How the innate physical properties of different technologies influence the strategy and structure of the organizations implementing the technologies, the sequel to Design Rules- The Power of Modularity.
How the innate physical properties of different technologies influence the strategy and structure of the organizations implementing the technologies, the sequel to Design Rules- The Power of Modularity.
In Design Rules, volume 2, Carliss Baldwin offers a comprehensive view of the digital economy by putting forth an original theory that explains how technology shapes organizations in a market economy. The theory claims that complementarities arising from the physical nature of technologies can be arrayed on a spectrum ranging from strong to very weak. Two basic types of technologies in turn exhibit different degrees of complementarity between their internal components. Flow production technologies, which are found in steel mills and auto factories, specify a series of steps, each of which is essential to the final product. In contrast, platform technologies, which are characteristic of computer hardware, software, and networks, are modular systems designed to provide options.
Baldwin then investigates the dynamics of strategy for firms in platform ecosystems. Such firms create value by solving technical bottlenecks-technical barriers to performance that arise in different parts of the system as it evolves. They capture value by controlling and defending strategic bottlenecks-components that are (1) essential to the functioning of some part of the system; (2) unique; and (3) controlled by a profit-seeking enterprise. Strategic bottlenecks can be acquired by solving technical bottlenecks. They can be destroyed via tactics such as substitution, reverse engineering, bypassing the bottleneck, and enveloping a smaller bottleneck within a larger one. Strategy in platform ecosystems can thus be viewed as the effective management of technical and strategic bottlenecks within a modular technical system.
By:
Carliss Y. Baldwin
Imprint: MIT Press
Country of Publication: United States
Dimensions:
Height: 178mm,
Width: 114mm,
Weight: 567g
ISBN: 9780262049337
ISBN 10: 0262049333
Pages: 590
Publication Date: 24 December 2024
Audience:
General/trade
,
ELT Advanced
Format: Hardback
Publisher's Status: Active
Table of Contents 1: Introduction: The Changing Economic System 2: Foundational Approaches to Understanding Technical System 3: A New Theory: The Spectrum of Complementarity 4: A New Method: Value Structure Analysis 5: One End of the Spectrum: Flow Production Processes and Systematic Management 6: The Mass Production Paradigm 7: A Different Paradigm: Platform Ecosystems 8: Moore’s Law, the Semiconductor Industry, and High Rates of Technical Change 9: The Rise of Open Platform Ecosystems: The IBM PC 10: Capturing Value in Standards-based Platform Ecosytems: Wintel 11: Capturing Value in Modular Production Networks: Dell 12: The Globalization of Modular Production Networks 13: Capturing Value in Digital Exchange Platform Ecosystems: Google and Apple 14: Software is Different 15: The Origins and Rationale for Open Source Projects and Communities 16: Open Source and Corporations 17: How Technology Shapes Organizations
Carliss Y. Baldwin is William L. White Professor of Business Administration, Emerita at Harvard Business School. With Kim Clark, she authored Design Rules, Volume 1- The Power of Modularity (MIT Press).