Larry Page and Sergey Brin founded Google while PhD students at Stanford University. Their research focused on creating a search engine that could find interconnections between pages on the internet. They built PageRank technology to rate page quality and relevance. As Google grew popular for its free search service, it introduced paid listings like AdSense to generate revenue. Google maintained its intellectual capital through human resources improving software, acquisitions expanding offerings, and a 5-step ICM model to identify, map, measure, manage and report on intellectual capital. This allowed Google to become a leading company beyond just search across various products and markets.

1. The Importance of Intellectual Capital
Management (ICM)
Build a Knowledge Factory
By: Fransisca Katherina Rumambi [G1200547C]

2. This is a story of…

3. The Basis of Economy Has
Changed!

4. Let See How Google Did It
Larry Page and Sergey Brin
PhD Students of Stanford University
Research Topic

5. Resources of Organisation
Source: Marr, Bernard, (2008), “Impacting future value: how to manage your intellectual capital’

6. Human Capital: Foundation
GIANT MASS PROBLEM
A lot of information in the internet
but it was not easy to find
HOW TO FIND THE
INTERCONNECTION OF ALL THE
PAGES OF INFORMATION OUT
THERE

7. Structural Capital
BUILT SEARCH ENGINE
• Model on how to find information
in the internet
• Rate the quality and to show the
best quality first
New technology PageRank, where
a website's relevance was
determined by the number of
pages, and the importance of
those pages, that linked back to
the original site.
Building a Knowledge Factory

8. Relationship Capital
Attract a lot of people that want to
define things on the internet
THE USERS are the foundation of
relationship capital
3 combinations in successful knowledge business:
Human, Structural and Relationship Capital

9. Moved to Garage
To Continue Their Work
The search engine
became so widely
popular but IT WAS FREE
There was no money for
them
What Google do next?

10. Got an Idea!
The Rise of Paid Listings
AdSense
Froogle
Google approach for advertising
definitely qualified as a revenue source.
They always innovate with its products
• Google Personalized Search
• Google Analytics
• Project Glass

11. Advertisers add a new category in
Relationship Capital to Google
business model
Over the past decade, Google has
added its human resources to
constantly working to improve the
software

12. Larry Page and Sergey Brin

13. Google: Leading Company
 Since its IPO, Google had launched a flurry of products that expanded
its domain beyond web search such as Gmail, Google Maps, Google
Books, Google Finance, Google Docs, Google Calendar, Google
Checkout, and more.
 Acquisitions of YouTube and DoubleClick had expanded Google’s
presence in online video and display advertising.
 Products like Gmail and Finance, along with personalization features
offered on Google’s home page, moved the company toward portals
like Yahoo! and Microsoft’s MSN.
 Book Search, Maps, and Checkout suggested that Google was entering
the traditional strongholds of e-commerce giants like eBay and Amazon.
 Google’s ad-supported software, including email, calendaring, and
document-management systems, threatened Microsoft’s Office and
Windows offerings.

14. What Google do to maintain their
IC: 5 Steps ICM Model
 Identifying your intellectual capital (the current stocks of intangibles). Interviews, facilitated
workshops, mail/online surveys because IC underpins competencies within an organisation.
 Mapping the IC value drivers. To ensure that the strategy with all its IC value drivers is
integrated and to enable easy communication of the strategy.
 Measuring IC. It can provide us with meaningful information that helps to reduce
uncertainty about IC and enable us to learn about the IC value drivers and its
performance.
 Managing IC. To inform us for decision making, to test and review strategy, to manage risks
associated with IC.
 Reporting IC. To provide information about the intellectual capital of an organization to its
stakeholders. However different stakeholders (investors, analysts, employees) have different
information needs.

15. References
 Edelman, B. & Eisenmann, T. R, (2010), “Google Inc.”. Retrieved 16 January 2013, from
http://brainmass.com/business/other/409895
 Marr, Bernard, (2008), “Impacting future value: how to manage your intellectual capital’.
Retrieved 15 January 2013, from
http://media.journalofaccountancy.com/JOA/Issues/2008/09/MAG IntCapital-Eng.pdf
 Pandia Search Engine News (2007), Google: One Million Servers and Counting”. Retrieved
15 January from http://www.pandia.com/sew/481-gartner.html