Episode description

Alberto Savoia was Google’s first engineering director and is currently Innovation Agitator Emeritus, where, among other things, he led the development and launch of the original Google AdWords. He is the author of The Right It: Why So Many Ideas Fail and How to Make Sure Yours Succeed, a book that provides critical advice for rethinking how we launch a new idea, product, or business, and gives insights to help successfully beat the law of market failure: that most new products will fail, even if competently executed.

He is a successful serial entrepreneur, angel-investor and an expert practitioner in pretotyping and lean innovation. He is based in Silicon Valley where he teaches his uniquely effective approach to innovation at Google, Stanford. He has also taught and coached many Fortune 500 companies, including Nike, McDonald’s, and Walmart, as well as the US Army.

“So, as much as I would love to take the credit, Google Ads was a big team, and I was fortunate to be brought in as a director that managed the team. And I would also like to say the idea of attaching ads to searches, anybody could have had it. In fact, it was the most obvious thing. Just like on television, if you watch a car race, then it makes sense to have ads about cars. So I think the reason it was so successful is because innovations and new ideas, they compound. They build one upon the other. So the reason why ads was so successful for Google is because search was so successful for Google. So when you have search and you have billions of people coming in every day, maybe every hour, and searching all kinds of things, you have this treasure trove of data. And more importantly, guess what? If you have billion searches per day, you know how many experiments can you run? Countless, right? And so Google is very famous for doing a lot of A/B experiments. That's how we collect the data. You think, if we make the ads, let's say short and long, they will be more effective than if we make them, tall and long.

Well, how do we know which one will work better? You can do a lot of experiments. So what actually enabled Google to be so successful and to grow is this mental attitude, which by the way, is the same one that Amazon and some of these really successful technology companies have, of doing a lot of experiments on small samples and continually refining their data based on that.

If you're dealing with a lot of people, you can do those experiments and that's why these companies are successful. The sad thing or what happens with companies that do not operate in that way, that do not try to operate on data and do all of those experiments, those are the ones that are left behind. Innovation is experimentation."

www.albertosavoia.com
https://harperone.com/9780062884671/the-right-it

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