Towards a Model of Determinants of Web Services Platform Adoption by Complementers

The recent surge of interest in web services has called attention to the increasingly intense competition between owners of the platforms on which these services run. Given that widely adopted operating systems and middleware platforms have yielded sizable economic returns for their owners, many web services platform owners are aggressively pursuing strategies that can give them a competitive advantage and, it is hoped, similarly sizable returns. A review of the broader literature on software platform competition reveals widespread acceptance of network effect theory as an explanatory framework. Network effect theory posits that the value of a software platform to a potential user is associated positively with the number of existing users of the platform (who generate direct network effects) and the number of developers of complementary software applications (who generate indirect network effects) (see, e.g., Katz and Shapiro, 1986; Zhu et al., 2006). Users realize direct network effects when, for example, they share compatible files with other users (Gao and Iyer, 2006; Lin and Kulatilaka, 2006) or participate in ???trading communities??? (Zhu et al., 2006). Indirect network effects are realized through the availability of useful, innovative and compatible software applications (Lin and Kulatilaka, 2006). Users of widely adopted software platforms also gain value from the reduced likelihood of being ???stranded with a failed and unsupported platform??? and consequent switching costs (Gallaugher and Wang, 2002, p. 306). In the presence of network effects, then, software platform owners pursue strategies that will secure them an ???installed base??? of users and complementers that is sufficiently large to attract more and more new users (Shapiro and Varian, 1998; Suarez, 2005). While one set of strategies is aimed at promoting adoption by new users, another set emphasizes the value generated for users by indirect network effects and aims instead at promoting adoption by complementers. (This distinction reflects the idea that platform markets are two-sided, with (end) users populating one side and complementers populating the other.) There appears to be considerably more research on strategies for increasing user adoption (see Gallaugher and Wang (2002), von Westarp (2003) and Zhu and Iansiti (2007) for reviews) than on complementer adoption strategies. Nonetheless, three studies of the latter merit mentioning here. First, in their study of the U.S. video game industry from 1976 to 2002, Venkatraman and Lee (2003) find that platform dominance (i.e., largest installed base), together with complementers??? path dependency and level of experience with platform architecture, largely determine platform adoption by complementers. Second, in his investigation of how software platform owners maintain a balance between ???adoption and appropriation,??? West (2003) concludes that software platform owners who disclose some proprietary code will attract more complements (thereby fostering innovation), but cautions against disclosing any code that confers a competitive advantage. Finally, Cusumano and Gawer???s (2002) landmark study of Intel???s platform management strategies culminated in the endorsement of four ???levers??? for platform leadership, with one of these levers aimed at managing relations with ???external complementers???. Specific strategies include building a consensus on technical specifications and standards, handling potential conflicts of interest and letting complementers keep any intellectual property they develop on the platform. Both West (2003) and Cusumano and Gawer (2002) also underscore the importance of providing complementers with an interface to connect to the platform. Beyond West???s (2003, p. 1260) suggestion that software platform owners ???create and evolve application programming interfaces (APIs),??? though, the varied ways in which these APIs might influence a complementer???s choice to adopt have not been sufficiently explored by these or other authors. The research-in-progress described in the following section aims to bolster the somewhat scant literature on software platform adoption by complementers. More specifically, the proceeding research design outlines a proposed investigation of the determinants of complementer adoption of geo-mapping web services platforms. The reasons for including independent variables are discussed, and some methodological details are introduced. The paper concludes with a brief discussion of anticipated outcomes of the study

Exploring the Factors Promoting Team Effectiveness in the Process of Creating International Technology Standards A Case Study of ISO/SAE-joint Standard (21434) for Road Vehicle Cybersecurity

International Technology Standards play an essential role in supporting technology adoption and implementation. Emerging technologies are reshaping global commerce. New technologies have been shown to be an essential factor in boosting the economy as they offer great prospects for growth. It is a complicated journey from promising emerging technology to full industrialization and commercialization. However, the process of creating International Technology Standards itself is dynamic and complicated, consists of many underlying dimensions, and is influenced by political, economic, socio-demographic, and technological changes during the development process. Few theoretical frameworks exist to help in understanding the process of creating technology standards as well as to provide practical guidelines. This dissertation bridges this gap by conducting an in-depth case study analysis that aims to extend our knowledge and gain a deeper understanding of the process of creating International Technology Standards. The case I selected is the first ever joint International Technology Standard by the International Organization for Standardization (ISO, a Europe-based standards development organization), and SAE International (SAE, a U.S.-based standards development organization). The purpose of the standard in question is to setup global policies and guidelines for automotive 4 cybersecurity, in the era during which cars will become fully connected and will soon be autonomous. In this case study, data were collected through documents, observations, interviews, and questionnaires. A total of 18 semi-structured individual and group interviews, including 24 participants, were conducted within four months, and 25 completed questionnaires were collected. Coding was adopted as the data analysis method. The results reveal a set of Input-Process- Outcome (IPO) factors and components that impact team effectiveness in the process of creating International Technology Standards. To be specific, team structure is the most critical IPO factor that influences the team effectiveness. Additionally, an Input-Choice-Outcome (ICO) conceptual framework and several lessons-learned are offered for future International Technology Standards creation projects. The study contributes to literature and practice by providing theoretical and practitioner insights into the process of International Technology Standards creation

Influence of network effects on the diffusion of information systems: the case of open source

Doutoramento em GestãoIn the actual world with the importance of the Information Systems in the socio¬economic infrastructure, becomes relevant the study of this market. This thesis tried it, on the supply side through the feedback of some of the main software suppliers and on the demand side through the study of a sample of companies. The subject of study was the Operating Systems and Office Suites for personal computers and the analysis of competition between Open Source Software and Proprietary Software, although the thesis hypotheses and conclusions may extend to other software categories. On the market supply side we concluded that in the competition between two business models, Open Source Software and Proprietary Software, both can create innovation and ensure the survival in the market of the companies that use these business models. On the demand side, we concluded that in this market factors other than brand image, product features or price have influence in the purchasing decision. Factors like network effects, switching costs or lock-in have influence in the buying decision protecting the incumbent and decreasing the market competition level, making it difficult for the competitive alternatives based only on offer and price to gain market share to the incumbent.No mundo actual a importância dos Sistemas de Informação na infra-estrutura sócio-económica torna relevante o estudo deste mercado. Esta tese procurou fazê-lo tanto do lado da oferta, através do feedback de alguns dos principais fornecedores de software, como da procura, através do estudo de uma amostra de empresas. Foram objecto de estudo os Sistemas Operativos e Office Suites para computadores pessoais e a análise da concorrência entre o Software Open Source e o Software Proprietário, embora as hipóteses e conclusões da tese possam estender-se a outras categorias de software. Do lado da oferta concluiu-se que na competição entre dois modelos de negócio, Software Open Source e o Software Proprietário, ambos podem criar inovação e garantir a sobrevivência no mercado das empresas que se baseiam nos mesmos. Do lado da procura concluiu-se que neste mercado outros factores para além da imagem de marca, características do produto ou preço têm influência nas decisões de compra. Factores como o efeito de rede, custos de mudança ou lock-in influenciam a decisão de compra protegendo o incumbente e diminuindo o nível concorrencial do mercado, tornando mais difícil às alternativas concorrenciais conquistarem mercado ao incumbente apenas com base na oferta e preço

Ensaios sobre flexibilidade da cadeia de abastecimento: uma abordagem de opções reais

Doutoramento em Gestão IndustrialA presente tese investiga o processo de tomada de decisão na gestão de cadeias de abastecimento, utilizando um quadro de análise de opções reais. Especificamente, estudamos tópicos como o nível de inventário ideal para protecção contra a incerteza da procura, o momento para implementação de capacidade flexível em mercados onde existe complexidade no mix de produtos, o tempo para o reforço do factor trabalho visando requisitos de serviço ao mercado, e as decisões entre integração e outsourcing num ambiente de incerteza. Foram usadas metodologias de tempo discreto e contínuo para identificar o valor ideal e o calendário das opções a adoptar, quando a procura é estocástica. Além disso, foram considerados os efeitos dos requisitos dos mercados, como a complexidade na oferta de produtos e o nível de serviço. A procura é representada recorrendo a diferentes processos estocásticos, o impacto de saltos inesperados também é explorado, reforçando a generalização dos modelos a diferentes condições de negócio. A aplicabilidade dos modelos que apresentamos permite a diversificação e o enriquecimento da literatura sobre a abordagem de opções reais, no âmbito das cadeias de abastecimento. Níveis de inventário flexíveis e capacidades flexíveis são característicos das cadeias de abastecimento e podem ser usados como resposta à incerteza do mercado. Esta tese é constituída por ensaios que suportam a aplicação dos modelos, e consiste num capítulo introdutório (designado por ensaio I) e mais seis ensaios sobre factores que discutem o uso de medidas de flexibilidade nas cadeias de abastecimento, em ambientes de incerteza, e um último ensaio sobre a extensão do conceito de flexibilidade ao tratamento da avaliação de planos de negócio. O segundo ensaio que apresentamos é sobre o valor do inventário num único estádio, enquanto medida de flexibilidade, sujeita ao crescente condicionalismo dos custos com posse de activos. Introduzimos uma nova classificação de artigos para suportar o indicador designado por overstock. No terceiro e quarto ensaio ampliamos a exploração do conceito de overstock, promovendo a interacção e o balanceamento entre vários estádios de uma cadeia de abastecimento, como forma de melhorar o desempenho global. Para sustentar a aplicação prática das abordagens, adaptamos o ensaio número três à gestão do desempenho, para suportar o estabelecimento de metas coordenadas e alinhadas; e adaptamos o quarto ensaio à coordenação das cadeias de abastecimento, como auxiliar ao planeamento integrado e sequencial dos níveis de inventário. No ensaio cinco analisamos o factor de produção “tecnologia”, em relação directa com a oferta de produtos de uma empresa, explorando o conceito de investimento, como medida de flexibilidade nas componentes de volume da procura e gama de produtos. Dedicamos o ensaio número seis à análise do factor de produção “Mão-de-Obra”, explorando as condicionantes para aumento do número de turnos na perspectiva económica e determinando o ponto crítico para a tomada de decisão em ambientes de incerteza. No ensaio número sete exploramos o conceito de internalização de operações, demarcando a nossa análise das demais pela definição do momento crítico que suporta a tomada de decisão em ambientes dinâmicos. Complementamos a análise com a introdução de factores temporais de perturbação, nomeadamente, o estádio de preparação necessário e anterior a uma eventual alteração de estratégia. Finalmente, no último ensaio, estendemos a análise da flexibilidade em ambientes de incerteza ao conceito de planos de negócio. Em concreto, exploramos a influência do número de pontos de decisão na flexibilidade de um plano, como resposta à crescente incerteza dos mercados. A título de exemplo, usamos o mecanismo de gestão sequencial do orçamento para suportar o nosso modelo. A crescente incerteza da procura obrigou a um aumento da agilidade e da flexibilidade das cadeias de abastecimento, limitando o uso de muitas das técnicas tradicionais de suporte à gestão, pela incapacidade de incorporarem os efeitos da incerteza. A flexibilidade é claramente uma vantagem competitiva das empresas que deve, por isso, ser quantificada. Com os modelos apresentados e com base nos resultados analisados, pretendemos demonstrar a utilidade da consideração da incerteza nos instrumentos de gestão, usando exemplos numéricos para suportar a aplicação dos modelos, o que claramente promove a aproximação dos desenvolvimentos aqui apresentados às práticas de negócio.The present thesis researches the process of decision making in supply chain management using a real options analysis framework. Specifically, we address issues regarding the optimal inventory level to hedge against demand uncertainties; the timing for equipment capacity implementation under market product mix complexity; the timing for workforce capacity reinforcement aiming market service requirements; and the decisions between integration and outsourcing in an uncertainty environment. Discrete and continuous time methodologies were used to identify the optimal value and timing of the options to adopt, when the demand is stochastic. Additionally, the effect of market requirements, such as product mix complexity and service level, were also taken into consideration. The demand is modelled under different stochastic processes; the impact of unexpected shocks is also explored, which enhances the generalization of the models to different business conditions. The applicability of the models enables the diversification and enrichment of the literature on the real options approach, within supply chain concept. Flexible inventory levels and the flexible capacity are supply chain features that can be used to deal with demand uncertainty. The thesis is organized by essays that support the application of the models, and consists of an introductory chapter (essay I) and six trials on factors that enhance the use of supply chain flexibility measures in uncertainty environments and an extended essay on the concept of flexibility to the evaluation of business plans. The second essay we present refers to the inventory value in a single echelon, as a measure of flexibility, subject to cost constraints. We introduce a new items’ classification to support the indicator designated as overstock. In the third and fourth experiments we extend the concept of overstock, promoting the interaction and balance between supply chain echelons in order to improve overall performance. For a practical application of the approaches, we adapted the third essay to the performance management, to support the establishment of coordinated and aligned goals, and used the fourth essay to the coordination of supply chains, supporting the integrated and sequential inventory planning. In the fifth essay we analyse manufacturing technology features in connection with the company's product mix, exploring the concept of investment as a flexible measure to deal with uncertain demand volume and product range flexibility. We dedicate the sixth essay to the analysis of the input "workforce", exploring the economic conditions for increasing the number of work shifts and determining the critical point for decision making in uncertainty environments. In the essay number seven, we explore the concept of internalisation of operations, focusing our analysis in the trigger moment that supports decision making in dynamic environments. We complement the analysis by introducing temporal factors that could disturb the change, including the preparation stage prior to any strategic alternative. Finally, in the last essay, we extend the concept of flexibility in uncertainty environments to the business plans analysis. Specifically, we explore the influence of the number of decision points in the flexibility of a plan in response to increasing market uncertainty. As an example, we use the mechanism of sequential budget to support the model. The increasing uncertainty in demand has promoted supply chains agility and flexibility, limiting the use of many of the traditional management techniques, because of their inability to incorporate the effects of uncertainty. Flexibility is clearly a competitive advantage that companies should have and therefore must be quantified. With the models developed and results that are presented, this thesis aims to demonstrate the usefulness of considering the uncertainty impact in management tools, using numerical examples to support the application of the models and the interpretation of the results, which clearly seek to bring the developments to the actual business practices