Google’s decision to restructure is the strongest signal yet that it intends to be a 21st-century innovator, a bold creator of new products, not simply a harvester of profits from its lucrative search-engine business.
But 20th-century business history offers three ways to think about what Google is up to, embodied in three potential analogues: Berkshire Hathaway, the conglomerate run by Warren Buffett; General Electric, the industrial conglomerate; and ATT, which operated the wildly innovative Bell Labs until 1996.
Google is to become but one (very large, very profitable) subsidiary of a holding company called Alphabet. The other (so far unprofitable) ambitious initiatives Google has taken on (driverless cars, life-extension technology and more) will be separate subsidiaries, as will future shoot-the-moon ventures it buys or builds.
Here’s what each of the three pathways looks like and what they might mean for Alphabet, Google and innovation in the decades ahead.


Article source:
http://www.floridatoday.com/story/news/local/2015/08/15/model-aviation-day-held-cocoa/31796715/