BSM 600 Chapter Notes - Chapter 5: Dominant Design, Open Architecture, Cloud Computing
5 Feb 2017
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Fos chapter 5: industry evolution and strategic change. Early computers: niche, hobbyists, they had to be assembled from kits and programmed. Early leaders: apple, tandy, commodore had v diff strategies. Later: pre-assembled machines with operating systems - wider customer base. A: open architecture, release all tech info for independents to make products complementary to apple machine. Company within a company, acting outside main ops, independent from rest of biz. Bought key elements from third party, adopted open strategy to allow complementary products. Had good reputation as supplier of mainframe computers so people were willing to invest. Open architecture as a strategy - virtuous circle of growth. Users have more applications, writers have more customers. But open strategy = later failure because open = easily copied. Failed to profit fully from setting the standard for pcs. Microsoft and intel owned their own ip, so they succeeded. Open strategy = lower barriers to entry.
