Thursday 3 July 2014

Death knell to Orkut : Blog # 181

Death knell to Orkut


I was reading through an article which elucidated Google’s decision to log out of Orkut permanently.  Isn’t it the largest example of someone missing the bus in recent times? What is more surprising is that an Innovative giant like Google could not identify such a humongous opportunity!


A blog about Orkut, Goodbye to OrkutMany of us began our parallel lives on the social media through Orkut. It still evokes nostalgia when you see that purple circle and a bunch of faces. The scrapbooks,  the albums and the testimonials are soon going to be a  thing of the past. As you login to Orkut one last time, let us look back to see what went wrong.

Orkut was an idea which was ahead of its times. But what is painful for Google is the fact that it was not decades ahead. It came prematurely only a couple of years earlier. We all know about first mover’s advantage but Orkut is the classic case of a first mover’s curse. No one expected Social media to bloom on this large a scale. Google was also caught napping on this new phase of growth that they were gifted with.

There are lessons to be learned from this debacle. To begin with, I think Google as an organization did not nurture this sprouting sapling well. They might have been busy tending to the Sequoias in their garden of innovation. What they failed to understand was the fact that the existing technologies which have grown to become giant sequoias have scaled their heights already. It was in the sapling that is Social media where the potential for enormous growth lay.

Also, when the portfolio becomes large as in the case of Google; it becomes quite a task to devote equal attention to all the tracks. De-risking by putting the eggs in different baskets is one thing and being able to nurture all the baskets equally, quite another thing. It doesn’t matter how huge a corporation you are. There are always competitors waiting in the wings to take off just when you slow down to take a breather.

The spectacular emergence of a competitor is what makes this missed opportunity so conspicuous. Facebook grew by multitudes of leaps and bounds during this time. The organization invested time and dedicated effort to the extent that it has almost attained network externality. Network externality in this context means a state where in a technology becomes so ubiquitous that the popularity of it drives its growth.

All these point towards the necessity of organizations to be agile and alert about the business environment. In the last few years, the rapidness with which defining changes occur around us has become quite frequent. These days, an enterprise might think it is off to take a short siesta but chances of it waking up as a Rip van winkle is quite high.

Having said that, even though we move on to better things, one can’t help but feel some fondness for Orkut. Log in one last time, go through your testimonials, archive your albums, read through the scrap book and give it a fitting adieu. As with other things in Life, let us retain the best memories from that time of life and move on.

Arun Babu

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