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Google Inc. is one of the top companies in the world. They have excelled in how they manage their digital and non-digital supply chain.
This week Google, now re-named Alphabet, became the most valuable company on earth besting Apple for at a least one day. No matter what happens the rest of this week, Google is sending notice that its place in the world of business strategy is at the head of the table (O'Marah, 2016).
They did this by creating an internal supply chain the sources, constructs, and plans Google’s data centers. Similar to their counterparts Facebook, Amazon, and Microsoft, Google drives innovation back up for the existing value chain. The company demands the best off-the-shelf servers and network equipment to ensure reliable connectivity and speed for users. To meet such high demands and standards, Google assembles and designs the components for use to their own specifications as part of a continual effort to supersede consumer response time and expectation. This leads to high advertising revenue and ongoing success in an area that is highly competitive.
With all this said, Google Inc. is having problems in one area in what has become its main eye sore. That is YouTube. Advertisers have pulled out multiple times because they see the website as not advertiser friendly. They believe videos that have negative subject matter are being attached to their paid advertisements. Because of this, YouTube has had to generate new algorithms that have led to YouTube creators not receiving as much revenue as they had before.
The Google-owned video service in June enacted stricter policies this summer for YouTube content that will be ineligible for advertising. That was part of Google’s crackdown on ads being served in offensive videos, after hundreds of marketers suspended YouTube spending earlier in the year after it came to light that their ads were appearing in videos espousing hateful rhetoric (Spangler, 2017).
To circumvent these problems and improve the overall service, YouTube has decided to hire new employees to review videos rather than letting the algorithm mainly do it. This is a step up for Google. However, the quality of reviews depends on the quality of hires. While the company does not simply wish to hire reviewers for...
Therefore, the humans are part of the digital supply chain as they evaluate what content is advertiser-friendly on the website.
YouTube is a global website owned by a global company. What may seem appropriate in one country may not be appropriate in another. For example, if one video has women dancing provocatively, this may be allowed for American advertisers but not for advertisers in Saudi Arabia for example, that practice Islam. Therefore, the humans hired to review videos must be understanding of the culture and the advertiser. This is where supply chain talent management comes in hand.
Supply chain talent management is an integral part to any businesses and acts as a source of competitive advantage. “The current literature on supply chain talent has identified supply chain talent management as a source of competitive advantage for growing firms…corporates have failed to see shortage of supply chain talent as one of the important source of supply chain risks” (Dubey & Gunasekaran, 2015, p. 257). Supply chain talent, especially in this scenario is integral to success. Google Inc. is one of the most successful businesses today. However, if one of their off-shoots, YouTube, begins to perform poorly due to mismanagement of resources and talent, they may end up in a negative situation in the future. That negative situation is profit loss.
BPR or Business Process Re-engineering is an important aspect to running a successful business during difficult times. The BPR recommendation on supply chain management and understand the most importance resource, humans, as the driving force behind success for mainly digital companies like Google. The first thing to discuss is their location, facilities, and capacities.
Google exists as a global company. They have offices on every continent. Their headquarters is in Mountain View, California and serves as the foundation for the company. If Google wants to improve their services, they need to expand their offices in South America and the Middle East where potential growth could spur additional need for support. One researcher notes how from the management perspective, managers must understand and know…
References
Dubey, R., & Gunasekaran, A. (2015). Supply chain talent: the missing link in supply chain strategy. Industrial and Commercial Training, 47(5), 257-264. doi:10.1108/ict-11-2014-0073
Gonzalez-Loureiro, M., Dabic, M., & Kiessling, T. (2015). Supply chain management as the key to a firm’s strategy in the global marketplace. International Journal of Physical Distribution & Logistics Management, 45(1/2), 159-181. doi:10.1108/ijpdlm-05-2013-0124
Kumar, V., Amorim, M., Bhattacharya, A., & Garza-Reyes, J. A. (2016). Managing reverse exchanges in service supply chains. Supply Chain Management: An International Journal, 21(2), 157-165. doi:10.1108/scm-12-2015-0467
O'Marah, K. (2016, February 5). Google and the future of supply chain. Retrieved from http://www.scmworld.com/google-and-the-future-of-supply-chain/
Spangler, T. (2017, October 27). YouTube Says Videos Flagged as Advertiser-Unfriendly Will Drop by 30%. Retrieved from http://variety.com/2017/digital/news/youtube-demonetization-advertiser-unfriendly-improvement-1202601115/
Tornjanski, V., Marinkovic, S., & Jancic, Z. (2017). Towards Sustainability: Effective Operations Strategies, Quality Management and Operational Excellence in Banking. The AMFITEATRU ECONOMIC, 19(44), 1-75.
Trang, N. T. (2016). Design an Ideal Supply Chain Strategy. Advances in Management, 9(4), 20-28.
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