Computer →
- 11 Apr 2011
- Lessons from the Classroom
Teaching a ‘Lean Startup’ Strategy
Most startups fail because they waste too much time and money building the wrong product before realizing what the right product should have been, says HBS entrepreneurial management professor Thomas R. Eisenmann. Closed for comment; 0 Comments.
- 16 Mar 2009
- Working Paper Summaries
Running Out of Numbers: Scarcity of IP Addresses and What To Do About It
Hidden from view of typical users, every Internet communication relies on an underlying system of numbers to identify data sources and destinations. Users typically specify online destinations by entering domain names (e.g. "congress.gov"). But the Internet's routers forward data according to numeric IP addresses (e.g. 140.147.249.9). To date, the Internet has enjoyed an ample supply of "IPv4" IP addresses, but demand is substantial and growing. Current allocation rates suggest IPv4 exhaustion by approximately 2011. A new numbering system, IPv6, would relieve scarcity, but incentives hinder transition: IPv4 works well for existing networks, and offers easier and simpler access to existing Internet content and services. As a result, to date few networks have begun to support v6. In principle regulators could order networks to implement v6, but the applicable Internet coordinating organizations lack authority or power to force such a transition. In the meantime, a market mechanism for v4 addresses offers important benefits, including allocating scarce v4 addresses to those who need them most, and putting a positive price on v4 space in order to encourage transition to v6. Thus, it seems v4 transfers can help both to mitigate the worst effects of v4 scarcity, and to build the incentives necessary for transition to v6. Key concepts include: IPv4 scarcity will limit future expansion, hinder some technologies, and impose new costs on networks and users. Engineers have developed a new numbering system, IPv6, which offers many more possible addresses than the current IPv4 address system. But incentives hinder transition. An IP address "market" for the paid transfer of IP addresses could offer important benefits and avoid the worst effects of v4 scarcity. Closed for comment; 0 Comments.
- 12 Feb 2009
- Working Paper Summaries
Platform Competition, Compatibility, and Social Efficiency
The last three decades have witnessed unprecedented growth in network industries such as video games, computers, credit cards, media, and telecommunications. These industries are often organized around physical or virtual platforms that enable distinct groups of agents to interact with one another, and are commonly referred to as two-sided markets or markets with two-sided platforms. An operating systems developer such as Microsoft, for example, provides a software platform that makes possible the completion of value-creating transactions between independent software vendors and users. A key attribute of the market that determines the intensity and scope of network effects is whether or not competing platforms are compatible. The effects of platform (in)compatibility on market outcomes, however, have largely been ignored by the literature on markets with two-sided platforms. This paper develops an explanation of why markets with two-sided platforms are often characterized by incompatibility with one dominant player that may choose to subsidize access to one side of the market. Key concepts include: This paper provides a theory for why firms may choose to make their platforms incompatible. Incompatibility might lead to market dominance and high profits by one of the platform providers, even if both providers are ex ante identical and there are no fixed costs of operation. Closed for comment; 0 Comments.
- 14 Apr 2008
- Research & Ideas
The Surprising Right Fit for Software Testing
Software analysts and programmers live to innovate—but hate to run tests. Yet top-notch testing saves many a company money when bugs are caught early. A case study describes the secret behind a Danish consultancy's success: The majority of its testers have Asperger syndrome or a form of autism spectrum disorder. Open for comment; 0 Comments.
- 10 Dec 2007
- HBS Case
One Laptop per Child
The One Laptop per Child initiative wants to develop and distribute $100 laptops to poor children around the world. Despite eager observers and exciting breakthroughs technologically, it has found the path to customers more rocky than anticipated. Marketing has some answers, as a new case study details. Q&A with HBS professor John Quelch. Key concepts include: The XO laptop is a rugged little computer designed to help kids learn and play collaboratively. Some of its features raise the bar in the computer industry as a whole. Competitors are moving into the same market space to make low-cost laptops. However, the One Laptop per Child initiative is nonprofit. Despite some success, one of the biggest hurdles has been signing up governments to purchase the computer for their country's children. Closed for comment; 0 Comments.
- 22 Oct 2007
- Research & Ideas
Bringing ‘Lean’ Principles to Service Industries
Toyota and other top manufacturing companies have embraced, improved, and profited by lean production methods. But the payoffs have not been nearly as dramatic for service industries applying lean principles. HBS professor David Upton and doctoral student Bradley Staats look at the experience of Indian software services provider Wipro for answers. Key concepts include: In terms of operations and improvements, the service industries in general are a long way behind manufacturing. Not all lean manufacturing ideas translate from factory floor to office cubicle. A lean operating system alters the way a company learns through changes in problem solving, coordination through connections, and pathways and standardization. Successful lean operations at Wipro involved a small rollout, reducing hierarchies, continuous improvement, sharing mistakes, and specialized tools. Closed for comment; 0 Comments.
- 25 Jul 2007
- Lessons from the Classroom
The Evolution of Apple
Apple's continuing development from computer maker to consumer electronics pioneer is rich material in a number of Harvard Business School classrooms. Professor David Yoffie discusses his latest case study of Apple, the 5th update in 14 years, which challenges students to think strategically about Apple's successes and failures in the past, and opportunities and challenges in the future. Key concepts include: Apple has an undeniable hit with the iPod, yet faces the question of whether the growth of that business and Apple overall can be sustained. Looking at Apple through the lens of the company's previous chief executives gives students insights into why Apple lost its way after Steve Jobs left the company. Student opinion of Apple tends to be excessively positive or excessively negative, depending on the company's current fortunes. Closed for comment; 0 Comments.
- 22 Jan 2007
- Research & Ideas
The Immigrant Technologist: Studying Technology Transfer with China
Immigrants account for almost half of Ph.D.-level scientists and engineers in the U.S., and are prime drivers of technology development. Increasingly, however, Chinese technologists and entrepreneurs are returning home rather than staying in the U.S. to pursue opportunities. Professor William Kerr discusses the phenomena of technology transfer and implications for U.S.-based businesses and policymakers. From New Business. Key concepts include: The trend of Chinese technologists and entrepreneurs returning home rather than staying in the U.S. is a trend that potentially offers both harm and opportunity to U.S.-based interests. Immigrants account for almost half of Ph.D.-level scientists and engineers in the U.S. and are strong contributors to American technology development. It is in the United States' interest to attract and retain this highly skilled group. U.S. multinationals are placing larger shares of their R&D into foreign countries, around 15 percent today. U.S.-based ethnic scientists within multinationals help facilitate the operation of these foreign direct investment facilities in their home countries. 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.
- 09 Nov 2006
- Research & Ideas
Andy Grove: A Biographer’s Tale
Podcast: For Harvard Business School professor Richard S. Tedlow, Intel co-founder Andy Grove is one of the most important and intriguing CEOs in American business history. In this interview, Tedlow discusses his new biography, Andy Grove: The Life and Times of an American with Jim Aisner. Closed for comment; 0 Comments.
- 29 Oct 2006
- Research & Ideas
The History and Influence of Andy Grove
Richard S. Tedlow discusses his research on Silicon Valley legend Andy Grove and how he altered much more than the chip industry. Closed for comment; 0 Comments.
- 28 Sep 2006
- Working Paper Summaries
Architectural Innovation and Dynamic Competition: The Smaller “Footprint” Strategy
To study dynamic competition, Baldwin and Clark build upon a design principle in computer architecture known as Amdahl's Law. The authors show that firms can study the underlying cause-and-effect relationships in a complex architecture in order to identify "bottlenecks." Firms may then redesign the interfaces of key components to make them more modular. They can then outsource more activities without sacrificing performance or cost. As a result, firms can offer competitive products or services, while investing less, and so enjoy an "invested capital advantage" over competitors. Baldwin and Clark explain how the strategy works and then model its impact on competition through successive stages of industry evolution. Key concepts include: Architectural innovation involves rearranging known parts (components) into new patterns (architectures) to achieve higher levels of system performance on one or more dimensions. The strategy described in this paper was used in the 1980s by Sun Microsystems against Apollo Computer and in the 1990s by Dell against Compaq and other personal computer makers. Sun's invested capital advantage can be linked to specific architectural innovations. As for Dell, indirect evidence shows that architectural knowledge and innovation contributed in important ways to Dell's success. Closed for comment; 0 Comments.
- 17 Jul 2006
- Lessons from the Classroom
Developing a Strategy for Digital Convergence
Technology was getting dull earlier this decade, says David Yoffie. But the sudden arrival of digital convergence has turned the tech world upside down. What are the right bets to place? Key concepts include: Digital convergence has arrived, creating entirely new products, services, and collaboration opportunities. The technology industry is tilting to horizontal. Players need to learn to complement each other as well as compete. Network effects create strong market advantages for companies that can capitalize on them. Closed for comment; 0 Comments.
- 05 Jul 2006
- Working Paper Summaries
Economic and Technical Drivers of Technology Choice: Browsers
Did Microsoft defeat Netscape in the browser war because its technology was better, or because MS created a better business strategy? The authors draw on the 1996-1999 browser battles to examine technical progress versus economic forces in driving diffusion on new technologies. Key concepts include: Rapid expansion of demand for PCs allowed Internet Explorer to capture new browser users and swamp the number of existing users of Netscape in the 1990s. More than better technology, better distribution can help second movers overcome first-mover advantage. Closed for comment; 0 Comments.
- 05 Jul 2006
- Working Paper Summaries
Wintel: Cooperation or Conflict
Industries are becoming more horizontal. Products that used to be designed and manufactured by a single firm are now produced by different companies that must coordinate activities. Here, the authors detail the relationship between Intel and Microsoft (both integral to PCs) and, using a mixed-duopoly model, analyze the dynamics of cooperation verses competition. They find that costs associated with complementary R&D, conflicts of interest in pricing, and the possibility of competitors all factor in the decision of when to cooperate or compete. Key concepts include: Complementary companies tend to compete on issues of price. For example, if one sells high (Intel's microprocessors) then another must sell low (Microsoft's software) in order for a product (a PC) to be able to sell at a profit. Complementors should weigh the costs and benefits of encouraging competition in each others' spaces. 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.
- 10 Apr 2006
- Research & Ideas
Lessons from the Browser Wars
The first-mover advantage is well chronicled, but it didn't help Netscape when Microsoft launched Internet Explorer. What drives technology adoption, and do browser upstarts such as Firefox stand a chance? A Q&A with professor Pai-Ling Yin. Closed for comment; 0 Comments.
- 19 Nov 2001
- Research & Ideas
Alfred Chandler on the Electronic Century
Pulitzer Prize-winning historian Alfred D. Chandler Jr. examines the development of two pivotal industries in post-World War II America—the consumer electronics and computer industries. Closed for comment; 0 Comments.
- 25 Sep 2000
- Research & Ideas
More Than the Sum of Its Parts: The Impact of Modularity on the Computer Industry
The "power of modularity," write HBS Dean Kim Clark and Professor Carliss Baldwin in their new book, rescued the computer industry from a problem of nightmarish proportions and made possible remarkable levels of innovation and growth in a relatively short period of time. Closed for comment; 0 Comments.
Japan Disaster Shakes Up Supply-Chain Strategies
The recent natural disaster in Japan brought to light the fragile nature of the global supply chain. Professor Willy Shih discusses how companies should be thinking about their supply-chain strategy now. Closed for comment; 0 Comments.