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Another Googlesque act at the Nexus of the smartphone market
Google is an amazing social experiment. Besides giving bloggers an endless source of topics to write about, it challenges all common sense, business logic, and engineering innovation concepts. In a very Googlesque fashion, Nexus One was announced during 2010 Consumer Electronics Show in Las Vegas. What is more surprising is that it will most likely be a success.
Without having had my hand on it it is tough for me to have an opinion on its performance. But given the engineering track record of Silicon Valley’s favorite they probably nailed it (even if they didn’t you know there will be a Nexus 2). But that is not what will make it a success, nor is that what is surprising about it. Motorola, LG, HTC, Sony Ericsson, and others have or have announced plans for Android powered smartphones. Yet, Google, the author of Android, decides to put out a device that competes with all of them. Moreover, Google does not have to make money from it (even though they will) since it is really a bet on mobile advertisement revenue. So far nobody has found a way to make money on mobile ads, but it is my contention that if somebody can figure it out it will most likely be Google. It is hard to imagine that Google decided to compete with their hardware partners just to make a “few” bucks selling hardware. They most likely did it for the same reason Google does everything else: to disrupt a market.
Imagine a world in which you do not have to pay for cellphone service. Pretty much the way you didn’t have to pay for TV in the past. Advertisers paid for it and consumers take advantage of that money flow. I know, I know, those days are waaaay over and not likely coming back anytime soon (until Google has a say). But in the mobile Internet business the biggest barrier to entry IMHO for mobile search to explode is the hefty $30 – $50 a month data fee from your preferred carrier plus a $100 – $300 “club entry fee” for your favorite smartphone. Sure there are hundreds of millions of smartphones out there and there will be more in the years to come, but the mobile search revenue still dwarfs the “fixed” one. Granted usability, contextual value, and other issues are still important. But Apple and Google will shortly solve those. Cost will remain a barrier. Unless, yes, unless it is free. In other words, paid by advertisers. You and I can pick our favorite smartphone subsidized by a carrier to get your voice revenue and Google pays your data plan as long as you search. Weird? Sure, but then again Google is known for its weird business models.
Enjoy.
Leadership is Execution
Although it may sound a bit cliche, the success of a company (or any enterprise for that matter) depends on its leadership. It not only depends on their ability to inspire action but also in the leaders’ ability to paint a picture that people can relate to. I recently bumped into a post by an ex colleague that clarifies the point very eloquently. He comments that leading visions must be clear, compelling, and credible for followers to act on them. I agree. However execution is a key element for any leader to succeed.
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My Contribution to The Long Tail
“Anyone who cares about media – indeed, anyone who cares about our society and where it’s going – must read this book” – Robert Glaser, CEO, RealNetworks. “Anderson’s insights … continue to influence Google’s strategic thinking in a profound way.” – Eric Schmidt, CEO, Google. These are just two of the bragging rights printed in the back of the book. In my opinion – dare I add it in the same paragraph as the prior two – his insights are, well, insightful indeed. Since I joined the blogsphere I have been trying to explain what has been the catalyst for all this seemingly nonsensical blogging and niche media producing. In an eloquent production Anderson managed to put it in very simple yet profound terms.
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In Search for Search Leadership
Microsoft launched Bing in June as a re-branded, fresher looking version of Live Search. This is one more of the so far fruitless efforts to make money in the fast growing search industry. Last year, right before the economic meltdown, a bid to acquire Yahoo for $40B failed (Balmer, Microsoft’s CEO is probably thankful for that now.) Bing launched as expected with a huge marketing campaign (maybe actually clever) that goes after Google, so far #1 seated and far, far from the other 2. Is the investment worth it and how long will it take to pay back?
Technology for the rest of us.
If you’ve gone to a Home Depot recently you will notice a couple of changes. First, an eager greeter at the entrance (reminiscent of Walmart) may hand you a flier along with a clever remark that makes you not only pay attention to him/her but you actually open the flier. Weird! Second, if you are browsing along the chainsaw aisle staring at the multiple HP machines in front of you someone with a friendly comment will actually offer help. What a concept! Customer service. Who thought of that? Apparently it takes a savvy business person like Marvin R. Ellison, Home Depot’s brand new CEO to come up with something like that. Back in May, Business Week ran an article highlighting the second largest retailer’s in the US new strategy .
Entrepreneurship from within
Economic crises have game-changing effects in all walks of life but mostly on businesses. At the risk of sounding cliché, some businesses go into a downward spiral and never recover while others transform themselves, forced by the humbling macro-economic effects, to emerge stronger. Few remain unchanged to continue success until the next turn around. Management is at the center of the change (or lack thereof). Most international finance is going through a radical change as well as most governments. Businesses of all sizes must be looking deeply and planning for the change way beyond leaner budgets and job cuts. So how do we pamper our high-performance employees?
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