Thursday, September 21, 2006

Can Ambiguity and Chaos create Innovation? You Bet....

In the latest issue in Fortune, Adam Lashinsky, Fortune senior writer, writes about "Chaos By Design" at Google.

He talks about how "disorder, disarray and uncertainty" are all "part of the plan" at Google.

This raises the question: Can Ambiguity and Chaos create Innovation?

Google, with over 8,000 employees, and over $10 Billion in annual revenue, is producing new innovation faster than your eyes can blink.

For instance, Google is the world's largest search engine and responds to more search queries than any other service online. Google.com is one of the 5 most popular sites on the Internet and is used around the world by millions of people. Google has released at least 83 full-fledged and test-stage products, including recent successes such as Gmail, Picasa, Finance, Earth and Blog. And Google's AdWords and AdSense programs innovated the business of search and created a windfall.

How does Google do this?

According to Sheryl Sandberg, vice president of Automated Advertising Systems: "We don't always have an answer. We're willing to tolerate that ambiguity and chaos because that's where the room is for innovation."

Google's senior vice president for business operations, Shona Brown, who is also the author of book that talks about "structured chaos" sums it up: "The way to succeed in "fast-paced, ambiguous situations," is to avoid creating too much structure, but not to add too little either. The company's goal, is to determine precisely the amount of management it needs -- and then use a little bit less."

According to writer Lashinsky, "That (approach) sheds light on all kinds of blunders -- which Google likes to explain away as its Googley approach to business. The company is figuring things out as it goes, and not quite as effectively as you'd expect from its stellar financial results."

The key question that the article discusses is on whether Google can come up with a second act? Can they create something tangible and huge as "Google.com"? Can Google continue to innovate, and how?

What's amazing is Google continues to innovate using what is described as "spaghetti method of product development (toss against wall, see if sticks),", requiring all Engineers to spend at least 20% of their time on new ideas.

Perhaps Writer Lashinsky best sums up Google's grand plan: "It should come as no surprise that the plan is as irreverent, self-confident, and presumptuous as the company itself."

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