A large and increasing share of global economic activity takes place
in organizational ecosystems which consist of different groups of users
conducting transactions through a technological platform. For example,
mobile device application markets, such as the Apple App Store, allow
device users to download applications created by independent developers.
Both platform-leading firms, and those utilising it to supply goods and
services, face distinctive management challenges. The performance of firms taking a leading role in an ecosystem
depends not only on their management of internal innovation challenges,
but also on their ability to manage the differing challenges facing
their suppliers and firms providing complementary products.
While much attention has been paid to co-operation
with suppliers to overcome such challenges, less is known about how
firms can effectively manage complementor innovation. Ecosystems leaders
must also consider direct and indirect network effects when developing
strategies to attract distinct groups of users to the ecosystem, and
must be wary of threats of envelopment by other platforms. Complementors, on the other hand, must make choices regarding which
platform(s) to make products for, taking into account a number of
considerations, including platform popularity, competition, and
technology. They must also compete against other complementors, while
keeping in mind the possibility that the platform leader might choose to
enter into their product space should their offering be successful. So which criteria should app developers use when selecting a platform? Share your thoughts with the Smartphone and Tablet Zone.
While much attention has been paid to co-operation
with suppliers to overcome such challenges, less is known about how
firms can effectively manage complementor innovation. Ecosystems leaders
must also consider direct and indirect network effects when developing
strategies to attract distinct groups of users to the ecosystem, and
must be wary of threats of envelopment by other platforms. Complementors, on the other hand, must make choices regarding which
platform(s) to make products for, taking into account a number of
considerations, including platform popularity, competition, and
technology. They must also compete against other complementors, while
keeping in mind the possibility that the platform leader might choose to
enter into their product space should their offering be successful. So which criteria should app developers use when selecting a platform? Share your thoughts with the Smartphone and Tablet Zone.
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