InsiderMonkey: Google Inc.’s Diversification Will Be Key to Future Success: Bill George
From InsiderMonkey, November 4, 2014
Google Inc. has been on a diversification drive in the recent past as focus shifts from the core search-business that it has come to be known of, over the years. Former Medtronic CEO, Bill George, during an interview on CNBC, argued that the company is doing the right thing moving into other areas of operations despite increased concerns.
CEO, Larry Page, believes the company is still in its teenage years with a lot to grasp, moving into adulthood in terms of innovating new products. Changes in the company have seen Sundar Pichai being given more responsibilities on Google Inc.’s core products.
“They are investing in a whole lot of things and I think they are doing all the right things. The question is can Larry keep all this things on track, it’s a bottoms-up innovation company, I think they are probably the best innovator in the world today, “said Mr. George.
George believes reorganizing is especially important for such a big company like Google Inc. as one of the ways of keeping employees motivated. While focusing on short term results George argues that companies resort to developing and evolving products but when focusing on the long-term success reorganization of the leadership structure is essential.
Google has in the recent past been diversifying its operations tapping into the healthcare space with iCare as well as showing intention of tapping into the auto industry with the driverless-car technology.
“Google Inc. is going in all directions; they have done a lot of deals in Google Glass getting into iCare and diabetes so they are going in a lot of directions. Can they keep all in track? We will see. I love the bottoms up innovation at Google, “said Mr. George.
The fact that Google has grown to become such a big company in terms of fields of operations is raising concerns as to whether it will be able to sustain its operations with the addition of more sectors. Diversifying into other sectors is key, according to Mr. George as it protects the company from being trapped in one field of operation.