October 2, 2013 BUS 237 - Management in Information Systems A report discussing Google's Loon project.

1.
Simon
Fraser
University
Course
BUS
237
Expedition
Internet
Everywhere
An
Analysis
of
Google
X’s
Project
Loon
Tink
Newman
9/30/2013
301116260
TA:
Mark
Yip

2. Expedition
Internet
Everywhere
By
Tink
Newman
September
29,
2013
In
today’s
knowledge
economy,
only
2.7
billion
people
out
of
7.2
billion
people
(Worldometers,
2013)
have
access
to
the
internet
which
is
approximately
one
third
of
the
world’s
population.
The
internet
provides
people
with
a
way
to
grow
their
knowledge
and
have
access
to
friends,
family
and
communities.
According
to
Mark
Zuckerberg,
CEO
and
Founder
of
the
social
networking
site,
Facebook;
the
internet
“has
also
accounted
for
21%
of
GDP
[gross
domestic
product]
growth
in
developed
countries
in
the
past
5
years,
increasing
rapidly
from
just
10%
over
the
past
15
years.”
(Zuckerberg,
2013)
The
lack
of
internet
provides
a
huge
barrier
to
developing
countries
joining
the
knowledge
economy.
One
company,
the
most
prominent
leader
in
internet
technology,
Google,
is
tackling
this
problem
by
trying
to
fix
the
“world’s
broadband
problem.”
(Levy,
2013)
Google
Loon
is
working
towards
their
goal
of
bringing
internet
to
the
world
through
designing
their
balloon
service,
using
a
step
by
step
decision
making
process,
and
undergoing
business
transformation.
Google’s
quest
is
to
design
a
low-­‐cost
internet
service
broadcast
to
the
world
to
get
more
users
online.
Project
Loon
is
the
classified
project
of
Google
X,
a
research
lab
founded
in
2010,
devoted
to
new
projects.
“Project
Loon
is
a
network
of
balloons
traveling
on
the
edge
of
space,
designed
to
connect
people
in
rural
and
remote
areas,
help
fill
coverage
gaps,
and
bring
people
back
online
after
disasters.“
(Google,
2013)
They
want
to
make
all
of
the
world’s
information
accessible
to
all
the
world’s
people.
Google’s
primary
activity
is
it’s
ability
to
generate
revenue
from
the
pay
per
click
ads
from
the
future
billions
of
new
users.
The
core
idea
and
supporting
activity
of
the
business
is
to
have
weather
balloons
circle
the
globe,
directionally
controlled
by
catching
wind
currents
and
altering
altitude.
The
goal
is
to
broadcast
wifi,
powered
by
solar
panels.
The
first
prototype
was
tested
in
August
2011,
using
a
Linux
computer
with
a
wifi
radio
pointing
downwards.
The
first
fleet
of
balloons
and
their
tests
were
called
“Icarus
tests”
(Levy,
2013)
were
hosted
at
the
San
Luis
Reservoir
in
California’s
Central
Valley.
Four
latex
balloons
were
bought
online,
costing
$100
each,
and
were
filled
with
helium
purchased
from
a
welding
supplier.
Each
balloon
successfully
communicated
with
receivers
on
the
ground
via
a
small
wi-­‐fi
transmitter
and
moved
quickly
in
the
air.
“People
connect
to
the
balloon
network
using
a
special
Internet
antenna
located
on
their
building.
The
signal
bounces
from
balloon
to
balloon,
then
to
the
global
Internet
back
on
Earth.”
(Google,
2013)
This
project
is
increasing
Google’s
effectiveness
by
not
only,
offering
the
world’s
leading
search
engine,
but
also
an
improved
expansion
of
the
wireless
internet.
The
team
used
a
6
step
decision
making
process
beginning
with
1.
intelligence
gathering,
2.
alternatives
formulation,
3.
choice,
4.
implementation,
5.
review
and
6.
process
awareness.
The
focus
of
this
article
was
on
intelligence
gathering.
Firstly,
Google
X
gathered
information
from
their
past
pilot
projects
that
included
their
“own
high-­‐speed
networks
in
cities
like
Kansas
City;
Missouri,
Austin;
Texas
and
Provo;
Utah”
along
with
“lobbying
to
allocate
unused
slices
of
the
television
spectrum
called
white
spaces,
for
internet
access.”
(Levy,
2013)
They
learned
that
their
own
high
speed
networks
and
white
spaces
were
too
expensive
or
logistically
daunting
for
the
parts
of
the
world
that
were
still
unconnected
by
the
internet.
An
essential
part
of
Google
X’s
intelligence
gathering
is
to
crunch
“the
voluminous
data
about
wind
currents,
past
and
present,
available
from
the
US
government’s
National
Oceanic
and
Atmospheric
Administration”.
They
are
matching
the
data
with
meteorological
skill,
simulation
and
computation
to
analyze
the
information.
Google
learned
from
lessons
of
Lockheed
Martin,
an
American
global
aerospace,
defense,
security,
and
advanced
technology
company
with
worldwide
interests.
Lockheed
tried
to
get
around
the
problem
of
winds
with
a
giant
solar-­‐powered
1
of
3

3. dirigible,
a
“lighter-­‐than-­‐air
craft
that
is
both
powered
and
steerable
(as
opposed
to
free
floating,
like
a
balloon)”.
(Airships.net,
2013)
Lockheed’s
prototype’s
voyage
failed
to
reach
altitude
and
they
discontinued
any
plans
to
further
continue
the
project.
Google
X
looked
at
the
Lockheed
criteria,
and
US
government
data,
and
surmised
the
need
to
steer
the
balloons
while
taking
advantage
of
wind
currents.
Secondly,
this
research
lead
Google
X
to
analyze
past
alternatives
and
thirdly,
chose
an
experimental
plan
to
steer
balloons
while
taking
advantage
of
wind
currents.
They
are
choosing
to
bring
internet
to
the
world
via
wireless
internet,
versus
through
cell
phone
networks
and
data,
which
Facebook
is
attempting
to
do.
(Zuckerberg,
2013)
Fourthly,
they
are
able
to
complete
implementation
of
experiments
successfully,
leading
them
to
fifthly,
review
their
data,
perform
a
2nd
iteration
and
then
have
public
unveilings
such
as
the
first
one
in
Christchurch,
New
Zealand.
Sixthly,
Google
is
using
process
awareness
to
see
their
project
in
terms
of
the
bigger
picture.
At
the
public
unveiling,
Project
Loon
was
serving
approximately
50
local
families
with
internet,
but
Google
X
continually
asks
themselves,
“could
this
number
expand
to
50,000?
50
million?
Billions?”
Google
X
believes
this
version
1.0
project
has
future
value
in
making
the
internet
better,
cheaper
and
safer,
beyond
the
scope
of
computing
and
ballooning.
Google
X
is
one
of
the
few
companies
in
the
world
that
is
spending
millions
of
dollars
on
Internet
Ballooning.
Such
an
expensive,
space-­‐bound
project
is
a
business
process
transformation
at
the
highest
level
of
intensity,
however;
their
success
hinges
on
the
age-­‐old,
still
elusive
mastery
of
ballooning.
Such
business
activities
create
radical
changes
to
the
industry
and
“Project
Loon
[currently]
has
the
official
status
of
a
Google
“moon
shot,”
a
high-­‐risk,
high-­‐reward
Hail
Mary
effort.”
(Levy,
2013)
Google
has
the
competitive
advantage
of
creating
standards
for
wireless
internet,
developing
the
market
size
and
decreasing
the
price
of
wireless.
They
are
increasing
their
profitability
because
they’re
making
it
easier
for
people
to
connect
and
interact
with
ads.
Google
X
displays
a
sustained
competitive
advantage
specifically
regarding
expanding
the
internet
which
is
an
existing
service.
Their
project
is
taking
significant
time
and
resources
for
their
people
to
gain
necessary
experience
and
skill,
therefore;
it
is
difficult
for
new
entrants
to
enter
the
market.
Google,
a
transformative
“company
known
for
its
algorithms,
has
to
mindmeld
with
the
world
of
Jules
Verne”
(Levy,
2013)
to
complete
the
project.
In
conclusion,
Google
X
is
designing
and
testing
prototypes
of
Internet
Ballooning
and
broadcasting
wif-­‐i
which
it
hopes
to
scale
in
the
future
to
serve
billions
of
people
in
the
world.
Their
team
uses
a
6
step
decision
making
process
including
intelligence
gathering,
alternatives
formulation,
choice,
implementation,
review
and
process
awareness.
Specifically,
their
analysis
of
alternatives
includes
learning
lessons
from
past
pilot
projects
and
Lockheed
Martin’s
dirigible.
The
Google
X
team
identifies
Project
Loon
as
a
high
risk,
high
reward
project
and
is
embracing
the
concept
of
business
transformation
to
support
their
innovation.
Google
has
leading
position
in
the
world’s
technology,
and
their
chance
of
success
is
high
because
they
have
a
competitive
advantage.
It
would
be
hard
for
new
entrants
to
enter
the
worldwide
wireless
internet
market.
Google’s
goal
is
to
have
internet
everywhere.
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of
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4. Bibliography
Airships.net.
(2013,
July
8).
Dirigibles,
Zeppelins,
and
Blimps:
The
Differences
Explained.
Retrieved
September
29,
2013,
from
Airships:
The
Hidenburg
and
Other
Zepplins:
http://www.airships.net/dirigible
Google.
(2013).
Google.
Retrieved
September
29,
2013,
from
Project
Loon:
http://www.google.com/loon/
Levy,
S.
(2013,
August
13).
The
Untold
Story
of
Google's
Quest
to
Bring
the
Internet
Everywhere
-­‐
By
Balloon.
Retrieved
September
29,
2013,
from
Wired:
http://www.wired.com/gadgetlab/2013/08/googlex-­‐project-­‐loon/
Worldometers.
(2013,
September
29).
Population
Growth.
Retrieved
from
Worldometers:
http://www.worldometers.info/world-­‐population/
Zuckerberg,
M.
(2013,
August
21).
Is
Connectivity
A
Human
Right?
Retrieved
September
29,
2013,
from
Facebook:
https://www.facebook.com/isconnectivityahumanright
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