« Follow the MacHeads | Main | Real estate job growth »

July 08, 2005

Who is going to make money ?

Rebecca Henderson answers this question in this MIT video clip :

If you are in the business of making "boxes" -- say, to play downloaded music, or to compute data-you are facing a dilemma Customers are no longer seeking the best designed product, but "a total system experience." Whether the business involves bicycles or cell phones, medical or financial services, the future in an interconnected world is about selling parts of interconnected systems. So firms must "think about controlling architecture or influencing the architecture of the system and building the best products within it."

The challenge will be to seize on the right strategy for competing in a world where a common telecommunications backbone connects devices and people everywhere. If your systems don't dovetail with the architecture of this telecom backbone, you might face "sudden death" when the market for your product tips toward a different standard. Henderson suggests that organizations are more likely to survive if they embrace public open standards such as Linux, and abandon proprietary software. She advocates "soft standards," where companies design systems compatible with current and future public standards but at the same time offer customers performance and functionality tailored to their needs

Many people claim that they know how to make money in this web2.0 world but it's hard to say at this point.  It's in a very early phase right now,  it will be a different picture once the standards dust settles.

July 8, 2005 in Emerging Technologies | Permalink


TrackBack URL for this entry:

Listed below are links to weblogs that reference Who is going to make money ?:


The comments to this entry are closed.