Google is one of the leading company nowadays in the field of internet communication, the connection between google and other social media such as YouTube are immense. Through time google created an cyber space that allow individuals to have the liberty to using key-word searching tool to seeking for the information swiftly, at the meantime, google has created a unique business model compare to other company and its also become the encyclopedia of the world.
Google started with two Stanford PhD students who led the company to the most profitable and innovative position in the world in about 10 years (BATTELLE, 2006).As the theme of Stanford University, page and Brin chose the classification of web search engine results (Sugano J, Eduard G & Mariane F, 2009). For some people, the topic may sound abstract or esoteric, but everyone involved in the search at the time focused on it.
How does Google works? Source: Youtube
Gerard Salton is regarded as the father of modern search. In the 1960s, he developed the Information Retrieval System of Mechanical Analysis and Text Retrieval System (SMART) at Cornell University (Sugano J, Eduard G & Mariane F, 2009). Since then, software engineers have worked with librarians and document experts to develop software to quickly find scientific information stored in databases containing tens of thousands of books and articles.
Some automated librarians work by indexing documents in subject areas, describing them with keywords, and compiling them in a database called a thesaurus (not confused with synonyms and antonyms reference books). Using these programs, users can perform complex research using Boolean operators (Sugano J, Eduard G & Mariane F, 2009).
Google want to fully automate the process by having the computer compare the requested word with the word in the document (Sugano J, Eduard G & Mariane F, 2009). In these programs, such as Liexis Nexis of Mead Corporation, the computer displays all documents that appear in the requested keyword to the user, and the user can weigh them by correlation (Sugano J, Eduard G & Mariane F, 2009). To prevent too many garbage results in the form of unrelated documents, engineers created tools for sorting: users can ask the machine to display only documents after a specific date, two keywords appear in nearby documents or documents that meet other standards (Sugano J, Eduard G & Mariane F, 2009).
The elegance and conciseness of the latter method arouses the interest of data processing experts, who do not need to query the database manually (Sugano J, Eduard G & Mariane F, 2009). Anyone can enter a keyword, so there is no need to prepare and index documents. It is hoped that files can be simply digitalized and stored in databases for search (Sugano J, Eduard G & Mariane F, 2009). That means, when searching websites, users can find a large number of documents containing the words they search, but there are too many unrelated results. With the development of Web, the quality of search results will decrease as more pages are combined and indexed. As Page and Brin wrote in their 1998 paper entitled “Analysis of Large Hypertext Web Search Engines,” spam often eliminates any results that users are interested in (Sugano J, Eduard G & Mariane F, 2009). In fact, as of November 1997, only one of the four major commercial search engines found itself (returning to its search page to respond to its name in the top 10 results). ” (Page L & Brin S, 1998)
To cope with this failure, early search engines were wobble between the two solutions. Some limit the size of the database, because adding pages results in worse results (Giard B, 2009). Others, like Yahoo! The method based on the concept of lexicon was adopted: they created a well-designed system to classify and rank websites according to their topics(Giard B, 2009). The webmaster who wants to register the website is told to use the keyword to specify its category (Giard B, 2009). Once submitted to Yahoo, experts say ontologists will check the relevance of the description (Giard B, 2009).
Thesaurus search method brings great problems. For example, suppose you type the word horse in the search box, and then press the ENTER key to display the result. In response, you will see all kinds of search categories, such as zoology, sports, art, etc. Visiting the branch of zoology, you will find websites about animals. Click on the sports track, and you will see webpages about equestrian and betting (Giard B, 2009). The art category will take you to the website of equestrian painting. The food section will show the French horse meat formula. In politics, you may find the roar of British activists complaining about French conspiracy to eat his pets. Yahoo employs hundreds of workers to analyse and rank web pages in terms of lexicon, language, and culture. Obviously, the cognate word method is worse and more time-consuming than the automatic search method, but the automatic search is more expensive and complex (Giard B, 2009).
Unsatisfied with the current search status, Page and Brin searched and found a way to automatically classify the pages found in the search according to their relevance or rank (Giard B, 2009). Of course, they are not the only ones who are trying to find solutions to problems.
For example, search engines like DirectHit try to categorize websites according to their cumulative uses (Giard B, 2009). If someone pays attention to the links of a site and stays for a long time, the site is considered more relevant than sites that are not frequently and/or briefly visited (Giard B, 2009). That’s how Lycos and HotBot rank today (Giard B, 2009).
The cumulative use of ranked pages has some advantages compared with the previous methods, but this method also has inherent shortcomings. First of all, cumulative usage is not reliable (Giard B, 2009). Using today’s tabbed browser to open multiple pages at the same time, users may open the page for a long time without actually reading it, thus skewing the server statistics, making it the most unreliable and, worst of all, meaningless. Like DirectHit developers, Page and Brin believe reputation is the best way to measure the quality and relevance of a website (Giard B, 2009). But instead of measuring a website by the number and duration of clicks, they study the nature of scientific research and the importance of citation (Giard B, 2009).
Google can be seen as a new enterprise prototype, because its management has made many innovations in human resources, production, customer relations and, most importantly, in controlling its production and operation. Google’s approach is its own, but it also borrows from other technology companies, which work directly or indirectly with Stanford University, the co-founders Alma mater (Giard B, 2009). The rapid development of the company, the personality of the co-founders, their vision, their science and culture, their obsession and the expertise around them all contribute to building this unique business model, which is the way Google does.
As shown in Figure 1, there are 49 nodes and 86 lines. The six core elements of Google’s business model are search service, advertising service, network platform strategy, complementary value network, competing value network and core technology. Figure 2 shows the business mode structure of Google.
Google combines this model with content-related advertising display, where advertising is displayed only when the user’s query matches the keyword chosen by the advertiser in the specified geographical area (Ming-Hone T, Yu-De L, Yea-Huey S, 2011). Google has also decided to let advertisers decide how much they want to pay for each click area (Ming-Hone T, Yu-De L, Yea-Huey S, 2011). Here, economists will recognize the principle of price differentials proposed by engineering economist Jules Dupuit in 1849: “To set a price for a service, don’t base it on what it costs the provider, but instead set the price according to the importance of the service to the user.” (Cossette P, 2002)
Search engine companies have been swaying between offering free services and selling low cost subscriptions a (Ming-Hone T, Yu-De L, Yea-Huey S, 2011). The success of the free service mode is largely due to the cost of subscribing to the exchange a (Ming-Hone T, Yu-De L, Yea-Huey S, 2011). For example, if Internet search is based on paid subscriptions, users must enter some payment information and remember various passwords a (Ming-Hone T, Yu-De L, Yea-Huey S, 2011). In addition to transaction costs, the cost of losing users may actually hinder the development of Internet search tools. By providing free services, large search engines create an atmosphere that encourages rapid growth. An advertising market has been created for companies like YAHOO! Excite, as well as its early competitors who wanted to provide services, could generate revenue by selling advertising space at high prices a (Ming-Hone T, Yu-De L, Yea-Huey S, 2011).
Google’s search tools became very popular in a very short period of time. By 1998, after several months of its establishment, it regularly provided 500,000 searches a day. By the end of 1999, Google had searched about 7 million times a day on average. By the mid 2000, it processed 15 million searches a day (VISE; MALSEED, 2007).
Unlike GoTo, Google’s main goal is not to provide advertising tools, but a search tool that provides the best results for Internet users with advanced algorithms based on the relevance of each site’s content. Essentially, Google replicated the GoTo approach and built an automated self-service model that allows broadcasters to use credit cards to purchase online text announcements. However, unlike GoTo, Google’s natural search results already have ample traffic (results are classified according to the best content), and Brin and Page insist on separating them from advertising results, which is the key difference between Google and GoTo. It was launched as a purely commercial tool (BATTELLE, 2006, P.107). In October 2000, Google launched a new service called AdWords. A notice on the main website publicized the new service: “do you have a credit card? Five Minutes? Publish your announcement on Google today” (BATTELLE, 2006, p.107)”
As a result, AdWords is a service through which Google transmits advertisements on its results page. The important difference is that Google separates the results of publicity from “natural” search results. Figure 1 shows that AdWords is ordered on the right side of the Google search page.
In conclusion, Google’s transform our understanding of the internet. Specifically, the innovation of new business model are still inspire all of the industry of self-service model that benefit from the advertisement showing on the website and efficient searching services such as Adword. People could be able to search information more directly and more reliable, for instance student could be able to find academic resources on Google Scholar. The rank system in Google search engine shortened the time majority people used. Google truly change the traditional way to seeking information by using the smart data collection and searching tool, even professionals can use a phone to search the reliable source on Google. As we all say, if there is a question, “Google it”
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