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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
      2/ 20
      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
      2009-07-29
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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
      2009-07-29
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    • The Puzzle of Apple
      2009-07-29
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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
      2009-07-29
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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
      2009-07-29
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    • Platform Battle Grounds
      2009-07-29
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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
      2009-07-29
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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
      2009-07-29
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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
      2009-07-29
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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”
      2009-07-29
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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
      2009-07-29
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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)
      2009-07-29
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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
      2009-07-29
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    • Fine. 
      2009-07-29
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