2. INNOVATION FEATURE - Managing Google’s Idea Factory
As director of consumer Web products Marissa Mayer is a champion of
innovation. She favors new product launches that are early and often.
She joined Google in early 1999 as a programmer when the workforce
totaled 20. By 2007 Google had 5,700 employees with expected sales of $16
billion.
How Google Innovates
The search leader has earned a reputation as one of the most innovative
companies in the world of technology. A few of the ways Google hatches
new ideas:
 FREE (THINKING) TIME
Google gives all engineers one day a week to develop their own pet
projects, no matter how far from the company’s central mission. Google
News came out of this process.

3.  THE IDEAS LIST
Anyone at Google can post thoughts for new technologies of businesses on an
ideas mailing list, available companywide for input and vetting. But beware:
Newbies who suggest familiar or poorly thought-out ideas can face an
intellectual pummeling.
 OPEN OFFICE HOURS
Meeting two or three times a week, to discuss new ideas. One success born of
this approach was Google’s personalized home page.
 BIG BRAINSTORMS
As it has grown, Google has cut back on brainstorming sessions. Mayer still has
them eight times a year, but limits hers to 100 engineers. Six concepts are
pitched and discussed for 10 minutes each. The goal: to build on the initial idea
with at least one complementary idea per minute.
 ACQUIRE GOOD IDEAS
Although Google strongly prefers to develop technology in-house, it has also
been willing to snap up small companies with interesting initiatives. In 2004 it
bought Keyhole, including the technology that let Google offer sophisticated
maps with satellite imagery.
Source: “Managing Google’s Idea Factory,” BusinessWeek, October 3, 2005, 88-90.

4. Basic Product Concepts
 A product is a good, service, or idea
 Tangible attributes
 Intangible attributes
 Product classification
 Consumer goods
 Industrial goods
10-4

9. Identifying New Product Ideas
• What is a new product?
– New to those who use it or buy it
– New to the organization
– New to a market

10. The International New Product Department
• How big is the market for this product at
various prices?
• What are the likely competitive moves in
response to our activity?
• Can we market the product through existing
structure?
• Can we source the product at a cost that will
yield an adequate profit?
• Does product fit our strategic development
plan?

11. NEW PRODUCT PLANNING PROCESS
Customer
Needs
Analysis
Screening
Business
Idea and
Analysis
Generation Evaluation
Marketing Product
Strategy Development
Development
Testing
Commercialization

12. Achieving Cross-Functional
Interaction and Coordination
R&D
Operations Marketing
Finance

13. Responsibility for New Product Planning
 Coordination of new product activities by a high-level
general manager
 Inter-functional coordination by a team of new
product planning representatives
 Creation of a project task force responsible for new
product planning
 Designation of a new products manager to coordinate
planning between departments
 Formation of matrix structure for integration new
product planning with business functions
 Creation of a permanent design center

14. IDEA GENERATION
 Idea search: targeted or open-ended?
 How extensive and aggressive?
 What specific sources are best for generating a
regular flow of new product ideas?
 How can new ideas be obtained from customers?

15. Direct
Alliances/ Search
Technological
Acquisition/
Innovation
Licensing
METHODS
National OF Exploratory
Policy GENERATING Customer
IDEAS Studies
Creative Facilitating
Methods Lead User
Linking
Analysis
Marketing
and Technology

16. SCREENING, EVALUATING, AND BUSINESS ANALYSIS
IDEA GENERATION
SCREENING
(fit/feasibility)
CONCEPT EVALUATION
BUSINESS ANALYSIS

17. Business Analysis
 Revenue Forecasts
 Preliminary Marketing Plan
 Cost Estimation
 Profit Projections
 Other Considerations

18. PRODUCT AND PROCESS DEVELOPMENT
NEW
PRODUCT
CONCEPT
PRODUCT MARKETING
DEVELOPMENT STRATEGY
AND USE DEVELOPMENT
TESTING
MARKET
TESTING
LAUNCH

19. Product and Process Development
 Development of the new product includes:
 Product design
 Packaging design
 Decisions to make or purchase product components
 Product Development Process:
 Product Specifications
 Industrial Design
 Prototype
 Use Tests
 Process Development

20. Does it have the
required attributes?
Verify PURPOSE OF Ideas for
claims TESTS improvements
Identify use
situations

21. COMMERCIALIZATION
The Marketing Plan
 Complete marketing strategy
 Responsibilities for execution
 Cross – functional approach
Monitoring and Control
 Real – time tracking
 Role of the Internet
 Include product performance metrics with performance
targets