Tag: Industry Platforms

Industry Platforms: No. 9 Reason Ecosystems Are The Future!

In How Companies Become Platform Leaders, Annabelle Gawer and Michael Cusumano describe the difference between products and industry platforms. Products are proprietary and under one company’s control, whereas industry platforms are foundation technologies or services that are essential for a broader, interdependent ecosystem of businesses. Industry platforms need complementary innovations to be useful, and vice versa. In Industry Platforms and Ecosystem Innovation, Gawer and Cusumano state that industry platforms are often associated with “network effects”: that is, the more participants who adopt the platform, the more valuable it becomes because of growing access to the network and complementary innovations.