Saturday, November 05, 2005

Google It may become universal

Google It
may become universal

When I explain to someone how to find something on the internet, I say "just Google it." Sometimes I add, "...or use whatever search engine you prefer."

The list of things people search for is expanding. Soon, the vast majority of news, price and product comparisons, weather reports, etc., may be through more accurate and comprehensive search strategies and functions. Google is the leader now, and hope to continue to reign from on high.

Better search capacities will empower consumers. There is a tremendous, colossal shift in Power: the power is moving away from organizations (corporations, governments, medical institutions, churches, news media) and moving toward the individual.

Power to the People...True.

Each person is becoming more powerful every day, thanks to the internet, web, and blogosphere.

Here's what the New York Times had to say recently. It's a long excerpt that I display here, but it's interesting, and will make you smart about some emerging trends).

It describes how individual consumers are gaining more power and control, as companies are steadily losing nearly all their former control of product and pricing information.

"Just Googling It Is Striking Fear Into Companies"

by Steve Lohr
November 6, 2005


Walmart, the nation's largest retailer, often intimidates its competitors and suppliers. Makers of goods from diapers to DVD's must cater to its whims.

But there is one company that even Wal-Mart eyes warily these days: Google, a seven-year-old business in a seemingly distant industry.

"We watch Google very closely at Wal-Mart," said Jim Breyer, a member of Wal-Mart's board.

In Google, Wal-Mart sees both a technology pioneer and the seed of a threat, said Mr. Breyer, who is also a partner in a venture capital firm. The worry is that by making information available everywhere, Google might soon be able to tell Wal-Mart shoppers if better bargains are available nearby.

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Businesses already feeling the Google effect include advertising, software and the news media. Apart from retailing, Google's disruptive presence may soon be felt in real estate and auto sales.

Google, the reigning giant of Web search, could extend its economic reach in the next few years as more people get high-speed Internet service and cellphones become full-fledged search tools, according to analysts.

And ever-smarter software, they say, will cull and organize larger and larger digital storehouses of news, images, real estate listings and traffic reports, delivering results that are more like the advice of a trusted human expert.

Such advances, predicts Esther Dyson, a technology consultant, will bring "a huge reduction in inefficiency everywhere."

That, in turn, would be an unsettling force for all sorts of industries and workers. But it would also reward consumers with lower prices and open up opportunities for new companies.

Google, then, may turn out to have a more far-reaching impact than earlier Web winners like Amazon and eBay. "Google is the realization of everything that we thought the Internet was going to be about but really wasn't until Google," said David B. Yoffie, a professor at Harvard Business School.


Still, apart from its front-runner status, Google is also remarkable for its pace of innovation and for how broadly it seems to interpret its mission to "organize the world's information and make it universally accessible and useful."

The company's current lineup of offerings includes:

* software for searching personal computer files

* an e-mail service (Gmail)

* maps

* satellite images

* instant messaging

* blogging tools (Blogger)

* a service for posting and sharing digital photos (Picasa/Hello and Blogger Image Uploader)

* specialized searches for news, video, shopping and local information.

Google's most controversial venture, Google Print, is a project to copy and catalog millions of books; it faces lawsuits by some publishers and authors who say it violates copyright law.

Among the many projects being developed and debated inside Google is a real estate service, according to a person who has attended meetings on the proposal. The concept, the person said, would be to improve the capabilities of its satellite imaging, maps and local search and combine them with property listings.

The service, this person said, could make house hunting far more efficient, requiring potential buyers to visit fewer real estate agents and houses. If successful, it would be another magnet for the text ads that appear next to search results, the source of most of Google's revenue.

In telecommunications, the company has made a number of moves that have grabbed the attention of industry executives. It has been buying fiber-optic cable capacity in the United States and has invested in a company delivering high-speed Internet access over power lines. And it is participating in an experiment to provide free wireless Internet access in San Francisco.

In retailing, Google has no interest in stocking and selling merchandise. Its potential impact is more subtle, yet still significant.

Every store is a collection of goods, some items more profitable than others. But the less-profitable items may bring people into stores, where they also buy the high-margin offerings - one shelf, in effect, subsidizes another.

Search engines, combined with other technologies, have the potential to drive comparison shopping down to the shelf-by-shelf level.

Cellphone makers, for example, are looking at the concept of a "shopping phone" with a camera that can read product bar codes. The phone could connect to databases and search services and, aided by satellite technology, reveal that the flat-screen TV model in front of you is $200 cheaper at a store five miles away.

"We see this huge power moving to the edge - to consumers - in this Google environment," said Lou Steinberg, chief technology officer of Symbol Technologies, which supplies bar-code scanners to retailers.

Such services could lead to lower prices for consumers, but also relentless competition that threatens to break up existing businesses.

A newspaper or a magazine can be seen as a media store - a collection of news, entertainment and advertising delivered in a package. A tool like Google News allows a reader or an advertiser to pick and choose, breaking up the package by splitting the articles from the ads. And Google's ads, tucked to the side of its search-engine results, are often a more efficient sales generator than print ads.

"Google represents a challenge to newspapers, to be sure," said Gary B. Pruitt, chief executive of the McClatchy Company, a chain of 12 newspapers including The Star Tribune in Minneapolis and The News & Observer in Raleigh, N.C. "Google is attacking the advertising base of newspapers."

At the same time, Google and search technology are becoming crucial to the health of newspapers as more readers migrate to the Web. As one path to the future, Mr. Pruitt speaks of his newspapers prospering by tailoring search for local businesses, but also partnering with search engines to attract readers.

Within industries, the influence of Internet search is often uneven. For example, search engines are being embraced by car companies, yet they pose a challenge to car dealers.

George E. Murphy, senior vice president of global marketing for Chrysler, said Chrysler buys ads on 3,000 keywords a day on the big search sites: Google, Yahoo, Microsoft's MSN and AOL, whose search is supplied by Google. If a person types in one of those keywords, the search results are accompanied by a sponsored link to a Chrysler site.

Chrysler refines its approach based on what search words attract clicks, and studies its site traffic for clues on converting browsers to buyers. "We've got Ph.D.'s working on this," Mr. Murphy said. "The great thing about search is that you can do the math and follow the trail."

After following a link to a Chrysler Web site, a prospective buyer can configure a model, find a dealer and get a preliminary price. Only dealers can make final price quotes.

Yet with more information on the Web, the direction of things is clear, in Mr. Murphy's view. "It will fundamentally change what the dealer does, because telling people about the vehicle won't add value for the customer anymore," he said. "If dealers don't change, they'll be dinosaurs."

Mr. Breyer, the Wal-Mart board member, watches Google closely in his job as managing partner of Accel Partners, a venture capital firm in Silicon Valley.

These days, he advises startups to avoid a "collision course" with Google, just as he has long counseled fledgling companies to steer clear of Microsoft's stronghold in desktop software.


I'm a Googlephile: I love Google, and I wish them good success.


carrie said...

this is very interesting. thanks

steven edward streight said...

I'm laughing at, and fanning the flames of, the burning down of corporate, governmental, and institutional power hegemony.

The People are Rising Up. I cheer them on. We are wrenching power, information, and control away from The Powers That Pretend To Be, with blogs, Google, and others helping us.

The internet is the worse thing that ever happened to evil regimes, corrupt religions, and immoral corporations.