Umair Haque / Bubblegeneration
umair haque  


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Saturday, August 21, 2004

How Not to Analyse Tech Strategy, pt 341

"..."Search is not a business," said Allen Weiner, a research director for Gartner Inc., a market research firm. "It's a gigantic horizontal technology which they will have to continue to throw hundreds of millions of dollars at to make it strong."

...Weiner said Google should think of itself as a media company, saying Yahoo began a significant turnaround when it hired Terry Semel, a former Hollywood executive." I really need to say anything? Search is not business, nor a technology - it is, most fundamentally, an economy. That's what business models are built on: economics. Telling Google to Yahoo is like icing on the cake - who's been calling the shots in this industry, and forcing rivals to scramble to respond?

"..."They'll say to their dying day they are a technology company," Elliott said. "But 98 percent of their revenue comes from advertising." "

This the coup de grace. Note that this is exactly what consultants and analysts spent the 90s telling the TV and radio industry ('you're really in the ad industry'). Look where it's left them - with vital points massively exposed, and in fatal strategy decay. Why? Because it ignored the fundamental reality of their businesses: not alienating viewers and listeners in the name of ads is exactly what drives ads.

-- umair // 11:40 PM // 1 comments


You are entitled to your opinion, but to dismiss my analysis out of hand is short-sighted and self-serving. Search is not a business--I stand by my comment. Search is a business if you are IBM and investing millions in Web Fountain and can charge customers $100,000 a pop to apply search analytics to their problems. Google is a solution in search of a business.
// Blogger Allen // 9:28 PM

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