Shawn Boyer handed me a copy of BusinessWeek last week because it had a good interview with Eric Schmidt regarding Google’s Idea Factory. I’m embarrassed to say that it is probably the first magazine I’ve read in a number of weeks. Does show how much I’ve been reading blogs and reading magazine and papers online.
More on point, Eric Schmidt had two very good answers around innovation that I thought I would highlight. One regarding customers and the other regarding metrics.
How does Google make sure it’s producing innovations that change the game enough to create big new markets but also continue to appeal to its main customers, who might not want disruption?
We make an explicit decision to favor the end-user. [We] do not say, “Newspapers should be happy. Advertisers should be happy. Telcos should be happy.” Those are fine if we can do it. But it’s all about end-users.
Shows us that the winning model is to innovate for the benefit of end-users at all costs. If the end-users are happy and they deem the service valuable, they will continue to come and the revenue will also. The key is user-centricity.
How do you make sure all these Google engineering projects actually turn into useful services?
The No. 1 thing we do require is: You can do whatever you want as long as you track it. We have very sophisticated measurement systems at every stage of launch. We have what is called trusted testers. Then beta test, which is forever. We do these 1% launches where we float something out and measure that. We can dice and slice in any way you can possibly fathom.
What’s more important than the absolute number is the relative growth rate. High growth solves virtually all problems. If the growth rate is low, or negative, you’ve got a serious problem.
Google is renown for its beta testing and A/B testing. It is also renown for its metrics-oriented culture, basing all product decisions on highly quantitative and analytic methods. It is something to always keep in mind when you are caught in deciding how to roll something out and how to track whether your decisions are having a positive impact on whatever number you trying to move.
Another great article about Google’s Idea Factory but from the perspective of Marissa Mayer.
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