by Merlin Hernandez

The Google innovation strategy provides valuable lessons in business growth. Google’s innovation philosophy is steered by the belief that a business should continually ask themselves what they can do differently to have a better product/better delivery. With a market capitalization of $244 billion, $87,000 in profits/employee last quarter, and the stock trading at close to $758/share yesterday, the innovation strategy of continuously scaling up the product is working to set a stock price target of $850 as the new milestone. In other words, look inward instead of out for new ideas. It is also cost effective – no expensive market research, feasibility studies, or general R&D costs. Innovation is done in increments and is not process-dependent so creativity reigns free. There is little expectation but a whole lot of faith that the blend of core function + teamwork + individual creativity (70/20/10) would yield results. The fluidity of multiple perspectives and a strong feedback loop actually reduces time to maturation for an idea in the integration of the work of many within a broad innovation framework.

Analysts and investors remain bullish on this stock primarily because the innovation culture is so results driven and each new wave drives greater user value. In spite of the hit Google has taken in its market share with the integration of Facebook and Bing, and Facebook’s acquisition of Instagram, the future still looks rosy for Google. The potential of the new Google Plus to go one better than Facebook by integrating search engine and social network, as well as Google’s Motorola acquisition keeps investors super confident of continued growth… More to come…