Google reveals its product formula

[tokkolo]

Google Reveals Its Product Formula
By Matt Hicks
February 9, 2005

Google executives attempted to demystify the search company's product decisions during presentations with Wall Street analysts on Wednesday.

As Google Inc. has moved beyond Web search and into product areas as diverse as e-mail, photo-organizing software and mapping tools, one of the common questions for the company is how it decides where to devote resources.

In classic Google fashion, its executives answered with a formula, one that CEO Eric Schmidt said was derived from the mathematical calculations of cofounder Sergey Brin.

Google is striving to split its product investments three ways, following a formula of "70-20-10," Schmidt told analysts gathered at the company's Mountain View, Calif. headquarters.

Seventy percent would target its core search and advertising products, while 20 percent would focus on adjacent products, such as its newer desktop and product search services.

The final 10 percent would center on the most experimental products, those "things that are truly interesting to us," Schmidt said. These projects would include ones where the company remains unsure if users will adopt the service or if it would make money, but such experiments are critical for the long term.

"Every company that has forgotten to remain innovative has ultimately lost in the next technology change," Schmidt told analysts. "So the 70-20-10 turns out to be roughly the right answer for us."

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[Terence Howard]

Wow, Google has a pretty logical "formula". I wouldn't call it a formula, rather I'd call it a "marketing strategy" ...

[geekerati]

Nice article tokkolo, One thing that makes me feel a little better is that the Wall Street Brass feels as mystified as the average person in some aspects involving google. With googles continued success I'm sure they are able to calm the nerves of even the most skeptical of cynics.

Their 10% for the "things that are truly interesting to us","experimental" or "unsure" is most interesting to me. Wouldn't you love to be a fly on the wall.

[cvrk3]

tokkolo
thanks, the header is misleading, it is not a product formula, it is an invesemtnt formuale.. anyway it gives what is in store

[dude66]

Originally Posted by Terence Howard

Wow, Google has a pretty logical "formula". I wouldn't call it a formula, rather I'd call it a "marketing strategy" ...

i was going say that.

[Çãt JåÐí$]

Originally Posted by dude66

i was going say that.

And you say I spam???

[Eric]

You just did...and yes the topic title is highly misleading. I was thinking something along the lines of one of Google's products becoming open-source .
Ah well, this isn't really any significant information....

[tokkolo]

Well I just copied the headline of the article. I guess they wanted to make it look more interesting or something.

Personally I find the article interesting. I was sort of wondering what they were doing. In their philosophy they state: "It's best to do one thing really, really well." They also state "Google's entire staff is dedicated to creating the perfect search engine and works tirelessly toward that goal." And I was wondering about that. They seem to be focussed on the other products a lot (well they release a lot of new products that is). To me reading about the 70-20-10 formula was interesting.

Something Google also states is that their objective of this year is becoming an international company. (more information in on the second page). But anybody who has read Mark Jen's blog already knew that.

Event hough the header of the article might be a little misleading I found the article rather interesting.

[geekerati]

The topic title is a hook, its main purpose is to draw you in. Of course Google isn't going to divulge it's plans for competitors and analyst alike. The article is interesting, there is a lot going on in it. The source is a fabulous one as well, I really enjoy eWeek articles.

[hendi]

ok thats wandeer full



keep it dude