Jerry Yang difficult to cure Yahoo "internal injury"

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Another shot of "greatest second act" roared, this time is Yahoo co-founder Jerry Yang. June 19 News, Yahoo announced, Jerry Yang as CEO, Yahoo's current board chairman and CEO Terry Semel (Terry Semel) will be the company's Non-executive board chairman and senior management Team advisor. There are already several famous "greatest second act" in the IT industry, such as Dell founder Michael Dell, Apple founder Steve Jobs, and Gateway CEO Tede Vitte (Ted Waitt). History shows that the emergence of "greatest second act" also marks the company has encountered a difficult problem.

What is Jerry Yang's toughest problem? Is it technology?

From the outside, the decline in performance and the poor performance of the stock market is Yahoo's most criticized two major factors. In the past 1.5, the company's share price has evaporated by nearly 30%, which is the direct reason for Semel to step down. Yahoo's quarterly report, released in April this year, looked at the company's net profit of $142.4 million trillion and 10 cents a share, down 11% per cent. And Google's first-quarter net profit of 1 billion U.S. dollars, earnings per share of 3.18 U.S. dollars, an increase of 69%.

"Yahoo Hurt" is the direct creator of Google, as a pioneer of search, Yahoo has lost market share to Google, according to comscore survey data, Google's market share has reached 47.5%, and Yahoo's market share fell to 28.1%. More crucially, Yahoo has also lost to Google in consumer psychology. Google's IPO 3 years ago, its market value is only 23 billion U.S. dollars, less than Yahoo's 39 billion U.S. dollars. 3 years later, Google's market capitalisation is close to $160 billion trillion, more than four times times that of Yahoo.

in fact, the invasion of Google, Yahoo is the earliest awakening.

As early as 2001, Yahoo, when the reorganization of the architecture, highlighted the search business. November 2002 Yahoo spent 235 million dollars to buy the search technology and Google-comparable Inktomi, mastering the search technology of the core. In July 2003, Yahoo bought a web search service company, overture, 1.63 billion dollars. Yahoo has a series of large layout, Microsoft and other IT giants to react. Yahoo, although in search of "foresight", but in concrete action is "faltering." Yahoo lost in 2006 when it competed with Microsoft for a deal to provide ads to Facebook. When Google buys YouTube for 1.65 billion dollars, Yahoo is left behind again.

compared with the technology, performance of this "traumatic", Yang's real thorny problem is the lack of innovation, organizational bloated such "internal injuries."

In an internal memo published earlier by Yahoo's senior vice President Brad Gallinghaus, Gallinghaus a blunt critique of Yahoo's "internal injury" and called it "Peanut Butter strategy": Yahoo lacks clear ownership and accountability, makes the company a bureaucracy, and Yahoo lacks decisive decision-making, " We lose our passion. " Critics believe that with nearly 12,000 employees, many different products and departments, Yahoo has become a huge and complex enterprise.

Yang's "internal injury" is not a solitary example, those greatest second act CEO is encountered this internal injury, this is the Silicon Valley enterprises are difficult to escape the black spell, that is how to overcome the inertia of innovation. Jeffrey Moore, a Silicon Valley research innovator, has a famous "market development lifecycle", which includes several phases: 1. The lifecycle of technology applications. This includes the early market period, the gap period (the technology's future hangs in the balance), the bowling alley (which was recognized by pragmatists in one or more of the gaps), and the tornado period (which proved to be really useful in the market for a tornado). 2, the road period. This means that the super telling of the product is over in the long run. 3, fault and life end period. In the case of Moore, when it comes to the road, where growth slows and homogenization increases, disruptive innovation, applied innovation, and product innovation will lose their impact because their increased competitive advantage is not worth the resources they consume. Yahoo is an example of entering the "Boulevard period".

Jerry Yang, when he founded Yahoo 12 years ago, is to break all the spirit of innovation, even in Yahoo is called Purple blood, but Jerry Yang did not turn this innovative spirit into a continuous innovation of organizational ability, this is the founder's responsibility, but also the founder of the problem. And Google beat Yahoo, challenge Microsoft, not only in technology and performance, but also in its innovation in the "internal strength", for example, Google in order to avoid bureaucracy, has been advocating small team research and development model, it has designed a 20% of free innovation time.

Jerry Yang "Greatest second act" aims at Sergey and Larry Page (Google's two founders), who are the same Stanford computer experts. However, the hope of pinning on Mr Yang seems to be unreliable, because one of the causes of Yahoo's "internal injuries" is Jerry Yang. As Skett Kesler Scott Kessler, a standard and poor analyst, is critical: Investors will be disappointed because Mr Yang will not make much of a difference.