
- 19 Mar 2021
- Working Paper Summaries
Assessing the Strength of Network Effects in Social Network Platforms
Network-specific traits, such as the degree of clustering and the prevalence of multihoming, influence the strength and competitive impact of network effects. However, network size alone is often misleading, and network effects should be examined on a case-by-case basis.

- 15 Sep 2020
- Working Paper Summaries
Time and the Value of Data
This paper studies the impact of time-dependency and data perishability on a dataset's effectiveness in creating value for a business, and shows the value of data in the search engine and advertisement businesses perishes quickly.

- 03 Mar 2020
- Cold Call Podcast
Do Universities Need 2U To Create Digital Education?
Karim Lakhani and Marco Iansiti discuss how universities are looking for technology partners to deliver digital education, as well as their new book, “Competing in the Age of AI.” Open for comment; 0 Comments.

- 09 Jan 2020
- Book
Rethinking Business Strategy in the Age of AI
For the first time in 100 years, new technologies such as artificial intelligence are causing firms to rethink their competitive strategy and organizational structure, say Marco Iansiti and Karim R. Lakhani, authors of the new book Competing in the Age of AI. Open for comment; 0 Comments.
- 14 Dec 2015
- Research & Ideas
Deflategate and the Sustained Success of the New England Patriots
A new Harvard Business School case study by Marco Iansiti challenges students to explain the continued success of the New England Patriots football team and the dynamics behind the Deflategate episode. Open for comment; 0 Comments.
- 25 Feb 2015
- Lessons from the Classroom
Scholars and Students Unpack the Digital Business Revolution
Harvard Business School's Digital Initiative, led by professors Marco Iansiti and Karim Lakhani, brings an interdisciplinary approach to studying how digital technology has transformed business and innovation. Open for comment; 0 Comments.
- 22 Mar 2010
- Research & Ideas
One Strategy: Aligning Planning and Execution
Strategy as it is written up in the corporate playbook often becomes lost or muddled when the team takes the field to execute. In their new book, Professor Marco Iansiti and Microsoft's Steven Sinofsky discuss a "One Strategy" approach to aligning plan and action. Key concepts include: The book combines practical experience at Microsoft with conceptual frameworks on how to develop strategies that are aligned with execution in a rapidly changing competitive environment. "Strategic integrity" occurs when the strategy executes with the full, aligned backing of the organization for maximum impact. The chief impediment to strategy execution is inertia. The One Strategy approach is less about formal reviews and more about one-on-one conversation. Blogs can be a powerful asset in managing an organization. Closed for comment; 0 Comments.

- 16 Jul 2009
- Working Paper Summaries
Principles that Matter: Sustaining Software Innovation from the Client to the Web
Despite the current strength and promise of the Internet software market, the future pace of growth and innovation is not assured. The principles of choice, opportunity, and interoperability were important in the growth of PC software and in the overall health of the information technology ecosystem, and these same principles will shape competition in Internet software, according to HBS professor Marco Iansiti. Given the unprecedented speed at which this industry is developing, consumers and the industry should watch carefully as different companies compete. Choice, opportunity, and interoperability should serve as an important lens, particularly when focused on companies with especially large footprints in the new markets. Key concepts include: Successful technology companies should not forget that innovation and growth in the technology sector is dependent on promoting a thriving ecosystem of complementary and interdependent products. The competitive principles of choice, opportunity, and interoperability are important in Internet software, because of the increased variety of possible software and hardware combinations and the increased interdependency in the applications and services they deliver. Closed for comment; 0 Comments.

- 04 Dec 2007
- Working Paper Summaries
Dynamics of Platform Competition: Exploring the Role of Installed Base, Platform Quality and Consumer Expectations
What factors drive platform success, long-run market structure, and market efficiency? Conventional wisdom suggests that for a new platform to be successful, either it must make its technology compatible with the incumbent, or its technical advantage must offer so much value to consumers that it exceeds the combination of functionality, installed base, and complementary goods value offered by the incumbent. Zhu and Iansiti develop a dynamic model to examine the evolution of platform-based markets. They find that a huge quality advantage may not be necessary for an entrant to be successful. Using data from the video game industry, they find support for their theoretical predications. Key concepts include: A huge quality advantage may not be necessary for success. When market dynamics are driven by quality, a platform with a small quality advantage can also be successful. Xbox has a small quality advantage over Playstation 2 and the market dynamics are quality driven. These results help explain the successful entry of the Xbox console into this market and provide support for Zhu and Iansiti's theoretical model. Installed-base advantages do not necessarily provide a safety shield for the incumbent. To defend its leadership position, the incumbent needs to constantly enhance its quality. Closed for comment; 0 Comments.
- 15 Jan 2007
- Research & Ideas
The Business of Free Software
Breaking with a largely proprietary tradition, large IT vendors have invested several billion dollars into open-source software development. What's their motivation? The observations presented in research by professor Marco Iansiti and coauthor Gregory L. Richards suggest some fundamental changes in strategy used by technology companies. Key concepts include: IT vendors that traditionally have relied on proprietary-software development are increasingly turning to the open source software community to create pieces of their products. Many IT vendors invest in open source projects that draw customers to a vendor's mainly proprietary, core businesses—the razor/razor blade approach. This trend is changing some classic rules of strategy and forcing IT vendors to reconsider not only how they develop software but also where they derive value in their business models. Closed for comment; 0 Comments.

- 15 Dec 2006
- Working Paper Summaries
The Business of Free Software: Enterprise Incentives, Investment, and Motivation in the Open Source Community
IBM has contributed more than $1 billion to the development and promotion of the Linux operating system, and other vendors such as Sun are ramping up open source software efforts and investment. Why do information technology vendors that have traditionally sold proprietary software invest millions of dollars in OSS? Where have they chosen to invest, and what are the characteristics of the OSS projects to which they contribute? This study grouped OSS projects into clusters and identified IT vendors' motives in each cluster. Key concepts include: Cluster 1, the "money-driven cluster," consisted of projects that have received almost all of vendor investments. The eighteen projects in this cluster have received over $2 billion in investment. Cluster 2, the "community-driven cluster," has a large number of projects that have received almost no vendor investment. IT vendors have generally ignored projects in this cluster and appear to have no coordinated strategy for dealing with them. Examining the impact of projects in both clusters shows that vendors have not invested uniformly in high-impact OSS projects. Instead, vendors invest in projects that can serve to draw revenues to their own (largely proprietary) core business. Closed for comment; 0 Comments.

- 05 Jul 2006
- Working Paper Summaries
Why IT Matters in Midsized Firms
What does IT actually contribute to a business? Is IT a commodity like electricity or is it a crucial element of competitive advantage? In a study of over 600 medium-sized global firms to analyze the business benefits that IT can enable, the authors found that IT capability was key to profitable business growth. This was true in both the U.S. product and services sectors as well as in Germany and Brazil. Key concepts include: IT matters. IT enables firms to scale. The amount a company spends on IT is a poor indicator of IT functionality and business impact. Firms with business process scalability find it easier to overcome obstacles to growth, differentiate themselves from competitors, and quickly capitalize on opportunities. Closed for comment; 0 Comments.

- 05 Jul 2006
- Working Paper Summaries
Information Technology Ecosystem Health and Performance
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. Closed for comment; 0 Comments.
- 23 Aug 2004
- Research & Ideas
Strategy for Small Fish
Microsoft, Wal-Mart, and eBay provide ecosystems in which other companies thrive or fail. But what are effective strategies for a small fish in a big pond? An excerpt from The Keystone Advantage by HBS professor Marco Iansiti and Roy Levien. Closed for comment; 0 Comments.
- 08 Mar 2004
- Research & Ideas
Creating Value in Your Business Ecosystem
The metaphors of keystones and ecology help you think about your business environment, say professor Marco Iansiti and consultant Roy Levien. A Harvard Business Review excerpt. Closed for comment; 0 Comments.
- 02 Dec 2002
- Research & Ideas
The Secret of How Microsoft Stays on Top
Critics say Microsoft's incredible two-decade run at the top of the computer industry has less to do with innovation than it does with bully tactics. But new research from Harvard Business School professors Marco Iansiti and Alan MacCormack suggest a different reason: the company's ability to spot technological trends and exploit key software technologies. Closed for comment; 0 Comments.
- 30 Apr 2001
- Research & Ideas
Why Evolutionary Software Development Works
What is the best way to develop software? HBS professor Alan MacCormack discusses recent research proving the theory that the best approach is evolutionary. In this article from MIT Sloan Management Review, MacCormack and colleagues Marco Iansiti and Roberto Verganti uncover four practices that lead to successful Internet software development. Closed for comment; 0 Comments.
- 26 Jun 2000
- Research & Ideas
Presentation Round-Up
This round-up of other panels and presentations at the IS2K conference includes a look at the emerging "e-service" model, the future of the U.S. telecommunications infrastructure, and a discussion of "Genes on the Web." Closed for comment; 0 Comments.
Time Dependency, Data Flow, and Competitive Advantage
The perishability of data has strategic implications for businesses that provide data-driven products and services. This paper illustrates how different business areas might differ with respect to the rate of decay in data value and the importance of data flow in their operations.