Yesterday, amidst all the brouhaha over the dissolving of America’s financial system, Google (see chart here) launched a new phone (read article here.) This would have surely been the #1 front-page news, except – again – the Congressional effort to deal with a trillion dollar investment decision in bad loans. So, is this a big deal that was given short shrift, or is it an announcement we can ignore?
There is debate about whether the Google phone is a game changer or not. And that debate cannot be resolved by phone gurus. Quite simply, mobile phones are no longer simply phones. All the new products are built with new operating systems which let them operate various applications making them quasi-personal computers with mobile telephony capability. There are now several players in the game, and to assess the likely winner’s you would be best served to read Geoffrey Moore’s book The Gorilla Game in which he chronicles the requirements for success when launching technology products. So, does this mean we should reserve opinion about the importance of this launch until more is observed about sales and market share generation?
Hardly. I’ve blogged a fair bit about Google lately – and it’s been positive – and once again I think you should be impressed with this launch. It shows Google getting into yet another growing market, and with yet another new technology. Once again Google has chosen not to sit on its laurels in search or ad placement and invest big money in White Space with permission to do what’s necessary to succeed. One thing Google has a lot of right now is money – and instead of hoarding it the company is creating and maintaining White Space which can keep Google in the growth Rapids. I doubt that everything Google does will make money, and I doubt all its products will succeed. But the fact that Google is investing its ample cash in projects inside growing markets which can sustain the growth is the best move the company could take now.
Also, it’s impressive that Google made its launch knowing that it wouldn’t get the top headline. This shows an organization more intent on White Space than headlines. Instead of creating a "splash" about itself the company put out a new product, using new technology, that operates on a new network, with new functionality – and did it during a very uncertain time for most investors and the economy. Obviously, Google is looking forward and sees it must get into the market now and compete to learn how it will succeed. While many other companies which are less cash rich are forced to pull back their horns, or with management that prefers to be conservative because of shifting markets, Google is keeping its eyes squarely on the future and sees that getting in now, during a period of great uncertainty, only increases its odds of success. When markets shift it most benefits the new entrant willing to create marketplace disruptions – and that’s what we see Google doing now.
We all were impressed with how IBM practically monopolized the mainframe computer business. We were impressed with how Wang dominated word processing. And how Digital Equipment dominated engineering mini-computers. We were impressed that Microsoft took total domination of the desktop market, Dell created domination in selling and distributing PCs, and Sun Microsystems garnered huge share in Unix servers. But each of these got into trouble when markets shifted and they weren’t part of the market shift. As they tried to "milk" their market position and disparage upstart competitors, they fell into Defending & Extending their outdated Success Formulas – until they either (a) had a big, dramatic turnaround, or (b) went out of business, or (c) saw their growth slow and their value plummet. What’s impressive is that Google is showing us the willingness to Disrupt what made them great and enter dispirate new markets with new solutions using White Space to develop new Success Formulas around those markets. With this behavior, they are much more likely to demonstrate long-term value creation than the companies listed above.
And for customers who recognize the value in new technology, as well as employees looking for ways to grow, and vendors ready to support the effort, as well as investors, this is a very good sign.
