Culture of Creativity and Innovation

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Culture of Creativity and Innovation

Culture of Creativity and Innovation

Started in the late 1990s, Google grew rapidly to become one of the leading companies in the world. Its mission is “to organize the world ’ s information and make it universally accessible and useful.” It is operating on a simple but innovative business model of attracting Internet users to its free search services and earning revenue from targeted advertising. In the winner‐takes‐all business of Internet search, Google has captured considerably more market share than its next highest rival, Yahoo . This has turned Google ’ s Web pages into the Web ’ s most valuable real (virtual) estate. Through its two fl agship pro- grams, AdWords and AdSense, Google has capitalized on this leadership position in searching to capture the lion ’ s share in advertisement spending. AdWords enables businesses to place ads on Google and its network of publishing partners using an auction‐engine algorithm to decide which ad will appear on a given page. On the other hand, Google uses AdSense to push advertisements on publishing partners ’ Web sites targeting a specifi c audience and share ad revenue with the publishing partner. This creates a win–win situation for both advertisers and publishers; Google makes more than 90% of its revenue from ads.

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Even as a large company, Google continues to take risks and expand into new markets. Innovation is at the core of their enterprise. Sergey Brin and Larry Page, the founders, declared in Google ’ s IPO prospectus, “We would fund projects that have a 10% chance of earning a billion dollars over the long term. . . We place smaller bets in areas that seem very specula- tive or even strange. As the ratio of reward to risk increases, we will accept projects further outside our normal areas.” They add that they are especially likely to fund new types of projects when the initial investment is small.

Google promotes a culture of creativity and innovation in a number of ways. It encourages innovation in all employees by allowing them to spend 20% of their time on a project of their own choosing. In addition, the company offers benefi ts such as free meals, on‐site gym, on‐site dentist, and even washing machines at the company for busy employees.


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