New Book on Software Platforms Describes the Business Model Powering the Third Industrial Revolution.Authors Share New Insights About How "Invisible Engines" Have Transformed Industries Worldwide CAMBRIDGE, Mass. -- Surprised that there are already long lines In communications, circuits that are capable of handling transmissions over long distances. for Tickle me Tickle Me is a 1965 western comedy-musical starring Elvis Presley. Primary cast
The book's authors - economists David Evans, Andrei Hagiu, and Richard Schmalensee - contend, however, that technology is only partially responsible for this success. The fuel that really powers these software platforms, they say, isn't an exotic programming language but rather something a lot more mundane and exponentially more perplexing per·plex tr.v. per·plexed, per·plex·ing, per·plex·es 1. To confuse or trouble with uncertainty or doubt. See Synonyms at puzzle. 2. To make confusedly intricate; complicate. : the business model. Evans, Hagiu and Schmalensee say cracking the code on the business model is the secret to unlocking the value from software platforms and ultimately driving profit. These business models, they demonstrate, also look a lot different than those familiar to most technologists and business executives. Through a series of case examples, Evans, Hagiu and Schmalensee reveal how "two-sided" or "multi-sided" business models power these invisible engines and allow them to bring together the different customer groups needed to create value for the software platform as they disclose the business, pricing and product design decisions responsible for that success. The "secret sauce" they write can be found in creating powerful feedback loops between customer groups - developers, customers and even advertisers - and dismantling traditional cost-plus pricing models in favor of those that subsidize one side so that profits can be made from the other. Filled with insights from their work with leading software platforms, Evans, Hagiu and Schmalensee describe how the most successful platforms of all times have turned cool into profitable and along the way have powered the third industrial revolution. Detailed case-specific insights also provide a roadmap for executives and entrepreneurs who are either considering or now implementing new strategies that rely on software platforms. The book also provides a glimpse into a future where software platforms transform traditional industries like automotive and consumer products - a potential that we are already starting to see come to life in the latest European and Japanese automotive models. Praise for the Book "Invisible Engines describes the economics of operating systems, those fiendishly fiend·ish adj. 1. Of, relating to, or suggestive of a fiend; diabolical. 2. Extremely wicked or cruel. 3. Extremely bad, disagreeable, or difficult: complex pieces of software that provide the nervous system for computers, cell phones, game consoles, and a host of other devices. It is a must-read for anyone who wants to understand the economic forces that drive high-tech industries." Hal Varian, Haas School of Business and Department of Economics, University of California, Berkeley The University of California, Berkeley is a public research university located in Berkeley, California, United States. Commonly referred to as UC Berkeley, Berkeley and Cal "As the power behind every kind of digital device, software platforms truly are the invisible engines of the information age. In their absorbing and comprehensive account of the evolution and economics of platform technologies, Evans, Hagiu, and Schmalensee essentially map out the still-evolving history of the third industrial revolution." Craig Mundie, Chief Technology Officer, Microsoft For more information about the book and its authors, please visit www.invisible-engines.com About the Authors Evans, Hagiu, and Schmalensee are widely recognized for their contributions to the area of software platforms and the unique business strategies that underpin them. They have consulted with some of the most successful software platforms of all times. David S. Evans * Founder, Market Platform Dynamics, Cambridge, MA * Executive Director, Jevons Institute for Competition Law and Economics, and Visiting Professor at University College London “UCL” redirects here. For other uses, see UCL (disambiguation). University College London, commonly known as UCL, is the oldest multi-faculty constituent college of the University of London, one of the two original founding colleges, and the first British * Lecturer, University of Chicago Law School The University of Chicago Law School, having recently celebrated its centennial in the 2002-2003 school year, has established itself as a high profile part of the University of Chicago. Andrei Hagiu * Assistant Professor at Harvard Business School Harvard Business School, officially named the Harvard Business School: George F. Baker Foundation, and also known as HBS, is one of the graduate schools of Harvard University. * Principal at Market Platform Dynamics Richard Schmalensee * Dean of MIT Sloan School of Management The MIT Sloan School of Management is one of the five schools of the Massachusetts Institute of Technology, located in Cambridge, Massachusetts, USA. It is one of the world's leading business schools, conducting research and teaching in finance, entrepreneurship, marketing, * Chairman of Market Platform Dynamics |
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