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Platform Strategy: Openness, Innovation & Control

We present an economic framework to understand and manage platform growth. This builds from a model of network complements and two sided markets. The intuitions help set prices, openness, and features to absorb into the platform. The intuitions also help shape the transition from a traditional business model to a platform strategy. Presented at the IBM executive education summit July 27, 2011.

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Open / Closed Platform Strategies:How, When & Why,[object Object],Geoffrey Parker,[object Object],Freeman School of Business, Tulane,[object Object],gparker@tulane.edu,[object Object],Marshall Van Alstyne,[object Object],Boston University & MIT,[object Object],mva@bu.edu,marshall@mit.edu,[object Object]
MVA Information Economics Research,[object Object],Platforms &,[object Object],Network Effects,[object Object],Communications,[object Object],Markets,[object Object],Information &,[object Object],Productivity,[object Object],Economics of,[object Object],IP,[object Object]
Why we are here today,[object Object],How can firms such as IBM, AT&T and others create  nonlinear ,[object Object],shareholder value from platforms in ways that Apple, Google, ,[object Object],Facebook and Salesforce.com do?,[object Object]
1981-1997 Microsoft beats Apple,[object Object],Apple launched the personal computer market but Microsoft licensed widely, building a huge developer ecosystem. By the time of the antitrust trial, Microsoft had more than 6 times the number of developers.,[object Object],© 2011 Parker & Van Alstyne,[object Object]
Apple 1996,[object Object],Michael Dell “I’d shut it down and give the money back to the shareholders.”,[object Object]
Apple 2000,[object Object]
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Notas do Editor

  1. AT&T Platforms: Breakout exercise
  2. http://www.dailyfinance.com/2010/12/01/apple-ipad-steals-market-share-from-amazon-kindle/Apple grew from 16 to 32% in 2010
  3. http://www.dailyfinance.com/2010/12/01/apple-ipad-steals-market-share-from-amazon-kindle/Apple grew from 16 to 32% in 2010
  4. http://www.dailyfinance.com/2010/12/01/apple-ipad-steals-market-share-from-amazon-kindle/Apple grew from 16 to 32% in 2010
  5. http://www.dailyfinance.com/2010/12/01/apple-ipad-steals-market-share-from-amazon-kindle/Apple grew from 16 to 32% in 2010
  6. Enterprise Rent-a-Car – Insurance and body shop relationships, neighborhood locations