Platforms Markets and Innovation

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Platforms, Markets and Innovation
Article · December 2009

DOI: 10.4337/9781849803311
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Annabelle Gawer
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Platforms, Markets and Innovation
Annabelle Gawer (ed.)
2009, Cheltenham, UK and Northampton, US: Edward Elgar

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ii
Table of Contents
Acknowledgements ________________________________________________________v
Notes on Contributors ___________________________________________________ vii
Chapter I. Platforms, Markets and Innovation: An Introduction

Annabelle Gawer ___________________________________________ I-1
PART ONE PLATFORMS: OVERVIEW
Chapter II. The Architecture of Platforms: A Unified View

Carliss Y. Baldwin and C. Jason Woodard __________________________ II-1
Chapter III. Platform Dynamics and Strategies: From Products to Services

Annabelle Gawer __________________________________________ III-1
Chapter IV. The Role of Services in Platform Markets

Fernando F. Suarez and Michael A. Cusumano ______________________ IV-1
Chapter V. How Catalysts Ignite: The Economics of Platform-Based Start-Ups

David S. Evans _____________________________________________V-1
PART TWO PLATFORMS: OPEN, CLOSED, AND GOVERNANCE ISSUES
Chapter VI. Opening Platforms: How, When and Why?

Thomas R. Eisenmann, Geoffrey Parker and Marshall Van Alstyne _________ VI-1
Chapter VII. Platforms Rules: Multi-Sided Platforms as Regulators

Kevin Boudreau and Andrei Hagiu ______________________________ VII-1
Chapter VIII. Protecting or Diffusing a Technology Platform: Tradeoffs in

Appropriability, Network Externalities, and Architectural Control
Melissa A. Schilling _______________________________________VIII-1
Chapter IX. Open Platform Development and the Commercial Internet

Shane Greenstein __________________________________________ IX-1
PART THREE PLATFORMS: MANAGEMENT, DESIGN, AND KNOWLEDGE

ISSUES
Chapter X. Outsourcing of Tasks and Outsourcing of Assets: Evidence from

Automotive Supplier Parks in Brazil
Mari Sako ________________________________________________X-1
iii
Chapter XI. Platforms for the Design of Platforms: Collaborating in the Unknown
Armand Hatchuel, Pascal Le Masson and Benoit Weil __________________ XI-1
Chapter XII. Design Rules for Platform Leaders

Stefano Brusoni and Andrea Prencipe ____________________________ XII-1
Chapter XIII. Detecting Errors Early: Management of Problem-Solving in Product

Platform Projects
Ramsin Yakob and Fredrik Tell ________________________________XIII-1
Chapter XIV. The Effect of Technological Platforms on the International Division of

Labor: A Case Study of Intel’s Platform Business in the PC Industry
Hirofumi Tatsumoto, Koichi Ogawa and Takahiro Fujimoto _____________XIV-1
iv
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‘Vertical silos’ (circa 1980)
Sales and Sales and Retail Mail

Superstores Dealers
distribution distribution stores order
Application Application Word

Word Etc.
software software Perfect
Operating Operating
DOS and Windows OS/2 Mac UNIX
system system
33
Computer Packard
Computer Compaq Dell HP IBM Etc.
Bell
Chips Chips Intel architecture Motorola RISCs
IBM DEC Sperry Wang ‘Modular cluster’ (circa 1995)

Univac
Source: "EBQUFEGSPN(SPWF Q
Figure 2.4 The vertical-to-horizontal transition in the computer industry
21/9/09 13:36:10
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1. When is a Platform Architecture Useful?
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2. When Will a Platform System ‘Spill Over’ the Boundaries of a Single

Firm? When Can it be Contained?
"QMBUGPSNTZTUFNDPOTJTUTPGBDPSF JUTDPNQMFNFOUT BOEUIFJOUFSGBDFT

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QSJBCMF JOUIFTFOTFUIBUUIFZDBOOPUCFQSPUFDUFEBHBJOTUEVQMJDBUJPOPS
reverse engineering.
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"QQMF IBT TFFO ɲU OPU UP MJDFOTF UIFN OP PUIFS DPNQBOZ DBO TFMM BO "QQMF
DPNQBUJCMF TZTUFN "MTP OPUF UIBU the Mac BIOS and OS are very tightly
integratedUIF.BD#*04JTWFSZMBSHFBOEDPNQMFYBOEJTFTTFOUJBMMZQBSUPG
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Mcap (1984)

SFTW Pub
Custom Pfg Srv Others
Sys Design Srv INTERNATIONAL BUSINESS
IAICS Segments: MACHINES CORP.
H1 50 TEXAS INSTRUMENTS INC.
518111
511210 INTEL CORP.
Other Srv
V APPLE COMPUTER INC.
100
3341 GOULD INC.–ADR
Data Prs
H2 INTERGRAPH CROP.
541511
541512 150 AUTOMATIC DATA PROCESSING
541519
36
518210 COMPUTERVISION CORP.
532420 Elec Mfg
334111 COMPUTERVISION CORP.
334112 200
334113 TANDEM COMPUTER INC.
334119
334413 Storage Mfg CRAY RESEARCH INC.
250 Terminal Mfg
H3 Other Mfg APOLLO COMPUTER CORP.
Computer Systems: 3341

SHARED MEDICAL SYSTEMS
300 Semiconductor AMDAHL CORP.
ANALOG DEVICES INC.
50 100 150 200 250 300

Value $M
21/9/09 13:36:11
IAICS Segments: Mcap (2005)
E-Shop
H1 Others
454111 ISP
INTERNATIONAL BUSINESS
518111 200

MACHINES CORP.
518112 Web Srch
511210 MICROSOFT CORP.
334611
400 HEWLETT-PACKARD Co.
V SFTW Pub
3341 INTEL CORP.
600
H2 GOOGLE INC.
541511 Custom Prg Srv
CISCO SYSTEMS INC.
541512 800
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518210
532420 1000
Other Srv DELL INC.
334111
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SAP AG–ADR.
37
334113
334119 1200 Elec Mfg EBAY INC.
334412
334413 Storage Mfg APPLE COMPUTER INC.
1400
H3 TEXAS INSTRUMENTS INC.
Other Mfg
1600 PCB
YAHOO INC.
TAIWAN SEMICONDUCTOR
Semiconductor MFG CO. LTD–ADR.
1800 CANNON INC–ADR.
200 400 600 800 1000 1200 1400 1600 1800
Value $M
Source: $:#BMEXJO .(+BDPCJEFTBOE3%J[BKJ QSJWBUFDPNNVOJDBUJPO3FQSPEVDFECZQFSNJTTJPO
Figure 2.5 Layer maps of the computer industry in 1984 and 2005
21/9/09 13:36:11
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3. When Should the Platform Owner Encourage Outsiders to Develop

Complements to the Platform? In Other Words, When Should the
Owner Adopt a ‘Platform Strategy’?
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4. In a Platform Strategy with External Complementors, which

Components of the Overall System Should be Retained and Developed
by the Platform Architect?
*OBOZQMBUGPSNTZTUFN UIFSFBSFUISFFUZQFTPGDPNQPOFOUT UIFDPN

QMFNFOUT XIJDIFYIJCJUIJHIWBSJFUZBOEIJHISBUFTPGDIBOHFPWFSUJNF
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Platforms, Markets and Innovation

Article · December 2009

The user has requested enhancement of the downloaded file.

Annabelle Gawer (ed.)

2009, Cheltenham, UK and Northampton, US: Edward Elgar

Notes on Contributors ___________________________________________________ vii

Chapter I. Platforms, Markets and Innovation: An Introduction

PART ONE PLATFORMS: OVERVIEW

Chapter II. The Architecture of Platforms: A Unified View

Chapter III. Platform Dynamics and Strategies: From Products to Services

Chapter IV. The Role of Services in Platform Markets

Chapter V. How Catalysts Ignite: The Economics of Platform-Based Start-Ups

PART TWO PLATFORMS: OPEN, CLOSED, AND GOVERNANCE ISSUES

Chapter VI. Opening Platforms: How, When and Why?

Chapter VII. Platforms Rules: Multi-Sided Platforms as Regulators

Chapter VIII. Protecting or Diffusing a Technology Platform: Tradeoffs in

Chapter IX. Open Platform Development and the Commercial Internet

PART THREE PLATFORMS: MANAGEMENT, DESIGN, AND KNOWLEDGE

Chapter X. Outsourcing of Tasks and Outsourcing of Assets: Evidence from

Chapter XII. Design Rules for Platform Leaders

Chapter XIII. Detecting Errors Early: Management of Problem-Solving in Product

Chapter XIV. The Effect of Technological Platforms on the International Division of

M2012 - GAWER PRINT.indd 19 21/9/09 13:36:06

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M2012 - GAWER PRINT.indd 21 21/9/09 13:36:06

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M2012 - GAWER PRINT.indd 22 21/9/09 13:36:07

M2012 - GAWER PRINT.indd 23 21/9/09 13:36:07

Platforms and Evolvability

M2012 - GAWER PRINT.indd 24 21/9/09 13:36:07

Different Parts, Same Elephant?

M2012 - GAWER PRINT.indd 25 21/9/09 13:36:07

M2012 - GAWER PRINT.indd 26 21/9/09 13:36:07

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Figure 2.1 IBM’s network in 1990

Design Structure Matrices

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Figure 2.2 Design structure of OpenSolaris

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M2012 - GAWER PRINT.indd 31 21/9/09 13:36:09

M2012 - GAWER PRINT.indd 32 21/9/09 13:36:10

Sales and Sales and Retail Mail

Application Application Word

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Figure 2.4 The vertical-to-horizontal transition in the computer industry

M2012 - GAWER PRINT.indd 34 21/9/09 13:36:10

1. When is a Platform Architecture Useful?

2. When Will a Platform System ‘Spill Over’ the Boundaries of a Single

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