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[PR] Chapter 7 – Openness :pen:Members: Sunny/Cindy/MJ/Phoebe/Ian (2…
[PR] Chapter 7 – Openness
:pen:Members: Sunny/Cindy/MJ/Phoebe/Ian
4.Developer Participation
Core interactions>>> New interactions
Extension Developers
I. Adding features & value & enhancing platform's functionality
outside parties- to extract value they create & profit from their offered benefits
individuals & companies- apps- iTunes store- games, information, productivity tools, activity enhancers,...
platform managers- the extent a platform can open to extension developers
Airbnb
properties-quality photographs - viewed twice by renters- "Airbnb photography service"
II. Providing tools
Pillow
- simplify property listing, guest checkin and linen delivery
Urban Bellhop & Guesthop
- travel arrangements
Airbnb
- offer a suite of services- a full-service hotel
III. Encouraging a proper extension
application programming interface (API)
(high degree of openess)
Airbnb had already developed one yet couldn't available to all
The Guardian- opposite direction to those of Myspace & Keurig's erection of barriers
open> users & close> extension developers
Open platform
open in- more outside data & applications
open out- products using Guardian content & services
Open out goals
Keyless
- allows anyone- use Guardian headlines, metadata, & information architecture & share generated revenues
Approved
- allows- registered developers- reprint entire Guardian articles (time & usage restrictions)
Bespoke
- customized support package- unlimited Guardian content-fee
Comparing Financial Results
Amazon
- 300 API mashups>>> e-commerce, cloud computing,payments,etc,...
Walmart
- one API>>> an e-commerce tool
Amazon's stock market capitalization exceeded
Cloud computing & Computer service platform (Salesforce)50%
2.Travel (Expedia) 90%
Data Aggregators
add value-interactions- enhance the matching function-data from multiple sources (Facebook)
resell users data to others- advertising placement
Businesses(on/off platform)
platform businesses-access (Target)>>> monitor personal behavior- queasy
large & growing revenue source--- appropriate management>ethical, legal & business challenge
Core Developers
Create core platform functions that provide value to platform participants
Basic platform capabilities (
Airbnb
)
infrastructure- allows guests & hosts - interact with each other- system resources ( search capabilities & data services - properties & payment (transactions)
Verification of participants's identities- a meaningful user behavior measure reputation system
Designing, fine-tuning, maintaining & improving systems
2.Platform Ecosystem & Openness
Platform
Info exchange
Producers
Consumers
Remuneration
Transaction
Core interaction
New interaction
Attract more
New interaction
Attract more
Partners out side platforms create value
If platforms too closed
Discourage/block them to create value for platforms
Openness decisions
Developer participation
User participation
Manager & Sponsor participation
3.Manager & Sponsor patitcipation
Model
Licensing Model
Several firms running platforms but only 1 sponsor
e.g. Google Andriod
Joint Venture Model
A single firm manages platform but have several sponsors
e.g. Orbitz
Inflexible & Inefficient of decision making
Open to one side closed to each side
Proprietary Model
A single Firm both manages & sponsors platform
e.g. iOS
Greatest control and facilitates most closed system
Not always produce lasting economic returns
Develop new technology standard and sole control
Shared Model
A group of firms manages platform while another group sponsors it
e.g. Linux
Open to both side
4 models are different types of openness
Sometimes, firms change their model in order to fit the change of demand and market structure
Entities behind platforms
Sponsor
Controlling architecture and legal properties of platforms
Greater legal & economy control
Larger power over long-term strategies
Manager
Managing, organizing platforms and their users
Closer to consumer & supplier
Considerable influence over daily operation
7.Similar platforms can compete through differing levels of openness
Apple v.s Google
Grew rapidly beyond control
Restrict access to its platform through a variety of mechanisms
Opened its system just enough to encourage developers
1. How open? How close?
challenges
in
managing an open platform model
:arrow_heading_up: the accessibility to all :silhouettes:
definition
" open "
None-discriminatory
restrictions
to all potential participants :check:
eg.
licencing fees
NO
restriction
on participation :green_cross:
commercialization
use
development
" closed "
onerous participation rules
discourage :silhouettes:
charge excessive fees (rents)
low profit
8.Opening over time: the benefits and the risks
Open or closed
Proprietory platform
Become more open
Open, share platform
Become more closed
Design ways to continually evaluate the platform's openness level
Use consistent strategic framework
Moves processes outside the firm from employees to partners
Develop algorithms
Decentralize curation
Automate curation
Challenge to find balance
Too closed
May refuse to make platform-specific investments
Too open
Particular developer successfully displaces other competitors
Be careful :warning:
5.What to open? What to own?
The amount of
value created
by the extension APP
:check: Buying the APP or the company that created it
ex: Apple bought SRI International
:green_cross: Outside developers control it is more safe and efficient
ex: YouTube let the person who upload the video control by themselves
Two other principles that platform managers might consider
If a APP has the potential to become a powerful platform in its own right, platform manager should seek to own it or to replace it
If the APP is reinvented by the extension developers and gains widespread acceptance by users, platform managers should acquire the functionality and make it available through an open API
6.User participation
Facilitate the creation and provision of a high quality
Platforms reject absolute openness
Curation
Screening
Deciding who will inter the platform
Feedback
Encouraging desirable behavior
Types
Managing through human gatekeepers
Users themselves
Use software tools to gather and aggregate feedback and apply it to curation decisions
Example
Flag objectionable content
Rating
User-driven, software tools
Microsoft operating system
:apple:Macintosh
closed system
open
Variant openness regimes
Different kinds and numbers of participants
:warning: Controversy-
Wikipedia <Murder of Meredith Kercher>
the source of data :point_right::skin-tone-5:
unreliable
Google maps
Apple maps
Control over the mapping app as a source of critical value
Wikipedia
Complete openness
Monitor by users
Hijacking the murder case
Wikipedia: List of controversial issues
Limiting openness through artful curation
Promulgating " Wikipedia: five pillars "
Neutral point of view
VandalProof
Highlights articles edited by users with a track record of unreliable work
Tagging tools
A range of blocking and protection systems
YouTube
:red_flag: :point_up::skin-tone-5:
share of the personal computer market
