Platform Ecosystems: Aligning Architecture, Governance, and Strategy

Platform Ecosystems: Aligning Architecture, Governance, and Strategy

Amrit Tiwana

Language: English

Pages: 300

ISBN: 0124080669

Format: PDF / Kindle (mobi) / ePub

Platform Ecosystems is a hands-on guide that offers a complete roadmap for designing and orchestrating vibrant software platform ecosystems. Unlike software products that are managed, the evolution of ecosystems and their myriad participants must be orchestrated through a thoughtful alignment of architecture and governance.   Whether you are an IT professional or a general manager, you will benefit from this book because platform strategy here lies at the intersection of software architecture and business strategy. It offers actionable tools to develop your own platform strategy, backed by original research, tangible metrics, rich data, and cases. You will learn how architectural choices create organically-evolvable, vibrant ecosystems. You will also learn to apply state-of-the-art research in software engineering, strategy, and evolutionary biology to leverage ecosystem dynamics unique to platforms. Read this book to learn how to:

  • Evolve software products and services into vibrant platform ecosystems
  • Orchestrate platform architecture and governance to sustain competitive advantage
  • Govern platform evolution using a powerful 3-dimensional framework

If you’re ready to transform platform strategy from newspaper gossip and business school theory to real-world competitive advantage, start right here!

  • Understand how architecture and strategy are inseparably intertwined in platform ecosystems
  • Architect future-proof platforms and apps and amplify these choices through governance 
  • Evolve platforms, apps, and entire ecosystems into vibrant successes and spot platform opportunities in almost any―not just IT―industry











103). Real options thinking has little value at this level. 182 CHAPTER 8 Real Options Thinking Uncertainty Real Options Thinking Most Useful Here Ambiguity ? Level 4 Range of Possible Outcomes Realm of Traditional Strategic Planning Level 3 Limited Set of Discrete Outcomes C Level 2 A Clear Trajectory Level 1 B Contingent Roadmaps Time FIGURE 8.2 Four levels of technical and market volatility. • • • Level 2. A limited set of possible outcomes can be readily identified on a

of competing platforms and the demise of ones that do not adapt fast enough relative to rivals. It is based on the anecdote in Lewis Carroll’s Through the Looking-Glass, where two characters (Alice and the Red Queen; Figure 2.14) were constantly running Table 2.3 Summary of the Nine Guiding Principles in Platform Markets Principle Key Idea Red Queen effect The increased pressure to adapt faster just to survive is driven by an increase in the evolutionary pace of rival technology solutions

Attracting customers Attracting customers Attracting both sides 52 CHAPTER 3 Platform Businesses Are Unlike Product/Service Businesses 3.1.3 Management style differences The diversity of ecosystem participants is the biggest strength of platform-based thinking, but it is also its biggest challenge. Specialization requires each participant in a platform’s ecosystem to focus narrowly and deeply on their own unique capabilities and on leveraging those of others. This requires the platform

accomplishing this.) 4. Can you envision ways to generate positive cross-side network effects? Network effects can be same-side or cross-side. Same-side network effects mean that adding more adopters of your product or service will increase its value to all your existing customers. But such network effects primarily increase the value of the product or service to existing customers and do not turn it into a platform. Cross-side network effects are when adding the second distinct group of adopters

between a platform and apps. These protocols may be platform-specific or based on public standards (such as HTML 5). Frozen Interfaces provided by the modularly architected platform must also be stable and unchanging (Baldwin and Clark, 2000, p. 76). Interface standardization provides an implicit coordinative function between the platform owner and app developers by documenting dependencies between a platform and apps. It specifies what assumptions app developers are allowed to make

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