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Invisible Engines: How Software Platforms Drive Innovation and Transform Industries (MIT Press)

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Format: Hardcover


Description

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 to search engines and web portals. They have been the source of enormous value to consumers and helped some entrepreneurs build great fortunes. And they are likely to drive change that will dwarf the business and technology revolution we have seen to this point. Invisible Engines examines the business dynamics and strategies used by firms that recognize the transformative power unleashed by this new revolution -- a revolution that will change both new and old industries.The authors argue that in order to understand the successes of software platforms, we must first understand their role as a technological meeting ground where application developers and end users converge. Apple, Microsoft, and Google, for example, charge developers little or nothing for using their platforms and make most of their money from end users; Sony PlayStation and other game consoles, by contrast, subsidize users and make more money from developers, who pay royalties for access to the code they need to write games. More applications attract more users, and more users attract more applications. And more applications and more users lead to more profits.Invisible Engines explores this story through the lens of the companies that have mastered this platform-balancing act. It offers detailed studies of the personal computer, video game console, personal digital assistant, smart mobile phone, and digital media software platform industries, focusing on the business decisions made by industry players to drive profits and stay a step ahead of the competition. Shorter discussions of Internet- based software platforms provide an important glimpse into a future in which the way we buy, pay, watch, listen, learn, and communicate will change forever. An electronic version of this book is available under a Creative Commons license. Read more


Publisher ‏ : ‎ The MIT Press; 1st edition (August 18, 2006)


Language ‏ : ‎ English


Hardcover ‏ : ‎ 408 pages


ISBN-10 ‏ : ‎ 2


ISBN-13 ‏ : ‎ 52


Reading age ‏ : ‎ 18 years and up


Item Weight ‏ : ‎ 1.6 pounds


Dimensions ‏ : ‎ 6 x 0.81 x 9 inches


Best Sellers Rank: #2,342,321 in Books (See Top 100 in Books) #1,581 in Information Management (Books) #7,290 in Motivational Management & Leadership #10,621 in Computer Science (Books)


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Top Amazon Reviews

    • Pre-2006 case studies of software platform business models
Published in 2006, one year before the introduction of the iPhone and two years after the founding of facebook, this book looks at software platforms through an economic lens. The early chapters of the book contain a description of programming languages, operating systems, networks, computers in general, APIs, and Open Source. The next few chapters are dedicated to case histories of 1970’s to early 2000’s computer industry history including programming languages, operating systems, mobile phones, personal computers, digital music players, and digital music platforms. These case studies feature Palm Pilot, iPod, RealNetworks, Microsoft, Apple, and DoCoMo. The last section of the book discusses key decisions that platform owners need to make. First it the scope and level of integration that the business undertakes. Second is pricing, enticing all parties to participate, and overall business model. Finally, features and functionality for the platform must be selected. Invisible Engines was one of the first books on platforms and contains analysis and models that are still relevant. Although the examples are all pre-2006, there's a lot of history to enjoy and compare to today's landscape.It is limited in scope relative to books like Platform Scale by Sangeet Paul Choudary and Platform Ecosystems by Amrit Tiwana, but it's an interesting portrayal of early platform pioneers. Invisible Engines focuses on economics, business models, and industry case studies. Platform Scale covers the dynamics of platforms, their underlying models, and how to achieve growth. Platform Ecosystems is a vast textbook that covers all aspects of platforms from technology through governance. ... show more
Reviewed in the United States on February 25, 2016 by Amazon customer
    • partly useful
Has a large section that explains some basics about software. This material was useless to me, an engineer trying to understand the business end of the business, and probably will be to anyone who'se well enough informed to be investing in the software industry. The material that's actually about software platforms is useful, though it lacks a certain amount of rigor. I kept wanting to hear either evidence presented that they weren't just blowing smoke, or see a cite. ... show more
Reviewed in the United States on April 14, 2017 by Annie
    • Slightly Dated, but many concepts still hold
I like this book. The author has made portions of it available as a PDF if you want to see if it's for you. The book was written in 2006 and the concept of platforms has really evolved since then. Some of the prime examples in the book don't hold up anymore, but it's pretty easy to extend the concept to other platforms, such as iphones/ipads or set top boxes like Roku. I found it was well written and a fairly easy read. Not for everybody, but it's a well written explanation of the economics of platforms ... show more
Reviewed in the United States on October 30, 2013 by JR
    • Good survey and interesting analysis
Helpful overview of software platforms history/status. Insightful information on economics driving the technical and marketing decisions.
Reviewed in the United States on February 15, 2007 by A. S. Krantz
    • 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. ... show more
Reviewed in the United States on June 24, 2007 by Michael Evans
    • This book sucks
I don't know if I'm missing what the other reviewers saw in this book. I hope they are not people who the authors know. This book plain sucks. Blogs are better structured than this one. Each page totally lacks focus. The authors jump from point to point without any continuity. Most of the concepts presented add no value. This book ended up being a mangled mess between economics and history of computers. You'd be better off reading wikipedia on these topics. Why did I give a 2 instead of a 1? Some concepts like the multisides make sense. ... show more
Reviewed in the United States on May 1, 2008 by Dee Inguva
    • 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! ... show more
Reviewed in the United States on November 30, 2006 by Katy Huang
    • 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. ... show more
Reviewed in the United States on December 14, 2006 by TK

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