Saturday, July 17, 2010

Google secret sauce

There is lot of argument about enormous power that Google has in organizing and displaying the information on its website. It enjoys tremendous power to make and break online businesses. Through its proprietary algorithm that determines which web pages show up in top spot in its search result, Google can drive lot of traffic to other websites. On other side a slight change in its secret recipe will send entire website into oblivion.


Google considerable power also stirs resentment and doubt over the way it is exploiting its monopolistic power. It has massive control over so many companies that rely on internet for driving sales. Moreover, thinkers have started to worry that Google will directly compete with some of it businesses that it helped to become part of mainstream economy during internet boom such as online shopping sites. Google move into specialized services such as travel are stirring wider concern from online travel websites such as Expedia, Priceline. These services are a part of new approach that company adopted in 2007 known as Universal Search. Online retailers are concerned that Google will favor some of its services over their businesses thus driving away traffic from their websites. So much are the concern that thinkers have coined the term "search neutral" on similar lines as "net neutrality" that is applicable to telecommunication and cable companies. The frustration of the businesses arises mostly due to the fact they have not completely mastered the technique to nail the search technology that drive their sales. In this respect Google search technology is not completely transparent to its users.


I think of the above issues more from different prospective. Google (or other competitors) will loose its relevance in this competitive world if they have to reveal the nitty gritty of their search algorithms. The competitors in this situation will quickly replicate Google technology, reducing the competitive advantage that made its technology command leading position in search. Abuse would be another problem that comes if the search engines disclose their algorithms or if they have to use standardized algorithms. Spammer would use that knowledge to game the system.


As always companies have plenty of arguments to defend its activities and business models. Google argues that its search results are the product of objectives rules for filtering web pages. The further argument is that the main aim of Google search using its own services is that it is quick and provides a more relevant answer to users questions. I can buy the argument as long as I am getting the most relevant results of my search queries and there are no other more relevant results on internet. But this argument is flawed because how can one be sure that there are more relevant results on internet if they keep seeing the results from Google own services.


Furthermore, in my opinion constant changes in search technology are required as long those changes are transparent and don’t cause the complete shift in traffic pattern. The web is more complex than it was ten years ago. New media types such as social networks, tweets, audio streams, and pictures have added to the complexity of the search. In this changed scenario it is important to experiment with the new technology and changes in the search algorithm are warranted to make the search relevant with current times. Another strong argument is that it is these small changes that make Google search different from Bing or Yahoo search. Without these innovations, search will become the commodity creating a disincentive for companies to find new and innovative ways to seek out the best answers on an increasingly complex web.


In summary, businesses need to adjust their expectation of what they expect from Google. Static search technology is not in the interest of business because of dynamic nature web. Moreover, businesses cannot expect Google to open its core technologies for public scrutiny because those technologies are an essence of its survival. Google on the other hand has to walk a fine line in deciding on what services they can offer so that they do not directly compete with businesses that provided the advertising revenues in the past. Moreover, they should actively engage online businesses in teaching how the Google technology works and how to optimize their websites with the new changes. This is essential if Google wants to grow its platform. It remains to be seen if two sides can maintain harmonious relationship.

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