This document summarizes a lecture about network effects and standards-based competition. It discusses what standards are and how they create network effects. Industries can "tip" towards a single standard when one gains widespread adoption due to these network effects. The push for open, public standards is growing. While private standards may be preferable for companies, there are business models that can be successful in more open environments, such as competing on quality or managing "soft" standards.
1. Industry Standard & Dominant Design
2. S-curve and Product Life Cycle
3. Multiple Dimensions of Value, Installed Base and Complementary Goods
4. Sample cases (Video industry)
- VHS vs Betamax
- HD DVD vs Blu-ray
- Netflix vs Blockbuster
- Streaming Wars
5. Tech Giants (Amazon, Microsoft, Facebook, Google and Apple)
1. Industry Standard & Dominant Design
2. S-curve and Product Life Cycle
3. Multiple Dimensions of Value, Installed Base and Complementary Goods
4. Sample cases (Video industry)
- VHS vs Betamax
- HD DVD vs Blu-ray
- Netflix vs Blockbuster
- Streaming Wars
5. Tech Giants (Amazon, Microsoft, Facebook, Google and Apple)
These slides show how the challenges of industry formation depend on the level of complexity in the relevant products/services and whether a critical mass of users/complementary products is needed before growth will continue. While the formation of most new industries depends on when a new technology becomes economically feasible and thus potentially provides a superior “value proposition” to an increasing number of users, industries with complex products/services or that require a critical mass of users/complementary products before growth will continue face additional challenges.
New Services, No Silos: The Next 15 YearsPeter Coffee
The cloud is now the mainstream. Congratulations. That means it’s no longer special to be cloudy. What’s needed now is a re-thinking of what IT does. Let legacy IT incumbents relocate the past century’s silos to the past decade’s server farms. The salesforce.com community is already re-inventing business processes, around the informed and elevated expectations of cloud-native collaborative customers and their connected things. Peter Coffee shares a global perspective on present facts, near-term implications, and the opportunities and challenges of continued leadership above the cloud.
Presented as opening keynote at Midwest Dreamin' 2014 in Chicago by Peter Coffee of salesforce.com inc.
These slides show how the challenges of industry formation depend on the level of complexity in the relevant products/services and whether a critical mass of users/complementary products is needed before growth will continue. While the formation of most new industries depends on when a new technology becomes economically feasible and thus potentially provides a superior “value proposition” to an increasing number of users, industries with complex products/services or that require a critical mass of users/complementary products before growth will continue face additional challenges.
New Services, No Silos: The Next 15 YearsPeter Coffee
The cloud is now the mainstream. Congratulations. That means it’s no longer special to be cloudy. What’s needed now is a re-thinking of what IT does. Let legacy IT incumbents relocate the past century’s silos to the past decade’s server farms. The salesforce.com community is already re-inventing business processes, around the informed and elevated expectations of cloud-native collaborative customers and their connected things. Peter Coffee shares a global perspective on present facts, near-term implications, and the opportunities and challenges of continued leadership above the cloud.
Presented as opening keynote at Midwest Dreamin' 2014 in Chicago by Peter Coffee of salesforce.com inc.
An introductory presentation here for business students outlining the relationship between business strategy and technological environment. The role of technological change as an opportunity or threat is examined as are the drivers of innovation and the process of diffusion.
Top10 Trends Impacting Marketing, Sales and Service The Circuit
Doss Ross offered The Circuit audience a review of the top 10 tech trends that could impact your business -- and some ideas to turn your competition into an encyclopedia salesman.
Doug Ross is Vice President and Chief Technology Officer at Western & Southern Financial Group, a Fortune 500 diversified financial services organization.
The Circuit is the IT Association in the SW Ohio Region since 1994 www.thecircuit.net
A review of the major business models in use in the consumer technology market, and the keys to success for consumer technology companies. This deck is a shortened version of a longer deck which I regularly present to consumer technology companies and which includes analysis and advice on how they should evolve their businesses given the trends outlined in the deck. A customized presentation is one of the paid services Jackdaw Research offers: please contact me if you would like to know more about this.
These slides discuss Network Effects, Platforms, Standards, and Complex Systems. All of these concepts continue to become more important as the digital economy progresses. From Uber to Instacart, and from smart phones to driverless vehicles, these concepts are playing an increasingly important role in the global economy. Their impact is most obvious when one thinks of the winner take all markets that are becoming increasingly common.
Peter Coffee (VP Platform Research at salesforce.com) keynote on harnessing disruption in Mobile, Social, and Big Data technologies using cloud services and predictive tools
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Presentation from ATIA 2017 writter with Joe Reddington on the potential role of open licenced software and materials in reaching and supporting people with a disability.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
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Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
3. What is a standard?
• A standard is a specification that allows for
interoperability
• Eg:
– Cups and lids
– Pistons and engines
– Telephones and sockets
– Speakers and amplifiers
– Hardware and software
4. Outline
• The power of common standards – when (and
why) do industries “tip”?
• Coming soon to an industry near you: the
push for public, open standards
• Making money in an open world
• Standards matter because they create
“network effects,” “tipping,” and “lock‐in”
5. It’s not just about high technology
• Bicycles
• Financial services
• Health care
• Automobiles
7. The pros and cons of common standards
• Pros • Pros
• Cons • Cons
8. Tipping
• Markets “tip” when one standard becomes the
preferred choice of nearly every consumer
– VHS
– Windows on the PC
• Not all markets tip: in some markets multiple
standards co‐exist
– UNIX vs. Windows on servers
– Sony vs. Microsoft in video games
– Palm vs. Windows CE in PDAs
– Multiple standards in cellular phones
9. “Great products” vs. “Platforms”
Great Products
• Consumers base their purchase
decision on the intrinsic value of
the product to them
• What would this be worth to me
if I were the only buyer in the
world?
• Competition on the basis of
features, price etc
Platforms
• Consumers base purchase
decisions on the size of the
(actual or projected) installed
base and/or the (actual or
projected) availability of
network externalities
• How many other people are
likely to buy this product?
• Competition on the basis of the
size of network effects: installed
base, availability of
complementary products etc
10. There are two sources of network
effects
• Direct network effects
– Network size
– Value increases with the number of other individuals who own the same product
• E.g.: Telephones, fax machines
• Indirect network effects
– Complementary products/services
– Value increases with the number of complementary products that are available
• E.g.: CDs, software, VHS/Beta
– Learning by using
– Standards mean customers invest only once in learning to use the technology:
• E.g.: Qwerty keyboard, Autocad
11. With Strong Network Effects Market
Share Itself Creates Value
Value of standards
Driven product
Value to
consumer
Conventional product
Actual (or anticipated) size of the installed base
31
12. If network effects are important,
markets may “tip”
1
Probability
the next
consumer
chooses to
buy A
0 A’s share of installed base 1 28
0
13. 0
20
40
60
80
100
120
0 20 40 60 80 100
Share of sales
Share of installed base
Probability of Purchase vs Share of sales: Betamax
120
16. Strong network effects and high
switching costs may create “lock‐in”
• All consumers might prefer to adopt a
different standard
• But, if it is expensive to switch between
standards (high switching costs) and
network effects are important and costly to
create, then markets may become “locked
in” to particular standards
• “Lock‐in” has dramatic competitive
implications
17. Tipping dynamics differ with the
strength of network effects
Products with
extensive N. effects
Value to
consumer
Products with
“threshold”
network effects
Conventional product
Actual (or anticipated) size of the installed base
18. Will this market tip?
Value to
consumer
Products with
“threshold”
network effects
Actual (or anticipated) size of the installed base
20. What about Blu‐Ray and HD DVD
formats? Did they tip?
zz Did either standard hit a market shareDid threshold?either standard hit a market share threshold?
zz Or did the market just give up onOr HD?did the market just give up on HD?
zz Was this ultimately good forWas consumers?this ultimately good for consumers?
zz Why couldnWhy couldn’’t theyt make amake deal?they a deal?
21. Establishing a standard: Sun
• Sun was founded in 1982 to focus on the
workstation market
• It offered an “open” standard:
– Standard components,
– UNIX operating system
22. Sun (2)
• 1980: Apollo founded
• 1983: Apollo has $18m in sales, dominates the
workstation market ‐‐ uses a proprietary
operating system
• 1983: Sun has $1m in sales, mostly to universities
• Lead customer, Computervision “likes the
technology but doesn’t find the company
credible” ‐‐ “we love your technology but there is
no way you can supply it. Apollo is the standard
in the industry, well financed and well managed.”
• What should Sun do?
25. Establishing a standard
• Introduce a great “product”
• Come to market ahead of
competition • Sounds great, but this
is expensive!• Build expectations
• …and – these days –
• Develop, or encourage the your competitor is trying
to do the same thing!development of,
complementary products and
services
• Give it away: put the standard
in the public sector
26. Thinking about the dynamics of the
strategic space
Access is:
Closed
Standards are owned
and controlled by the
public sector but are not
freely available
E.g. Cryptography
Open
Details of standards are
available to all: no
single firm has control
over how they evolve:
no charge for their use
E.g. TCP/IP, HTML
Public
Control is:
Private
Technology may be
standard, but details
are not made available
beyond the firm
E.g. Landmark Graphics,
IBM 360
Details of standard are
made available to all:
but owner has control
over how the standard
evolves and may
charge for use
E.g. Nintendo, Palm OS
27. In practice these boundaries are
fuzzy:
Access is:
More More
Closed Open
More
Public
IBM
360
Linux
Symbian
CDMAWindows
Control is:
More
Private
28. Conventional logic (1):
What do customers prefer?
Access is:
More More
Closed Open
More
Public
Control is:
More
Private
29. Conventional logic (2):
What do producers prefer?
Access is:
More More
Closed Open
More
Public
Control is:
More
Private
30. How do industries evolve over time?
Access is:
More More
Closed Open
More
Public
Control is:
More
Private
32. Business models in the different
quadrants
The technology is:
Closed Open
Compete on a
Public
level field
Move to “soft”
standards?
Control is:
Encourage the
Private
“ecosystem”
Embrace/extend
Deliver a best in
class system
36. Making money in an open public world
• Competing on a level playing field:
– Do it better, faster, cheaper, in a more integrated
way…
– Leverage “complementary assets”
• Be part of the evolution of the playing field:
– Exploring “soft” standards
37. Exploring soft standards
• A “soft” standard is a specification that is
completely compatible with current public
standards but offers enhanced functionality and
performance
• It offers customers the security of knowing that
they have avoided being “locked in” and an
upgrade path to the public standard
• Plus the functionality and performance of a more
finely “tuned” technology
• May permit significant premium pricing and the
generation of customer loyalty
38. Soft standards in action:
Perf.
Public
standard
“Soft” standard
Time
39. Managing soft standards
• Maintaining customer trust is critical:
– The instant they come to believe you’re trying to lock
them in, there will be trouble
• The technology task is complex. The “soft”
standard must be:
– Better than the public standard
– Compatible with the current version
– Compatible with future versions
• Ensuring that the “soft” technology is embodied
in future generations of the technology may be a
central strategic goal
40. Standards: Conclusions
• Not all markets “tip”, or move to a common standard:
but as network effects (connectivity, complementary
services, tools, products) become more important,
more and more will.
• Getting a private standard established in these kinds of
worlds is likely to be increasingly difficult
• Fortunately, there are ways to make money in an open
world ‐ but managing a “soft” standard requires
sustained attention