1. How Google Manages Knowledge
On how the world’s most innovative company manages knowledge

2. Google – The Innovation Machine;
Innovation, the way to create;
Knowledge Creation – Enabling Conditions;
Google , in the lens of Nonaka;
Lessons for the business.
Agenda

3. We are looking at “How Google manages knowledge”
only with respect to knowledge creation.
We have adapted Nonaka’s theory as a lens of seeing
the case and have identified that his theory on
“enabling conditions for knowledge creation” to be
the most apt for the case.
The research is on how Google has enabled its
environment for knowledge creation through
innovation.
Scope of Study

4. In Jan 2010, Google launched Nexus One – an elegant touch phone with comprehensive voice
recognition. Since Fall 2008, Google’s Android operating system has powered various phones.
But, Nexus One is an extension of aspirations. A reach of passion. Google.
Google – The Innovation Machine
A constant innovator;
The technology leader in internet business;
World’s best search engine;
A pioneer of the new generation businesses.

5. Innovation in Google

6. Intention Formulation of organizational intention through collective
commitment.
Autonomy Autonomous acts that bring about unexpected opportunities and
increases employee motivation.
Fluctuation &
Creative Chaos
“Breakdown” of routines, habits, or cognitive frameworks leading to
intentional chaos. Aids to externalize tacit knowledge.
Redundancy Intentional overlapping of information about business
activities, management responsibilities, and the company as a whole
Requisite
Variety
Internal diversity to match the complexity of environment by
combining information differently, flexibly, and quickly.
Knowledge Creation (Nonaka)

7. Getting the most out of the knowledge worker..
At least half a dozen interviews to select the best candidates
An emphasis on rapid execution with intentional small teams
Letting a thousand flowers bloom – finding ideas all over the
place
Intention @ Google
Leaders know that it is important for them to create
environment favorable to innovation

8. Giving the space to work and the idea to build..
Low managerial control and higher degree of autonomy
Giving the time to create – explicit investment in innovation
Nearly half of new products – Adsense,Gmail, Google news
are discoveries of skunk time.
Focus is on upstream objectives and downstream results.
Autonomy @ Google
To sustain high quality employees and to create a huge bank of
ideas, motivation is a pre-requisite

9. Fluctuation @ Google
Promoting the spiral by strengthening commitments
A freedom to work across teams
Putting smart minds together and allowing them to figure out
who they want to work with
The ability to do things across projects without managerial
intervention
A taste to allow changes and to encourage movements across
teams

10. Looking for a hit but encouraging a miss..
Creativity comes from people bumping into each other and not
from ordered travel plans.
A culture which says “Please fail very quickly, so that you can try
again”
Yields and impressive number of new products ( over 130 as per
latest info)
Chaos @ Google
A taste of failure and chaos with a aptitude to recoup from
mistakes is seen across Google.

11. Making data a multi purpose ingredient..
Focus is on data and analytics, and not always chaotic
Insights gained from one product are used for development
of another
Deployment of a prediction market to reiterate new ideas
across employees
Redundancy @ Google
Technology platforms were shared, knowledge was made open
for learning

12. Allowing diversity to foster new ideas…
Understanding the need for innovation and information across
boundaries – Google in 110 languages
Striving to reach consensus by making the manager as an
“aggregator of decisions” and not a “ dictator”
Allowing all employees access to information ( internal and NPD)
Understanding that “many” means good and “different”
means innovative
Requisite Variety @ Google

13. So, what is unique?
A Culture for Innovation
Making money without being evil.
Understanding that there is “so much out there to do”
Taking data driven decisions
Having open communication spots – real and virtual
Allowing chaotic, random and fluctuated ways of working.
Catering to every need – to try and remove any obstacle from
work.
Budgeting innovation into job descriptions for all employees.
A paternalistic, analytical method of evaluating performance

14. A effective combination of select principles has allowed
Google to be the innovation machine. We have identified them
as
Technocratic principles for excellence
Usage of prediction markets to tap knowledge
Providing budgeted innovation time
Making intellectual stimulation a mandate
Creating an environment of comfort – better designed offices,
comfortable fringe benefits
Encouraging all-hands meetings often – opening doors of
communication
Using scientific methods to foster a culture of growth,
optimism and innovation
Business Lessons

15.  Enabling conditions of Knowledge creation, as extracted from http://www.trainmor-
knowmore.eu/C4F51A9A.en.aspx
 Edelman Benjamin, E. T. (2011, April 11). Google Inc. Harvard Business Review, pp. 3 - 21.
 Euchner James, H. A. (2011). The Practice of Innovation: Innovation as Management of
Constraints. Pitney Bowes.
 INSEAD. (2009, November). Powering the Google engine: innovation is key. Retrieved
from INSEAD Knowledge Portal: http://knowledge.insead.edu/innovation-google-
091123.cfm?vid=339
 Iyer Bala, D. T. (2008, April). Reverse Engineering Google's Innovation Machine.
Harvard Business Review.
 Jason, K. (2009, 10 13). How Google really does it.
 Quarterly, T. (2010, March). How the Internet will change the nature of competition,
innovation, and company operations . (E. Schimdt, Interviewer)
References

16. Image source: http://bhavya163.blogspot.com/2010/12/thank-you-google.htmla