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INFORMATION TECHNOLOGY IN BUSINESS AND SOCIETYSESSION 6 – HOW COMPUTERS AND THE WEB WORK
SEAN J. TAYLOR
ADMINISTRATIVIA
• Facebook Experiment: See Beibei Li in 8-186 after class (3pm-5pm) to receive payment
• Varun’s office hours on Monday: 2-4pm in 8th floor tutoring area
• Assignment 1
LEARNING OBJECTIVES
1. Understand how platforms emerge due to network effects.
2. Think strategically about how firms use platforms for competitive advantage.
3. Explain how standards emerge and how standards are different from platforms.
PLATFORM OR PRODUCT?
• part of a technical system whose components come from different companies or organizations
• relatively little value without complementary products or services
WHY BUILD A PLATFORM?
• Firm is unlikely to be able to provide all useful services or applications ahead of time
• Brings more value to users by creating room for configuration, expansion (product fit, value)
• Lock-in for platform users who make costly investments to use them
• Platforms are useful abstractions, even for internal use
PLATFORMS ARE INEVITABLE
DIRECT NETWORK EFFECTS INDIRECT NETWORK EFFECTS
PLATFORM BATTLES
MUTUALLY INCOMPATIBLECOEXISTENCE (DIFFERENTIATION)
MULTIPLE “MARKET SIDES” TOA PLATFORM
PLATFORM STRATEGY
NETSCAPE INTERNET EXPLORER
STANDARDS:SOLVE COORDINATION PROBLEMS
• governments
• corporations
• consortia
• professional associations
• standards-organizations (ISO)
• volunteers or developers
• de facto standards
STANDARDS: HELPING COMPUTERS EXCHANGE INFO
STANDARDS AS LANGUAGES
STANDARDS AS INTERFACES
STANDARDS AND IMPLEMENTATIONS
Implementations and specifications have to do a delicate dance together. You don’t want
implementations to happen before the specification is finished, because people start depending on the details of implementations and that constrains the
specification. However, you also don’t want the specification to be finished before there are
implementations and author experience with those implementations, because you need the feedback.
There is unavoidable tension here, but we just have to muddle on through.
TECHNICALLY, WHAT IS A PLATFORM?• A Hardware and/or Software system with an interface for
applications• Typically, a platform has an API--Applications Programming
Interface: an interface (i.e., a set of standardized commands) that the underlying “platform” can execute
• Software creators use the API when writing programs
Processor (Hardware)
Operating System
Application Programming Interface
Application Software (e.g., Office)
Application Programming Interface
Application Programming Interface
Customized “programs” (e.g., Excel Macros)
Hardwareplatform
O/Splatform
Applicationplatform
APPLICATION PROGRAMMING INTERFACE
PLATFORM EXAMPLESHardware+OS platforms
• ‘Wintel’ (Microsoft Windows + Intel/AMD)• Apple (Mac OS X + Intel, used to be IBM PowerPC)• Sun (Solaris + SPARC, also moving to Intel)• Linux (Linux + Intel/AMD)• Windows Mobile (Microsoft OS + Cell Phones)• X-Box, PlayStation, GameCube…• The Web is also a platform
Amazon’s Web services
• Powerful retailing platform that lets other retailers use the capabilities of Amazon’s retailing site
Google’s many platforms• Web search, desktop search• Maps• Others?
PLATFORMS ARE AN EXAMPLE OF LAYERING• Think of each “layer” as software or hardware that can
perform certain tasks• Higher layers can use the capabilities of lower layers• Each layer specifies an interface that defines how a higher
layer can “call” these capabilities• Layering underlies the progress in Information Technology
by breaking difficult problems into smaller ones and allowing improvements in individual areas without worrying about implications for the rest of the system
• Software layers can be improved, or replaced by hardware layers
• Hardware layers can be improved, or replaced by software layers
LAYERS
THE CLOUD!THE ULTIMATE PLATFORM
“THE AGE OF THE PLATFORM”BY PHIL SIMON
NEXT CLASS:COMPUTERS AND THE WEB I
• Read about Moore’s Law
• How Computers Work video
• How the Internet Works video