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(Re)Inventing the Way the World Works Some Observations on Innovation Steven Woods Google Entrepreneur
Overview A bit of an discussion about what innovation is, versus invention, insight Composing inventions as part of big idea generation The Innovator Dilemma and opportunity 9 Ideas about innovation at Google The Innovation Cycle and 4 real-world examples Lessons to apply – how Google fights the Innovator Dilemma The culture we are trying to build for innovation at Google in Waterloo
Ideas & Invention across a Varied Career A career of alternating research & industry  Programming and Games – invention at a young age : “Space Invaders in 3.5k”   M.Math – Hierarchical Planning (Search – theory, experiments) Industry – Hierarchical Constraints (Search – experiment,  applications ) Ph.D – Hierarchical Constraint (Search – theory, experiment, applications) PostDoc – Applied HCSP (Search - experiment, applications)d
Ideas & Invention across a Varied Career A career of alternating research & industry Industry – Applied HCSP (Search – domain: architectural compliance/check at “make”) Startup 1 - Information organization, access and consumer experience – myriad of ideas, complex inventions required and innovation in multiple areas:  disruption Startup 2 – Radical consumer services platform – ideas, invention galore … but … Startup 3 – Consumer services platform applied to advertising:  invention -> innovation Google …. A company dedicated to Ideas, Invention, Innovation … and … principle
Innovation = Insight, Ideas, Invention, Introduction  Innovation is the conversion of ideas into cash ; Invention is the conversion of cash into ideas …. Thomas Edison innovator vs Nikola Tesla as inventor Innovation is transformation of ideas into new products in order to advance, compete and differentiate themselves successfully in their marketplace Innovation … the successful introduction of a new thing or method to a market
Innovation = Insight, Ideas, Invention, Introduction  To innovate means to:  Understand  or recognize a problem,  gain  insight  into how one might uniquely address this problem,  Conceive  ideas  to achieve desired outcome Invent  to realize insights Introduce the invention(s) to market … successfully! Great thinkers & great inventors frequently fail to innovate, and it is certainly possible to innovate through other’s insights, ideas and inventions …
Composing Inventions to Realize Ideas Ideas require inventions to be realized.  Inventions arrive (trends) or are created.  Complex ideas require many inventions to be composed …  Startups frequently pursue simple ideas, few “Raw” inventions and increments … but the big success lies elsewhere .. Radical startups pursue impossible risk paths and many Raw inventions  Expanded state of art – improve efficiency, etc Wait for its arrival – such as memory cost or CPU cycle cost Generalize past + extend Raw invention like creation of PageRank algorithms for web indexing Expanded state of art Observe, apply past insight to new domain – news headlines as public messages  Invention Invention Invention Invention Invention Invention
What is the Innovator Dilemma? Entrenched players misunderstand their market …  Horse &  buggy companies thought they were in the “buggy market” not the transportation market Buggy companies tend to pursue  sustaining innovations  such as “better suspension” or “faster horses” Gas autos were introduced and seen by buggy companies, but not seen as “competition” in the buggy market (noisy, cost, smelly) : disruptive and ignored  The newer product improves faster than the established one in the  actual market  and eventually satisfies customer demand for transportation better than the previous one So step back … So what benefit (not product) do you deliver to customers really? Focus on improving the fundamental benefit radically If you don’t someone else will …
Dilemmas = Opportunities (for someone) Simplistic approaches to evolving a business dominate thinking …  sustaining  innovations result … Listen to Customers Seek out their Next Generation Needs Invest and Rapidly Invent Solutions to Needs Innovate  by Getting Solutions to Customers  … . And soon you may well deliver the world’s best buggy-whips to market …. while at the same time some startup builds a gas-powered car and disrupts your entire business …
So .. Is there a Formula for Effective Innovation? Lets say you want to avoid the apparently inevitable Innovator Dilemma and irrelevance … and you want to build that “gas car” yourself … Embrace radical ideas challenging existing market boundaries .. that require elusive concepts, unlikely inventions, and hard to imagine mindset changes and stunning execution …  Probably some thoughts to consider … Attack big ideas only not increments (sounds easier than it is) Hire youth not experts to lead your thinking (its as risky as it sounds) Tolerate and embrace dissent, versus adhering to doctrine Suspend disbelief always! Minimize the ability of leaders or managers to say no … support independent thinking and investment Watch out for “Devils Advocates” – especially as ideas are generated and discussed Maintain patience and perseverance and evolve ideas not kill - but encourage fast failure/change cycles  Trial, measure and repeat – always Remember - Startups often pursue radical ideas with cult-like devotion and zeal  … while… established companies … largely stumble …. And become incremental
Googlers often say Innovation has Nine Points …. Ideas come from everywhere.  Don’t say no and kill projects with trepidation.  Share everything.  The best insight you need might be closer than you think. Data is A-political.  Measure everything.  Debate everything. Creativity loves constraint.  Can you do twice as much twice as cheaply?  Just ‘cause. Iteration not instant perfection.  Launch – NOW!  Launch – AGAIN! Hire passion.  Hire the best.  Really.  Seriously. A license to pursue dreams.  70/20/10 + 20% Users not money.  Focus on usefulness ... Think BIG.  Really really big.
Innovation Cycle: A simple thought process Insight  – See the problem, opportunity and way forward Invention  – Realize your insight in a creative act … build, test, result.  Innovation  – apply to an existing market or define a market
Example 1 : Hierarchical Planning  Theory/Insight : Hierarchical domain knowledge can radically improve search in useful domains like plan generation in problems of useful size …
Innovation Cycle:  Search Research : Hierarchical Planning Investigation, Collaboration, Analysis  : What is the “world” like? People are good at planning in worlds with partial information, automated systems are not. Problem Definition : What is broken with this world? Automated planning processes are too linear and don’t utilize abstract concepts the way human planners do …. Problem Imagined-Solution:  What is “a better” world, and how is it better? If one could encode plan goals in terms that include abstract goals automated planner could be less “pedantic” … Solution Break-down:  What would a solution look like – Inventions Outline Detailed representational and algorithmic work <here>  </here> Solution / Systems Analysis:  Would such a “Solution System” work theoretically?  Why? Proofs, examples, counter-examples if any, corner cases Implementation of “Inventions” as a System Algorithms, programs, experiments Metrics creation – current practice, ideal, experimental Demonstration of Implementation in problem domains Case studies, trials of “product” with “customers” – more and more metrics Demonstration of Implementation in problem domains Case studies, trials of “product” with “customers” – more and more metrics Insight Invention Innovation
Hierarchical Planning – Invention Map Idea: Hierarchical domain knowledge can radically improve search in useful domains like plan generation in problems of useful size …  Market Application: Publication, Graduation   , Influence to thought Research to me is a team/iterative activity – collaboration, discussion, shared experiences and peer feedback …  Expanded state of art Expanded state of art Generalize past + extend Expanded state of art Just plain work Theory Algorithms Implementations Domain Capture Problem Encode Exp Framework
Example 2 : Hierarchical Constraint Satisfaction Theory/Insight : Hierarchical object domain knowledge can radically improve search in useful domains like spatial template recognition in problems of useful size …
Innovation Cycle:  Search Research : Hierarchical Plan Recognition Insight Invention Innovation
Hierarchical Constraint Satisfaction – Invention Map Idea: Hierarchical object domain knowledge can radically improve search in useful domains like spatial template recognition in problems of useful size …  Market Application: Spatial problems (human-assist), Software architectural analysis and conformance (human-assist) Applied research & “innovation” go hand-in-hand  Expanded state of art Expanded state of art Generalize past + extend Expanded state of art Just plain work Theory Algorithms Implementations Domain Capture Problem Encode Exp Framework
Example 3 : Interactive Voice Portal (Quack.com) Theory/Insight : Voice can be used to deliver interactive services to consumers quickly and effectively if … you can obtain, organize and deliver the information rapidly, direct consumer dialogue, compose services quickly and interact intelligibly and quickly …
Innovation Cycle Startup : Voice Portals at Quack.com Investigation, Collaboration, Analysis  : What is the “world” like? People can’t get, and act-on information wherever they are, and it costs them time and money! Problem Definition : What is broken with this world? If it was easy, fast and simple enough, people would but things online everywhere! Problem Imagined-Solution:  What is “a better” world, and how is it better? If we obtained and organized current product info, and connected that to purchasing services and hooked it to an IVR you could use your voice to buy things everywhere! Solution Break-down:  What would a solution look like – Inventions Outline Detailed process description and algorithms – extend IVR dialogue creation, datastore flexibility, datastore access time, online data mapping, datastore freshness, online service mapping,  Solution / Systems Analysis:  Would such a “Solution System” work theoretically?  Why? Technically possible (demo/prototype), practical success is …  market-changing dependent Implementation of “Inventions” as a  composed  System Algorithms, programs, experiments Metrics creation – current practice, ideal, experimental –  truth is in user behaviour! Demonstration of Implementation in  specific market  problem domains Case studies, trials, alphas, betas of “product/service” with “actual customers” – more metrics! Disruption?  Changing a market?  Building a new market? Cost < Result?  This is ONE metric not a controlling factor Insight Invention Innovation
Startup: Voice Portals are Impossible … Right? Idea: Voice can be used to deliver interactive services to consumers quickly and effectively if … you can obtain, organize and deliver the information rapidly, direct consumer dialogue, compose services quickly and interact intelligibly and quickly …  Market Application: Implementation demonstrates innovator dilemma to acquirers … in multiple markets … and risk means value creation Radical startups (& Google) pursue impossible risk paths …  Fundamental Simplification Expanded state of art Semantic Web Overlay incl transactional model Tightly controlled model Specific-use in-memory database Expanded state of art – exploit existing tech trends Spider Semantic Index Rapid Access  Dialogue Models Interaction Tools Applied Recog’n
Example 4 : Conversion Optimizer (Google) Theory/Insight : Advertisers want to “buy” consumer “conversion” to desired action, not clicks on their ads.  Why not calculate predicted click through rates pCTR and predicted conversion rates pCVR and manage advertiser click-bids ourselves to improve access to “likely to convert” customer clicks and reduce spend on likely ones? …
Google : Innovation Cycle (Conversion Optimizer) Investigation, Collaboration, Analysis  : What is the “world” like? People purchase advertising by click, manually calculate clicks to cash on backend.  Problem Definition : What is broken with this world? Lots of chance for error.  Advertiser can’t “see the world” and see potential customers. Problem Imagined-Solution:  What is “a better” world, and how is it better? If we could predict click rates and conversion rates per impression we could help advertisers bid more for the “more likely to convert” clicks – or even advertisers could pay only for conversions!  Solution Break-down:  What would a solution look like – Inventions Outline Machine learning algorithms across all impressions and clicks for conversion-tracked ads in order to create pCTR and pCVR for all opportunities to advertise.  Apply model live for all! Solution / Systems Analysis:  Would such a “Solution System” work theoretically?  Why? Technically possible (demo/prototype), practical success depends on scaling up ML model generation and converging on “better than human” methods.  Success depends also on advertiser belief and avoiding F-U-D from competing approaches and advice. Implementation of “Inventions” as an  end-to-end  System Algorithms, programs, experiments Metrics creation – current practice, ideal, experimental –  truth is in advertiser value & behaviour! Demonstration of Implementation in  specific market  problem domains Case studies, trials, alphas, betas of “product/service” with “actual customers” – more metrics! Disruption?  Changing OUR own market?  A better way but is it profitable? Metrics – advertiser adoption.  Advertiser investment.  Revenues a distant long-term view. Insight Invention Innovation
Conversion Optimizer Idea: Advertisers want to “buy” consumer “conversion” to desired action, not clicks on their ads.  Why not calculate pCTR and pCVR and manage advertiser click-bids ourselves to improve access to “likely to convert” customer clicks and reduce spend on likely ones? … Market Application: Implementation defeats innovator dilemma and competes with Google primary business of CPC … launched with no concept of increased revenue or profit – only advertiser value Radical startups (& Google) pursue impossible risk paths … now well past $1B in annual revenue …  Simplify but don’t obscure Radical state of art ML approach (patents) Encourage customer experimentation M approach (patents) X is like Y (patents) ML Models Scale pCTR pCVR Customer Exper Side by Side A/B Exploration
A Formula to Survive and Thrive Amidst Change? How about Define a broad, empowering mission that captures what it means to innovate? Hire ONLY builders and experienced leaders who know how to take ideas to people? Rewards dramatic, awe-inspiring failure if done quickly? Constantly challenge radicals to destroy the company’s primary business from within? Focus on users only.  Ignore money.  Solve their problems..
What about Google: @Waterloo Snapshot Google “Conversion Optimizer” $B biz, Ad Exchange and core ads infrastructure Google “mobile applications” from Gmail and Buzz to YouTube and Picasa and core technical abilities including HTML5 Proving the web as a superior application platform from hardware to experience on one netbook environment – from a 20% initiative from Waterloo  Inspiration, Invention, Innovation 20% projects and prototypes Community involvement – Canada Relevance and Identity – Canada Ads Mobile NextBig Thing Chrome/OS
Google : Innovation is an Imperative
Culture of Innovation: Being &quot;Googley&quot; means… …  being able to work effectively in a  flat organization  and in  small teams , able to respond to a fast-paced  rapidly changing, ambiguous environment . Googlers are  passionate about their work .  They  solve problems creatively and collaboratively , with all levels of the organization.  Googlers are  ethical and communicate openly , and can be  serious without a suit .  They are well-rounded and bring  unique interests and talents  to innovate in the work they do, and love the challenge of  making the world a better place .
Culture of Innovation: Hire Passion
Culture of Innovation: Google & Entrepreneurs
Teams @ Waterloo
Ideas @ Waterloo
Share @ Waterloo
Creativity/Constraint @ Waterloo
Iteration @ Waterloo
Users @ Waterloo
Big @ Waterloo
Inventing and Innovating at Google  ….  Source: http://www.cashedge.com/pressRoom/news_070104_bst.html Solve big problems Take risks Don’t be evil Have fun Great people
Thank you

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2010-6-17 JW Graham talk

  • 1. (Re)Inventing the Way the World Works Some Observations on Innovation Steven Woods Google Entrepreneur
  • 2. Overview A bit of an discussion about what innovation is, versus invention, insight Composing inventions as part of big idea generation The Innovator Dilemma and opportunity 9 Ideas about innovation at Google The Innovation Cycle and 4 real-world examples Lessons to apply – how Google fights the Innovator Dilemma The culture we are trying to build for innovation at Google in Waterloo
  • 3. Ideas & Invention across a Varied Career A career of alternating research & industry Programming and Games – invention at a young age : “Space Invaders in 3.5k”  M.Math – Hierarchical Planning (Search – theory, experiments) Industry – Hierarchical Constraints (Search – experiment, applications ) Ph.D – Hierarchical Constraint (Search – theory, experiment, applications) PostDoc – Applied HCSP (Search - experiment, applications)d
  • 4. Ideas & Invention across a Varied Career A career of alternating research & industry Industry – Applied HCSP (Search – domain: architectural compliance/check at “make”) Startup 1 - Information organization, access and consumer experience – myriad of ideas, complex inventions required and innovation in multiple areas: disruption Startup 2 – Radical consumer services platform – ideas, invention galore … but … Startup 3 – Consumer services platform applied to advertising: invention -> innovation Google …. A company dedicated to Ideas, Invention, Innovation … and … principle
  • 5. Innovation = Insight, Ideas, Invention, Introduction Innovation is the conversion of ideas into cash ; Invention is the conversion of cash into ideas …. Thomas Edison innovator vs Nikola Tesla as inventor Innovation is transformation of ideas into new products in order to advance, compete and differentiate themselves successfully in their marketplace Innovation … the successful introduction of a new thing or method to a market
  • 6. Innovation = Insight, Ideas, Invention, Introduction To innovate means to: Understand or recognize a problem, gain insight into how one might uniquely address this problem, Conceive ideas to achieve desired outcome Invent to realize insights Introduce the invention(s) to market … successfully! Great thinkers & great inventors frequently fail to innovate, and it is certainly possible to innovate through other’s insights, ideas and inventions …
  • 7. Composing Inventions to Realize Ideas Ideas require inventions to be realized. Inventions arrive (trends) or are created. Complex ideas require many inventions to be composed … Startups frequently pursue simple ideas, few “Raw” inventions and increments … but the big success lies elsewhere .. Radical startups pursue impossible risk paths and many Raw inventions Expanded state of art – improve efficiency, etc Wait for its arrival – such as memory cost or CPU cycle cost Generalize past + extend Raw invention like creation of PageRank algorithms for web indexing Expanded state of art Observe, apply past insight to new domain – news headlines as public messages Invention Invention Invention Invention Invention Invention
  • 8. What is the Innovator Dilemma? Entrenched players misunderstand their market … Horse & buggy companies thought they were in the “buggy market” not the transportation market Buggy companies tend to pursue sustaining innovations such as “better suspension” or “faster horses” Gas autos were introduced and seen by buggy companies, but not seen as “competition” in the buggy market (noisy, cost, smelly) : disruptive and ignored The newer product improves faster than the established one in the actual market and eventually satisfies customer demand for transportation better than the previous one So step back … So what benefit (not product) do you deliver to customers really? Focus on improving the fundamental benefit radically If you don’t someone else will …
  • 9. Dilemmas = Opportunities (for someone) Simplistic approaches to evolving a business dominate thinking … sustaining innovations result … Listen to Customers Seek out their Next Generation Needs Invest and Rapidly Invent Solutions to Needs Innovate by Getting Solutions to Customers … . And soon you may well deliver the world’s best buggy-whips to market …. while at the same time some startup builds a gas-powered car and disrupts your entire business …
  • 10. So .. Is there a Formula for Effective Innovation? Lets say you want to avoid the apparently inevitable Innovator Dilemma and irrelevance … and you want to build that “gas car” yourself … Embrace radical ideas challenging existing market boundaries .. that require elusive concepts, unlikely inventions, and hard to imagine mindset changes and stunning execution … Probably some thoughts to consider … Attack big ideas only not increments (sounds easier than it is) Hire youth not experts to lead your thinking (its as risky as it sounds) Tolerate and embrace dissent, versus adhering to doctrine Suspend disbelief always! Minimize the ability of leaders or managers to say no … support independent thinking and investment Watch out for “Devils Advocates” – especially as ideas are generated and discussed Maintain patience and perseverance and evolve ideas not kill - but encourage fast failure/change cycles Trial, measure and repeat – always Remember - Startups often pursue radical ideas with cult-like devotion and zeal … while… established companies … largely stumble …. And become incremental
  • 11. Googlers often say Innovation has Nine Points …. Ideas come from everywhere. Don’t say no and kill projects with trepidation. Share everything. The best insight you need might be closer than you think. Data is A-political. Measure everything. Debate everything. Creativity loves constraint. Can you do twice as much twice as cheaply? Just ‘cause. Iteration not instant perfection. Launch – NOW! Launch – AGAIN! Hire passion. Hire the best. Really. Seriously. A license to pursue dreams. 70/20/10 + 20% Users not money. Focus on usefulness ... Think BIG. Really really big.
  • 12. Innovation Cycle: A simple thought process Insight – See the problem, opportunity and way forward Invention – Realize your insight in a creative act … build, test, result. Innovation – apply to an existing market or define a market
  • 13. Example 1 : Hierarchical Planning Theory/Insight : Hierarchical domain knowledge can radically improve search in useful domains like plan generation in problems of useful size …
  • 14. Innovation Cycle: Search Research : Hierarchical Planning Investigation, Collaboration, Analysis : What is the “world” like? People are good at planning in worlds with partial information, automated systems are not. Problem Definition : What is broken with this world? Automated planning processes are too linear and don’t utilize abstract concepts the way human planners do …. Problem Imagined-Solution: What is “a better” world, and how is it better? If one could encode plan goals in terms that include abstract goals automated planner could be less “pedantic” … Solution Break-down: What would a solution look like – Inventions Outline Detailed representational and algorithmic work <here>  </here> Solution / Systems Analysis: Would such a “Solution System” work theoretically? Why? Proofs, examples, counter-examples if any, corner cases Implementation of “Inventions” as a System Algorithms, programs, experiments Metrics creation – current practice, ideal, experimental Demonstration of Implementation in problem domains Case studies, trials of “product” with “customers” – more and more metrics Demonstration of Implementation in problem domains Case studies, trials of “product” with “customers” – more and more metrics Insight Invention Innovation
  • 15. Hierarchical Planning – Invention Map Idea: Hierarchical domain knowledge can radically improve search in useful domains like plan generation in problems of useful size … Market Application: Publication, Graduation  , Influence to thought Research to me is a team/iterative activity – collaboration, discussion, shared experiences and peer feedback … Expanded state of art Expanded state of art Generalize past + extend Expanded state of art Just plain work Theory Algorithms Implementations Domain Capture Problem Encode Exp Framework
  • 16. Example 2 : Hierarchical Constraint Satisfaction Theory/Insight : Hierarchical object domain knowledge can radically improve search in useful domains like spatial template recognition in problems of useful size …
  • 17. Innovation Cycle: Search Research : Hierarchical Plan Recognition Insight Invention Innovation
  • 18. Hierarchical Constraint Satisfaction – Invention Map Idea: Hierarchical object domain knowledge can radically improve search in useful domains like spatial template recognition in problems of useful size … Market Application: Spatial problems (human-assist), Software architectural analysis and conformance (human-assist) Applied research & “innovation” go hand-in-hand Expanded state of art Expanded state of art Generalize past + extend Expanded state of art Just plain work Theory Algorithms Implementations Domain Capture Problem Encode Exp Framework
  • 19. Example 3 : Interactive Voice Portal (Quack.com) Theory/Insight : Voice can be used to deliver interactive services to consumers quickly and effectively if … you can obtain, organize and deliver the information rapidly, direct consumer dialogue, compose services quickly and interact intelligibly and quickly …
  • 20. Innovation Cycle Startup : Voice Portals at Quack.com Investigation, Collaboration, Analysis : What is the “world” like? People can’t get, and act-on information wherever they are, and it costs them time and money! Problem Definition : What is broken with this world? If it was easy, fast and simple enough, people would but things online everywhere! Problem Imagined-Solution: What is “a better” world, and how is it better? If we obtained and organized current product info, and connected that to purchasing services and hooked it to an IVR you could use your voice to buy things everywhere! Solution Break-down: What would a solution look like – Inventions Outline Detailed process description and algorithms – extend IVR dialogue creation, datastore flexibility, datastore access time, online data mapping, datastore freshness, online service mapping, Solution / Systems Analysis: Would such a “Solution System” work theoretically? Why? Technically possible (demo/prototype), practical success is … market-changing dependent Implementation of “Inventions” as a composed System Algorithms, programs, experiments Metrics creation – current practice, ideal, experimental – truth is in user behaviour! Demonstration of Implementation in specific market problem domains Case studies, trials, alphas, betas of “product/service” with “actual customers” – more metrics! Disruption? Changing a market? Building a new market? Cost < Result? This is ONE metric not a controlling factor Insight Invention Innovation
  • 21. Startup: Voice Portals are Impossible … Right? Idea: Voice can be used to deliver interactive services to consumers quickly and effectively if … you can obtain, organize and deliver the information rapidly, direct consumer dialogue, compose services quickly and interact intelligibly and quickly … Market Application: Implementation demonstrates innovator dilemma to acquirers … in multiple markets … and risk means value creation Radical startups (& Google) pursue impossible risk paths … Fundamental Simplification Expanded state of art Semantic Web Overlay incl transactional model Tightly controlled model Specific-use in-memory database Expanded state of art – exploit existing tech trends Spider Semantic Index Rapid Access Dialogue Models Interaction Tools Applied Recog’n
  • 22. Example 4 : Conversion Optimizer (Google) Theory/Insight : Advertisers want to “buy” consumer “conversion” to desired action, not clicks on their ads. Why not calculate predicted click through rates pCTR and predicted conversion rates pCVR and manage advertiser click-bids ourselves to improve access to “likely to convert” customer clicks and reduce spend on likely ones? …
  • 23. Google : Innovation Cycle (Conversion Optimizer) Investigation, Collaboration, Analysis : What is the “world” like? People purchase advertising by click, manually calculate clicks to cash on backend. Problem Definition : What is broken with this world? Lots of chance for error. Advertiser can’t “see the world” and see potential customers. Problem Imagined-Solution: What is “a better” world, and how is it better? If we could predict click rates and conversion rates per impression we could help advertisers bid more for the “more likely to convert” clicks – or even advertisers could pay only for conversions! Solution Break-down: What would a solution look like – Inventions Outline Machine learning algorithms across all impressions and clicks for conversion-tracked ads in order to create pCTR and pCVR for all opportunities to advertise. Apply model live for all! Solution / Systems Analysis: Would such a “Solution System” work theoretically? Why? Technically possible (demo/prototype), practical success depends on scaling up ML model generation and converging on “better than human” methods. Success depends also on advertiser belief and avoiding F-U-D from competing approaches and advice. Implementation of “Inventions” as an end-to-end System Algorithms, programs, experiments Metrics creation – current practice, ideal, experimental – truth is in advertiser value & behaviour! Demonstration of Implementation in specific market problem domains Case studies, trials, alphas, betas of “product/service” with “actual customers” – more metrics! Disruption? Changing OUR own market? A better way but is it profitable? Metrics – advertiser adoption. Advertiser investment. Revenues a distant long-term view. Insight Invention Innovation
  • 24. Conversion Optimizer Idea: Advertisers want to “buy” consumer “conversion” to desired action, not clicks on their ads. Why not calculate pCTR and pCVR and manage advertiser click-bids ourselves to improve access to “likely to convert” customer clicks and reduce spend on likely ones? … Market Application: Implementation defeats innovator dilemma and competes with Google primary business of CPC … launched with no concept of increased revenue or profit – only advertiser value Radical startups (& Google) pursue impossible risk paths … now well past $1B in annual revenue … Simplify but don’t obscure Radical state of art ML approach (patents) Encourage customer experimentation M approach (patents) X is like Y (patents) ML Models Scale pCTR pCVR Customer Exper Side by Side A/B Exploration
  • 25. A Formula to Survive and Thrive Amidst Change? How about Define a broad, empowering mission that captures what it means to innovate? Hire ONLY builders and experienced leaders who know how to take ideas to people? Rewards dramatic, awe-inspiring failure if done quickly? Constantly challenge radicals to destroy the company’s primary business from within? Focus on users only. Ignore money. Solve their problems..
  • 26. What about Google: @Waterloo Snapshot Google “Conversion Optimizer” $B biz, Ad Exchange and core ads infrastructure Google “mobile applications” from Gmail and Buzz to YouTube and Picasa and core technical abilities including HTML5 Proving the web as a superior application platform from hardware to experience on one netbook environment – from a 20% initiative from Waterloo Inspiration, Invention, Innovation 20% projects and prototypes Community involvement – Canada Relevance and Identity – Canada Ads Mobile NextBig Thing Chrome/OS
  • 27. Google : Innovation is an Imperative
  • 28. Culture of Innovation: Being &quot;Googley&quot; means… … being able to work effectively in a flat organization and in small teams , able to respond to a fast-paced rapidly changing, ambiguous environment . Googlers are passionate about their work . They solve problems creatively and collaboratively , with all levels of the organization. Googlers are ethical and communicate openly , and can be serious without a suit . They are well-rounded and bring unique interests and talents to innovate in the work they do, and love the challenge of making the world a better place .
  • 29. Culture of Innovation: Hire Passion
  • 30. Culture of Innovation: Google & Entrepreneurs
  • 38. Inventing and Innovating at Google …. Source: http://www.cashedge.com/pressRoom/news_070104_bst.html Solve big problems Take risks Don’t be evil Have fun Great people

Editor's Notes

  • #3: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #4: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #5: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #6: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #7: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #8: Keep in mind that Google advantage is that it can take a LOT more time T and can afford to really invest in the inventions and the pillars of investment to get the inventions to make ideas real Metaphor Ideas needs to be realized by inventions. Startups rarely can afford complex ideas requiring many inventions One must either predict inventions that are necessary for your idea to be realized, or create them One idea driving one invention (or set) leads to other (often more important) ideas once ideas become realized … use the Quack example of organized information for mobile that ultimately solved the voice problems of unlimited data range through directed dialogue The needs filled by invention yield a “realized idea” or product that then needs to be applied successfully in one or more areas to be innovative Innovation means the disruption of markets – from publications to business – but can be innovated in many ways … Quack in information and services for instance … or ultimately in how others view their own core business
  • #9: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #10: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #11: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #12: 1.Innovation, not instant perfection. Google believes in launching new products and ideas early and often, rather than trying to perfect those ideas behind closed doors before releasing them to the public. Then, customer feedback and popularity prove which projects are most successful. 2. Share everything you can. Small teams that communicate openly have proved the best results for Google. They believe in transparency in the workplace so that everyone knows what everyone else is working on. (Scary, right?) They have a computer program where employees can look up names and see what others are working on, so if they have an idea to contribute they know who to talk to. 3. You’re brilliant, we’re hiring. When Google interviews employees, Lecinski said they set the bar very high. They focus more on hiring generalists rather than specialists, as they have found generalists are more valuable and can contribute ideas to different parts of the company. 4. Allow employees to pursue their dreams. Lecinski said Google allows its employees’ time in a 70/20/10 model. Seventy percent of the time they work on Google’s search and ad flagships; they develop new programs like Images, Desktop and Finance 20 percent of the time; and 10 percent of the time employees are allowed to pursue their own high risk/high reward projects. Lecinski said Google Earth is a result of one of those projects 5. Ideas come from everywhere. Sometimes Google turns to the public for new ideas. The Google mastheads, which are customized for holidays and events, are taken from non-employee submissions. One of the mastheads was designed by a 12-year-old girl. 6. Don’t politic – use data. With all the ideas floating around Google, the best way to determine which may work is to use supportive data. As Lecinski said, “Data beats opinion.” 7. Creativity loves restraint / constraint. Again, Google has to have some way to keep all of the employee-generated ideas streamlined towards the company’s goals. “Let people explore, but set clear boundaries for that exploration,” Lecinski said. 8. Get users and usage – the money will follow. This goes back to one of Lecinski’s larger points, “respect for end users,” but is a principle to follow in any form of business. He says to focus on creating things that are innovative and useful for people, not something you can sell. 9. Don’t kill projects, morph them. Google doesn’t waste ideas. Instead, they try to change and transform them into something the company finds useful.
  • #13: 1.Innovation, not instant perfection. Google believes in launching new products and ideas early and often, rather than trying to perfect those ideas behind closed doors before releasing them to the public. Then, customer feedback and popularity prove which projects are most successful. 2. Share everything you can. Small teams that communicate openly have proved the best results for Google. They believe in transparency in the workplace so that everyone knows what everyone else is working on. (Scary, right?) They have a computer program where employees can look up names and see what others are working on, so if they have an idea to contribute they know who to talk to. 3. You’re brilliant, we’re hiring. When Google interviews employees, Lecinski said they set the bar very high. They focus more on hiring generalists rather than specialists, as they have found generalists are more valuable and can contribute ideas to different parts of the company. 4. Allow employees to pursue their dreams. Lecinski said Google allows its employees’ time in a 70/20/10 model. Seventy percent of the time they work on Google’s search and ad flagships; they develop new programs like Images, Desktop and Finance 20 percent of the time; and 10 percent of the time employees are allowed to pursue their own high risk/high reward projects. Lecinski said Google Earth is a result of one of those projects 5. Ideas come from everywhere. Sometimes Google turns to the public for new ideas. The Google mastheads, which are customized for holidays and events, are taken from non-employee submissions. One of the mastheads was designed by a 12-year-old girl. 6. Don’t politic – use data. With all the ideas floating around Google, the best way to determine which may work is to use supportive data. As Lecinski said, “Data beats opinion.” 7. Creativity loves restraint / constraint. Again, Google has to have some way to keep all of the employee-generated ideas streamlined towards the company’s goals. “Let people explore, but set clear boundaries for that exploration,” Lecinski said. 8. Get users and usage – the money will follow. This goes back to one of Lecinski’s larger points, “respect for end users,” but is a principle to follow in any form of business. He says to focus on creating things that are innovative and useful for people, not something you can sell. 9. Don’t kill projects, morph them. Google doesn’t waste ideas. Instead, they try to change and transform them into something the company finds useful.
  • #14: 1.Innovation, not instant perfection. Google believes in launching new products and ideas early and often, rather than trying to perfect those ideas behind closed doors before releasing them to the public. Then, customer feedback and popularity prove which projects are most successful. 2. Share everything you can. Small teams that communicate openly have proved the best results for Google. They believe in transparency in the workplace so that everyone knows what everyone else is working on. (Scary, right?) They have a computer program where employees can look up names and see what others are working on, so if they have an idea to contribute they know who to talk to. 3. You’re brilliant, we’re hiring. When Google interviews employees, Lecinski said they set the bar very high. They focus more on hiring generalists rather than specialists, as they have found generalists are more valuable and can contribute ideas to different parts of the company. 4. Allow employees to pursue their dreams. Lecinski said Google allows its employees’ time in a 70/20/10 model. Seventy percent of the time they work on Google’s search and ad flagships; they develop new programs like Images, Desktop and Finance 20 percent of the time; and 10 percent of the time employees are allowed to pursue their own high risk/high reward projects. Lecinski said Google Earth is a result of one of those projects 5. Ideas come from everywhere. Sometimes Google turns to the public for new ideas. The Google mastheads, which are customized for holidays and events, are taken from non-employee submissions. One of the mastheads was designed by a 12-year-old girl. 6. Don’t politic – use data. With all the ideas floating around Google, the best way to determine which may work is to use supportive data. As Lecinski said, “Data beats opinion.” 7. Creativity loves restraint / constraint. Again, Google has to have some way to keep all of the employee-generated ideas streamlined towards the company’s goals. “Let people explore, but set clear boundaries for that exploration,” Lecinski said. 8. Get users and usage – the money will follow. This goes back to one of Lecinski’s larger points, “respect for end users,” but is a principle to follow in any form of business. He says to focus on creating things that are innovative and useful for people, not something you can sell. 9. Don’t kill projects, morph them. Google doesn’t waste ideas. Instead, they try to change and transform them into something the company finds useful.
  • #16: Keep in mind that Google advantage is that it can take a LOT more time T and can afford to really invest in the inventions and the pillars of investment to get the inventions to make ideas real Metaphor Ideas needs to be realized by inventions. Startups rarely can afford complex ideas requiring many inventions One must either predict inventions that are necessary for your idea to be realized, or create them One idea driving one invention (or set) leads to other (often more important) ideas once ideas become realized … use the Quack example of organized information for mobile that ultimately solved the voice problems of unlimited data range through directed dialogue The needs filled by invention yield a “realized idea” or product that then needs to be applied successfully in one or more areas to be innovative Innovation means the disruption of markets – from publications to business – but can be innovated in many ways … Quack in information and services for instance … or ultimately in how others view their own core business
  • #17: 1.Innovation, not instant perfection. Google believes in launching new products and ideas early and often, rather than trying to perfect those ideas behind closed doors before releasing them to the public. Then, customer feedback and popularity prove which projects are most successful. 2. Share everything you can. Small teams that communicate openly have proved the best results for Google. They believe in transparency in the workplace so that everyone knows what everyone else is working on. (Scary, right?) They have a computer program where employees can look up names and see what others are working on, so if they have an idea to contribute they know who to talk to. 3. You’re brilliant, we’re hiring. When Google interviews employees, Lecinski said they set the bar very high. They focus more on hiring generalists rather than specialists, as they have found generalists are more valuable and can contribute ideas to different parts of the company. 4. Allow employees to pursue their dreams. Lecinski said Google allows its employees’ time in a 70/20/10 model. Seventy percent of the time they work on Google’s search and ad flagships; they develop new programs like Images, Desktop and Finance 20 percent of the time; and 10 percent of the time employees are allowed to pursue their own high risk/high reward projects. Lecinski said Google Earth is a result of one of those projects 5. Ideas come from everywhere. Sometimes Google turns to the public for new ideas. The Google mastheads, which are customized for holidays and events, are taken from non-employee submissions. One of the mastheads was designed by a 12-year-old girl. 6. Don’t politic – use data. With all the ideas floating around Google, the best way to determine which may work is to use supportive data. As Lecinski said, “Data beats opinion.” 7. Creativity loves restraint / constraint. Again, Google has to have some way to keep all of the employee-generated ideas streamlined towards the company’s goals. “Let people explore, but set clear boundaries for that exploration,” Lecinski said. 8. Get users and usage – the money will follow. This goes back to one of Lecinski’s larger points, “respect for end users,” but is a principle to follow in any form of business. He says to focus on creating things that are innovative and useful for people, not something you can sell. 9. Don’t kill projects, morph them. Google doesn’t waste ideas. Instead, they try to change and transform them into something the company finds useful.
  • #19: Keep in mind that Google advantage is that it can take a LOT more time T and can afford to really invest in the inventions and the pillars of investment to get the inventions to make ideas real Metaphor Ideas needs to be realized by inventions. Startups rarely can afford complex ideas requiring many inventions One must either predict inventions that are necessary for your idea to be realized, or create them One idea driving one invention (or set) leads to other (often more important) ideas once ideas become realized … use the Quack example of organized information for mobile that ultimately solved the voice problems of unlimited data range through directed dialogue The needs filled by invention yield a “realized idea” or product that then needs to be applied successfully in one or more areas to be innovative Innovation means the disruption of markets – from publications to business – but can be innovated in many ways … Quack in information and services for instance … or ultimately in how others view their own core business
  • #20: 1.Innovation, not instant perfection. Google believes in launching new products and ideas early and often, rather than trying to perfect those ideas behind closed doors before releasing them to the public. Then, customer feedback and popularity prove which projects are most successful. 2. Share everything you can. Small teams that communicate openly have proved the best results for Google. They believe in transparency in the workplace so that everyone knows what everyone else is working on. (Scary, right?) They have a computer program where employees can look up names and see what others are working on, so if they have an idea to contribute they know who to talk to. 3. You’re brilliant, we’re hiring. When Google interviews employees, Lecinski said they set the bar very high. They focus more on hiring generalists rather than specialists, as they have found generalists are more valuable and can contribute ideas to different parts of the company. 4. Allow employees to pursue their dreams. Lecinski said Google allows its employees’ time in a 70/20/10 model. Seventy percent of the time they work on Google’s search and ad flagships; they develop new programs like Images, Desktop and Finance 20 percent of the time; and 10 percent of the time employees are allowed to pursue their own high risk/high reward projects. Lecinski said Google Earth is a result of one of those projects 5. Ideas come from everywhere. Sometimes Google turns to the public for new ideas. The Google mastheads, which are customized for holidays and events, are taken from non-employee submissions. One of the mastheads was designed by a 12-year-old girl. 6. Don’t politic – use data. With all the ideas floating around Google, the best way to determine which may work is to use supportive data. As Lecinski said, “Data beats opinion.” 7. Creativity loves restraint / constraint. Again, Google has to have some way to keep all of the employee-generated ideas streamlined towards the company’s goals. “Let people explore, but set clear boundaries for that exploration,” Lecinski said. 8. Get users and usage – the money will follow. This goes back to one of Lecinski’s larger points, “respect for end users,” but is a principle to follow in any form of business. He says to focus on creating things that are innovative and useful for people, not something you can sell. 9. Don’t kill projects, morph them. Google doesn’t waste ideas. Instead, they try to change and transform them into something the company finds useful.
  • #22: Keep in mind that Google advantage is that it can take a LOT more time T and can afford to really invest in the inventions and the pillars of investment to get the inventions to make ideas real Metaphor Ideas needs to be realized by inventions. Startups rarely can afford complex ideas requiring many inventions One must either predict inventions that are necessary for your idea to be realized, or create them One idea driving one invention (or set) leads to other (often more important) ideas once ideas become realized … use the Quack example of organized information for mobile that ultimately solved the voice problems of unlimited data range through directed dialogue The needs filled by invention yield a “realized idea” or product that then needs to be applied successfully in one or more areas to be innovative Innovation means the disruption of markets – from publications to business – but can be innovated in many ways … Quack in information and services for instance … or ultimately in how others view their own core business
  • #23: 1.Innovation, not instant perfection. Google believes in launching new products and ideas early and often, rather than trying to perfect those ideas behind closed doors before releasing them to the public. Then, customer feedback and popularity prove which projects are most successful. 2. Share everything you can. Small teams that communicate openly have proved the best results for Google. They believe in transparency in the workplace so that everyone knows what everyone else is working on. (Scary, right?) They have a computer program where employees can look up names and see what others are working on, so if they have an idea to contribute they know who to talk to. 3. You’re brilliant, we’re hiring. When Google interviews employees, Lecinski said they set the bar very high. They focus more on hiring generalists rather than specialists, as they have found generalists are more valuable and can contribute ideas to different parts of the company. 4. Allow employees to pursue their dreams. Lecinski said Google allows its employees’ time in a 70/20/10 model. Seventy percent of the time they work on Google’s search and ad flagships; they develop new programs like Images, Desktop and Finance 20 percent of the time; and 10 percent of the time employees are allowed to pursue their own high risk/high reward projects. Lecinski said Google Earth is a result of one of those projects 5. Ideas come from everywhere. Sometimes Google turns to the public for new ideas. The Google mastheads, which are customized for holidays and events, are taken from non-employee submissions. One of the mastheads was designed by a 12-year-old girl. 6. Don’t politic – use data. With all the ideas floating around Google, the best way to determine which may work is to use supportive data. As Lecinski said, “Data beats opinion.” 7. Creativity loves restraint / constraint. Again, Google has to have some way to keep all of the employee-generated ideas streamlined towards the company’s goals. “Let people explore, but set clear boundaries for that exploration,” Lecinski said. 8. Get users and usage – the money will follow. This goes back to one of Lecinski’s larger points, “respect for end users,” but is a principle to follow in any form of business. He says to focus on creating things that are innovative and useful for people, not something you can sell. 9. Don’t kill projects, morph them. Google doesn’t waste ideas. Instead, they try to change and transform them into something the company finds useful.
  • #25: Keep in mind that Google advantage is that it can take a LOT more time T and can afford to really invest in the inventions and the pillars of investment to get the inventions to make ideas real Metaphor Ideas needs to be realized by inventions. Startups rarely can afford complex ideas requiring many inventions One must either predict inventions that are necessary for your idea to be realized, or create them One idea driving one invention (or set) leads to other (often more important) ideas once ideas become realized … use the Quack example of organized information for mobile that ultimately solved the voice problems of unlimited data range through directed dialogue The needs filled by invention yield a “realized idea” or product that then needs to be applied successfully in one or more areas to be innovative Innovation means the disruption of markets – from publications to business – but can be innovated in many ways … Quack in information and services for instance … or ultimately in how others view their own core business
  • #26: But here is the downside of buying lots of cheap machines. If you have one server, it may stay up three years (1,000 days). If you have 10,000 servers, expect to lose ten a day.
  • #39: Ask Googlers to tell their stories that are focused on these key themes Use appendix to tell the stories