m2012 - gawer print

371

IndexAbbate, J. 241, 242, 243Abernathy, W.J. 78, 192, 345Abreu, A.R. de P. 256, 257, 261, 262absorbing complements, see under

complementary productsAcademy Hills 177ACPI specifi cation 361Activision 92adapters 137−8Adobe 84, 92, 150advertising

new products 103product diff usion via 104products and services subsidized by

84in Roppongi Hills mini-city 179sequential entry in advertising-

supported media 109, 113on social networking sites 119, 122,

123−4, 172−3, 186value creation through 278

aeronautics industryplatform design collaboration in 13,

284, 286, 288, 289, 290, 291, 292, 295, 301, 303−5

scale-based product families in 50supply chain platforms in 53see also aircraft engine industry,

defi ning new internal platforms in

Aggeri, F. 275, 281, 286aircraft engine industry, defi ning new

internal platforms in 14, 306, 301−19

design rules for platform leaders 309−14

achieving successful rewirings: RB211 thrust growth capability 313−14, 315

changes in product domain 14, 311−12

turbofan engine architectures 310−11

unsuccessful rewirings 312−13, 314

discussion and implications: designers’ rules 314−19

implications for practice 317−19Airgo Networks 154, 155airline industry, B2B exchanges for

116Alcatel-Lucent 93Alexander, C. 348Allison, J. 242alumni 122, 181, 182Amazon 71, 72AMD 231, 354American Express 136, 140Anderson, E.W. 86Anderson, P. 192, 201Anner, M. 270, 271antitrust lawsuits 2, 5, 60, 69−71, 145,

152, 225, 239AOL 215, 233Apache 202, 240Apollo 318Apple Computer

containing Macintosh platform within boundaries of 35−8

licensing strategy 140motivation for opening sponsorship

role 142platform strategies for 67, 68third-party applications excluded

by 163Apple iPhone 54, 67, 68, 132, 133, 141,

163Apple iPod 54, 67, 68, 79, 138, 146Apple iTunes 79, 132, 138, 146, 163Apple Macintosh 35−8, 132, 133, 136,

137, 138, 140, 149application niches 173−4

Annabelle Gawer - 9781849803311Downloaded from Elgar Online at 01/18/2022 02:47:24AM

via free access

372 Index

application programmer interfaces (APIs) 173, 223, 225, 238

apprenticeships 309, 313Arbix, G. 256, 270architecture of platforms 7, 19−42

adopting a platform strategy 38−9components to be retained and

developed by platform architect 39−40

containing platform within fi rm’s boundaries 35−8

diff ering concepts of platforms 20−21, 77−8

IBM’s 23, 27, 28, 34, 40, 59−63, 94

incentives for control of 199−200, 212−13, 215

picturing platform relationships 26−34

design structure matrices (DSMs) 7, 20, 29−32, 253, 254

layer maps 7, 20, 32−4, 36−7network graphs 7, 20, 27−9

platform architecture and design rules 22−6, 51, 53, 56, 276

meaning of architecture 22−3platforms and evolvability 24−5,

31, 35, 40, 41similarity of platform

architectures 25−6, 57platform defi ned 7, 19, 22, 82, 221,

276, 277revision of 282−3usefulness of platform architecture

35Argote, L. 195Ariba 115Arief, B. 196arm’s-length pricing 10, 164Armstrong, M. 46, 57, 58, 134, 164,

169Arora, A. 316Arrington, M. 172Arthur, W.B. 192, 194, 201, 281ArvinMeritor 265Aspray, W. 93, 94, 241asset ownership, pattern of 254, 267

relationship between task outsourcing and 53, 252−3, 254−6

evidence from Brazil 12−13, 251−2, 256−67, 268−9, 270

AT&T 203, 228AT&T Wireless 132, 141Atari 163, 185, 206Atari Pong 206Atari Video Computer System (VCS,

later renamed 2600) 206ATMs (automatic teller machines) 139Attewell, P. 81, 95Ault, S. 207Autolatina 260automatic coordination 350automatic teller machines (ATMs) 139automobile insurance 82automotive industry

B2B exchanges in 117meaning of ‘platform’ in context of

77−8platform sharing in 50−51problem-solving in product platform

development in 15, 332−7determining the platform tool-box

335−6searching for problems and errors

336−7shared technology focus 333−4

product modularity in 50, 95, 347scale-based product families in 50service networks in 85−6, 92, 93,

94, 95service revenues in 87supply-chain platforms in 52−3

in Brazil 12−13, 251−71Axelrod, R. 281

B2B (business-to-business) exchanges 114−18

B2C (business-to-consumer) exchanges 116

backward compatibility 10, 143−4, 223Bahia 264, 265, 269Baker, G. 39, 252, 254Bakos, Y. 148Baldwin, C.Y. 22−3, 29, 30, 32, 37,

39, 51, 57, 60, 72, 133, 134, 143, 149−50, 156, 170, 253, 276, 277, 282, 287, 308, 317, 323, 345, 346, 348

Bang & Olufsen 82


via free access

Index 373

bankruptcy 163Barboza, D. 117Barley, L. 149, 150, 154, 155Baseley, H.M. 310, 311Basic Input/Output System (BIOS) 35,

38, 40Bass, F.M. 107Baumgartner, P. 86Bayus, B.L. 193BBN 232Beacon advertising program 124,

172−3, 186Becker, M.C. 53Beitz, W. 284Bell, D. 79Bental, B. 200, 201Benteler 265Berger, S. 346Berners-Lee, Tim 233, 235−8, 240, 244,

245Besen, S.M. 133, 193bicycle drivetrain industry 34Bierly, P.E. 322Billinger, S. 170Billpoint 149Binotto 260biomaterials 13, 273, 274biomaterials industry, platform design

collaboration in 13, 284, 285, 287, 288, 291, 295, 300, 303−5

BIOS, see Basic Input/Output System (BIOS)

biotechnology industry, platform design collaboration in 13, 284, 286, 288, 289, 295, 303−5

Black & Decker 49, 50Blue Macaw project 263Boeing 49, 50, 82, 131, 310Bonaccorsi, A. 202, 203bonuses 253, 254, 255Boston College network 171‘bottom up’ approach to platform

design 279, 282, 289Boudreau, K.J. 39, 58, 131, 133, 134,

142, 149, 164, 165, 173boundary objects 308Boyd, D.M. 119, 126Bradley, S. 149Bradner, S. 242, 243−4Brandenburger, A.M. 34

Brazilian automotive industry, supply-chain platforms in 12−13, 251−71

comparisons and discussion 267−70conclusions 270−71evidence: VW Resende, GM

Gravataí and Ford Camaçari 256−67

framework for analyzing 252−6introduction 251−2

Bremmer, R. 51Bremner, B. 53Bresnahan, T.F. 21, 22, 45, 54, 150,

241, 242, 244, 245, 276, 282BRIC market 15, 366Brinkley, J. 210Bristol Aero Engines 313Brown, J. 104Brown, S.L. 317browsers 150, 211, 214−15, 235, 238−9Brusoni, S. 53, 54, 255, 307, 316, 317,

326, 348, 350Bunn, J. 137Brynjolfsson, E. 148bus 29, 353business applications software, service

versus product revenues from 89, 92

business intelligence software, service versus product revenues from 90, 92

Business Objects 92

Caff rey, R.T. 50Caillaud, B. 57, 58, 124, 164Cailliau, R. 244, 245Campbell, D.T. 24Campbell-Kelly, M. 93, 94Caputo, M. 53CareerBuilder 136Carese 260Carlton, D. 69, 148Caron, P. 285Carpenter, G.S. 80Carpenter, S. 149CarPoint 146Carr, N.G. 100Carroll, J.S. 338, 340Carroll, P. 242Casadesus-Masanell, R. 34, 147, 193,

241


via free access

374 Index

category exclusivity 10, 144, 145−6CD platform 210CDMA technology 68cellular telephony

dual strategy by systems integrators in 67−9, 70

manufacturers participating in standard-setting 155

operating systems in 1, 54partnerships of developed and

developing countries in 368size of installed base 200

centers 104Central Unica dos Trabalhadores

(CUT) 266, 270CERN 236Ceruzzi, P.E. 241Chafkin, M. 126Challenger disaster 318Chau, P.Y.K. 197Chemdex 115, 117, 125Chesbrough, H.W. 55, 141Chiao, B. 281chicken-and-egg problem 21, 99, 101,

123, 149, 181Choi, J. 144, 195Chou, C. 165Christensen, C.M. 345Chrysler K-car 131Church, J. 148, 165, 167Cisco Systems Inc. 21, 71, 85, 87, 93,

94, 147, 231, 232citations 309Clark, D.D. 26, 228Clark, K.B. 20, 22−3, 29, 32, 39, 46, 51,

60, 72, 78, 134, 149, 150, 170, 192, 253, 276, 277, 282, 287, 308, 317, 322, 323, 325, 345, 346, 348

Clements, M. 164, 167Clift, T.B. 322closed interfaces 355−9cockpit design 284, 286, 288, 289, 290,

291, 292, 295, 301, 303−5codifi ed knowledge 348, 350coexistence compromises 153cognitive theory 339Cognos 92cohesion management 281−2Coleco 206collaboration in research projects 309

collaborative platform design, see platform design collaborations

collective learning, management of 281

co-location 255, 269Columbia University 123, 171commoditization 86, 87, 146, 154,

238−9Community Passport 178community source policy 198Compaq 40competition, regulation to enhance

174−5complementary asset appropriation

293complementary processes 24complementary products

absorption of 10, 146−50cross-layer envelopment 149−50effi ciency gains from 146−8governance post-absorption

155−6by Microsoft Windows 146, 149,

200, 214new market viability 149strategic advantages from 148−9

availability leading to adoption of dominant design 200, 201, 205−7, 208

integration services between platform and 82−3

network externalities related to availability of 195−6

number of 77production capability for 209−10selective compatibility with

199−200, 212computer industry

clusters in 19emergence of platforms in 54evolution of platforms in 21, 59−64layer maps depicting changing

structure of 32−4, 36−7non-price instruments in 166platform at system level in 166platform modularity in 94−5, 345services off ered in 81, 93see also mainframe computers;

personal computers (PCs)Concorde 313


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Index 375

constitutive ties 307−8, 309, 313, 315−16

consulting services 79, 80, 81, 82, 83, 91

consumer electronics 13, 273contingent contracts 112converters 137−8Cooke, M. 171Cooper 265cooperation strategy 193−4co-opetition 34coordination management 281−2co-patenting 309co-publications 309copyright protection 198, 199, 224Cordiem 115core

control of 40depiction in design structure matrix

29−30in enterprise platforms 279evolvability of 35, 40importance in literature 13, 274,

276−7in industry platforms 56, 274,

276−7, 280, 292in platforms for platform design

274, 291, 292stable, with emphasis on reuse and

sharing 7, 19, 22, 23, 24, 25, 26, 39, 41

core competencies 212core processes 24coring 8, 65−7, 68−9, 72, 280corporate fi nancial strategy 268−9, 270CorProcure 115Covisint 117Cownie, J. 311, 312, 319CP/M 196Craigslist 113credit cards

governance 157layered structure of industry 150licensing new providers 140‘platform’ applied to 19, 21, 25−6,

78rival platforms 136start-up strategies 111−12transient relationship in market for

39

as two-sided network 134see also payment cards

Cremer, J. 138criss-cross graphs 89−92critical mass 9, 99, 101−2

B2B exchanges failing to reach 114−15, 117−18

in modular cluster innovations 346for social networking 118, 119, 122strategies for reaching 9, 110−14time to reach 114

Crocker, D. 243cross-domain rewirings 309

key individuals in enacting 14, 309, 310, 313, 314, 316, 317−18

successful 313−14, 315unsuccessful 312−13, 314

cross-layer envelopment 149−50cross-platform strategy 21cross-sided learning eff ects 292cross-sided network eff ects 277, 278,

292cultural themes, enforcement of 177currency as a medium of exchange 26customer heterogeneity 108−9customer interaction, innovation

through 81−2, 83customer retention 148customization services 79, 80, 84, 85,

91, 92, 95Cusumano, M.A. 5, 8, 21, 45, 46, 51,

54, 55, 56, 58, 62, 64−5, 71, 72, 77, 78, 79, 80, 83, 84, 87, 94, 124, 131, 133, 137, 140, 150, 151, 164, 167, 170, 188, 202, 209, 241, 242, 244, 245, 276, 277, 278, 279−80, 317, 324, 327, 346, 350

Cyert, R. 342Cyrix 354

D’Adderio, L. 308DaimlerChrysler 117Dalal, D. 277, 279Dalle, J.M. 193, 202Darrow, B. 83data-processing services 81databases, service versus product

revenues from 90, 92dating venues 9, 21, 57−8, 110, 119−22David, A. 283


via free access

376 Index

David, P. 133, 137Davies, A. 309Davis, S. 146, 147, 167Davis, T.P. 322, 338de Laat, P.B. 193DEC 94decomposing complex systems and

problems 326−7, 337, 341, 348, 350

Dedrick, J. 220defi ning new internal platforms 13−14,

306−19in aircraft engine industry 14, 306,

309−19design rules for platform leaders

309−14discussion and implications:

designers’ rules 317−19towards a multi-domain approach

306−9Delga 260, 261delivery precision 328Dell 87demand-side users (end-users) 131, 1

34openness of platform with respect to

9, 132, 133interoperability and 137−40

Demil, B. 192Dertouzos, Michael 237design capabilities 8, 67; see also

specialist component makers, platform strategies for; system integrators

design logic 340design reasoning models 284−5design structure matrices (DSMs) 7,

20, 29−32, 253, 254DeTore, A. 52Devereaux, M. 244DiBona, C. 221, 241diff usion/protection tradeoff 11,

192−215discussion and implications 213−15in increasing returns industries

194−200incentives for protection versus

diff usion 199−200proprietary systems versus ‘open’

systems 196−9

multiple pathways to emergence of dominant design 200−207, 208

availability of complementary goods 200, 201, 205−7, 208

building installed base 200, 201, 203−5, 208

standalone technological functionality 200, 201−3, 208

tradeoff s, resources and incentives 207−13

internal development versus external development 210−13

sole production, sponsored production and collective production 207−10

Digital Research 196Digital Video Disk (DVD) Audio

consortium 210Diners Club 111−12direct network eff ects 104−5, 108direction dependencies 27−9directional problem-solving strategies

14−15, 323, 325, 327, 340, 341divergence process 287division of labour

dependent on market size 62internal platforms allowing 60−61international, see technological

platforms, eff ect on international division of labour

Dizaji, R. 37domain name system 227dominant design, emergence of 11,

192−215discussion and implications 213−15increasing returns infl uencing

194−200incentives for protection versus

diff usion 199−200proprietary systems versus ‘open’

systems 196−9multiple pathways to 200−207, 208

availability of complementary goods 200, 201, 205−7, 208

building installed base 200, 201, 203−5, 208


tradeoff s, resources and incentives 207−13


via free access

Index 377

internal development versus external development 210−13

sole production, sponsored production and collective production 207−10

dominator strategy 38donor networks 181, 182Doran, D. 53Dosi, G. 38, 325Drake, W. 245DRAM price 362, 363, 364Dupuy, C. 244DVD audio standard 210DVD platform 136, 152, 206−7DVD players 349, 368dynamic multiple network approach

306−7

eBay 71, 72, 82, 83, 104, 116, 135, 148−9, 150, 231

eBillMe 110−11economic catalysts 100economic sociology 251Economides, N. 83, 133, 193, 215economies of scale 19, 22, 26, 49, 150,

277, 278, 279economies of scope 22, 26, 49, 146, 148Edmondson, A. 82Edwards, C. 207J.D. Edwards 83effi ciency gains from absorbing

complements 146−8Eisenhardt, K.M. 253, 283, 293, 317,

321, 322Eisenmann, T.R. 21, 45, 46, 55, 58, 67,

77, 78, 79, 83, 131, 134, 137, 140, 145, 146, 148, 149, 150, 152, 153, 154, 155, 156, 158, 164, 275, 277, 280, 295

Elberse, A. 189electricity supply 13, 273Electronic Arts 92, 103Ellison, N. 119, 126email 228EMC 65, 87employee defection 59−60, 61encyclopaedias 225, 231engineering design-in 255engineering design perspective 7, 13,

20, 21, 251, 252−3, 254, 284

combining with organization economics perspective 254−6

Engström, A. 125Enhanced Wireless Consortium

(EWC) 154, 156enterprise resource planning (ERP) 69,

80, 82, 86entry deterrence 139−40entry with signifi cant pre-commitment

investment 109−10Eppinger, S.D. 29, 95, 253, 349Ericsson 93error, concept of 338

distinction between error-solving and problem-solving 339−40, 341

Essner, D. 198, 203Estnation 177European Commission 2, 16Evans, D.S. 21, 45, 46, 57, 58, 100,

102, 108, 112, 113, 125, 131, 134, 150, 324, 327

evolutionary approach to platform design 279, 282, 289

evolutionary perspective on platforms 59−64

from internal platform to supply chain platform 59−61

from supply chain platform to industry platform 62−4

evolvability of platform systems 24−5, 35, 40, 41

design structure matrices showing 31Excite 231external relationships with

complementors 55externalities in multi-sided platforms

165, 166−7, 182, 183, 184, 185, 187

Facebook 1, 54, 118‘Application Directory’ 173−4as regulator 11, 171−4, 184, 185, 186start-up 121, 122−4

Facebook Ads 123Facebook Gifts 123factory commissions 270Fakesters 122Farrell, J. 57, 94, 133, 137, 138, 139,

148, 156, 164, 165, 167, 193, 195, 242, 275, 279, 281, 294


via free access

378 Index

Fath, G. 124Faurecia 265Faust, K. 125Federal Express 136Feitzinger, E. 50FeliCa 149Feller, J. 188, 241Ferguson, C.H. 23, 40, 192, 275, 277,

280−81, 293, 294fi nancial services industry 72Fine, C.H. 150, 255Firefox 144fi rm scope 55Fischetti, M. 244, 245Fisher, F. 72, 81fi xed costs 116, 150Fixson, S.K. 34Fleming, L. 241, 242, 323, 325, 326,

327, 340, 342fl exible work hours 266, 270Flickr 104Força Sindical union 262, 263, 266,

269−70Ford Amazon project 264−7Ford Camaçari 12, 251, 256, 257,

258−9, 264−7, 268, 269, 270Ford EcoSport 264, 266Ford Fiesta 264Ford Industrial Complex 265Ford Motor Company 53, 117, 254,

260Foreman, C. 244Forzley, Marwan 125Foulds, L.R. 325, 326, 342four-degrees-of-separation rule 122four levers of platform leadership 10,

55−6, 58, 164fragmentation of technology platform

11, 193, 203, 208control over 211, 213

Fransman, M. 150free-rider problems 204FreeMarkets 115Friendster 118

start-up 119−22Fudenberg, D. 144fuel-cell automotive technologies 1, 54Fujimoto, T. 322, 345functionality/performance trade-off

51, 53

Gacek, C. 196Gadiesh, O. 87Gallagher, S. 201Gallini, N. 137Galunic, D. 253Gandal, N. 148Gardiner, P. 50Gardner Group 115Garnier, E. 285Garud, R. 141, 192, 197, 201, 203, 211Gates, W. (Bill) 196, 227, 228−9, 245gateways 137−8Gavetti, G. 325, 326, 339, 340Gawer, A. 5, 8, 21, 45, 46, 54, 55, 56,

57, 58, 62, 63, 64−5, 70, 71, 77, 78, 83, 94, 124, 131, 133, 140, 150, 151, 164, 167, 170, 188, 202, 209, 212, 241, 242, 275, 276, 277, 278, 279−80, 282, 294, 317, 324, 327, 346, 350

Genentech 117General Electric 310General Motors 117

Blue Macaw project 263General Motors Gravataí 12, 251,

256, 257, 258−9, 262−4, 267, 268, 269−70

Genie 233genomic technologies 1, 54Gereffi , G. 260Gerhart, J. 24, 40Ghemawat, P. 193Ghosh, A. 51Ghosh, R.A. 202Gibbons, R. 252, 254Gilbert, J. 87Gillies, J. 244, 245Glaser, B.G. 283glyphosate-based herbicides 199GM Celta 263Goldman Sachs 115, 180Google

B2B exchanges featured on 115category exclusivity granted to 144dominance of 3, 87example of industry platform 54platform complementary transient

in 39platform envelopment by 150platform strategies of 65, 67, 68


via free access

Index 379

start-up strategy of 113subsidies used by 84value creation by 278

Google Checkout 150Google Video 101government regulation 77Graduate Management Admission

Test (GMAT) 181Grand Hyatt hotel, Roppongi Hills

177, 178−9Grand Theft Auto 144Granovetter, M. 255−6Granstrand, O. 316Grant, R.M. 309Gray, R. 311Greenstein, S. 21, 22, 45, 54, 55, 133,

142, 150, 241, 242, 244, 276, 282Grewal, D.S. 26grounded theory building 283Grove, A.S. 32, 33, 94, 149Grover, R. 207Gupta, G. 49

Hagiu, A. 21, 34, 48, 57, 58, 112, 124, 125, 133, 164, 167, 188, 189

Halman, J.I.M. 324handheld computing devices 39, 140,

142Handspring 140hard drive price 362, 363Harker, R.W. 312Harreld, J. 82Harris, L. 125Hart, S. 125Harvard Business Review 182Harvard Business School

as regulator 11, 180−83, 184, 185, 186, 188

students on Facebook 122, 171Hatchuel, A. 283, 284Hausman, J. 125Hayward, Keith 313health maintenance organizatons

(HMOs) 134hemp, building with 284, 285, 287, 288,

291, 295, 300, 303−5Henderson, R.M. 45, 54, 57, 63, 70,

131, 133, 134, 150, 151, 164, 167, 192, 209, 212, 241, 242, 275, 276, 277, 282, 294, 325, 345

Herman, K. 150Hertel, G. 193heuristic problem-solving strategies

14−15, 323, 325, 327, 339, 340, 341Hewlett-Packard 49, 50, 85, 87hierarchy of modular architecture

348−9high-defi nition DVD formats 152high-school students on Facebook 172Hill, C.W.L. 201Hitachi 209, 210Hobday, M. 309Holmstrom, B. 252, 255, 269home networking 13, 273, 274Honda 49, 50, 51Honeywell 81Hooker, Stanley 313horizontal governance 156−7horizontal strategies for managing

openness 9, 137−43broadening sponsorship by joint

standard setting 9, 141−3interoperability with rival platforms

9, 137−40licensing new providers 9, 140−41

HR systems 261−2, 263−4, 266, 267−8, 269−70

Hsieh, C. 342Hsuan, J. 52hub-and-spoke structure 27Hussain, F. 244hypertext markup language (html) 235hypertext transfer protocol (http) 235

IAB 226Iansiti, M. 23, 38, 45, 54, 55, 150, 151,

164−5, 346, 350IBM

architecture deployed by 23, 27, 28, 34, 40, 59−63, 94

managing proprietary platform dominance in 151−2

motivation for opening sponsorship role 142, 143

participation in commercial Internet 232, 233

platform design models applied to 282

services off ered by 81−2, 85, 86, 87, 94, 95


via free access

380 Index

IBM Consulting 82IBM PC 40, 196, 221, 222IBM System/360 59−60, 63, 95Imperial College Business School 6implementation services 80, 85increasing returns industries,

protection versus diff usion in 194−200

incentives for protection versus diff usion 199−200

proprietary systems versus ‘open’ systems 196−9

independent software vendors (ISVs) 69

indirect network eff ects 8, 57, 58, 85−6, 105−8, 110, 147

industry dynamics issues 3−4industry platforms 47−8, 54−7, 324

collaborative design of, see platform design collaborations

and innovation in complements 56−7, 64


industry specifi city of services 92−3infl uencers 104, 109, 119initial public off ering (IPO) 157innovation

in complementary marketsdual strategies and 70−71industry platforms and 56−7, 64multi-sided platforms and 57−8widget innovation 173−4

literature on sources of 8, 78in modular cluster industries 345−6openness and 142, 234−40service provision and 81−2, 83

installation services 79, 84installed base, size of 200, 201, 203−5,

208, 214instant messaging 138−9Institute of Electrical and Electronics

Engineers (IEEE) 154, 155, 156, 157

integral product architecture 94, 308, 323, 345, 347

integral technology associated with 348

in mainframe computer industry 94

retained inside the platform 362, 365, 366

integral technology 348quasi-modular architecture products

requiring both modular technology and 348−9

separating technologies in fi nished products into modular technology and 350−51, 352, 366, 367

integration services 82−3, 84, 85, 91, 95Intel Corporation

antitrust lawsuits against 71approach to market leadership 21architectural analysis of platform

business in Taiwan 351−66background of Intel’s platform

strategy 354expansion of Taiwanese

production 359−61platform and change in PC

architecture 354−5, 356, 357price erosion of standardized

components and stability of the platform 362−5

research approach 351−3research design 353−4results from fi ndings 365−6standardization of the PC 355−9

CEO of 32control of IBM’s personal computer

architecture 23, 40, 62−3entry into complementary markets

57involved in ITRS consortium 294managing proprietary platform

dominance in 151Moore’s Law implemented by 170platform extensions by 282, 294special interest group organized by

154, 155standards provided by 222working with complementors 83,

94Intel microprocessors 40, 54, 62−3,

209, 231intellectual property

collaborative platform design and 281, 288

in internal platforms 60, 61


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Index 381

Microsoft’s policy 224rights in Web technologies 236in services 72in shared platforms 153sharing with complementors 55, 57,

209transfer to independent foundation

143interactive coordination 350interests of partners, managing in

platform design collaborations 13, 275, 288−9

interfacesapplication programmer interfaces

(APIs) 173, 223, 225, 238closed 355−9control of 35−8, 39−40, 359crossing points defi ned by 23, 32, 35,

60−61, 95included in architecture defi nition

22−3, 39, 41, 345licensing 355−9stable yet versatile 24−5, 26, 35, 41standardized 355−9, 365

inter-fi rm platforms 25, 324Interfrim 265internal organization 55−6internal platforms 46−52

from internal platforms to supply chain platforms 59−61

see also defi ning new internal platforms

international division of labour, eff ect of technological platforms on, see technological platforms, eff ect on international division of labour

International Technological Roadmap for Semiconductors (ITRS) 284, 285, 288, 289, 290, 291, 294, 295, 302, 303−5

Internetdevelopment of 11−12, 219−45

alternatives to openness 229−34computing platforms compared

with Internet 221−9, 239−40

openness and innovation 234−40overview 240−41

and emergence of services platforms 71−2

value chain for 230−31open questions about 233−4

World Wide Web 233−4, 235−40Internet Engineering Steering Group

(IESG) 226, 229Internet Engineering Task Force

(IETF) 226−30, 235−40 interoperability with rival platforms 9,

137−40intra-fi rm platforms 25, 324, 332Intuit 225invisible college 309ITRS, see International Technological

Roadmap for Semiconductors (ITRS)

Iyer, B. 28

Jacobides, M.G. 32, 37, 54, 149, 169, 170, 275, 278, 280, 293, 295

Jane’s Information Group 319Japan Victor Corporation 79job market, restricting and regulating

183, 184, 185Johnson, S. 101joint standard setting 9, 141−3

in consortia 281for next-generation products 152−5special interest groups (SIGs) and

156−7Joy, Bill 39Jullien, B. 57, 58, 124, 164Jullien, N. 193, 202JVC 137, 209, 210

Kabir, N. 116Kahin, B. 243Kahl, S. 80Kahn, A.E. 169Katsamakas, E. 83, 133Katz, M.L. 57, 77, 82, 133, 137, 138,

139, 140, 164, 165, 167, 193, 194, 195, 201

Kauff man, R. 139Kesan, J.P. 241, 243, 244Kessler, E.H. 322Kester, W.C. 189keystone fi rms 54Kildall, Gary 196Kim, D. 20−21Kirschner, A. 24, 40


via free access

382 Index

Kittner, J. 209Klepper, S. 78Knaup, A. 99knowledge domain 307, 308−9

changes/lack of changes in 14, 312−19

knowledge production and learning in platform design collaborations 13, 275, 287−8, 291−2

Kogut, B. 20−21Konami 180Korzeniewicz, M. 260Kranz, R. 51Krishnan, V. 49, 125Kristiansen, E.G. 201Kulatilaka, N. 20, 140Kumaraswamy, A. 192Kwak, M. 140, 151

labour−management relations 261−2, 263−4, 266, 267−8, 269−70

LaMantia, J. 31Laff ont, J.-J. 169Lakhani, K.R. 175, 193, 202Langlois, R.N. 23, 149, 345latest local version (LLV) 330, 332latest system version (LSV) 328−32layer maps 7, 20, 32−4, 36−7Lazonick, W. 319Le Masson, P. 275Lear 265learning-curve advantages 195, 203Lecocq, X. 192Lee, C. 28Lee, D. 133Lee, H.L. 50Lee, R. 145, 164Lehnerd, A.P. 21, 22, 46, 49, 50, 51, 78,

322, 324Leibs, S. 174Leiponen, A.E. 281lemons problems 163Leonard-Barton, D. 80Lerner, J. 175, 202Lessig, L. 170Levien, R. 23, 38, 45, 54, 55, 150, 151,

164−5, 346, 350Levinthal, D.A. 287, 325, 326, 339, 340Levy, F.K. 195libraries 227, 235, 333

licensing 9, 10, 136−7on expiration of patent or copyright

198−9fees 94, 131, 141, 198motivation for 137, 140−41, 209−10,

211, 212−13in PC industry 94, 137, 140, 198policy for videogames 197, 206problems associated with 11, 141,

192−3licensing interfaces 355−9Liebowitz, S.J. 165, 167Lin, L. 140Lindkvist, L. 322links 27−9, 104Linux 54, 65, 67, 68, 132, 133, 136,

143, 150, 202Lippman, S. 342liquid markets 101Livedoor 180local area network (LAN) equipment

233lock-in 9, 131Lockheed 310, 312logistics 103, 260−61, 265, 266Lombard, Adrian 313Lopez, Ignacio 257−60Lovesey, Cyril 313Lowe, W.C. 242Lucking-Reiley, D. 100, 115, 125Lundbäck, M. 324, 332Lung, Y. 256, 257

Mac BIOS 35, 38Mac Operating System 35, 38MacCormack, A. 30machine tool industry 316Madden NFL 09 (multi-player game)

135Mahajan, V. 104, 107Mahoney, J.T. 23, 94, 253, 345mainframe computers

integral architecture in industry 94services related to 81, 93, 95

maintenance services, see repair and maintenance services

management and design issues 4Mantena, R. 145manufacturing industries 324Mapri-Textron 265


via free access

Index 383

March, J.G. 308, 327, 342Marcus, J.S. 244Marengo, L. 325, 326Margolis, S.E. 165,167market momentum 77marketing capabilities, constraints on

209, 210marketing literature 49marquee customers 108−9, 112−13,

117Marx, R. 256mass customization 49Massachusetts Institute of Technology

(MIT) 237MasterCard 136, 157Matsushita 79, 209, 210mature industries, services in 86−92Matutes, C. 139Maxion 260Mayo Clinic 82Mazda 53Mazzoleni, R. 316−17MBNA 136, 140McCall, J. 342McGrath, M.E. 49MCI 231, 232McNealy, Scott 225Meeker, M. 244Mendelson, H. 133Merges, R. 165Metrik, A. 99Metrowerks 209Meyer, M.H. 21, 22, 46, 49, 51, 52, 78,

117, 275, 276, 277, 279, 322, 324Miami Yellow Pages 135microelectronics industry, platform

design collaboration in 13, 284, 285, 288, 289, 290, 291, 294, 295, 302, 303−5

MicrosoftAnnual Report 16antitrust lawsuits against 2, 5,

69−71, 225, 239approach to market leadership 21control of IBM’s personal computer

architecture 23, 40, 62−3entry into videogame console

market 201, 206, 209innovation policy of 234−5licensing policies of 137, 197−8

managing proprietary platform dominance in 151

market power of 87, 92platform envelopment by 150platform strategies for 64, 65, 67,

68−9resources available to 211, 214services off ered by 85, 86, 225standards provided by 222, 223,

224−5, 240threat from Netscape 238−40working with complementors 83,

94Microsoft Internet Explorer 142, 211,

214Microsoft MSN 138−9, 225Microsoft Offi ce 77, 92Microsoft Windows 1, 54, 92

antitrust lawsuits relating to 2, 5complements absorbed by 146, 149,

200, 214Google positioned to envelop 150licensing policies for 137, 198network eff ects relating to 2−3, 77,

78, 196openness of platform by role 132,

133platform architecture 25, 200Platforms Group to consolidate

eff orts around 21pricing of 151Windows 95 development process

222−3, 235strategy for pervasive standards

224−5, 229−30Microsoft Windows CE/Mobile 68−9Microsoft Windows Media Player 143,

149Microsoft Windows NT 233Microsoft Windows Server 143Microsoft Word 138Microsoft Xbox 67, 136, 197Mikimoto 179Mitsubishi 50−51, 209, 210mobility enhancement 293, 295MobiTV 112modular clusters 19, 23, 32, 33, 345−6,

350modular consortium, VW Resende as

‘pure’ case of 257−62


via free access

384 Index

modular product architecture 94−5, 308, 317, 323, 345, 347

in aircraft engine industry 313−14hierarchy of 348−9and modular clusters 23, 345−6modular technology associated with

348outside the platform 362, 365,

366in PC industry 94, 95, 347platform adoption changing quasi-

modular architecture into 350−51, 355

see also module-based product families

modular technology 348quasi-modular architecture products

requiring both integral technology and 348−9

separation of technologies in fi nished product into integral technology and 350−51, 352, 366, 367

module-based product families 49−50, 59, 63

module boundaries 23, 30−32Monsanto 199Monster.com 136Moore, W.L. 275, 279Moore’s Law 62, 170Mori Art Museum 177Mori Arts Center Gallery 177Mori Building 176, 177, 178, 179, 180,

185Mori Tower 176, 177, 179−80Morita, H. 51Morris, C.R. 23, 40, 192, 275, 277,

280−81, 293, 294Morris, G. 146motherboards made in Taiwan 353−4,

359−61, 365Motorola 140, 155Mozilla Foundation 144MS-DOS 77, 138, 196, 222Mueller, M. 241, 243Mueller, S. 35, 40Muff ato, M. 49, 51Muller, E. 107multimedia, service versus product

revenues from 8, 91, 92

multi-sided platformsarm’s length pricing in 10, 164characteristics of 47−8platform architecture 25−6, 39, 57as regulators 10−11, 163−89

conceptual framework and hypothesis development 166

conclusions 186−8examples in videogame market 163Facebook 11, 171−4, 184, 185,

186Harvard Business School 11,

180−83, 184, 185, 186, 188literature on 164−5multi-sided market failure and

limits of ‘getting the prices right’ 166−7, 184

objectives and effi ciency of regulation 170, 186

regulating access to MSPs 171−2, 184−5

regulating an ecosystem 167−71regulating interactions on the

MSP 185−6Roppongi Hills mini-city 11,

176−80, 184, 185, 188TopCoder 11, 174−6, 184, 185,

186start-ups, see start-ups in multi-sided

platformssubsidies in 83, 85, 100, 118, 167

Murmann, J.P. 19Murphy, K.M. 167MySpace 118, 126

Nair, H. 164Nakamoto, K. 80Nalebuff , B.J. 34, 147, 148Naone, E. 174NASA 318National Science Foundation (NSF)

226, 227, 228, 231, 232, 234Naughton, K. 50NEC 206negative direct network eff ect 105Nelson, R.R. 342Neoforma 115Netcom 230, 233Netscape 21, 142, 150, 231, 234,

238−40


via free access

Index 385

Netscape Navigator 202, 211, 214−15, 238−40

Netscape Portable Runtime 21Netware 233NetWeaver 68, 69, 70network eff ects

consortia decisions depending on 281

cross-sided network eff ects 277, 278, 292

direct network eff ects 104−5, 108dominant players emerging due to

77, 150, 195−6early movers benefi ting from 77,

83−4, 203indirect network eff ects 8, 57, 58,

85−6, 105−8, 110, 147Microsoft Windows subject to 2−3,

77, 78, 196in modular cluster industries 346in multi-sided platforms 10, 57, 58,

105−8, 110, 164, 185externalities resulting from 165,

166−7, 182, 183, 184, 185, 187

Facebook 171, 173, 185Harvard Business School 182, 188Roppongi Hills 176, 185

opening platforms exploiting 9, 39, 131, 140−41, 199

optimal pricing taking account of 274

same side negative network eff ects 277−8

services-related 8, 85−6and technology success or failure

193value to consumers of technologies

characterized by 200−201network graphs 7, 20, 27−9, 104networking software, service versus

revenues in 89, 92new internal platforms, defi ning, see

defi ning new internal platformsNew York Stock Exchange (NYSE)

157next-generation standards 152−5Nguyen, F. 125Nickerson, J.A. 114, 118, 323, 325,

326, 341

nightclubs 113Nightingale, P. 338, 339Nike 260Nintendo 67, 68, 145, 151, 163, 197,

201, 206, 209Nintendo Wii 84, 135, 136Nippondenso Co. Ltd 49, 50Nissan 52−3, 117Nobeoka, K. 51, 78nodes 27, 32, 104

prestige nodes 108−9, 112−13Nokia 65, 67−9, 70, 154, 155Nonaka, I. 348non-modular multi-domain networks

314−15non-pecuniary incentives 175Norwich Union 82notebook PCs made in Taiwan 353−4,

359−61, 365Novell 92, 203, 233novelty, enforcement of 177NTT DoCoMo 149numeric control technologies 316

O’Mahony, S. 143, 241Odell, M. 116Ohashi, H. 164one-sided networks 134online brokerage 155, 157online car buying services 145−6‘only one’ retail policy 179open innovation 55open source arrangements 11, 31, 69,

142−3, 192, 193, 202−3, 211, 220‘open standards’, meaning of 197‘open systems strategy’, meaning of 197open systems versus proprietary

systems 196−9role of openness in Internet

development 11−12, 219−45opening platforms 9−10, 131−58

centralizing governance 155−7horizontal governance 156−7vertical governance 155−6

comparison of openness by role in platform-mediated networks 132−3

conclusion 157−8horizontal strategies for managing

openness 9, 137−43


via free access

386 Index

broadening sponsorship by joint standard setting 9, 141−3

interoperability with rival platforms 9, 137−40

licensing new providers 9, 140−41managing mature platforms 150−57

proprietary platform priorities: dealing with dominance 151−2

shared platform priorities: dealing with stalemates 152−5

meaning of ‘open’ platform 141, 137roles in platform-mediated networks

131−2, 134−7vertical strategies for managing

openness 10, 143−50absorbing complements 10,

146−50backward compatibility 10, 143−4platform and category exclusivity

10, 144−6OpenSolaris, design structure matrix

for 29−31operating logic 340operating systems

IBM PC 40, 196as industry platforms 54Mac 35, 38Microsoft’s dominance of 196service versus product revenues from

8, 90, 91−2option value 38Oracle 80, 86, 92

Project Fusion 82−3Orbitz 136organization domain 307−8

changes/lack of changes in 14, 312−19

organization economics perspective 7, 13, 20, 251, 252−3, 254

combining with engineering design perspective 254−6

original equipment manufacturers (OEMs) 198, 209

OSI (Open Systems Interconnection) 237

outsourcing of assets, see asset ownership, pattern of

outsourcing of management of labour 261−2, 268

outsourcing of manufacturing activities 318

outsourcing of tasks 253, 267evidence from Brazil 12−13, 251−2,

256−67, 268−9, 270relationship between asset

ownership and 53, 252−3, 254−6

Owen, H. 114, 118Oxford English Dictionary 20

Padgett, J. 306, 307, 309Pahl, G. 284Palm 94, 136, 140, 141Palmisano, Sam 82panel meters 50Park, J. 34Park, S.H. 201Parker, G.G. 21, 48, 58, 131, 133, 134,

141, 146, 156, 164, 277, 280Parnas, D.L. 29‘partially open’ technologies, meaning

of 197partitioning of tasks 253, 254Partridge, C. 241, 243passenger cars, integral architecture

of 347patents 196, 197, 199, 224, 226, 309

co-patenting 309path-dependency 212, 269patterning 302Pavitt, K. 309payment cards 54; see also credit cardsPayPal 148−9, 150Pelzer 265Pentium processor 40, 355PeopleSoft 83performance/functionality trade-off

51, 53peripheral components

characteristics of 7, 19, 24, 25, 26, 39, 41

see also complementary productsPerkins, G. 202personal computers (PCs)

architectural analysis of Intel’s platform business in Taiwan, see under Intel Corporation

change in industry architecture following introduction of 34


via free access

Index 387

evolution of platforms in 59−64layered structure of industry 149−50platform modularity 94, 95, 347platforms compared with Internet

221−9, 239−40service provision 95value chain for 231

Philips 206Sony−Philips Super Audio CD

(SACD) audio format 210Phillips, S. 126Phoenix Technologies 40Piazza, M.C. 99Pine, B.J. 49Pirelli 260, 265Pisano, G.P. 54platform

defi nition of 7, 19, 22, 82, 221, 276, 277

diff ering concepts of 20−21, 77−8platform access fees 145, 146platform adoption risk, hedging

against 80−81platform architecture, see architecture

of platformsplatform design collaborations 13,

273−96, 299−305conditions for choosing a platform

for platform design 275, 293−5knowledge production and learning

in 13, 275, 287−8, 291−2literature on designing industry

platforms 276−83collaborative process for platform

design 280−82design process for platform

potential 282−3how to organize collective design

of a platform 279−80main features of an industry

platform 276−8managing interests of partners 13,

275, 288−9multiple case study exploring 283−9

appendix 299−305case descriptions and analyses

285−6common features in collaborative

design process 286−9research methods and data 283−5

as a platform for platform design 275, 290

specifi c features of industrial platform resulting from 275, 295

value creation in 13, 275, 286−7, 291−2

versus platform for product/service development 274, 275, 290−93

platform dynamics and strategies 7−8, 45−72

conclusions and implications for services 71−2

evolutionary perspective on platforms 59−64

from internal platform to supply chain platform 59−61


platform strategies 64−71for entrants 66−7, 68for incumbents 67−71

typology of platforms 46−58industry platforms 47−8, 54−7internal platforms 46−52supply chain platforms 47−8,

52−4‘platform entrepreneur’ model of

platform design 279−80, 295platform envelopment 67, 150, 280,

295platform exclusivity 10, 144−5platform extensions 279, 294platform investments 20platform leader, functions of 222platform leadership, forms of 295platform-mediated networks 277−8

defi nition of 134of platforms for platform design

291, 292roles in 131−2, 134−7, 277

platform outcomes, factors infl uencing 77; see also services, role of, in platform markets

platform potentialdesign process for 282−3preconditions for 64, 280

platform pricing, see pricing strategies in platform markets

‘platform product’ 20; see also product platforms


via free access

388 Index

platform providers 131–2, 135−6accommodating new platform

providers 153−4dealing with dominance of

151−2openness of platform with respect to

9, 132, 133licensing and 9, 10, 140−41

platform regulation 169−71platform renewals 279platform scaling 50platform sharing 50−51platform sponsors 132, 135−7

dealing with stalemates among 152−5

openness of platform with respect to 9, 132, 133

joint standard setting and 9, 141−3

platform strategies 64−71for entrants 66−7, 68for incumbents 67−71

platform technologies 20−21platform thinking 21, 49Platforms Group 21‘plug-compatible’ peripherals 59−60,

63, 83, 147plugfests 226−7Podcaster 163Pogue, D. 101‘pokes’ 119Polyprom 263Porsche 53positive direct network eff ect 104−5Potts, G.W. 86Powell, W. 306, 307, 309power to exclude 169Powertrain 260Prasad, B. 125Pratt & Whitney 310Prencipe, A. 53, 54, 164, 255, 310, 317,

319, 348, 350prestige nodes 108−9, 112−13price competition 34price discrimination 144, 148, 151price erosion of standardized

components 362−4, 365pricing strategies in platform markets

77arm’s length pricing 10, 164

for dominant platforms 151−2manipulation to mediate

externalities 103in multi-sided markets 10, 117, 164,

166−7, 184optimal pricing 274price discrimination 144, 148, 151subsidies 21, 77, 83−5, 87, 140,

167symmetric pricing 117in videogame industry 77, 84, 146

printers 50privacy management 123, 172−3, 185privatization 226, 227, 231, 232prizes 174−5, 184problem, concept of 338−9

distinction between problem-solving and error-solving 339−40, 341

public landscape 15, 323problem-solving in product platform

development 14−15, 322−42in automotive industry 15, 332−7

determining the platform tool-box 335−6

searching for problems and errors 336−7

shared technology focus 333−4conclusion 340−42decomposing complex systems and

problems 326−7detecting errors early 337−40

in search of problems and errors 338−40

problem-solving process 324−5product and system architectures

and platform development 323−4

in telecommunications industry 15, 327−32

decomposing the anatomy 328−30encapsulating and aggregating

functionality 330−32product architecture

defi nition of 308, 345integral 94, 308, 323, 345, 347

integral technology associated with 348

in mainframe computer industry 94


via free access

Index 389

retained inside the platform 362, 365, 366

modular 94−5, 308, 317, 323, 345, 347

in aircraft engine industry 313−14hierarchy of 348−9and modular clusters 23, 345−6outside the platform 362, 365,

366platform adoption changing

quasi-modular architecture into 350−51, 355

product diff erentiation 9, 131, 359, 362, 365

product diff usion 103−4, 106, 107direct network eff ects modifying

105, 108product domain 307, 308

changes in 14, 311−12accompanying variations in

knowledge and organization domains 14, 312−19

product platform development, problem-solving in, see problem-solving in product platform development

product platforms 46−52product-related knowledge 93−4product specifi city of services 92−3product strategy

dual product and platform strategy 67−71

product uncertainty 93−4production capabilities, constraints on

209−10proprietary technologies

availability of complementary goods 205−7, 208

growth of installed base 204−5, 208investment in development 202, 208likelihood of fragmentation of

technology platform 203, 208meaning of 196versus open systems 196−9

role of openness in Internet development 11−12, 219−45

protection/diff usion tradeoff , see diff usion/protection tradeoff

PSINet 230, 231, 232, 233public goods 185

public regulators 169publishing, academic 182Pugh, E.W. 72Pugh, P. 311, 313

Qualcomm 65, 68, 154, 155quality 116−17, 146, 173, 174, 328Quélin, B.V. 215Quinn, J.B. 86

railroads 195Rakuten 180Ramalho, J.R. 256, 257Raymond, E.S. 241RealNetworks 138, 142−3, 149, 150,

280Reason, J. 338Rechtin, M. 51recruitment and training 262, 264, 266,

268Red Hat 67, 84, 136Regibeau, P. 139Reingen, P.H. 104relational ties 307, 308, 309, 313, 316,

318Remon 260Renault 52−3, 117rent from platforms 21

category exclusivity and 146diff usion reducing opportunity for

11, 192−3dominant players in layers

extracting 150opening platform reducing

opportunity for 9, 131, 140−41, 197, 201−2

platform exclusivity and 145proprietary platform providing

opportunity for 142, 151, 196, 199, 202

recovery through licensing 140−41repair and maintenance services 79, 83,

84, 85, 86, 91, 92−3, 94, 95representation schemes 7, 20reputation 181, 202, 252, 308request for comments (RFC) 226−7,

228, 229, 236, 237resets 153resources for internal development

211, 214−15


via free access

390 Index

retail services, Internet-based 71−2reuse of components 19, 22, 23, 24, 25,

49, 51, 53, 60reverse engineering 26, 35, 38, 40Rey, P. 146Rio de Janeiro 257, 269Rio Grande do Sul 262, 265, 269Rivlin, G. 122roadmaps 226, 227, 228, 229, 240Roberts, J. 252, 255, 269Robertson, D. 21, 22, 49, 52Robertson, P.L. 23, 149, 345Rochet, J.-C. 21, 45, 46, 57, 58, 108,

125, 134, 164, 169, 177, 277, 280Rodriguez-Pose, A. 256, 270Rogers, E.M. 346Rolls-Royce 49, 50, 310, 313Rolls-Royce RB211 aircraft engine

project 309−19design rules for platform leaders

309−14achieving successful rewirings:

RB211 thrust growth capability 313−14, 315


turbofan engine architectures 310−11

unsuccessful rewirings 312−13, 314

discussion and implications: designers’ rules 314−19

implications for practice 317−19Roppongi Hills Gate Tower 179Roppongi Hills mini-city, Tokyo 11,

176−80, 184, 185, 188Rossi, C. 202, 203Rothwell, R. 50Roundup herbicide 199Roveda, M. 49Rubbra, Arthur 313Ruffl es, P. 311Rumford, R. 126running code 227, 228, 236Rusnak, J. 30, 42Russell, A.L. 241, 242, 243, 245Rysman, M. 164

Sabbagh, K. 50Sako, M. 53, 252, 255

Salant, D. 146Salehi-Sangari, A. 125Salerno, M.S. 256, 257Saloner, G. 133, 137, 138, 139, 156,

167, 193, 195, 294Samsung 140Sanchez, R.A. 23, 94, 253, 345Sanderson, S. 21, 25, 50, 277Santana, M.A. 256, 257Santos, F.M. 293SAP

dual strategy embraced by 67−8, 69, 70

services off ered by 80, 85, 86, 92Sappington, D.E.M. 169Sarvaryi, M. 124Sasser, W. 78Sawhney, M.S. 21, 49scale-based product families 50Schilling, M.A. 55, 60, 192, 193, 199,

200, 201, 206, 212, 253Schmalensee, R. 100, 102, 108, 112,

113, 125, 131, 134, 148, 150Scientifi c-Atlanta set-tops 136, 137Sculley, A. 100, 115search engines

conservation and variety in 19platform architecture 25, 39start-ups 9, 113

search models 284search space 341, 342second-best outcome 168, 169Sega 201, 206, 209Segaller, S. 241, 242, 244Segrestin, B. 275, 281, 293Selby, R.W. 21, 241, 242selective compatibility 199−200, 212SENAI 262, 266senior engineers, role in cross-domain

changes 14, 313, 317−18separation eff ect of platforms 349−51,

352, 366, 367sequential entry 109services, role of, in platform markets

8, 77−96overlooked in literature 8, 77−8provision of services in platform

industries 92−5role in emergence of product-based

platforms 79−86


via free access

Index 391

enhancing platform value through complementors 82−3

feedback mechanism for platform innovation 81−2

hedge against platform adoption risk 80−81

source of indirect network eff ects 85−6

subsidy side in platform pricing 83−5

role in mature industries: platform markets versus other markets 86−92

services and platform competition 95−6

services in platform industries 79services platforms 51−2, 71−2, 78Shah, R.C. 241, 243, 244Shankar, V. 193Shapiro, C. 39, 77, 82, 104−5, 133, 137,

138, 139, 140, 146, 164, 167, 193, 194, 195, 201, 242, 346

shared technology focus 333−4Sharp 209Sherburne, C. 242Sheremata, W.A. 201Shimano Index System (SIS) 34Shintaku, J. 346shopping malls 19, 21, 25−6, 112−13;

see also Roppongi Hills ‘mini-city’, Toyko

Shy, O. 165Siebel 83Siemens/VDO 260Silicon Valley 345Silver, E.A. 325Simcoe, T. 141, 152, 153, 241, 242, 243,

281Simon, H.A. 26−7, 82, 284, 326, 342,

348, 349Simpson, T.W. 46, 50, 51, 275, 279,

332simultaneous entry of sides 110singles bars 26, 41Sirbu, M. 139SixDegrees.com 118‘smart grids’ 13, 273, 274Smith, G.F. 324, 338, 339social networks

literature on 104

start-ups 118−24background on social networking

118−19Facebook 121, 122−4Friendster 119−22

see also Facebook; Friendster; MySpace

social norms 252, 257, 261−2, 264, 269, 270

social welfare issues 3, 55software products industry, service

versus product revenues in 87, 88, 89−92

solution landscapes 341Sony

challenge from Microsoft 67, 68licensing policy 197module-based product families 49,

50Palm operating system licensed to

140production capability of 209Sony−Philips Super Audio CD

(SACD) format 210sponsorship by 206−7technological functionality of

console 201in VHS market 79, 137, 209

Sony Betamax 137, 209Sony Blu-Ray digital video 206−7Sony PlayStation 103, 134−5, 136, 144,

151, 209Sony PlayStation2 145Sony Walkman 19, 25, 50Sorensen, O. 323, 325, 326, 327, 340,

342special interest groups (SIGs)

156−7specialist component makers, platform

strategies for 67, 68, 70Spiegel, M. 200, 201splintering 152Spore 144SPREAD (Systems Programming,

Research, Engineering and Development) Committee 59

Sprint 112, 232Spulber, D.F. 100, 115, 125, 165stack 32stalemates 152−3


via free access

392 Index


standardized interfaces 355−9, 365standards, see technical standardsstandards-setting organizations (SSOs)

141, 153, 154−5, 156−7, 197, 203, 237

standards wars 152, 153, 197Stanford University 123, 171, 181Starbucks 179start-ups in multi-sided platforms 8−9,

99−126B2B exchanges 114−18basic concepts 103−9

direct network eff ects 104−5, 108indirect network eff ects 105−8product diff usion 103−4, 106, 107role of customer heterogeneity

108−9catalyst framework 100catalytic ignition and critical mass

101−2securing ignition 100−101social networking 118−24

background on 118−19Facebook 121, 122−4Friendster 199−22

strategies for igniting catalytic reaction by solving coordination problems 109−14

basic zig-zag 110−11entry with signifi cant pre-

commitment investment 109−10

pre-commitment to both sides 111−12

sequential entry 109simultaneous entry of sides 110single- and double-sided marquee

strategies 112−13two-step strategy 113zig-zag with self-supply 113

start-ups versus incumbents 153−5state policy, diversity in 269, 270Staudenmayer, N. 53Steensma, H.K. 253Stigler, G.J. 62, 94, 169stock exchanges 155, 157Strahilovetz, L. 169strategic issues 3−4

strategic sponsorship of ecosystems 167

Strauss, A.L. 283streaming media software 150Sturgeon, T.J. 346Suarez, F.F. 72, 77, 149, 156, 165, 193subsidies 21, 77, 83−5, 87, 140, 167Sun Microsystems 29, 39, 85, 87, 142,

143, 225Java 198

sunk costs 232supply chain platforms 52−4

characteristics of 47−8from internal platforms to supply

chain platforms 59−61from supply chain platforms to

industry platforms 62−4supplier parks in Brazilian

automotive industry 12−13, 251−71

comparisons and discussion 267−70

conclusions 270−71evidence: VW Resende, GM

Gravataí and Ford Camaçari 256−67

framework for analyzing 254−5introduction 251−2

supplier parks in Brazilian automotive industry, see under supply chain platforms

supply-side users (application developers) 131, 134−5

openness of platform with respect to 9, 132, 133

absorbing complements and 10, 146−50

backward compatibility and 10, 143−4

interoperability and 137platform and category exclusivity

and 10, 144−6Sutcliff e, K.M. 327, 338, 339switching costs 9, 86, 131, 148, 152Symantic 92Symbian operating system 68, 69, 70symmetric pricing structures 117system integrators 350

platform strategies for 67−71systems integration 316−17, 318−19


via free access

Index 393

system of use 280Szczesny, J. 53

Tabrizi, B.N. 322tacit knowledge 61, 348, 350Taiwan, architectural analysis of

Intel’s platform business in, see under Intel Corporation

Tam, K.Y. 197task and transfer (T&T) network 253,

254tasks, outsourcing of, see outsourcing

of tasksTatikonda, V.M. 324Taulli, T. 126TCP/IP Internet protocols 26technical standards 26, 131, 134

DVD Audio standard 210for Internet platform 222, 226−9

alternatives to openness 229−34openness and innovation 234−40overview 240−21

joint standard setting 9, 141−3in consortia 281for next-generation products

152−5special interest groups and

156−7for PC platform 222, 223, 224−5,

240technical support services 79, 80, 84,

225technological complexity 80−81, 93technological platforms, eff ect on

international division of labour 15, 345−68

conclusion 366−8Intel’s platform business in Taiwan

351−66background of Intel’s platform

strategy 354expansion of Taiwanese

production 359−61platform and change in PC

architecture 354−5, 356price erosion of standardized

components and stability of the platform 362−5

research approach 351−3research design 353−4

results from fi ndings 365−6standardization of the PC 355−9

literature review and conceptual framework 347−51

eff ect of platforms on international division of labour 350−51, 352

hierarchy of modular architecture 348−9

separation eff ect of platforms 349−50

two types of product architecture 347

two types of technology 348technological superiority 77technology design and intellectual

property 55technology trajectory, control of

212−13Teece, D.J. 35, 54, 60, 79, 293, 348telecommunications

home networking in 13, 273network externalities in 195

telecommunications industryemergence of platforms in 54layered structure of 150problem-solving in product platform

development in 15, 327−32decomposing the anatomy 328−30encapsulating and aggregating

functionality 330−32services off ered in 93

telephone platforms 103Tell, F. 327text-messaging 137Thomke, S.H. 287, 3223Com 2323DO 206Thum, M. 195Tierney, C. 53Time Warner 210tipping 8, 65, 67, 68, 71, 72, 280Tirole, J. 21, 45, 46, 57, 58, 108, 125,

134, 144, 164, 169, 175, 177, 202, 277, 280

Tokyo International Film Festival 178, 179

ToolKing 110‘top down’ (functional) approach to

platform design 279, 282, 289


via free access

394 Index

TopCoder, as regulator 11, 174−6, 184, 185, 186

Toshiba 206, 207, 210‘town management’ 178−9, 185Toyama, R. 348Toyota 51, 78trade secrets 196, 224training services 79, 80, 81, 84, 92, 95transactional ties 307, 308, 309, 316travel services, Internet-based 71−2Trent program 312Tripsas, M. 81Tsoukas, H. 325Tsutaya 179Tucker, C. 165turbofan engine architectures 310−11

achieving successful rewirings: RB211 thrust growth capability 313−14, 315


unsuccessful rewirings 312−13, 314turnkey solutions 346, 361, 362, 365−6Tushman, M.L. 19, 192, 201two-sided networks 134, 297

roles in 134−7, 277two-step strategy 9, 113

used by B2Bs 117used by social networking sites 119,

123typesetting 81Tyre, M. 81Tzokas, N. 125

Ubuntu Linux 136Ulrich, K.R. 21, 22, 49, 52, 95, 125,

138, 253, 308, 311, 323, 345, 348uniform resource locator (URL) 235Union Manten 260−61United States

decline of Friendster in 122new start-up failure rate in 99

‘universal’, meaning of 236Universal Music Group 210universal resource identifi er (URI) 235University of California at Berkeley

203Unix 202, 203, 211, 221, 233UPC barcode 136Updegrove, A. 243

US Department of Justice 2US digital TV standards 153US Postal Service 82use complexity 80−81user modifi cation, provision for 221Utterback, J.M. 77, 78, 149, 192, 345UUNet 232, 233Uzumeri, M. 21, 25, 50, 277

Valeo 265value chain for commercial Internet

230−31open questions about 233−4

value chain for PC 231value creation in platform design

collaborations 13, 275, 286−7, 291−2

value function 278value landscape 287, 290, 291, 292

unknown 293−4Van Alstyne, M.W. 21, 48, 58, 131,

133, 134, 141, 146, 156, 164, 277, 280

Vandenbosch, M.B. 322Varian, H.R. 39, 105, 133, 146, 164,

167, 346Venkatraman, N. 28Ventro 115venture capital 99, 115verifi cation and integration unit (VIU)

331Verizon 141vertical governance 155−6vertical silos 32, 33vertical strategies for managing

openness 10, 143−50absorbing complements 10, 146−50backward compatibility 10, 143−4platform and category exclusivity

10, 144−6VerticalNet 115vested interests 281VHS 77, 79, 137, 209video recording 77, 79, 137, 200, 209videoconferencing 83videogame consols

industry platform in 54pathways to dominant design

200−201platform exclusivity in 145


via free access

Index 395

platform strategies in 67, 112pricing strategy for 84regulation of third-party developers

by platform provider 163, 206rent extraction by platform provider

151role in platform-mediated markets

134−6videogames

exclusivity agreements 144, 145in-house development of 206, 209licensing policies for 197, 206market failure in industry 163platform architecture 25platform strategies 68pricing strategies 77, 84, 146regulation of third-party developers

163, 206roles in platform-mediated networks

134−6service versus product revenues from

8, 89, 91, 92start-ups 9, 109−10, 112technological functionality of 201

Vincenti, W.G. 322, 340Visa 25−6, 136, 157Visteon 265Volkema, R.J. 338, 340Volkswagen 51, 53Volkswagen Resende 12, 251, 255, 256,

257−62, 267, 268, 269−70Volkswagen Titan 262von Hippel, E. 81, 193, 202, 241Voss, C. 52

Wade, J. 193wage and benefi ts agreements 262, 264,

266, 268Wagonfeld, A. 83Waguespack, D. 241, 242Waldman, M. 69, 148Wang, Y. 139Warglien, M. 287Wasserman, S. 125WCDMA 68Web Services Interoperability

Organization 156Weick, K.E. 327, 338, 339Weil, B. 284Weiser, P. 148, 167

West, J. 45, 54, 131, 133, 141, 142−3, 164, 220, 241, 242, 276, 278

Wharton School of the University of Pennsylvania 180

Wheelwright, S.C. 20, 22, 46, 78Whinston, M. 148Whitney, D.E. 23, 50wholly open technologies

availability of complementary goods 205, 208

growth of installed base 204, 208improvement through external

development 202, 208investment in development 201−2,

208likelihood of fragmentation of

technology platform 203, 208meaning of 197

Wi-Fi 136standards for next-generation 153,

154−5widget innovation 173−4Wiggins, R. 244Williamson, D.A. 126Williamson, O.E. 254willingness to pay 83, 139, 147, 185Windows-compatible software 2Wintel industry platform 63, 69Winter, S.G. 342Wise, R. 86Wolf, R.G. 175Wong, J. 145Woodard, C.J. 23, 32, 34, 38, 57, 133,

156Woods, W. 100, 115word-of-mouth communication 104WordPerfect 138work packages (WP) 328−32work packages teams (WPT) 329,

331World Wide Web 233−4, 235−40World Wide Web Consortium (W3C)

237−8, 239, 240Woroch, G.S. 193Wright, J. 125

X/Open standard-setting body 197, 203

Xbox 67, 136, 197Xie, J. 139


via free access

396 Index

Yahoo! 138−9Yahoo! Japan 180Yakob, R. 327Yale University 123, 171Yelle, L.E. 195Yin, P.-L. 244, 245Yin, R.K. 283, 321Yoffi e, D.B. 21, 83, 140, 147, 150, 151,

241, 244, 245YouTube 113Yu, A. 62

Zenger, T.R. 323, 325, 326, 341Zhao, K. 281zig-zag strategy 9

basic zig-zag 110−11with pre-commitment to both sides

111−12with self-supply 113with single- and double-sided

marquee strategies 112−13Zilbovicius, M. 256Zirpoli, F. 53


via free access

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