This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Google DeepMind's Business Model is so successful?

Get all the answers


Google DeepMind’s Company Overview


Google DeepMind, a subsidiary of Alphabet Inc., is a world-leading artificial intelligence (AI) research lab based in London, UK. It was founded in 2010 and later acquired by Google in 2014. DeepMind's mission is to push the boundaries of AI, developing programs that can learn to solve complex problems without being taught how to do so. It is renowned for creating the AI program "AlphaGo," which defeated a world champion Go player in 2016, marking a significant milestone in AI development. DeepMind also applies its research to real-world challenges, working on projects in healthcare, energy efficiency, and scientific discovery. Business Model: DeepMind operates under a research-focused business model. The company is dedicated to advancing the field of AI through rigorous scientific investigation. The primary focus is on building safe and useful AI or contributing to the broader societal understanding of AI. DeepMind has a unique approach to AI research, combining the best techniques from machine learning and systems neuroscience to build powerful general-purpose learning algorithms. The company also collaborates with other research institutions and shares its breakthroughs with the public to contribute to the global AI research community. Revenue Model: As a subsidiary of Alphabet Inc., DeepMind's revenue model is somewhat integrated into the larger business structure of its parent company. While DeepMind itself does not generate direct revenue, it contributes significantly to Alphabet's overall income through its advancements in AI technology. These advancements are utilized across various Alphabet businesses, including Google, to improve products and services, such as search algorithms, YouTube recommendations, and Google Assistant. This, in turn, helps Alphabet generate revenue through advertising, subscriptions, and other monetizable services. Additionally, DeepMind also has potential revenue streams in sectors where it applies its AI research, such as healthcare and energy.

https://deepmind.google/

Country: England

Foundations date: 2010

Type: Subsidiary

Sector: Technology

Categories: Data and Analytics


Google DeepMind’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, provides access, fun/entertainment

Functional: integrates, connects, informs, quality, variety


Google DeepMind’s Related Competitors



Google DeepMind’s Business Operations


Data warehouses:

A data warehouse (DW or DWH), sometimes referred to as an enterprise data warehouse (EDW), is a computer term that refers to a system used for reporting and data analysis. It is a critical component of business intelligence. DWs are the centralized repository for data that has been integrated from one or more separate sources. They keep track of both data and information and generate analytical reports for skilled professionals throughout the business.

Collaborative production:

Producing goods in collaboration with customers based on their input, comments, naming, and price. It represents a new form of the socioeconomic output in which enormous individuals collaborate (usually over the internet). In general, initiatives based on the commons have less rigid hierarchical structures than those found on more conventional commercial models. However, sometimes not always?commons-based enterprises are structured so that contributors are not compensated financially.

Digitization:

This pattern is based on the capacity to convert current goods or services into digital versions, which have several benefits over intangible products, including increased accessibility and speed of distribution. In an ideal world, the digitalization of a product or service would occur without compromising the consumer value proposition. In other words, efficiency and multiplication achieved via digitalization do not detract from the consumer's perceived value. Being digitally sustainable encompasses all aspects of sustaining the institutional framework for developing and maintaining digital objects and resources and ensuring their long-term survival.

Cross-subsidiary:

When products and goods and products and services are integrated, they form a subsidiary side and a money side, maximizing the overall revenue impact. A subsidiary is a firm owned entirely or in part by another business, referred to as the parent company or holding company. A parent company with subsidiaries is a kind of conglomerate, a corporation that consists of several distinct companies; sometimes, the national or worldwide dispersion of the offices necessitates the establishment of subsidiaries.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Corporate innovation:

Innovation is the outcome of collaborative creativity in turning an idea into a feasible concept, accompanied by a collaborative effort to bring that concept to life as a product, service, or process improvement. The digital era has created an environment conducive to business model innovation since technology has transformed how businesses operate and provide services to consumers.

Data as a Service (DaaS):

Data as a Service (DaaS) is a relative of Software as a Service in computing (SaaS). As with other members of the as a service (aaS) family, DaaS is based on the idea that the product (in this instance, data) may be delivered to the user on-demand independent of the provider's geographic or organizational isolation from the customer. Additionally, with the advent[when?] of service-oriented architecture (SOA), the platform on which the data sits has become unimportant. This progression paved the way for the relatively recent new idea of DaaS to arise.

Ecosystem:

A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Platform as a Service (PaaS):

Platform as a Service (PaaS) is a class of cloud computing services that enable users to create, operate, and manage apps without the burden of establishing and maintaining the infrastructure usually involved with designing and developing an app.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.

Licensing:

A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Open innovation:

A business concept established by Henry Chesbrough that inspires firms to pursue out external sources of innovation in order to enhance product lines and reduce the time needed to bring the product to the market, as well as to industry or release developed in-house innovation that does not fit the customer's experience but could be used effectively elsewhere.

Skunkworks project:

A skunkworks project is one that is created by a small, loosely organized group of individuals who study and develop a project with the primary goal of radical innovation. The terminology arose during World War II with Lockheed's Skunk Works project. However, since its inception with Skunk Works, the phrase has been used to refer to comparable high-priority research and development initiatives at other big companies that include a small team operating outside of their regular working environment and free of managerial restrictions. Typically, the phrase alludes to semi-secretive technological initiatives, such as Google X Lab.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.