Google Inc is an extraordinarily successful company. In 2008, Google earned about US$22 billion in revenue. But, how does Google work? What is Google's business model? What strategy does Google use? Can Google's performance be managed and monitored using a single page? This document helps to provide answers to those questions. Also, the document contains information which businesses can use to develop Google-like strategies and business models.

1.
BLUE OCEAN‐PERFORMANCE DASHBOARD
FOR GOOGLE’S SEARCH ENGINE
Dr. Rod King
Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

2. General Information on the Tool of BLUE OCEAN DASHBOARD
WHO? WHERE?
WHAT?
• •
The Blue Ocean‐Performance Dashboard Business executives; managers Online:
•
is a tool that seamlessly integrates the http://businessmodels.ning.com
Business planners; strategic planners
•
•
three most powerful tools for business Talks; Seminars
Small, medium, and large enterprises
•
•
management: Value (Supply) Chain; Blue Workshops; Training
Practitioners of Blue Ocean Strategy
•
Ocean Strategy; Balanced Scorecard • Consulting
Practitioners of Balanced Scorecard
WHY? WHEN?
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‘One‐Page Business Management’ Starting a business (from idea stage)
BLUE OCEAN DASHBOARD:
• •
Simpler; Faster; Free; Holistic Generating more revenue
A Simpler and More Profitable Way to
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Integrated approach to managing Further reducing cost
Manage Strategies and Business Models
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value (supply) chain, strategy, Facing competition in the ‘Red Ocean’
•
performance, and business model For uncontested customer experience
HOW MUCH?
HOW? WHAT NEXT?
•
• •
Free online (open innovation):
“Where currently are you (in the iPhone application for the Blue
http://businessmodels.ning.com
industry?)” Ocean‐Performance Dashboard
• • •
“Where do you want to go?” Otherwise, contact Dr. Rod King: Software/social network for Blue
• rodkuhnking@sbcglobal.net Ocean‐Performance Dashboard
“How will you get to the Blue Ocean?
•
What strategy and business model?” Partners for Collaborative Projects
BOBM8B. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

4. Company Overview of GOOGLE INC. – Search Engine Date: April 4, 2009
Author(s): Dr. Rod King (rodkuhnking@sbcglobal.net) Ref.: …………………………………..…………………….
PRODUCTS/SERVICES
BUSINESS/INDUSTRY
COMPANY BACKGROUND
•
•
• Internet Search Engine: Google
Industry: Computer (Software);
Location: Mountain View, California
• Search
Advertising
Founder(s): Sergey Brin; Larry Page
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•
• Online Bidding Platform: Adwords
Niche: Internet Search; Online Ads
Revenue: US$21.79 billion (2008)
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• Online Syndicated Ads: Adsense
Model: Business to Consumer (B2C);
No. of Direct Competitors:
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Business to Business (B2B); Platform Complementary Apps: Maps, etc.
CUSTOMER VALUE PROPOSITION CUSTOMER BENEFITS/EXPERIENCE
COMPANY OVERVIEW OF:
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Uncluttered, fast, free, accurate Simple interface/Easy to use
GOOGLE – Search Engine
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search engine results and experience Fast, accurate, and relevant results
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Monetization of web page/site Free search service
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Targeted, measurable, cost‐effective, Unobtrusive ads; Site monetization
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and relevant online advertising Targeted ads based on page’s content
VISION MISSION
MAIN GOAL/OBJECTIVE/STRATEGY
• •
Blue Ocean Strategy: to provide a highly Search engine platform; Software‐as‐ “To organize the world's information
desirable and uncontested customer a‐Service (platform) and make it universally accessible and
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experience while making the competition useful”
Advertising platform
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irrelevant Gateway to world’s knowledge‐base
BOBM8A. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

6. Blue Ocean Map for GOOGLE’s Search Engine (vs. Classic Search Engines/Portals): Strategic Journey to the Blue Ocean
IDEAL BLUE OCEAN (FINAL RESULT) Fractal Market Segmentation of Knowledge/Ad Management Tools
∞
BLUE OCEAN Experience:
Google’s Search Engine/Ad Platform
Revenue
Classic Internet Search Engines/Portals
Highly differentiated and
premium-priced/free business model
Blue Ocean Strategy
(+): DELIGHT
RED OCEAN Experience: Traditional
Knowledge/Ad Management
Lowly differentiated and
Strategic
Red Ocean Strategy low-cost business model
Choice
(‐): PAIN
(Uncontested Experience, Market Space, or New Category) No. of Competitors
BOBM1.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

8. Blue Ocean Dashboard for GOOGLE INC. Date: April 4, 2009
Name of Product/Service/Facility: Google Search Engine/Ad Platform Functionality: Search Engine/Advertising Platform
Customer Value Proposition: Accurate results; Targeted ads; Monetization Business/Industry: Computer (Software)/Advertising
Goal/Objective: To create an uncontested customer experience and uncontested business model as well as make the competition irrelevant
BUSINESS SYSTEM Description Performance Objectives: 2008 Blue Ocean Actions (Relative to Industry Standard) Initiatives/
(“SEMPORCE”) of Best Current/ Projects
Cost Revenue Other Raise Create Reduce Eliminate Other
RELATIONSHIPS Future Resources
($) ($) Criteria (+) (+) (‐) (‐)
Defects Defects
S: Suppliers/Materials
Highly productive/ Productivity No. of filed Fun/play Absenteeism Turnover
E: Employees/Know‐
creative workers Innovation patents/IP R & D Waste Delays
ledge Assets/Culture
Efficient data centers Defects Defects
M: Machinery, etc.
PageRank; etc. Quality; ROI Revenue Customers Cost Defects (Six Sigma)
P: Processes/Activities
Google Search Engine/ Free search Customer Ease of use Unobtru‐ Clutter Purchased (Blue Ocean
O: Outputs
Bidding & advertising Sale of ads Experience Speed sive ads Complexity ranking for Strategy/
‐ Product
platform/Other Apps (appliance) Quotient (EQ) Relevance Other apps IT costs websites Innovation)
Search platform; Free search Service EQ
‐ Service
Adwords; Adsense Sale of ads
Website owners Sale of ads Channel EQ
R: Retailers/Channels
Web users; Website Sale of ads: Customer EQ Retention Loyalty Psychological Exit/Entry
C: Customers/
owners; Advertisers; Cost Per Click & Retention Inertia/ barriers
Consumers
Enterprises (Search) Sale of product Friction
Env. quality
E: Environment
Yahoo/AOL/AltaVista/ (Cost Per Market share Exit/Entry Entry/Exit Bargaining Threat of (Competitive
‐ Competitors
Lycos/MSN Impression) barriers barriers power; Risks substitutes Strategy)
Users of classic search No. of Entry
‐ Non‐customers
engines/portals prospects barriers
Website owners/Affili‐ Sale of ads: Partner EQ Alliances
‐ Partners
ates/Content providers Cost Per Click Joint ventures Affiliates
Share price
‐ Investors
No. of Projects (Local)
‐ Community/Gov.
BUSINESS MODEL: Google Inc. – Search Engine US$21.79b IDEAL BLUE OCEAN STRATEGY (How to create an Blue Ocean
(How does the organization work to deliver its uncontested customer experience and uncontested business Program
ROI (%):
value proposition to customers?) model as well as make the competition irrelevant?)
BOBM5.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

9. Checklist on 4 Perspectives and Questions for Balancing a Blue Ocean Dashboard
INVESTOR PERSPECTIVE EMPLOYEE PERSPECTIVE
• •
How will the business make more What attributes, skills, resources, and
money (extraordinary profit)? outputs should employees have in
order to sustain a workflow and
culture that deliver extraordinary
value to customers and investors?
4 PERSPECTIVES AND
QUESTIONS FOR BALANCING
A BLUE OCEAN DASHBOARD
CUSTOMER PERSPECTIVE PROCESS PERSPECTIVE
• •
How will customers experience the What processes and strategies will
greatest delight and least pain? generate extraordinary profit as well
as deliver the organiation’s value
proposition to customers/consumers?
BOBM5.32. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM8.2. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM6.1. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com
BOBM5.3. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

11. TOMCAT (Trade‐Off) Matrix: Categories of trade‐offs that are resolved by Google’s Search Engine/Opportunities for Blue Ocean Products
Customer’s Intent/Job: Accurate search results; Targeted ads; Monetization (Non‐)Customers/Industry: Search Engine/Advertising
Focus of (Non‐)Customer: Product/Service/Facility; Purchase/Delivery/Usage/Supplements/Maintenance/Disposal
Breakthrough Question: HOW TO MAKE (THE PRODUCT/ENTERPRISE/INDUSTRY OF) CLASSIC SEARCH ENGINES/PORTALS IRRELEVANT?
(Non‐)Customer Needs (‐) 1 2 3 4 5 6 7 8 9 10
Reduce/Eliminate Cost Mainten‐ Time Defects/ Weight/ Effort/ Staff Complexity/ Rigidity/ Pain/
(Relative to Industry Standard) ance/ (Delivery/ Complaints/ Size/ Friction/ Depend‐ Information Inaccess‐ Barriers/
(+) Raise/Create Upgrade Aging) Waste Tool Energy ency Overload ibility Pollution
1 Value/Functionality Google Google Google Google
2 Quality/Automation Google
3 Performance/Productivity Google
4 Differentiation/Novelty/… Google
5 Speed/Agility Google
6 Aesthetics/Visual Appeal/Color
7 Ease of Use/Simplicity Google
8 Convenience of Use Google
9 Customer Service/Support
10 Fun/Entertainment/Adventure (MySpace)
11 Star Performers/Celebrities
12 Prestige/Legacy/Amenities
13 Wide Choice/Versatility Google
14 Hygiene/Cleanliness
15 Integration/Connectivity Google
16 Power/Strength/Wisdom
17 Accuracy/Reliability Google Google Google
18 Security/Safety/Health
19 Collaboration/Communication (Facebook) (Facebook)
20 Customization/Personalization (MySpace)
Eliminated trade‐off (other trade‐offs are partially resolved and therefore present opportunities for innovation)
BOBM7. Blue Ocean‐Business Models. Copyright 2009. Dr. Rod King. rodkuhnking@sbcglobal.net & http://businessmodels.ning.com

12.
REFERENCES
1. Battelle, J. (2005) The Search. New York: Portfolio Trade.
2. Jarvis, J. (2009) What Would Google Do? New York: Collins Business.
3. King, R. (2009) The Infinitely Zoomable Page: The Ideal Tool for Blue
Ocean Thinking, Design, and Innovation. Fresno: Ideal‐Solution
Management.
4. Ross, E.; Holland, A. (2006) 100 Great Businesses and the Minds
Behind Them. Illinois: Sourcebooks, Inc.
Dr. Rod King
Consultant & Trainer on Business Model Analysis, Design, and Innovation
rodkuhnking@sbcglobal.net & http://businessmodels.ning.com