mdlbear: blue fractal bear with text "since 2002" (Default)
Techdirt: Google's Real Innovation: Recognizing The Power Of Complementary Goods
Of business pundits these days, I think the one I enjoy reading the most is Nicholas Carr -- and it's not because I agree with him, but because he's the most challenging to understand when I think he's wrong. Carr is amazingly smart, often sifting through a lot of hype to pull out some really key and important insights and making them clear and easy to understand. What's amazing, however, is that all too often, he takes all of those really great insights and jumps to a totally ridiculous and unsupported conclusion. As I've pointed out before, as you read what he says, you agree with all those really smart insights, and if you're not careful, you can accidentally agree with the conclusion he draws -- even if it's not supported by all those insights. His latest is an article where he argues that Google is not a company worth emulating when it comes to innovation because it has a unique business model that is really based on providing complementary goods (basically almost any use of the internet) to encourage more sales for its key good (ads). The fact that Google uses complementary goods to help make its core business bigger is a key insight that too few people have expressed clearly, so it's great to see Carr call that out.
There's a lot of good analysis on Techdirt.

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