Monthly Archives: August 2015

The Day to Day and the Dreamier Aspects of Google…and Alphabet

Great move Google…I mean Alphabet! Today’s NY Times reports that Larry Page and Sergey Brin will re-organize their company to separate the new ‘big bets’ from the ongoing operations of search.  Calico, Sidewalk, Next and Fiber, will become their own business units, along with GoogleX, the newstreams incubator, and a Finance company.  They want to model their approach after GE, Page says, which has obviously grown into new domains through acquisitions as well as organic growth and development to become a global powerhouse over the years.  But actually, it’s possible they’re following 3M’s model..a more organic model of new business creation.  It all depends on how Page and Brin think about the role of the centralized Corporate functions.  GE depends heavily on a strong Corporate Research Function, and strong corporate strategy to guide their decisions for investments. 3M allows a more free flowing ‘let a thousand flowers bloom’ approach.  I imagine Google Glasses, driverless cars, and drones, all housed within GoogleX, could become their next new divisions.  How will that be decided?  And how will the decisions about resource allocations be made between Google and the new fast growth, non revenue generating entities?  It’s all good, and what a great next step for this company.  While Jordan Rohan, founder of Internet advisory firm Clearmeadow Partners, is quoted in one of the Times’ articles as characterizing the new CEO of Google, Sundar Pichai as being able to handle ‘the day to day and the dreamier aspects of Google,’ this organizational structure allows the same for Page, Brin and the stockholders. Now…who gets to work in the newstreams, and who gets to stay in the mainstream?