GROUP ASSIGNMENT 1
MIS750
PREPARED BY :
NOR HARYATI MOHAMAD SUFFIAN
NORHAIZA ABDULL HAMID
HALINA HUSSIN
TOPIC
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FOUNDERS
CORE BUSINESS
BUSINESS MODEL
IT APPLICATIONS
SUCCESS STORIES
LESSON LEARNT
FOUNDERS
Google was started by founders
Sergey Brin and Larry page.
Both of them met at Stamford
University where they invented
a search engine for the school’s
Computers systems called
Backrub.
Sept 4 ,1998 – Google filed official
Incorporation papers in California
When they decide to make
further search engine name
Google and got first check
investment 100K .
The first office set up in garage at
Menlo Park
Sergey Brin and Larry page
choose Google to namely their
search engine because of it
related to the enormity of the task
of organizing the immense
amount of information that was
available of the internet.
History of Google
From mathematical term of
‘googol’ meaning that 1 followed
by 100 zero by Hilton Sirotta
Google first employers – Craig
Silverstein ( graduate student of
Stamford in computer sciences.
Purpose hired to help in build and
develop Google to become
World Largest search engine.
FOUNDERS
MISSION
To organize the world information
and make it universally accessible
and useful
PHILOSOPHY
‘’ The Perfect Search Engine ’’
FOUNDERS
CORE PRINCIPLE GUIDE
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B.
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F.
G.
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J.
Focus on user and all else will follow
It’s best to do one thing really-really well
Fast is better than slow
Democracy on the web
You Don’t need to be at your desk to need an answers
You can make money without doing evil
There’s always more information out there
The need for information crosses all borders
You can be serious without a suit
Great just isn’t good enough
CORE BUSINESS
- Search Engine
- core technology
- specific services as image
search, Google maps,
Google video which
allowed to search,
upload and watch.
- Advertisement
- central of business
proposition
- 99% of Google revenue is
derived
-2 part of advertising program
which is Ad Words and Ad Sense
Applications
- web based software that
we can access anywhere,
anytime
- it’s an online suite of
communication and
collaboration tools.
CORE BUSINESS
Google AdWords
-allows advertisers to display their advertisement
in Google content network
-cost per click or cost per view scheme
Google AdSense
-allows website owner to display these
advertisement on their website
-Earn money every time Ads
are clicked
CORE BUSINESS
10%
Google
Code
20%
Gmail
AdSense
Google
Pack
Google
Movie
Orkut
Google
Video
CORE 70%
llllll
hhhhhhh
• Search
Local
Search
•Advertisement
Google
Talk
Book
Search
Google Earth
BUSINESS MODEL
DEFINITION :
‘’ A business model is what a
does and how it makes money.’’
set of planned activities designed to result in
a profit in a marketplace.
BUSINESS MODEL
KEY ELEMENTS OF A BUSINESS MODEL
1. Value Proposition
What the customer gets from what the customer pay
a. Value is not limited to product and services
b. Value recipients are not limited to customers
c. A value proposition is not tied to the sources of revenue
Example VP in Google :
BUSINESS MODEL
VALUE PROPOSITION
USERS - Very large VP and always provided for free
NETWORK PARTNERS – Give revenue s in return for relevant ads on their sites
DEVELOPERS – provides platform such as GWT for free to enable
development of rich content
BUSINESS OWNERS-Data on Popular search terms to better formulate value
proposition
LIBRARIES- Digitizing all parts of book collection to create full-text
searchable online catalogs
AUTHOR AND PUBLISHER – Make book out of print available for purchase in
digital format.
EMPLOYEES – Working condition, “on time” job security)
GOOGLE OWNERS- Growth
SOCIETY – Free tools such as blogs and localized versions of google in
developing countries.
BUSINESS MODEL
REVENUE MODEL
Google generated 99% of total revenue in 2007 and 97% of total revenue in
2008 and the latest 2009, 95% of total revenue in 2009 due to expanding the
rivals in the marketplace.
BUSINESS MODEL
Subscription and
advertising are
frequently combined.
Fee to subscribe to a
service.
Extension of the traditional
media broadcast model
Advertising
Provide purchase-point
click- through to the
merchant. eg: Google
AdWords
Affiliate
Subscription
Online payment
processing that aimed
simplifying the process
of paying for online
purchases, eg Google
Checkout.
Revenue
Model
Transaction
Fee
BUSINESS MODEL
Example : Ad Words – how Google generate revenue ???????????
-Pay advertising program - under affiliate
-Design to allow advertiser display their
advertisement to user.
-When user query the info related to
advertisement – adv for relevant words shown
At sponsored link
-An advertisers has to pay every time his
advertisement receive the click.
This is how Google generated Reveneu
BUSINESS MODEL
MARKET OPPORTUNITY
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GOOGLES’S OPPURTUNITY TO INCREASE THE BUSINESS OPERATION
Creation of their own browser to speed up download times
Upgrade system offering real-time feedback to clients.
Readdress privacy issue – set industry standards on privacy and become a
leader in privacy protection.
Assure consumers that their personal information is secure and will not be sold
to other companies.
Growing relationship with government organizations.
Future expansion into television aspects of multimedia
Continued wireless network expansion
Continued expansion into 3D with 3D messaging market and 3D gaming
Local news portals and support for small town news through Google News.
BUSINESS MODEL
COMPETITIVE ENVIRONMENT
BUSINESS MODEL
COMPETITIVE ADVANTAGES
The special advantages that
bring to the marketplace
LATEST ! COMPETITIVE ADVANTAGES 2010
SPEED,SPEED,SPEED…..Provide method in Googles Updates Web App tolls kit
for speed ( Google Chrome Browser)
a. EXTRA DATA – Give more alternative and valuable information to user
b. GOOGLE KNOWS A LOT ABOUT YOU – through Gmail, Toolbars, Doc and
others it will give the clues about your personality, interest, like and dislikes
c. GOOGLE OFFERS UNIVERSAL SEARCH – Goggles
not only crawl the web,
blogosphere, press release and book but also crawl with real world with google earth and
Google map
d. GOOGLE IS EVERYWHERE – example : If you use Firefox, safari or Opera then Google is
your default search provider, homepage and subscriber
BUSINESS MODEL
MARKET STRATEGY
Refer to How Google plan to promote product and services
a. Provide a simple, clean, clear, minimalistic user interface.
- No frills, just the logo & search box
- easy and fast to load
- Make the user happy
b. Most of the time Google provide Reliable search result.
c. Google got the advice toward improving their market strategy as
well as law regulation.
d. Google Introduced a smart, innovative and quite risky business
model.
- Ad words – pay per click concept
BUSINESS MODEL
MARKET STRATEGY
e. Become a powerhouse with an impressive pipeline of the new
great product .
- Google Map, Video, Earth and etc
g. Google was innovator of the business model
- Delivered all great product basically free, enticing and luring
million of users world wide.
h. Google offers advertising with Ad words, Earning revenue
company’s website with Ad Sense and etc
i. Google also offer a wide variety of education material s for its
product through internet.
- Online seminar, video presentation
BUSINESS MODEL
ORGANIZATIONAL DEVELOPMENT
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The market for phones, TV, computers, handheld gaming, and music
is continuing to merge into one product. All with digital data and
more of it needing to be organized and accessed. Research and
development in these areas of technology is needed to be the
market leaders with continued online advertising technology usage
and implementation. This is important since most of the ability to
present additional options to online advertisers.
Continuing to make free wifi and broadband internet usage available
will stimulate increased desire for products that can use this such as
conferencing, music and video.
Design demographic search sites
Continued focus on enhanced advertising targeting.
Expand multimedia product offerings
Continued expansion of free wifi in key cities.
BUSINESS MODEL
MANAGEMENT TEAM
-Refers to the employees in the various department
The company has grown to more than 10,000 employees worldwide, with a
management team that represents some of the most experienced technology
professionals in the industry.
Eric Schmidt joined Google as chairman and chief executive officer in 2001.
BUSINESS MODEL
IT APPLICATIONS
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IT at Google depends on complex software components and
architecture design.
Search engine is a program that helps find information stored on
computer system.
3 important steps are essential for developing web based search
engine:
1. Web page crawling
2. Indexing
3. Searching
IT APPLICATIONS
User Query
Google Web Search
Conversion Tools
Spell Checker
Ad Servers
News Servers
Text Servers
Document Servers
Google Search Query Architecture
Image Servers
SUCCESS STORIES
Offers “free use" and "fast speed”
Google was rated first in the following categories:
Success in provide The Best Search Engine
No. 1 Overall Opinion of Site: 97 percent of users rated Google as excellent
or very good.
No. 1 Site Recommended to a Friend: 94 percent indicated that they would recommend
Google to a friend.
No. 1 in Comparison vs. Other Sites: 98 percent rated Google either much or somewhat
better than other sites.
No. 1 in Frequency of Delivering the Information Sought: 97 percent of users surveyed
reported that Google found the relevant information every time or most of the time.
No. 1 for Relevant and Accurate Search Results
No. 1 for Comprehensive Results
SUCCESS STORIES
Success in provide The Best HR Practices
#Up to $8,000/year in tuition reimbursement
#On-site perks include medical and dental facilities, oil change and bike repair, valet
parking, free washers and dryers, and free breakfast, lunch and dinner on a daily basis
at 11 gourmet restaurants
#Unlimited sick leave
#27 days of paid time off after one year of employment
#Global Education Leave program enables employees to take a leave of absence to
pursue further education for up to 5years and $150,000 in reimbursement.
#Free shuttles equipped with Wi-Fi from locations around the Bay Area to headquarter
offices.
#Classes on a variety of subjects from estate planning and home purchasing to foreign
language lessons in French,Spanish, Japanese and Mandarin.
LESSON LEARNT
ADVANTAGES
A. EASY TO SEARCH DATA AND INFORMATION
User in University ( Lecturer- Journal/ article/ dissertation –
Google Scholar)
( student – Do the Assignment)
Tourism – using Google Map – Guiding to certain place
- safe time and cost
B. PLATFORM TO BUSINESS
Ad Words, Advertising
C. GOOD WAY TO COMMUNICATION
Gmail, Video Mail
LESSON LEARNT
DISADVANTAGES
A. COPY & PASTE ACTIVITIES
B. PEOPLE DEPENDENCE WITH THE SEARCH ENGINE TO GET THE DATA –
Not Look At Primary data/ observation
C. SIBER CRIME - Hacking