Ask Better Questions

From the Innovative Thinking Files: Eric Schmidt, CEO of Google, recently published an Op-Ed in the December 1st Wall Street Journal.

In his article, he looks ahead at what will probably be the future of “printed” media – electronic devices hosting customized, intuitive content.  Some of this subsidized by subscription, some by advertising, and some from corporate partnerships.

He deftly transitions to the current free-fall of the American Newspaper industry, and the recent reaction by some to blame Google for their woes.

He points out that Google sends over 1 Billion free clicks a month to printed newspapers.  How much revenue?  Here’s his statement:

The claim that we’re making big profits on the back of newspapers also misrepresents the reality. In search, we make our money primarily from advertisements for products. Someone types in digital camera and gets ads for digital cameras. A typical news search—for Afghanistan, say—may generate few if any ads. The revenue generated from the ads shown alongside news search queries is a tiny fraction of our search revenue.

It’s a great article, and anyone following the transition of media, and the price of attention vs. the price of delivering content, should read the article.

From a strategy perspective, I think this is a bold, genius move by Mr. Schmidt.  This is a positioning strategy, and negotiation tool, and a strong signaling statement roiled into one.

The tone of the article is clearly one encouraging cooperation.  By expressing it it the Wall Street Journal, the signal is clear: We respect journalism, and want to be a part of the solution.  The article clearly defines the partnerships Google is pursuing to accomplish this goal.

What can you learn from this?  Even small business can use signaling to foster “co-opetition” – the art of creating value by recognizing the interdependence with your suppliers, employees, competitors and your customers.

There is a very good book – I highly recommend – called Co-opetition (available here.) Here’s a quote from their website:

The best way to do this will obviously be different for different businesses. But one strategy that Co-opetition emphasizes is working with what we term “complementors.” A complementor is the opposite of a competitor. It’s someone who makes your products and services more, rather than less, valuable. Not surprisingly, the complementor concept is especially relevant to the builders of the Information Economy. Hardware needs software, and the internet needs high-speed phone lines. No one, alone, can, build the infrastructure for the new economy. It’s a whole new system made up of many complementary parts.

Drop me a note if this sparks any questions about your industry, and how you might take advantage of thinking a bit differently, and asking better questions.