The self-professed mission of the search engine major, Google, is to systematize the information in the world. But the same company famous for excellence in engineering is still attempting to resolve the very human issue of how to systematize itself.
Almost 2 Years ago, Larry Page, co-founder of Google, declared that the tech major might be remade as Alphabet, a parent company whose arms will comprise Google and a series of unrelated pursuits in sectors such as self-driving cars, healthcare, and urban planning.
This news cheered the Wall Street. Earlier, those riskier businesses were knobbed into overall financial outcome of Google. Sponsors might now see performance of the company independent of its supposed “Other Bets,” a diverse compilation of 11 businesses. They comprised (1) Nest, a maker of Wi-Fi enabled thermostats, (2) Calico, a company that tends to prolong the lifespan of human, and (3) X, a secretive research lab of Google.
Alphabet’s best management also targeted to drive the accountability by employing Chief Executives to lead each of the Other Bets. Only a handful of people in this constellation of businesses by Google had ever held this title before.
But so far, Alphabet has been unsuccessful to display that it can change its Other Bets to businesses from experiments with the impact, reach, and money-making ability of Google’s fundamental advertising and search operations. Interviews with 2 dozen previous Alphabet employees and executives disclose an organization struggling with how much resources and time Other Bets is worthy of in the hunt of productivity.
In the quarter one, which ended on March 31, 2017, the businesses lost a total $855 Million, which is on top of a combined $3.6 Billion loss in 2016. All together, Alphabet made $90.3 Billion in 2016 in returns. Google’s stake of that income was $89.5 Billion, whereas its operating revenue of 2016 was $27.9 Billion.
The early days of Alphabet have witnessed more trimming than growth of its holdings. Alphabet has skinned back plans for Google Fiber, which offers quick Internet service in 10 metro regions. This month, Alphabet decided to trade robotics firm Boston Dynamics to SoftBank Group Corp., the Japanese multinational bank.
Clearly, Google faces difficulty in organizing itself with Alphabet.