Invisible Engines: How Software Platforms Drive Innovation and Transform Industries

by Andrei Hagiu, Richard Schmalensee, David S. Evans, et al.

Book Overview

Harnessing the power of software platforms: what executives and entrepreneurs must know about how to use this technology to transform industries and how to develop the strategies that will create value and drive profits.

Software platforms are the invisible engines that have created, touched, or transformed nearly every major industry for the past quarter century. They power everything from mobile phones and automobile navigation systems...

• Format: Paperback
• Language: English
• ISBN: 0262550687
• ISBN13: 9780262550680
• Release Date: February 2008
• Publisher: MIT Press
• Length: 408 Pages
• Weight: 1.23 lbs.
• Dimensions: 1.1" x 6.0" x 9.0"
• Age Range: 18 years and up
• Grade Range: Postsecondary and higher

Customer Reviews

The concept is groundbreaking and goes beyond understanding of the software industry

While "Invisible Engines" provides readers with a good "lens" to understand what is driving competition in the software industry, the beauty of this book is that it is based on a new concept in economics, two-sided (multi-sided) platforms, which may be applied to many other industries. So far, economics reearch focused mostly on the single market model, but in the real world, there are many situations where two markets converge or two-sided platform is at work. The simplest example is singles clubs, which are mentioned in this book. The clubs need men and women and in the right proportions to even have a product. In summary, this book is a good introduction to the new frontier of ecnomics research, multi-sided platforms.

A very interesting and entertaining read

Not necessarily for weekend travels, but a very interesting and entertaining read nevertheless, on what may a priori seem like a pretty dull subject - software platforms. Well, little did I know, there is quite a lot of action (competition, innovation, "imperialism"?!?) going on in those industries. I would highly recommend it to any slightly economically-curious business person or even for someone who is just interested in investing in IT markets - great overview.

Tour de force

Ever wondered what iPods, Windows, Xboxes, PDAs and smartphones have in common? This book provides a useful analysis of the successful business practices that cut across all of these industries and have made their pioneers extremely rich and famous. I found it very insightful and surprisingly well-written - there are lots of well-chosen anecdotes which help the reader cope with the complexity of the subject.

Emerging markets use technology to take multi-sided markets to new heights

Technology innovation where emerging markets like China can apply at the same rate has taken the traditional multi-sided markets to new heights. Where the environment is more dynamic than mature economies, and cultural preferences differ, platforms like bulletine boards and blogs and online social communities which serve various interested parties, are more ubiquous and trusted than in mature economies where printed info are still accurate. The book is fascinating as it explores how markets are created and enabled by platforms that balance the relative powers of each player and interested parties. Definitely a good read!

Read Before Planning Your Next Technology Venture

The last page of this book is where all technology entrepreneurs and CEO's should sketch out their "next great idea". To do so before reading this book is like skydiving without a parachute. "Invisible Engines" is one of the best investments a technology related venture capitalist can make and is a must read for anyone contemplating creating, leading or investing in an organization involved in the technology sector.