Session 7 digitalization and platform strategy
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The document discusses lessons learned from the success of the iPhone. It argues that the iPhone succeeded not because it was the best phone, but because Apple adopted a platform strategy rather than a traditional product strategy. A platform strategy focuses on creating an ecosystem of third-party applications, services, and partners. The document outlines some of the key design challenges in developing a successful platform, including incomplete design, control over the core and periphery, managing heterogeneity, and allowing for evolution over time.
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Session 7 digitalization and platform strategy
- 1. IT and Platform Strategy lessons learned from iPhone © copyright 2008, youngjin yoo
- 2. © copyright 2008, youngjin yoo
- 3. world largest “mobile device” manufacturer © copyright 2008, youngjin yoo
- 4. There are many better phones. But none of them copied its success. Why? © copyright 2008, youngjin yoo
- 5. © copyright 2008, youngjin yoo
- 6. 200,000 © copyright 2008, youngjin yoo
- 7. © copyright 2008, youngjin yoo
- 8. inherited iTunes eco-system © copyright 2008, youngjin yoo
- 9. © copyright 2008, youngjin yoo
- 10. what is the secrete of its success? © copyright 2008, youngjin yoo
- 11. it is NOT a phone © copyright 2008, youngjin yoo
- 12. multiple meanings © copyright 2008, youngjin yoo
- 13. © copyright 2008, youngjin yoo
- 14. © copyright 2008, youngjin yoo
- 15. © copyright 2008, youngjin yoo
- 16. © copyright 2008, youngjin yoo
- 17. © copyright 2008, youngjin yoo
- 18. © copyright 2008, youngjin yoo
- 19. © copyright 2008, youngjin yoo
- 20. © copyright 2008, youngjin yoo
- 21. © copyright 2008, youngjin yoo
- 22. © copyright 2008, youngjin yoo
- 23. © copyright 2008, youngjin yoo
- 24. © copyright 2008, youngjin yoo
- 25. © copyright 2008, youngjin yoo
- 26. © copyright 2008, youngjin yoo
- 27. © copyright 2008, youngjin yoo
- 28. from things to actions © copyright 2008, youngjin yoo
- 29. from products to service © copyright 2008, youngjin yoo
- 30. value is not in the product © copyright 2008, youngjin yoo
- 31. value is co-created in action © copyright 2008, youngjin yoo
- 32. re-thinking innovation strategy © copyright 2008, youngjin yoo
- 33. a layered architecture of digitalized product Contents Layer Service Layer Network Layer Logical transmission Physical transport Device Layer Logical device OS Physical machinery
- 34. strategic choices © copyright 2008, youngjin yoo
- 35. 1. specialized appliance © copyright 2008, youngjin yoo
- 36. closed vertical © copyright 2008, youngjin yoo
- 37. higher integration © copyright 2008, youngjin yoo
- 38. price-performance improvements © copyright 2008, youngjin yoo
- 39. 2. service strategy © copyright 2008, youngjin yoo
- 40. de-coupling of device and service © copyright 2008, youngjin yoo
- 41. Kindle as service © copyright 2008, youngjin yoo
- 42. meaning mash-up © copyright 2008, youngjin yoo
- 43. data pulverization © copyright 2008, youngjin yoo
- 44. 3. platform strategy © copyright 2008, youngjin yoo
- 45. what is a platform? © copyright 2008, youngjin yoo
- 46. a raised level surface on which people or things can stand, usually a discrete structure intended for a particular activity or operation (Oxford English Dictionary) © copyright 2008, youngjin yoo
- 47. something that others can run their applications and services on © copyright 2008, youngjin yoo
- 48. a family of products sharing same parts (cars) © copyright 2008, youngjin yoo
- 49. introducing variety (shopping mall) © copyright 2008, youngjin yoo
- 50. allowing generativity (PCs and Internet) © copyright 2008, youngjin yoo
- 51. has three elements © copyright 2008, youngjin yoo
- 52. high variety periphery low reusability interface low variety core high reusability © copyright 2008, youngjin yoo
- 53. platform = core + interface © copyright 2008, youngjin yoo
- 54. complementarity vs. uniqueness © copyright 2008, youngjin yoo
- 55. key challenges © copyright 2008, youngjin yoo
- 56. growing a pie © copyright 2008, youngjin yoo
- 57. cutting the pie © copyright 2008, youngjin yoo
- 58. how do you extract value? © copyright 2008, youngjin yoo
- 59. requires third-party partners © copyright 2008, youngjin yoo
- 60. eco-system © copyright 2008, youngjin yoo
- 61. product strategy vs. platform strategy © copyright 2008, youngjin yoo
- 62. open vs. closed © copyright 2008, youngjin yoo
- 63. features vs. enablement © copyright 2008, youngjin yoo
- 64. fixed vs. generative © copyright 2008, youngjin yoo
- 65. key design issues © copyright 2008, youngjin yoo
- 66. 1. design © copyright 2008, youngjin yoo
- 67. deliberately incomplete design invites new entrepreneurs © copyright 2008, youngjin yoo
- 68. perfect incompleteness © copyright 2008, youngjin yoo
- 69. © copyright 2008, youngjin yoo
- 70. generative platform © copyright 2008, youngjin yoo
- 71. harnessing the creative power of others © copyright 2008, youngjin yoo
- 72. 2. control © copyright 2008, youngjin yoo
- 73. architectural control point © copyright 2008, youngjin yoo
- 74. what is above and below © copyright 2008, youngjin yoo
- 75. do we control all components? © copyright 2008, youngjin yoo
- 76. internal and external modules © copyright 2008, youngjin yoo
- 77. economic appropriation traditional mobile periphery operators Apple iPhone Google Andriod Symbian core size of market © copyright 2008, youngjin yoo
- 78. 3. heterogeneity © copyright 2008, youngjin yoo
- 79. tipping effect © copyright 2008, youngjin yoo
- 80. economy of scale: size © copyright 2008, youngjin yoo
- 81. economy of scope: heterogeneity © copyright 2008, youngjin yoo
- 82. translation of technical incompleteness into social heterogeneity © copyright 2008, youngjin yoo
- 83. unbounded innovation © copyright 2008, youngjin yoo
- 84. 4. evolution © copyright 2008, youngjin yoo
- 85. what if we want to share core? © copyright 2008, youngjin yoo
- 86. Wintel = shared core platform © copyright 2008, youngjin yoo
- 87. iTunes Closed Core © copyright 2008, youngjin yoo
- 88. platform is for evolution © copyright 2008, youngjin yoo
- 89. even core can evolve © copyright 2008, youngjin yoo
- 90. Apple’s biggest challenge © copyright 2008, youngjin yoo
- 91. the tyranny iTunes + hardware © copyright 2008, youngjin yoo
- 92. 5. identity © copyright 2008, youngjin yoo
- 93. the history of the phone © copyright 2008, youngjin yoo
- 94. © copyright 2008, youngjin yoo
- 95. © copyright 2008, youngjin yoo
- 96. © copyright 2008, youngjin yoo
- 97. © copyright 2008, youngjin yoo
- 98. © copyright 2008, youngjin yoo
- 99. © copyright 2008, youngjin yoo
- 100. © copyright 2008, youngjin yoo
- 101. © copyright 2008, youngjin yoo
- 102. © copyright 2008, youngjin yoo
- 103. © copyright 2008, youngjin yoo
- 104. what are you designing now? © copyright 2008, youngjin yoo
- 105. NTT DoCoMo © copyright 2008, youngjin yoo
- 106. phone 67% e-mail 100% web 67% © copyright 2008, youngjin yoo
- 107. life style infrastructure © copyright 2008, youngjin yoo
- 108. never ending journey © copyright 2008, youngjin yoo
- 109. Apple Computer Inc. to Apple Inc. © copyright 2008, youngjin yoo
Editor's Notes
- Apple controls very small portion of software and hardware, mostly for digital copyright protection. all the design was outsourced -- even the choice of color and manufacturing. In fact, the entire MP3 circuit board was designed and manufactured by HK-based company.
- iPod, iTunes and iMac convergence picture here
- iPod, iTunes and iMac convergence picture here