Everyone loves the underdog, or lets say most people root for them. Microsoft was the evil empire hellbent on world domination and Google was the david; the only hero capable of felling the Microsoft Goliath Juggernaut. But just looking at the way Google is rapidly gobbling up startups or more specifically eating into lunches of other startups markets; Google has long ago lost its ‘Startup Badge of Honor‘. I still think the most awesome technology to come out of Google stables is its search technology; not that I dont love Gmail or its Desktop Search(still to use this one though!). Ok back to the point.
Every corporation is a hulking conglomerate of people (manpower, resources, experienced moronic bosses he he), hardware, software and ton loads of dollars. This hulk makes it an inevitable juggernaut and most companies do use this advantage to the maximum. But this bulk itself is its biggest hindrance to pace. So all they do gain on this lost advantage is by taking the M & A route. Thats a very simple top down approach to abuilding a company compared to a startup’s bottom up.
Think of it, a top down approach to corporation doesnt allow a company to go into a new niche area (which is not its strength) even though theres lot of money it; it simply cannot just change gears and shift focus so rapidly; that was the beauty of startups playing with the big ones; you know its a virgin market and there are no direct competitors and for any biggie to come to this play it still gives you a enough window of time to ship your product before they can change direction to accomodate this new money making opportunity.
Now, just look at this discussion.
HUFFINGTON: Whatever products Google (Charts) is developing, they are incorporating a 60 Percent to 70 percent failure rate. I find that utterly fascinating. Talk about that culture and how that translates into our lives.
MAYER: As we’ve grown, one of our challenges has been, How can we continue to innovate? We have a theory around failing fast. If you assume that one in five things you do will turn out to be really successful, and maybe two of five will be moderately successful, and the other two will languish, you want to do a lot of things. It’s all about being agile. Most of the teams at Google are three to ten people. Five people launched Google News. About five people launched Google Toolbar. They operate like small companies inside the large company. Google is a lot like managing a VC firm, because you’re placing bets on different teams.
Semco was probably the only other company that had this bottom approach. As is each of its smaller more specific functionality units spun off as a new company by its own employees. But then that was an extreme case of zero shittake in the company; but i digress.
With such a bottom up approach, Google no longer becomes our typical hulking conglomerate but a sprinting juggernaut! As the myth goes, think of every interesting problem that you want to solve and Google already has atleast one team of 10 folks working on it and looks like this might not be a myth at all! Google just probably became the worst startup nightmare. Look at the developments. Google releases API to enable vertical search and has almost instantly flattened out IP value being created there by the new emerging vertical search startups. And the number of startups it bought?!
Google just might be the beginning of a new nightmarish approach to corporation building. Lets petition with the almight market to stop Google for inducing such horrible nightmares onto startup entrepreneurs.