Working Papers

Information Technology Ecosystem Health and Performance

Published:July 5, 2006
Paper Released:February 2006
Authors:Marco Iansiti and Gregory L. Richards

Executive Summary:

An IT ecosystem is "the network of organizations that drives the creation and delivery of information technology products and services." To understand the health and well being of the IT industry in the context of an ecosystem, the authors looked at three crucial IT ecosystem metrics: productivity, robustness, and innovation. Key concepts include:

  • The IT ecosystem is strong in all three of the most important sectors of hardware, software, and services.
  • Since the recession and retrenchment several years ago, the IT ecosystem has regained its health, competitiveness, and productivity.
  • There are currently significant levels of innovation from both new market entrants as well as incumbent market leaders.

About Faculty in this Article:

HBS Faculty Member Marco Iansiti

Marco Iansiti is the David Sarnoff Professor of Business Administration at Harvard Business School.

Abstract

The purpose of this paper is to understand the health and wellbeing of the Information Technology industry. This goal is accomplished by introducing the concept of an Information Technology "ecosystem" which is the large network of firms that drive the delivery of information technology products and services. At the beginning of the 21st century the Information Technology ecosystem went through a deep recession and retrenchment. About the same time Microsoft Corporation entered into a Consent Decree with the US Department of Justice that resolved their multi-year antitrust dispute. The data shows that since this time, the Information Technology ecosystem has regained its health, competitiveness, productivity, and is delivering significant levels of innovation from both new market entrants as well as incumbent market leaders such as Microsoft.

Paper Information