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  1. Design rules, volume 2: how technology shapes organizations
    chapter 2 transactions in a task network
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2020]
    Verlag:  Harvard Business School, [Boston, MA]

    From the 1930s through today, many economists have conceived of large technical systems for the production of goods and services as a series of transactions. This point of view has led eminent economists to assert that transactions are the... mehr

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    From the 1930s through today, many economists have conceived of large technical systems for the production of goods and services as a series of transactions. This point of view has led eminent economists to assert that transactions are the fundamental unit of analysis in the economic system.This conceptualization has been very powerful, but it is also limiting. To truly understand the relationship between technology and organizations we must look “beneath” transactions at the full set of tasks and transfers that must take place to design and produce useful goods and services in an efficient way. The purpose of this chapter is to describe how transactions fit into a larger network of tasks and transfers and to identify the technological determinants of transaction costs

     
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    Schriftenreihe: Working paper / Harvard Business School ; 21, 030
    Schlagworte: Modularity; Technology; Organizations
    Umfang: 1 Online-Ressource (circa 27 Seiten), Illustrationen
  2. Design rules, volume 2: how technology shapes organizations
    chapter 3 transactions free zones
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2020]
    Verlag:  Harvard Business School, [Boston, MA]

    In Chapter 2 we saw that the most economical locations for transactions in a task network are the so-called thin crossing points—places where transfers are easy to define, count and pay for. However, in many places in the task network, transfers of... mehr

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    In Chapter 2 we saw that the most economical locations for transactions in a task network are the so-called thin crossing points—places where transfers are easy to define, count and pay for. However, in many places in the task network, transfers of material, energy, and information are so dense and complex that the costs of treating each one as a transaction would be prohibitive. Such areas can become transaction free zones.The purpose of this chapter is to build a theory of transaction free zones within a task network. I first consider how transaction free zones are related to the economic view that a firm is a “nexus of contracts.” I then explain how transaction free zones are created and governed. I describe three types of transaction free zones: (1) corporations in which all decision rights flow from a single, central authority; (2) commons organizations which govern through consensual rule-making and monitoring; and (3) collaborative communities with open boundaries which govern through consensus and shared norms

     
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    Schriftenreihe: Working paper / Harvard Business School ; 21, 031
    Schlagworte: Modularity; Technology; Organizations
    Umfang: 1 Online-Ressource (circa 24 Seiten), Illustrationen
  3. Design rules, volume 2: how technology shapes organizations
    chapter 4 the mirroring hypothesis : linkages inside and across transaction free zones
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2020]
    Verlag:  Harvard Business School, [Boston, MA]

    A technology is a specific way to achieve a material goal. It describes a feasible path—a recipe—by which a group of people can arrive at a goal that none could achieve individually. Technical recipes thus require linkages between and among the... mehr

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    A technology is a specific way to achieve a material goal. It describes a feasible path—a recipe—by which a group of people can arrive at a goal that none could achieve individually. Technical recipes thus require linkages between and among the various contributors to the technical process.The purpose of this chapter is to look at the relationship between the steps in a given technical recipe and organizational linkages between and among people implementing the recipe. I begin by introducing two concepts: (1) technical dependencies which are properties of the technical architecture; and (2) organizational ties which are properties of the organizational architecture. The idea that organizational ties ought to correspond to technical dependencies is known as the mirroring hypothesis. This chapter defines the mirroring hypothesis and describes its origins. It then investigates the theory behind the hypothesis and identifies a set of “predictable exceptions” where the hypothesis does not hold. Finally it considers the evidence for and against mirroring in the economy at large

     
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    Schriftenreihe: Working paper / Harvard Business School ; 21, 032
    Schlagworte: Modularity; Mirroring Hypothesis; Technology; Organizations
    Umfang: 1 Online-Ressource (circa 28 Seiten), Illustrationen
  4. Design rules, volume 2: how technology shapes organizations
    chapter 5 ecosystems and complementarities
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2020]
    Verlag:  Harvard Business School, [Boston, MA]

    The purpose of this chapter is to introduce two new building blocks to the theory of how technology shapes organizations. The first is a new layer of organization structure: a business “ecosystem.” The second is the economic concept of... mehr

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    The purpose of this chapter is to introduce two new building blocks to the theory of how technology shapes organizations. The first is a new layer of organization structure: a business “ecosystem.” The second is the economic concept of “complementarity.” Ecosystems are groups of autonomous firms and individuals whose actions and investments create joint value. Ecosystems are defined by economic complementarities among their members: the value they create acting together is greater than the value they can create acting separately. The modern theory of complementarity thus helps to explain when and why ecosystems survive in the greater economy.In the first half of this chapter, I define business ecosystems and show how they are related to task networks, transactions, transaction free zones, and corporations. I then describe the methods by which ecosystems are coordinated. The second half of the chapter investigates how economic complementarities influence ecosystems. Within ecosystems, centripetal forces “pull” firms together giving them incentives to combine. Conversely, centrifugal forces “push” firms apart providing incentives to remain separate. The continued existence of an ecosystem requires a balance of these forces, so that the system neither collapses into several large firms nor dissipates into a group of unrelated firms. In the final sections of the chapter, I identify necessary mathematical conditions for an ecosystem to survive as a dynamic equilibrium in the larger economy

     
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    Schriftenreihe: Working paper / Harvard Business School ; 21, 033
    Schlagworte: Business Ecosystems; Complementarity; Modularity; Technology; Organizations
    Umfang: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  5. Design rules, volume 2: how technology shapes organizations
    chapter 6 the value structure of technologies, part 1 : mapping functional relationships
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2020]
    Verlag:  Harvard Business School, [Boston, MA]

    Organizations are formed in a free economy because an individual or group perceives value in carrying out a technical recipe that is beyond the capacity of a single person. Technology specifies what must be done, what resources must be assembled,... mehr

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    Organizations are formed in a free economy because an individual or group perceives value in carrying out a technical recipe that is beyond the capacity of a single person. Technology specifies what must be done, what resources must be assembled, what actions taken in order to convert stocks of material, energy and information into products and services of value to human beings. Technology is the guide, organizations are the means, value is the goal.The purpose of this chapter is to build a robust and versatile language that is capable of representing the value structure of large technical systems. The language is based on elements I have labeled functional components. The language is more abstract than the language of technical recipes and task networks, thus it is capable of hiding details. However, the language also makes it possible to “trace back” from each named functional component to a technical recipe and a corresponding task network. Finally, although the language itself is non-mathematical, the value structure it reveals can be used to specify equations and prove mathematical propositions about the value of technical systems.The plan of the chapter as follows. I first explain why it is difficult to value technologies using standard economic methods based prices, quanities and probabilities. I then describe a methodology that shows how functional components are combined through technology to create a particular artifact or technical system. The methodology uses symbolic notation to clarify relationships between and among functional components. I illustrate these relationships using an ancient technology—the technology for making a garment from pieces of cloth. I go on to describe commonly observed patterns within technical systems, including optional features; composite functions; and platforms

     
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    Schriftenreihe: Working paper / Harvard Business School ; 21, 039
    Schlagworte: Modularity; Technology; Organizations; Value Creation
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  6. Design rules, volume 2: how technology shapes organizations
    chapter 7 the value structure of technologies, part 2 : strategy without numbers
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2020]
    Verlag:  Harvard Business School, [Boston, MA]

    Functional analysis as set forth in the last chapter decomposes a technical system into functional components that do things to advance the system’s purpose and the goals of its designers. Functional analysis in turn can be used to construct value... mehr

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    Functional analysis as set forth in the last chapter decomposes a technical system into functional components that do things to advance the system’s purpose and the goals of its designers. Functional analysis in turn can be used to construct value structure maps of technical systems. Such maps reveal targets of potential action and investment in the technical system where value may be created and captured. Value structure maps can be constructed without using numerical estimates based on prices, quanities and probabilities, thus they are an appropriate means of analyzing technical systems subject to radical uncertainty, complexity, and complementarity.The purpose of this chapter is to illustrate how value structure mapping combined with narratives can be applied to problems of strategy in large technical systems. I first argue that the salient points of value creation and value capture in a large technical system are the system’s bottlenecks. I then use value-mapping methodology to trace the evoluion of bottlenecks of three large technical systems: early aircraft; high-speed machine tools; and container shipping. Finally, I distill the lessons of the case studies into four principles for creating and capturing value in large, evolving technical systems

     
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    Schriftenreihe: Working paper / Harvard Business School ; 21, 040
    Schlagworte: Modularity; Value Structure Mapping; Value Capture; Technology; Organizations; Strategy; Value Creation
    Umfang: 1 Online-Ressource (circa 21 Seiten)
  7. Design rules, volume 2
    how technology shapes organizations: chapter 13 platform systems vs. step processes - the value of options and the power of modularity
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

    This is the first chapter in Part 3. Its purpose is to contrast the value structure of platform systems with step processes from a technological perspective. I first review the basic technical architecture of computers and argue that every computer... mehr

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    This is the first chapter in Part 3. Its purpose is to contrast the value structure of platform systems with step processes from a technological perspective. I first review the basic technical architecture of computers and argue that every computer is inherently a platform for performing computations as dictated by their programs. I state and prove five propositions about platform systems, which stand in contrast to the propositions derived for step processes in Chapter 8. The propositions suggest that platform systems and step processes call for different forms of organization. Specifically, step processes reward technical integration, unified governance, risk aversion, and the use of direct authority, while platform systems reward modularity, distributed governance, risk taking, and autonomous decision-making.Despite these differences, treating platform systems and step processes as mutually exclusive architectures sets up a false dichotomy. Creating any good requires carrying out a technical recipe, i.e., performing a series of steps. Step processes in turn can be modularized (at the cost of lower efficiency) by creating buffers between steps. I show that the optimal number of modules (and buffers) increases as the underlying rate of technical change goes up. When the underlying technologies are changing rapidly, it makes sense to sacrifice some degree of flow efficiency for options to mix-and-match modular components

     
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    Schriftenreihe: Working paper / Harvard Business School ; 19, 073
    Harvard Business School Research Paper Series ; No. 19-073
    Schlagworte: Technischer Fortschritt; Organisatorischer Wandel; Softwareentwicklung; Strukturwandel
    Umfang: 1 Online-Ressource (circa 31 Seiten), Illustrationen
  8. Design rules, volume 2: how technology shapes organizations
    chapter 10 variations on the theme of flow production
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

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  9. Design rules, volume 2: how technology shapes organizations
    chapter 8 rationalizing flow processes
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

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  10. Design rules, volume 2: how technology shapes organizations
    chapter 9 organizing to rationalize
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

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  11. Design rules, volume 2: how technology shapes organizations
    chapter 16 capturing value by controlling bottlenecks in open platform systems
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

    The purpose of this chapter is to investigate the means by which firms capture value in open platform systems. I begin by arguing that the surplus value created by complementarities within a technical system will be split among the owners of the... mehr

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    The purpose of this chapter is to investigate the means by which firms capture value in open platform systems. I begin by arguing that the surplus value created by complementarities within a technical system will be split among the owners of the unique and essential components—the strategic bottlenecks in the system. However, most platforms must also execute a series of steps which are subject to “flow production” bottlenecks. Finding and fixing these flow bottlenecks is another way to capture value.In addition, two types of platform improvements provide further opportunities for value capture. “Accelerators” speed up the processing of options, while “subsidiary” platforms increase the range of options available to users. Finally, members of a platform system or new entrants may seek to supplant the owner of a strategic bottleneck by “disintermediating” platform components. I describe four generic methods of disintermediation: substitution; reverse engineering; platform independent complements; and platform envelopment

     
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    Schriftenreihe: Working paper / Harvard Business School ; 20, 054
    Harvard Business School, Harvard Business School Research Paper Series # 20-054
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  12. Design rules, volume 2: how technology shapes organizations
    chapter 17 the wintel standards-based platform
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

    The purpose of this chapter is to use the theory of bottlenecks laid out in previous chapters to better understand the dynamics of an open standards-based platform. I describe how the Wintel platform evolved from 1990 through 2000 under joint... mehr

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    The purpose of this chapter is to use the theory of bottlenecks laid out in previous chapters to better understand the dynamics of an open standards-based platform. I describe how the Wintel platform evolved from 1990 through 2000 under joint sponsorship of Intel and Microsoft. I first describe a series of technical bottlenecks that arose in the early 1990s concerning the “bus architecture” of IBM-compatible PCs.Intel's management of buses demonstrates how, under conditions of distributed supermodular complementarity, a platform sponsor can reconfigure the modular structure of a technical system, property rights within the system, and its own zone of authority to increase system-wide throughput, while protecting its own strategic bottleneck from disintermediation.I go on to describe how Microsoft used platform envelopment to establish a second strategic bottleneck in productivity software and later to respond to the threat of disintermediation from platform-independent Internet browsers. I end the chapter by discussing the conditions under which shared platform sponsorship can be a long-term dynamic equilibrium

     
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    Schriftenreihe: Working paper / Harvard Business School ; 20, 055
    Harvard Business School, Harvard Business School Research Paper Series # 20-055
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  13. Design rules, volume 2
    how technology shapes organizations : chapter 14 introducing open platforms and ecosystems
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

    The purpose of this chapter is to lay the groundwork for a comprehensive theoretical investigation of open platform systems. To do this, we must first recognize that, although there is a strong family resemblance among all platform systems, there are... mehr

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    The purpose of this chapter is to lay the groundwork for a comprehensive theoretical investigation of open platform systems. To do this, we must first recognize that, although there is a strong family resemblance among all platform systems, there are different types of platforms, each with its own set of technological requirements and challenges. I first develop a taxonomy of open platforms and then provide a brief history of open digital platforms. I go on to argue that the success of open platforms in competition with vertically integrated firms gave rise to the “vertical-to-horizontal” transition in the computer industry between 1985 and 2000. The technology of open digital platforms not only shaped individual organizations but changed the structure of the entire computer industry

     
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    Schriftenreihe: Working paper / Harvard Business School ; 19, 035
    Harvard Business School, Harvard Business School Research Paper Series # 19-035
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  14. Design rules, volume 2
    how technology shapes organizations : chapter 6 the value structure of technologies, part 1: mapping functional relationships
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2018]
    Verlag:  Harvard Business School, [Boston, MA]

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    Schriftenreihe: Working paper / Harvard Business School ; 19, 037
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  15. Design rules, volume 2
    how technology shapes organizations : chapter 5 complementarity
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2018]
    Verlag:  Harvard Business School, [Boston, MA]

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    Schriftenreihe: Working paper / Harvard Business School ; 19, 036
    Schlagworte: Komplementärgüter; Leistungsbündel
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  16. Design rules, volume 2
    how technology shapes organizations : chapter 7 the value structure of technologies, part 2: technical and strategic bottlenecks as guides for action
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2018]
    Verlag:  Harvard Business School, [Boston, MA]

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    Schriftenreihe: Working paper / Harvard Business School ; 19, 042
    Schlagworte: Investitionsentscheidung; Systemanalyse
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  17. Design rules, volume 2
    how technology shapes organizations: chapter 15 the IBM PC
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  Harvard Business School, [Boston, MA]

    The IBM PC was the first digital computer platform that was open by as a matter of strategy, not necessity. The purpose of this chapter is to understand the IBM PC as a technical system and set of organization choices in light of the theory of how... mehr

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    The IBM PC was the first digital computer platform that was open by as a matter of strategy, not necessity. The purpose of this chapter is to understand the IBM PC as a technical system and set of organization choices in light of the theory of how technology shapes organizations. In Chapter 7, I argued that sponsors of large technical systems (including platform systems) must manage the modular structure of the system and property rights in a way that solves four inter-related problems:• Provide all essential functional components; • Solve system-wide technical bottlenecks wherever they emerge;• Control and protect one or more strategic bottleneck; and • Prevent others from gaining control of any system-wide strategic bottleneck.I use this framework to understand how IBM initially succeeded with the PC platform and then lost its position as platform sponsor in the industry it had created

     
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    Schriftenreihe: Working paper / Harvard Business School ; 19, 074
    Schlagworte: Technischer Fortschritt; Digitalisierung; Personal Computer
    Umfang: 1 Online-Ressource (circa 32 Seiten)
  18. Strict ID laws don't stop voters
    evidence from a U.S. nationwide panel, 2008-2016
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2019]
    Verlag:  [Harvard Business School], [Boston, MA]

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    Schriftenreihe: [Working paper / Harvard Business School ; 19, 076]
    Umfang: 1 Online-Ressource (circa 49 Seiten), Illustrationen
  19. Where do transactions come from?
    A perspective from engineering design
    Autor*in: Baldwin, Carliss Y.; Clark, Kim B.
    Erschienen: 2002

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    Schriftenreihe: Working paper / Division of Research, Harvard Business School ; 03,031
    Schlagworte: Produktionsstruktur; Transaktionskosten; Arbeitsteilung; Theorie
    Umfang: 49 Bl
  20. Exploring the relationship between architecture coupling and software vulnerabilities
    a Google Chrome case
    Autor*in: Lagerström, Robert; Baldwin, Carliss Y.; MacCormack, Alan; Sturtevant, Dan; Doolan, Lee
    Erschienen: [2017]
    Verlag:  Harvard Business School, [Boston, MA]

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    Schriftenreihe: Working paper / Harvard Business School ; 17, 078
    Umfang: 1 Online-Ressource (circa 12 Seiten), Illustrationen
  21. Explaining the vertical-to-horizontal transition in the computer industry
    Autor*in: Baldwin, Carliss Y.
    Erschienen: [2017]
    Verlag:  Harvard Business School, [Boston, MA]

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    Schriftenreihe: Working paper / Harvard Business School ; 17, 084
    Umfang: 1 Online-Ressource (circa 58 Seiten), Illustrationen
  22. Digital agility
    the impact of software portfolio architecture on IT system evolution
    Autor*in: MacCormack, Alan; Lagerström, Robert; Mocker, Martin; Baldwin, Carliss Y.
    Erschienen: [2017]
    Verlag:  Harvard Business School, [Boston, MA]

    The modern industrial firm increasingly relies on software to support its competitive position. However, the uncertain and dynamic nature of today's global marketplace dictates that this software be continually evolved and adapted, to meet new... mehr

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    The modern industrial firm increasingly relies on software to support its competitive position. However, the uncertain and dynamic nature of today's global marketplace dictates that this software be continually evolved and adapted, to meet new business challenges. This ability – to rapidly update, improve, remove, replace, and reimagine the software applications that underpin a firm's competitive position – is at the heart of what has been called IT agility. Unfortunately, we have little understanding of the antecedents of IT agility, specifically with respect to the choices that a firm makes when designing its portfolio of software applications.In this paper, we explore the relationship between software portfolio architecture and IT agility. In particular, we use modular systems theory to examine how different types of coupling impact the ability to maintain, retire and commission new software applications. We test our hypotheses with a unique longitudinal dataset from a large financial services firm. Our sample comprises information on over 2,000 software applications observed over a 4-year period.We find that applications with higher levels of coupling cost more to maintain, are less likely to be retired, and are less likely to be commissioned. However, we show specific types of coupling present greater challenges than others, in terms of their impact. In particular, applications that are cyclically coupled (i.e., mutually interdependent) are the most difficult to manage, in terms of maintaining and updating the software portfolio. Our results suggest that IT managers have a critical design role to play, in firms that seek enhanced digital agility

     
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    Schriftenreihe: Working paper / Harvard Business School ; 17, 105
    Harvard Business School Technology & Operations Mgt. Unit Working Paper ; No. 17-105
    Umfang: 1 Online-Ressource (circa 43 Seiten), Illustrationen
  23. Designs and design architecture
    the missing link between "knowledge" and the "economy"
    Autor*in: Baldwin, Carliss Y.; Clark, Kim B.
    Erschienen: 2005

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    Schriftenreihe: Working paper / Division of Research, Harvard Business School ; 05,052
    Schlagworte: Wissen; Innovation; Open Source; Modularisierung
    Umfang: 12 Bl., graph. Darst.
  24. Where do transactions come from?
    A network design perspective on the theory of the firm
    Autor*in: Baldwin, Carliss Y.; Clark, Kim B.
    Erschienen: 2006

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    Schriftenreihe: Working paper / Division of Research, Harvard Business School ; 06,051
    Schlagworte: Produktionsstruktur; Transaktionskosten; Arbeitsteilung; Netzwerk; Modularisierung
    Umfang: 52 S., graph. Darst.
  25. Exploring the structure of complex software designs
    an empirical study of open source and proprietary code
    Autor*in: MacCormack, Alan; Rusnak, John; Baldwin, Carliss Y.
    Erschienen: 2005

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    Schriftenreihe: Working paper / Division of Research, Harvard Business School ; 05,016
    Schlagworte: Softwareentwicklung; Open Source
    Umfang: 41 S, graph. Darst