Platform Ecosystems: Aligning Architecture, Governance, and by Amrit Tiwana

By Amrit Tiwana

Platform Ecosystems is a hands-on consultant that provides an entire roadmap for designing and orchestrating shiny software program platform ecosystems. not like software program items which are controlled, the evolution of ecosystems and their myriad members needs to be orchestrated via a considerate alignment of structure and governance. no matter if you're an IT expert or a common supervisor, you are going to reap the benefits of this publication simply because platform technique the following lies on the intersection of software program structure and company procedure. It deals actionable instruments to boost your personal platform approach, sponsored by means of unique learn, tangible metrics, wealthy facts, and instances. you'll learn the way architectural offerings create organically-evolvable, brilliant ecosystems. additionally, you will learn how to follow cutting-edge study in software program engineering, technique, and evolutionary biology to leverage atmosphere dynamics exact to structures. learn this booklet to profit how to:

• Evolve software program services into bright platform ecosystems
• Orchestrate platform structure and governance to maintain aggressive advantage
• Govern platform evolution utilizing a strong three-dimensional framework

If you're able to remodel platform procedure from newspaper gossip and enterprise university thought to real-world aggressive virtue, commence correct here!

• know how structure and technique are inseparably intertwined in platform ecosystems
• Architect future-proof systems and apps and magnify those offerings via governance
• Evolve systems, apps, and full ecosystems into vivid successes and see platform possibilities in nearly any-not simply IT-industry

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Extra resources for Platform Ecosystems: Aligning Architecture, Governance, and Strategy

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Severe price competition means that pricing of rival platforms can devolve into a race to the bottom. The challenge then is retaining both users and app developers who might be tempted to switch to a competing platform. The ways in which a platform can make it more desirable for existing users to stay put and not jump ship to a rival platform broadly refers to lock-in. , SAP, Peoplesoft). Lock-in can either be coercive or value-driven. , Monteverde and Teece, 1982), that heavy-handed approach eventually fails.

We then describe the notions of multisidedness, network effects, multihoming, tipping, lock-in, and envelopment that will help us grasp how software platform ecosystems begin and evolve. We also briefly introduce the concepts of architecture and governance that are the focus of the subsequent section of this book. We then describe nine principles guiding the initial development and subsequent evolution of platform ecosystems. The intent is for us to have a shared vocabulary that can serve as a foundation for the subsequent chapters of this book.

An example of the emergence of a dominant design in the smartphone platform market is the iPhone. 1 Core Concepts and Where They Directly Apply in Software Ecosystems Relevance Concept Platform App Ecosystem Platform lifecycle l l l Dominant design l l S-curve l l l A technology’s lifecycle that describes its progression from introduction, ascent, maturity, and decline phases Leapfrogging l l l Embracing a disruptive technology solution and using it as the foundation for the firm’s market offering in lieu of an incumbent solution in the decline phase of its S-curve Diffusion curve l l Description A multifaceted characterization of whether a technology solution—a platform, an app, or the entire ecosystem—is in its pre- or post-dominant design stage; its current stage along the Scurve; and the proportion of the prospective user base that has already adopted it A technology solution that implicitly or explicitly becomes the gold standard among competing designs that defines the design attributes that are widely accepted as meeting users’ needs A description of whether a technology solution—a platform or an app—is in the stage of having attracted the geeks, early majority, early adopters, late majority, or laggards to its user base Multisidedness The need to attract at least two distinct mutually attracted groups (such as app developers and end-users) who can potentially interact more efficiently through a platform than without it Network effects l Multihoming l Tipping l l Lock-in l l l The ways in which a platform can make it more desirable for existing adopters to not jump ship to a rival Competitive durability l l l The degree to which the adopters of a technology solution continue to regularly use it long after its initial adoption Envelopment l l When a platform swallows the market of another platform in an adjacent market by adding its functionality to its existing bundle of functionality Architecture l l A conceptual blueprint that describes components of a technology solution, what they do, and how they interact Governance l A property of a technology solution where every additional user makes it more valuable to every other user on the same side (same-side network effects) or the other side (cross-side network effects) When a participant on either side participates in more than one platform ecosystem The point at which a critical mass of adopters makes positive network effects take off l Broadly, who decides what in a platform’s ecosystem.

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