Google’s innovation vs. Motorola’s process orientation
Just in case you were out hibernating and missed out on the big news, Google (NASDAQ: GOOG) announced on Aug 15, 2011 that they have entered into an agreement to acquire Motorola Mobility Holdings, Inc. (NYSE: MMI) for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.
Now lets step back and think of the cultures that is embodied by these companies. If we think of Google, it brings up an image of an technology innovation major, dedicated, sincere and one who is eager to friend us. If Google decides to develop something today, we will keep hearing bits and pieces of how they are progressing and then one day they just announce of their new product or service. Whether it fails or pass, but most of us do comment on the new product or service fairing against “Google standards”, which means that they do have high standards.
Lets focus on Motorola now, this piece may have different image in different minds. For me, it reminds of again a technology major where innovation happens but once a few years. It also strikes a dedicated and since image but when it comes to reaching out or communicating to me or users, it would draw a blank. They haven’t been really engaging the consumers, atleast to what I have seen. Talking about standards, I do feel they have high standards. But it seems they struggle a lot to come out with new ideas and seem like a blast from the past.
These differences in images in the latter part of the above attributes is where a big gap is staring Google. Google is a company of people who are passionate to create, they are young and do not really care if they do not get it right in first try. Motorola on the other hand does not count flexibility anywhere in its strength. They are process oriented, professionals who want to ensure right processes is followed, even if it takes longer or is arduous. Typical to process-oriented people, they genuinely believe that some core principles cannot be compromised away and that sometimes nothing is worse than something. So if they cannot get a handset with a robust public response, then they are better off with not launching that product.
So the question comes will Motorola change under the new management? Will Motorola become more
flexible, focusing on the Android platform or will the entity be as separate as told by Google spokesman to Wall Street Journal’s reporter, “As we have said repeatedly, we intend to run the company as a separate entity.”
But a former Motorola CEO, who said that updating Motorola’s company culture was his most difficult career challenge, believes that Motorola is going to have to change, or else. “They are going to have to stand alone and win in the marketplace, or Google will shut them down and just focus on the patents.”
Whether Motorola really changes or will continue as a separate entity without any culture osmosis from Google is the question which will get only get unfolded with time.