Gawer (2014) Flashcards

1
Q

What are platforms?

A

evolving organizations or meta organizations that
-federate and coordinate constitutive agents who can innovate and compete
-create value by generating and harnessing economies of scope in supply or demand.
-entail a modular architecture composed of core and perphery.

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2
Q

what are direct network effects?

A

When the value of a good to a user increases with the
number of other users (installed base) of the same or similar

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3
Q

what are indirect network effects?

A

The presence of other type of actors (e.g. complementors)
generates additional value

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4
Q

What is platform architecture?

A

A set of core components (and interfaces) with low variety and a complementary set of peripheral components with high variety

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5
Q

Explain the economic perspective of platforms

A

it says that platforms fundamentally create value by acting as conduits between two (or more) categories of consumers who would not have been able to connect or transact without the platform.

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6
Q

What are the limitations of economic platforms?

A

Economics perspective treats each side as a “customer” - innovators and their motivations to innovate is purely transactional.

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7
Q

Explain the engineering perspective

A

The engineering view interprets platforms as purposefully designed technological architectures (including interfaces) that facilitate innovation.

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8
Q

what are the advantages of platform architectures?

A

Reduced cost of production
shared components between models
reduced r and d lead times
reduced systemic complexity
improved ability to update products
customization by combining components.

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9
Q

What are disadvantages of platform architectures?

A

Decreasing distinctiveness
suboptimization

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