Google and Newspapers: Misclassifying Google Is Risky

September 22, 2009

I enjoy most of the GigaOM information. I found the write up “Google’s Plan to Become The Media Company” thought provoking but off the mark. My view is that classifying Google as a media company is one of those confident assertions that seem accurate but are only partially correct. In fact, the error is akin to classifying a tiger cub as a house pet. Sure, the young cub might learn some manners, but as Roy and Siegfried learned, the tiger often has a different idea about what it is; namely, a wild animal capable of ruining an act and a life. If you don’t remember, Roy and Siegfried, here is a useful reminder of the consequences of an erroneous classification. (Warning: not for the faint of heart.)

Google is an application platform, a point I made in my 2005 monograph, The Google Legacy. That research study is germane today. I amplified my analysis of Google’s technology in two subsequent studies, pointing out that Google’s technical open source information supported my assertion that Google was a disruptive force in such business sectors as enterprise software, financial services, and commercial publishing, among three or four other business sectors. The importance of this point was mocked openly by telecommunications executives when one of the consulting firms for which I work as an advisor trotted me around to review Google’s telephone inventions in 2006. I wonder how many of those executives are laughing now? Google is not just a disruptive force in the telco space, the company is in a position to give Apple a run for its money in the broader mobile device sector. This idea is probably not too amusing for Apple. In fact, Google teamed up with Sony to get some steroids in its distribution and content arm for the coming dust up.

image

Wild animal or pet? Source: http://www.wamajama.com/wamajama/wp-content/uploads/2008/09/siegfried_roy_tiger_1_r.jpg

Now back to the GigaOM write up.

Here’s the problem. I agree that Google will have even greater disruptive impacts on the media sector. But media is just one business sector that Google will jostle. The author believes that defining Google as a media company sums up that wild and crazy bunch of physicists, mathematicians, computer scientists, and smart folks. That’s a very big mistake. The reason is that a media company draws a ring around Google  and says, “Here  be the dragon.” Wrong. The circle identifies one of Google’s dragronettes. Seeing Google as a dragonette leads to the misperception of Google as a dragonette breeder. A person involved in online retail could take the media company definition to heart. That person might then overlook what the Google is doing with its financial back office system. Sure, Checkout is visible, but it’s a weak sister compared to eBay’s PayPal or the Amazon machine. Or, is it? Kevin Kelleher, like those telco executives, would not ask the question, “What is Google?” Heck, Google is a media company, maybe a next generation outfit like Hanna Barbera Studios or the Peoria Journal Star.

Get that classification wrong and you may — no, strike that – will be blindsided as Google uses its platform to probe, disrupt, and exploit a broader range of market sectors. In short, those who misclassify run the risk of seeing the tiger up close and personal as Roy and Siegfried did. The results may not be for the squeamish.

Stephen Arnold, September 22, 2009

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