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1081_CDPS_G1 [PR] Chapter 8 – Governance (Governance matters (Bad Cases …

- - - - Platform managers is difficult to ensure various participants create value for one another
        
        CONFLICTS
  - - - Privacy policy
    - - Technologies developed has expropriated by Twitter
    - - Turning off their access to APIs
  - - - larger population as a users
      - larger number of transactions fees
        
        become a governor to serve a millions of lives
      - control national economic system
      - Example: Google, Alibaba, Facebook
  - - - Before
        
        Corruption was rampant
        
        No nature resources
        
        Per capita GDP hovered below $430
        
        Ethnic strife between Malays and Chinese
        
        Political strife between capitalists and communists
        
        Religious strife between Muslims and Buddhists
      - After
        
        changing its system of governance
        
        introduced the British system of justice and rule by law
        
        to rise the salaries of civil servants and wear while as a sign of purity
        
        more open government like the creation of multicultural councils
        
        each 1% drop in corruption and misuse of public power for private gain
        
        GDP rises at 1.7%
        
        Annual growth rate was 6.69% during the 55 years from 1960 to 2015
      - Good governance can bring the wealth creation by comparing the GDP growth and innovation rates
- - - - Specific rules that will be clearly told
      - The rules of stakeholder behavior could be drafted by the platform’s designers
      - EX: Stack Overflow starts a successful online community :red_flag: transparent laws solves public good question
  - - - individual human inspection=> crowd curation
        
        :red_flag:under the norms, Bruce create a even more remarkable community
        
        :red_flag: Behavior design: respect person’s intrinsic rights to examine, and gradually create a valuable public good
    - - trigger
        
        the photo of favorite vacation spot :<3:
        show up in Facebook's news feed
      - reward
        
        Another user show up for pinterest!
      - action
        
        click the photo and link to Pinterest :point_up:
      - investment
        
        Ask her friend to use the platform or trigger someone to start another cycle
  - - - the best governor is everyone
  - - - Likes
      - high ratings
      - follows
    - - Idea possession
        
        SAP's solution
      - risk reduction
- - - - a tendency for divisions to become siloed
    - - transparency
        
        promotes consistency
        
        facilitate growth to scale
        
        use key resources
        
        help others develop
    - - Amazon Website Services(AWS)
        
        pain point
        
        different divisions of Amazon keep having to develop service operations to store, search and communicate data
        
        solution
        
        these varied projects should be combined into a single operation
        
        effect
        
        make all of vast data accessible and useful to their staff
    - - various product lines
        
        MP3 ,e-reader,camera, movie, television studio and gaming device(PSP)
      - fail to establish unified platform ecosystem
        
        Sony never offer a platform
        
        embrace separate product lines and focus on individual system
  - - - give external partners and shareholders a voice :check:
      - if don't give a voice :red_cross:
        partners abandon the platform
    - - Chicken or egg problem
        
        no one wants to buy
        
        USB was one of the first standard
        
        no one has adopted
        
        no one produce peripherals for computer standard
      - solution
        
        entrusting USB to IAL division
        
        earn the trust of partners
        
        not fail under the authority of any internal product line
        
        independence operation
        
        neutral negotiator
  - - - treat people fairly, they will share more ideas and bring more opportunity
    - - eg: USB
- - - - price exceeding $78,100
  - - - sellers have more information than buyers
    - - positive externality
        
        Nexfilx
        
        analyzes the people taste and recommendations
      - negative externality
        
        air pollution
    - - supplier have too powerful to control
    - - unexpected and unpredictable
        
        need to have tools serve the effects of risk
- - - - investment
        
        reinforces the behavior, through investment of time, data, social capital, or money
      - action produces a reward for the member