Cloud Sharing Digital Innovation – Google Drive
Discuss about the Google Cloud Sharing Case study.
Digital innovations disrupts existing value network and creates new markets. Innovation creates new system of production and marketing that change the product nature and method of marketing (Zott, and Amit, 2017). Digital innovations have impact to an organization strategy and business model that requires organization to implement new frameworks to remain competitive in the market (Lusch, and Nambisan, 2015). The following report outline changes that has occurred in Google Inc due to a digital innovation. Cloud sharing innovation to changed Google existing business model and modernized the company operations. The report will analyses Google Drive digital innovation using work centred analysis approach and compare the company before and with the disruptive innovation. The report will then assess the effects of a digital disruptive innovation and recommend on the how to handle a disruptive event.
Cloud sharing digital innovation is a model of storing data in logical pools. The logical pools provide virtual storage space when companies or individuals can share files online. Google launched Google Drive in 2012. The Google Drive digital innovation was a synchronization and file storage service. The Google drive aimed to allow consumers to store files on Google servers and synchronize the files to their devices. The product had both online and offline for users. The offline capacity was for offline editing for iOS and Android Smartphone, MacOS computers and Windows. The Google Drive had the following features; Google Docs, slides and Sheets, and office suite. The Google Drive allows collaborative editing of spreadsheets, drawing, documents, presentations, and forms that are saved automatically in the drive (Demirkan, Spohrer, and Welser, 2016)
The Google Drive changed the number of products that Google was offering to it users. The product also changed how consumers were to access the Google products by creating an online interface. The customers were also able to synchronize their files across the Google products. This entailed that a customer only required to have a single account that would be used across multiple Google products.
Before Cloud Storage
Google Work Centred Analysis before Google Drive had customers have few products. The main products for the company were Gmail, Google AdWords, Google AdSense, and Google Search Engine. The company customers were Gmail users, advertisers, searcher, and content sellers. Customers were supposed to create account for each product. The Gmail users were able to send and receive emails while Advertisers signed up for Google AdWords and AdSense that provided advertising services. Those searching content on the internet using the Google Search Engine were not required to create account. The company required Computer scientist, IT specialists, and internet marketers to maintain and improve company products. The Customers data was stored in their in house storage.
The introduction of cloud sharing by the company increased the number products that the company was offering. The company started to receive customers in need of storage space. The cloud sharing enabled usage of single account to access all the company products in the business process of the company. All customers were required to sign up for Gmail account that was synchronized and used in other company’s product. The company was required to hire engineers to work on cloud computing and maintain the storage.
Google Work Centred Analysis before Google Drive
The cloud sharing innovation in Google presented both opportunities and threats. The innovation changed how consumers interacted and accessed the company products. The innovation event opportunities gave the company an advantage in the market while threats posed challenges that require to be addressed.
Google got several opportunities from Google Drive innovation. First, the innovation increased the number of products that the company was offering. The Google Drive innovation introduced Google Docs, Slides, Spreadsheets, and office suits that were not previously offered by the company. The innovation also introduced file sharing and storage space for customers. Increasing number of products enables a company to grow its products in the markets. Tirabeni, Soderquist, and Pisano, (2016) stated that increasing the number of product enables an organization to diversify it risks in the market. The innovation therefore introduced more products that were not offered before in the Company. Secondly, Google Drive introduced Google to new markets. Google started offering storage space and file sharing services that enabled it to explore the market. The company ventured in this new market that was not exploited or flooded by other companies (Barrett et al., 2015). Thirdly, Google Drive presented an opportunity for increased company profits. The innovation increased number of company’s products and enabled reach to new markets that increased sales. Nylén and Holmström, (2015) new products increase sales that increase organization revenue earning higher profits. Fourth, Google Drive innovation enabled customer retention. The Google Drive required customer to have a Gmail account to use their services. This made it mandatory for users to sign up for a Gmail account. This increased the number of Gmail accounts singed up by users to be allowed to use other products of the company. This factor also made it easy for users to use several services without need to sign up all time. This increased the company’s market share in providing email services. This synchronization branded Google Inc to be the most valuable brand in the globe. Lastly, the innovation enabled the company to attain a competitive edge in the market. Google Drive enabled the company to offer free online storage and price their products at competitive prices. This propelled the company to become a technological giant in internet based services.
On the other side, Google Drive presented several threats that posed challenge on the performance of the company. First, the Google Drive threatened the company’s security. Storing users’ information was a risky business because of increased hacking and virus (Lyytinen, Yoo, and Boland, 2016). The company was therefore required to invest in system security and backup to avoid losing customers data. Secondly, the company needed new skilled labour to maintain the cloud storage. Clouding storage required engineers to build, maintain, and protect data. Lastly, there was threat of new entrants. The innovation required the company to protect from new entrants to minimize competitions. These threats posed challenges the Google Company required to address for the innovation to have high return on investment (RIO)
The following recommendations can be used to reduce threats when adopting an innovation and maximize the opportunities;
Opportunities Presented by Google Drive Innovation
First, the company should acquire a patent to every new idea. A patent will help protect an innovation from being duplicated by competitor who can increase competition in the market. A patent can also help the company license an idea or product when transferring ownership.
Secondly, it recommended for the company invests in developing security systems that can assure customers data safety. Data security is important when implementing an online based product because of increased hacking and internet viruses that can interfere with product.
Another recommendation is that the company should invest in equipping manpower for an innovation. Human skills are important to successful implementation of an innovation (Fichman, Dos Santos, and Zheng, 2014). The company should recruit and train people before launching an innovation to ensure effectiveness in maintenance and continued improvement.
The plan for implementing the report recommendation will follow three main steps;
Step 1: Acquiring patent: This will ensure the idea cannot be duplicated or used elsewhere without the company consent. This will also minimize competitors in the market when the project is launched.
Step 2: Recruiting and training personnel: This will equip employees with expertise to implement the innovation in the company.
Step 3: Instituting a security system: This will involve investing in artificial intelligence and other security application that can maintain the system security and uphold credibility, reliability, and confidence to customers.
Conclusion
From the report, digital innovations are part organization growth. Digital innovations are disruptive to the business model and strategies. They change the organization’s existing models and establish new models that lead to new opportunities and threats. Google Drive is a cloud sharing innovation that changed the company model by synchronizing data and introducing file sharing. The innovation also enabled customers to acquire storage space online. The Google Drive innovation presented the company with an opportunity for marketshare growth, customer retention strategy, increased profits, and competitive advantage. The innovation had threats of new entrants, security of data and human resource skills for maintaining its performance. The report recommends the Company should take patents, train employees, and invest in a security system when introducing an innovative product. Therefore, companies should be prepared for digital innovation and should maximize their opportunities and minimize their threats to get its benefits.
References
Briscoe, G. (2014). Digital innovation: The hackathon phenomenon.
Barrett, M., Davidson, E., Prabhu, J. and Vargo, S.L., 2015. Service innovation in the digital age: key contributions and future directions. MIS quarterly, 39(1), pp.135-154.
Demirkan, H., Spohrer, J.C. and Welser, J.J., 2016. Digital innovation and strategic transformation. IT Professional, 18(6), pp.14-18.
Fichman, R.G., Dos Santos, B.L. and Zheng, Z.E., 2014. Digital innovation as a fundamental and powerful concept in the information Systems curriculum. MIS quarterly, 38(2).
Lusch, R.F. and Nambisan, S., 2015. Service innovation: A service-dominant logic perspective. MIS quarterly, 39(1).
Lyytinen, K., Yoo, Y. and Boland Jr, R.J., 2016. Digital product innovation within four classes of innovation networks. Information Systems Journal, 26(1), pp.47-75.
Nylén, D. and Holmström, J., 2015. Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation. Business Horizons, 58(1), pp.57-67.
Tirabeni, L., Soderquist, K.E. and Pisano, P., 2016. Driving Innovation by Enhancing Employee Roles. The Balancing Act of Employee-Driven Innovation. World Academy Of Science, Engineering And Technology, 10(1), pp.148-156.
Zott, C. and Amit, R., 2017. Business Model Innovation: How to Create Value in a Digital World. GfK Marketing Intelligence Review, 9(1), p.18.
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