Google everywhere….is the new GE but with some good ways to avoid the pitfalls of conglomeration. In a break from the past, the company is positioning itself as a major inventor of hardware.

Google everywhere…… is the new GE but with some good ways to avoid the pitfalls of conglomeration. In a break from the past, the company is positioning itself as a major inventor of hardware. 

The challenge for Mr Page will be to ensure that these new businesses make the most of Google’s impressive infrastructure without being stifled by the bureaucracy of an organisation that now has 46,000 employees. Google has had to overcome sclerosis before. Soon after returning as boss, Mr Page axed various projects and streamlined the management.

Nest is being allowed to keep its separate identity and offices, with Mr Fadell reporting directly to Mr Page. Google has also protected its in-house hardware projects, such as Google Glass and self-driving cars, from succumbing to corporate inertia by nurturing them in its secretive Google X development lab. It has also given its most important projects high-profile bosses with the clout to champion them internally. The new head of Google’s robotics business is Andy Rubin, who led the successful development of Android.

Such tactics are good ways to avoid the pitfalls of conglomeration.

http://www.economist.com/news/business/21594259-string-deals-internet-giant-has-positioned-itself-become-big-inventor-and

 

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