Technology and Innovation (Group 2)

Location & Campus: RMIT SGS Vietnam

Title of Assignment: Assignment 1: Case Study - Individual Report (Group 2)

File (s) Submitted: BUSM4538_S3824893_Nguyen Le Binh Minh

Team Name/Group #:

Student Name Student ID Student Contribution to

Number Assessment
Nguyen Le Binh Minh S3824893 100%

Assignment Due Date: 22nd August 2021

Date of Submission: 22nd August 2021

Number of Pages including this 11 pages

one:
Word Count 2986 words
Main content, excluding
appendices and references)
Contents

I. Executive summary ................................................................................................................ 1

II. Introduction ............................................................................................................................. 1

III. Situation analysis ................................................................................................................ 1

1. Company overview .................................................................................................... 1

2. SWOT analysis ......................................................................................................... 2

IV. Assumptions & Limitation .................................................................................................. 4

1. Assumptions ............................................................................................................. 4

2. Limitations ................................................................................................................ 5

V. Hypothesis ........................................................................................................................... 5

VI. Evidence of hypothesis ...................................................................................................... 5

VII. Evaluation ............................................................................................................................ 7

1. Advantages ............................................................................................................... 7

2. Disadvantages .......................................................................................................... 7

VIII. Recommendation ................................................................................................................ 7

1. Security control and brand assessment ....................................................................... 7

2. Managing collaboration .............................................................................................. 8

IX. Conclusion........................................................................................................................... 8

References ...................................................................................................................................... 9
 1

I. Executive summary

Innovation strategy has played a key part in the growth of innovation, which is one of the
important competitive advantages among industrial businesses. Several studies have looked
into a co-creation innovation approach as an alternative to standard frameworks for supporting
and improving product and service innovation. This paper analyzed Google's organization in
terms of internal and external dimensions (SWOT analysis), innovation process, and how
Google effectively integrates a co-creation strategy into their services and products using
qualitative research. Case studies from Android and YouTube will be studied to help clarify co-
creation implementation.

II. Introduction

The current condition is a whirling, buzzing cloud of change. Change is "pervasive and
continuous," according to Richard Florida, and business is more like guerrilla warfare than
waging pitched battles. With unexpected developments here and there, it's difficult to know who
you're fighting against, and the strategy that worked last year may suddenly be a recipe for
catastrophe. Therefore, the ability to innovate is necessary for companies to stay ahead in their
fields. Innovation management allows the organization to respond to external or internal
opportunities, and use its creativity to introduce new ideas, processes or products (Kelly and
Kranzburg, 1978). Google, as one of the famous examples for integrate innovation management
in every level of its process, contributing to its product and service. To take it to the next level,
Google implementing various innovation strategy approach to meet up with public expectation.

III. Situation analysis

1. Company overview

Google is one of the few technology companies that continues to grow at one of the world's
fastest rates. Google, formally Google Inc. (1998–2017), is an American search engine business
that was created in 1998 by Sergey Brin and Larry Page and is a subsidiary of Alphabet Inc.
Google handles more than 70% of all global online search inquiries, putting it at the center of
most Internet users' experiences. Mountain View, California is the company's headquarters.

CNN Business highlights some of Google critical innovation development:

• In 1997, Google search engine is introduced

• In 2002, Google begins selling advertising through the Google AdWords service. It
allows advertisers to purchase relevant keywords that show alongside search results.

• In April 2004, Google introduced Gmail, Google free e-mail service. Later that year,
Google has released tools to assist users in navigating the real world. It all begins with
Google Maps, which includes satellite images and driving instructions, and ends with
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Google Earth, a 3-D mapping system that allows users to see far-flung locales on their
computer display.

• In 2005, Android, a mobile phone software startup, was purchased by Google. As the
popularity of touch screen mobile phones exploded, the acquisition would prove to be
extremely lucrative for Google.

• In 2006, Google bought Youtube, fueled a surge in user-generated content and ushered
in a new age of music and video stars.

• In 2008, Google Chrome was launched and became the most used internet browser.

1. SWOT analysis

Strengths Weaknesses

• Domain in search service: Google's search • The absence of integration: Google has a
engine is more sophisticated than any wide range of products, but only the most
other search engine on the market today. valuable and popular ones are used most
Furthermore, its algorithms are far of the time. Google Hangout is a platform
superior to those of its competitors. that lags much behind Facebook in terms
According to Statista statistics, Google's of popularity, yet it is useful for Google
search engine has an about 87 percent support. Furthermore, distinguishing all of
market share in desktop search in July Google's goods at the same time is tough.
2020. Only a few of these products are well-
known and frequently used in daily life and
• Offering broad range of service: Google
work (Wirtz, 2019).
capitalizes on its search and mobile
capabilities by attracting users into its • Ditch projects easily (Enrique, 2019)
ecosystem with useful products such as "failing well", a Google innovation
Maps, Drive, Gmail, YouTube, and Google principle, which means eliminating
Now. These applications gather user products that don't meet expectations but
information, helping Google to produce rather being a stigma, generate pride. As
better-targeted advertising throughout its confirmed by Sundar Pichai - Google
network. CEO, it is hard for Google to focus on
investing in hardware over multiple
• Google gains more opportunities to
product cycles when they do one-off
sustain and develop its internet usage
product efforts rather than tackle the
habit and user base by acquiring Youtube
longer-term problems. This concerns
and the Android operating system,
consumers to participate in their
allowing it to compete with Samsung and
ecosystems.

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Apple (Pratap, 2016) • Mainstream revenue comes from

advertising: While the growth of the cloud
sector, as well as other non-advertising
revenue sources, have helped it reduce its
reliance on advertising revenue, Google
still relies heavily on digital advertising for
a significant percentage of its revenues.
Google's advertising income accounted for
around 83 percent of its total revenue
(Statista, 2019).

Opportunities Threats

• Apart from Cloud, Google is expanding its • Advertising competitors arise: Google
potential in AI, IoT, and machine learning. suffered from its market share decline in
Google is a cutting-edge technological the Advertising field over the last few
company that can capitalize on these years, especially in mobile advertising
possibilities to accelerate expansion and business.
expand its product offering, including
• The rise of specialized search engines:
smart home devices such as Google
Search inquiries are increasingly being
Home, Nest Labs purchase), augmented
conducted through ‘apps' specialized to
reality (AR) (Google Glass), virtual reality
certain devices or social media platforms,
(VR) (Google Cardboard), and so on
which may have an impact on Google’s
(Wirtz, 2019).
market share over time (Google annual
• Google provides new revenue sources for report, 2013). For instance, Yelp is a
existing service spectrum markets, such website that allows people to provide
as Google Fibre and Google Drive Cable reviews for local businesses. Hotel
TV (Pratap, 2016). reviews are available on Tripadvisor.
Angie's List directs customers to
• Google gains more opportunities to
trustworthy home repair providers (The
sustain and develop its internet usage
New York Times, 2020)
habit and user base by acquiring Youtube
and the Android operating system, • Legal issues: Google was filed antitrust
allowing it to compete with Samsung and charges against for having a 90 percent
Apple (Pratap, 2016) market share in search. Particularly,
Google has been accused of assaulting its
advertising dominance by overcharging

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publishers and unlawfully manipulating its

search results to drive away smaller
competitors (The New York Times, 2020).
Individual instances of these difficulties
may not be significant for Google, but
failing to handle them over time may
cause them to become severe and restrict
Google's growth.

IV. Assumptions & Limitation

1. Assumptions

Leadership has long been seen as one of the most important determinants of employee
creativity and corporate growth (Alghamdi, 2018). Larry Page, in particular, is now the CEO of
Alphabet, the parent company of Google and its subsidiaries, has an innovation and growth-
concentrated mindset as well as an extensive understanding of the industry, business strategy,
operations, and essential technology. As a result, his clear ambitions and visions are embedded
into a systematic approach in terms of innovation management. The system, in turn, consists of
a number of interconnected components. This reciprocal and dynamic effect adds to the entire
system generating new, unpredictable features. Boosting a company's creative energy
necessitates a systems approach rather than discrete initiatives. Google's management is very
much focused on innovation; the founders and early employees established a business culture
that fosters and supports ongoing innovation. The culture helps to integrate all of the
components of the Google corporate structure and to guide them towards innovation success
(Steiber, 2013a).

Therefore, Google’s technologically advanced and constantly evolving search algorithm is

created, become Google’s strongest assessment. In the beginning, only websites were
searched for accurate results, but now searches include PDF files, newsgroups, and images as
well as websites and other resources (Wirtz, 2019). As a result of a high level of technological
expertise, the search algorithm can be swiftly changed and user requests may be immediately
met with. Furthermore, due to its extremely unique network, Google is able to develop that
complimentary. Google's value proposition is driven by comparably advantageous server
hardware and a specialized server operating system.

Finally, Google would not be as successful and strong as it is now if it did not have an inventive
network of corporate partners and profitable business-to-business collaboration. By providing
third-party access to the Google search engine, the firm has developed a vast network and a

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massive user base in the customer region, both contributing to its value creation process (Witz,
2019). To be able to maximize its ability in managing innovation, the “co-creation” model is
introduced to utilize in obtaining competitive advantages and innovate effectively.

2. Limitations

Some constraints may have influenced the methodology and results of this study throughout the
research process, including:

• This study is unable to undertake primary research due to a lack of resources. The
majority of supporting material will be gathered through secondary research.

• Due to time constraints, our research concentrates primarily on the co-creation

innovation strategy from the provider's perspective. This research does not take into
account the platform's third-party perspective, which includes external developers who
participate in the Android Open Source Project (AOSP).

V. Hypothesis

Google is an excellent example of proactive innovation, continuously identifying new possibilities

and difficulties and attempting to build new goods and services based on those difficulties. As
previously mentioned, the co-creation approach provides the company different sources to
obtain innovative ideas and knowledge. This further enhances Google’s capacity to integrate,
develop, and restructure internal and external skills in order to adapt to quickly changing
environments.

The hypothesis is that if Google continues to use a co-creation approach in corporate strategy, it
will retain its position as one of the most inventive companies in the world while expanding its
scope.

VI. Evidence of hypothesis

Co-creation has been studied in the context of new service or product development (Prahalad &
Ramaswamy, 2004). It is an essential method for innovation management that many firms in
many sectors have embraced. This method is built on cooperation between the firm and its
consumers, with both parties participating in the learning process to establish shared values.
The value relates to new services and goods, as well as innovative solutions and ideas (Bujor et
al., 2019). To put it another way, while using a co-creation approach, a firm does not seek to
develop the greatest ideas completely on its own. Rather, it attempts to maximize the use of
ideas by inviting its stakeholders to submit ideas, designs or contents.

The main objective of a co-creation method is to create corporate networks and cooperate in
order to produce new ideas. Collaboration referring to innovation and technology has been
conducted not only across the technology and industrial sectors but also across the economy

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(Bharti et al, 2015). It is said to develop communication and marketing strategies, design new
products and processes, and even create unique brand experiences.

In the case of Google, the co-creative approach to value-creation has led to dramatic
improvements in innovation effectiveness, fostering innovative products and services as well as
strengthening business relationships between the company and its consumers (Wirtz, 2019).
According to Rindfleisch and O’Hern (2010), there are 4 types of co-creation: Collaborating,
Tinkering, Co-designing and Submitting. Android is selected to analyze since this system
implementing co-creation paradigm, Collaboration, into its innovation process.

A Google-led open-source project, Android is an operating system for mobile devices that runs
on open-source software. To be precise, Android Open Source Project (AOSP), provide
manufacturers flexibility and everchanging codebase platform to their own-developed feature’s
look into their compatible device (phones, tablet, TV...). Due to its open nature, developer
communities are also able to utilize the open-source code to provide upgrades to older devices
and add new functionality for advanced users (McFerran and Damien, 2012). In another way, it
allows carriers, OEMs, and developers to turn their creative ideas into reality and to launch a
successful, real-world product that enhances the mobile experience for customers.

Furthermore, applications are published on a digital distribution platform, preferred Google

Play, where users can browse, download and give feedback so developers can collect to
improve the quality of applications. The alliance partners participate in a distributed innovation
network where everyone has the possibility to contribute in the development of the Android
value network, pushing both hardware and software technology forward (Ziitrain, 2008). As a
result, Android helps Google open door to the mobile industry and later domain in Mobile
operating systems, with 73 percent in global market share in 2020 (Statista, 2020).

In 2010, Mary Jo Hatch and Majken Schultz conducted research to expand co-creation
approach in brand development and management. In the case of branding, co-creation expands
to embrace other stakeholders than consumers. The brand co-creation on Youtube may be the
best representation of the phenomena when it comes to exploring hyper-connectivity in
branding. Youtube, being one of the most popular websites on the internet, is recognized not
just as a corporate brand but also as a platform for individuals to build personal brands.
Youtube offers stakeholders ubiquitous access to information and goods by increasing the
network of people, devices, and organizations, enabling all entities continuous access to each
other regardless of time or place (Jin, 2012). In exchange, stakeholders also contribute to the
development of YouTube's product. Users, in particular, contribute to the algorithm that
determines the quality of Youtube’s customization service simply by using the website. Aside
from technology, the platform's openness is an important factor in creating a welcoming
atmosphere for stakeholder co-creation. Cristos Goodrow, YouTube's head of Search and
Discovery, stated that the platform's openness has a good impact on society in a variety of

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ways. Furthermore, by creating an atmosphere in which stakeholders feel free to express
themselves, Youtube becomes a platform where creators with personal brands may play
numerous social roles in brandings, such as arbiters of controversy or community catalysts.

Youtube has, to some extent, created a transparent and trusting ecosystem that fosters brand
co-creation, which has been proved to enrich the platform and produce value for its
shareholders through its development and popularity.

The co-creation model brings several certain advantages to Google such as expanding its
intellectual resources (Kostakis, 2019), customer insights (Ramaswamy and Gouillart, 2010) and
generate revenue.

VII. Evaluation

1. Advantages

• The evidence is based on creditable sources such as peer-reviewed journals, industry

reports, and articles from reliable websites such as Forbes, The Telegraph, or The New
York Times.

• Examples provided from Google’s products will evaluate the reasons why a company
should use the co-creation model to accelerate innovation.

2. Disadvantages

• Due to time restrictions, data statistics on the cost structure for implementing open
innovation strategy and financial performance cannot be presented in this report.

• Due to a lack of resources, this report cannot provide primary research such as
interviews, surveys, or focus groups.

VIII. Recommendation

Google's innovation some project following co-creation approach. This method validates the
assumption that innovative ideas come not just from internal R&D but also from outside sources.
Firms, on the other hand, are expected to confront a variety of problems by exposing
themselves to an open development environment. The research will uncover Google's co-
creation strategy problems and make recommendations to the firm.

1. Security control and brand assessment

In the case of Android, it is designed to be open. If a firm other than Google can figure out how
to make Android better than it is today, it will be able to create a real competitor and perhaps
disrupt Google's smartphone supremacy. This is the most major threat to Google's existing
position: a successful, independent Android distribution, cause Google to lose its competitive
advantages. Therefore, Google needs to find way to limit Android open access. Additionally,
open-source system is vulnerable to purposed attacks. It is crucial for Google to maintain an app

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environment that safeguards the security, integrity, and availability of users, data, applications,
the device, and the network. In particular, security needs to be implemented in every step of the
application development process.

2. Managing collaboration

From the standpoint of management, collaboration and networking as part of an open culture
generate a variety of issues in the collection of plentiful knowledge in practically every industry
(Bharti et al, 2015). Collaboration forces the firm to go into areas it has never looked at before
and address issues it has never faced before. Managing professional relationships, according to
Wenzlaff and Singh, is the very first stage in collaboration, which can begin with the
engagement of a new partner and the maintenance of a connection with the partner's
management and team members. With wide-ranging competencies and resources at its
disposal, along with profitable company-to-business collaboration and an inventive network of
business associates, relationship management is critical for Google when selecting suppliers
and partners since learning activities in a given project might take a long time to complete,
necessitating a long-term relationship between Google and suppliers and partners. As a result, it
is advised that Google maintain and enhance its horizontal management hierarchy. That implies
Google's manager's essential duty is to advise, connect, and inspire team members to listen and
effectively relay information required for creating ideas and addressing a cross-organizational
challenge.

IX. Conclusion

The goal of the study was to assess Google's current situation using a SWOT analysis to assess
their value creation chains and to encourage the company to stick to their "stay open"
philosophy, which is a type of co-creation innovation approach used in the IT digital technology
business model and is an effective way to improve proactive innovation. Furthermore, the study
examines how Google produces and keeps value through various co-creation innovation
techniques, as well as making recommendations depending on the difficulty of each strategy.
Finally, it is proposed that Google use a co-creation innovation approach to preserve their
competitive edge, gather a pool of ideas, and develop new products.

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