I am a bit behind with my posts, only now find the time to write down my notes from the presentation of Dr. Eric Schmidt Chairman and CEO of Google at the PARC Forum. Interesting little trivia is, that Eric was once a member of the PARC research team.
Unfortunately I was a bit late, this is why I am looking forward to see the beginning once the talk is available on their video archive. Although it looks like it takes them a while to post new entries, the last one is from March of 2002 [Update: I send the PARC Forum organizers an email regarding this and Eric did not give permission to post it. Bummer]
I arrived when he was talking about the next big thing. The usual suspects, always one wireless using 80211 technology, which brings with it a wall of information. He did not say that, but of course Google will be the one to help you find the relevant things in that wall of information.
He compared our current recession with the one of the railroad industry in 1859.
The following quote is from a Business 2.0 article that supports this point:
In the depression of 1859, the economic commentator Henry Carey Baird complained that "our railroad system has cost more than $1,000,000 and has brought ruin upon nearly everyone connected with it, the nation included." But, again, at this time railroads in the United States were just beginning. In 1860 the United States had 30,000 miles of built-out track; by 1914 it had 253,000 miles.
Eris said, that this railroad buildup made possible the cheap distribution of goods which then enabled the success of for example mail order companies like Sears.
Fundamental innovation seams to come and will in the future come from universities. The 23 year olds don't have any baggage, nothing to loose and therefore are able to create freely. He suggested that the core competency for us that we are above that age therefore may be to meet these 22 year olds. (Oh, yeah? Raves have never looked so attractive ;-)
This statement did not sit well with the audience, one of the questions at the end was more or less, how can you say that, here at PARC [You that you have been one of us not too long ago].
Another little factoid that really made me happy: "20% of all searches are misspelled" Nice, I am struggling with orthography all my life and to have proof that lots of others are struggling too is reassuring. It's no wonder that the "Did you mean:" feature in Google is one of my favorites.
From the server IP addresses Google approximately knows where these servers are located. There is this Nasa picture of the earth at night called Earthlights. (It more or less shows where the people left the lights on. There are some better citizens in the middle of Africa ... ;-) The origin of Google searches and the Earthlights are identical, wherever there is electricity, there is the Internet and Google searches.
How to make money with it? Advertisement is a 500 billion industry that will not go away. His suggestion is to know where the change is. Lean back, as in watching TV and lean forward as in sitting in front ot the computer will merge. My immediate question is where? Half way of the LazyBoy? Or when falling off the office chair? They are fundamentally different activities and will stay that way.
Google news. When they first introduced the concept they got lots of push back from the editors of established news organizations. Rightly so, if the program is good it is a big thread to their jobs. Eric said that these news offices are the heaviest users of the service which is still in beta.
He once got asked, what bias Google news has. His first responds was, the page is computer generated it does not have a bias. Of course it has the bias of the coder who developed the tool. So Eric admitted that there is a bias in two areas. First there are more international news stories then at usual your usual US news outlet like CNN.
The second bias is towards cricket, the developer of the tool is originally form India and a real fan of that sport. It's true, there are always lots of cricket stories in the sport section of Google news. One may laugh it off as a funny little tidbit, how important is it that cricket is placed higher then soccer. Still one should analyzed, whether the ranking of the main news stories are according to their importance especially which ones don't make the cut.
Some principles that Google lives by:
- Happy end-user is the key
- Get the user and the technology together
- Don't, scare the end-user
- Every decision is based on what value it has for the end-user
- Co-mingle researchers and non researchers
He said that they were lucky that Google was profitable more or less from the beginning and therefore the principles of the founders were not watered down. Most people in the business did not have that luxury.
Because they are not public yet, they have the freedom to do things differently. Every three month they make a list of projects by importance and tell the people to self assemble around the project that is most interesting for them. They hire new people for the projects that no one tackles. That is the best method to have a super motivated people working on the projects. He qualified, that this works specifically good for a web service company.
Decisions are decentralized. He said that he got hired and gets payed the big bucks for calling meetings. "You think I am joking, but I am not, I just know which meetings to call"
Case in point was the acquisition of Pyra. People came to him and said we are going to buy Pyra. "What do they do? Oh, good."
He said that in the future there will be lots of self publishing. When he was asked why Google bought Pyra he answered: "Oh, we just want to help them being successful." We at the Futurist Salon of course know already the connection: A more successful Blogger has more targeted advertising space which adds up to more revenue for Google.
If they can maintain the balance of great service with non intrusive advertisements all success and money to them.