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Platform Leadership

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Cusumano, M., “Technology Strategy and Management: The Puzzle of Apple”, Communications of ACM, September 2008, Vol. 51, No. 9, pp. 22-24....

Cusumano, M., “Technology Strategy and Management: The Puzzle of Apple”, Communications of ACM, September 2008, Vol. 51, No. 9, pp. 22-24.
Gawer, A. and Cusumano, M. A., “How Companies Become Platform Leaders”, MITSloan Management Review, Winter 2008, Vol. 49, No. 2, pp.28-35.

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Platform Leadership Platform Leadership Presentation Transcript

  • Platform Leadership
    • Cusumano, M. A. “Technology Strategy and Management: The Puzzle of Apple”
    • Gawer, A. and Cusumano, M. A. “How Companies Become Platform Leaders”
    2009-07-29
    1/ 20
    세미나
  • Contents
    Web Science
    The Puzzle of Apple
    Platform Leaders
    2009-07-29
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    세미나
  • Web Science
    2009-07-29
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    세미나
  • Web Science
    James Hendler et al., “Web Science: An Interdisciplinary Approach to Understanding the Web”, Communications of the ACM, July 2008, Vol. 51, No. 7, pp.60-69.
    Web을 연구 목적으로 하는 학제간 접근
    웹을 연구 목적으로 하고, 웹을 통해 급격히 변화해온 사회와 기술 변화 전반에 대한 문제를 다루는 과학
    Web의 중요성과 영향력을 인식할 필요성
    World Wide Web
    Berners-Lee, T. “Information Management: A Proposal”, March 1989.
    Hypertext(Link), HTML
    Browser
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  • World Wide Web
    사회적 상호작용(Social Interactions)
    Social Machine
    사용자도 컴퓨터 기술을 이용하여 Social System 제작 가능
    Tags: Social Context
    Business 차원의 Web에 대한 연구가 필요
    Platform Leadership
    GeoPlanet Data, Placemaker(Yahoo) vs Google Maps Data API
    Facebook connect vs Google Friend Connect
    Apple’s Macintosh, iPod, iPhone, iTunes and App Store
    Knowledge on the Web
    Reliability of the knowledge
    Vulnerability of using the knowledge
    Web Science
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  • The Puzzle of Apple
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  • Apple, Inc. and It’s products
    Cusumano, M., “Technology Strategy and Management: The Puzzle of Apple”, Communications of ACM, September 2008, Vol. 51, No. 9, pp. 22-24.
    Apple, Inc.
    Founded Steve Jobs and Steve Wozniak in 1976.
    Apple products(“truly great”)
    Macintosh(1984): Graphic User Interface
    PowerBook(1991): Design standard for laptops
    iMac(1998): All-in-one designer PC
    iPod(2001) and iPhone(2007): MP3 Player and Trendsetter
    iTunes(2003): Media service and App Store
    Mac OS X: Operating System
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  • Steve Jobs and Archrival
    Steve Jobs
    Co-founder of Apple, Inc.
    Absent from the company during 1985-1997
    Returned with his other company acquisition
    He created the design culture.
    He hired and supervised the people most responsible.
    His archrival, Bill Gates
    Co-founder of Microsoft.
    Microsoft products(“good enough”)
    MS-DOS
    Windows series
    Office series
    No. 1 billionaire
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  • What is Platform?
    Definition
    A foundation product or key technology in a system like the PC or a Web-enabled cell phone
    It should have relatively open technical interfaces and easy licensing terms.
    Complementary products and services
    External innovations create an ecosystem around the platform.
    Network externalities: The more external firms in the network, the more valuable the platform becomes.
    This dynamic should cause more users to adopt the platform, more complementors to enter the ecosystem, ….
    To tend to evolve into “winner takes all” or “winner takes most” businesses
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  • Platform Battle Grounds
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  • The iPod
    iPod features
    First hard drive MP3 Player(iPod Classic)
    Unique “click wheel” interface
    New touchscreen
    Attracted complementary hardware
    Done better in the market
    A closed system that worked only with the Macintosh and iTunes music warehouse initially.
    Opening up the iPod software to play some other music formats
    Using proprietary digital rights management(DRM)
    Introducing an iPod in 2002 compatible with Windows and then a Windows version of iTunes in 2003
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  • The iPhone
    iPhone features
    A cell phone
    Digital media player
    Web-enabled handheld computer
    A remarkable user interface by touch and virtual keyboard
    Done better in the market
    Disabled to run applications not built by Apple originally
    Disabled to operate on cell phone networks not approved
    Hackers found the way to unlock the phone.
    A black market pressure persuaded Apple to open iPod.
    Enabled to connect to corporate email servers
    Enabled to use it on any service network
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  • Great Platform or Great Product
    “Great platforms” first and “great products” second
    Makes the products are used most.
    Fleeting nature
    Apple won the battle for digital media players
    But iPhone is likely to disappear in favor of smartphones.
    iPhone still trails smartphones by a wide margin.
    Platform leader
    Must work with industry players
    Must be willing to make technical and design compromises
    Pursued product and platform leadership simultaneously
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  • Platform Leaders
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  • Ecosystem and Platform-leader wannabes
    Gawer, A. and Cusumano, M. A., “How Companies Become Platform Leaders”, MITSloan Management Review, Winter 2008, Vol. 49, No. 2, pp.28-35.
    “Ecosystem” of innovation
    Platform leader and companies supplying complements
    As more users adopt the platform and its complements, the value of their innovations are greatly increased.
    “Platform-leader wannabes” problems
    Their strategies fail to tackle adequately both the technology and business.
    “Coring”
    “Tipping”
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  • Platform vs. Product
    Product
    largely proprietary and under one company’s control
    Platform
    a foundation technology or service that is essential for a broader, interdependent ecosystem of businesses
    requires complementary innovations to be useful, and vice versa
    no longer under the full control of the originator, even though it may contain certain proprietary elements
    Microsoft(Example)
    Apple(Example)
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  • “Coring”
    Definition
    The set of activities a company can use to identify or design an element
    And make this element fundamental to a technological system as well as to a market
    How to Create a New Industry Platform
    Google: Coring in Internet Search
    Qualcomm: Coring in Wireless Technology
    EMC’s WideSky: Coring Challenges
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  • “Tipping”
    Definition
    the set of activities or strategic moves that companies can use to shape market dynamics
    And win a platform war when at least two platform candidates compete
    How to Win Platform Battles By Building Market Momentum
    High-definition media storage
    HD-DVD(Toshiba) vs. Blu-ray Disc(Sony)
    Betamax(Sony) vs. VHS(JVC)
    Windows(Microsoft) vs. Macintosh(Apple)
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  • Platform Leadership and Company Size
    Linux: Tipping the Market for Web Server Operating Systems
    Tipping in the Internet Browser Market
    Microsoft Internet Explorer vs. Netscape Navigator
    Platform Leadership and Company Size
    Coring is a possible option for any company because technology and architectural leadership do not directly depend on the size of the company.
    Platform Leader requires a compelling vision of the future as well as the ability to create a vibrant ecosystem
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  • Fine. 
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