The Rise of Platform Ecosystems
Abstract
Platforms are creating an entirely new blueprint for competition, one that puts ecosystems in head-to-head competition. This chapter lays a foundation for introducing these ideas. It begins with an overview of software platforms and how they are changing the rules of competition. It then identifies the central elements of platform ecosystems and their competitive environment. It also clarifies what is not a platform. It then describes the five drivers of the migration toward software platforms in a variety of technology and nontechnology industries. These include the need for deepening specialization as firms struggle to deliver increasingly complex products and services, “packetization”; baking ...
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