Author Abstract
The IBM PC was the first digital computer platform that was open as a matter of strategy, not necessity. The purpose of this chapter is to understand the IBM PC as a technical system and set of organization choices in light of the theory of how technology shapes organizations. In Chapter 7, I argued that sponsors of large technical systems (including platform systems) must manage the modular structure of the system and property rights in a way that solves four inter-related problems: provide all essential functional components, solve system-wide technical bottlenecks wherever they emerge, control and protect one or more strategic bottleneck, and prevent others from gaining control of any system-wide strategic bottleneck. I use this framework to understand how IBM initially succeeded with the PC platform and then lost its position as platform sponsor in the industry it had created.
Paper Information
- Full Working Paper Text
- Working Paper Publication Date: January 2019
- HBS Working Paper Number: HBS Working Paper #19-074
- Faculty Unit(s):
