That's true. What they need is what they had started doing, i.e. breaking down Google into Alphabet and letting some companies within the conglomerate act like startups.
Why was this effort unsuccessful? Perhaps they were unable to get rid of middle management? I have had lengthy discussions with employees from several of their companies, e.g. Calico, and that seemed to be the case. This article only reinforces my view.
If you can't innovate at the base level of app design .... how do you have any hope of innovating for AI apps that require research/engineering/product/marketing collaboration?