When the Innovation Machine Sputters

Google's systematic release of new products as beta versions keeps things innovative and fresh and allows Google to outpace its competition. But even the best things can come to an end. Leaving products in beta for too long, especially if doing so results in Google's keeping decidedly mediocre products online, can be risky. Google might have plenty of reasons for waiting to remove a weak beta product; after all, if even a weak product satisfies a few hundred thousand users, why improve or remove it?

By releasing early but not finishing products, Google tips its hand to its competitors, revealing market needs and opportunities that other companies will try to fill. As a result, Google loses a competitive advantage ...

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