Managing proprietary and shared platforms
Subtitle: a life-cycle view
By: Thomas R. Eisenmann
Contributors: Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 07-105; Working paper (Harvard Business School. Division of Research) -- 07-105
Publisher: Division of Research, Harvard Business School
Published: 2007
Place of publication: Boston
Language: eng
Number of pages: 26
Description: In a platform-mediated network, users rely on a common platform, provided by one or more intermediaries, that encompasses infrastructure and rules required by users to transact with each other. A fundamental design decision for firms that aspire to develop platform-mediated networks is whether to preserve proprietary control or share their platform with rivals. A proprietary platform has a single provider that solely controls its technology, for example, Federal Express, Apple Macintosh, or Google. With a shared platform, such as Visa, DVD, or Linux, multiple firms collaborate in developing the platform's technology then compete in offering users different but compatible versions of the platform. This article examines factors that favor proprietary versus shared models when designing new platforms then explains how management challenges differ for proprietary and shared platform during subsequent life-cycle stages: network mobilization and platform maturity.
Notes: "June 26, 2007"--Added t.p.

Includes bibliographical references.