Platform policy and its effect on diffusion : the case study of Android and iOS

Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2014.

Bibliographic Details
Main Author: Yoon, Ilbae
Other Authors: Stuart E. Madnick.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2014
Subjects:
Online Access:http://hdl.handle.net/1721.1/91069
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author Yoon, Ilbae
author2 Stuart E. Madnick.
author_facet Stuart E. Madnick.
Yoon, Ilbae
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description Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2014.
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spelling mit-1721.1/910692019-04-11T14:30:24Z Platform policy and its effect on diffusion : the case study of Android and iOS Yoon, Ilbae Stuart E. Madnick. Sloan School of Management. Sloan School of Management. Sloan School of Management. Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2014. Cataloged from PDF version of thesis. Includes bibliographical references (pages 68-70). Platform has played an important role in telecommunication industry. As the industry evolves from value chain to value network industry, firms can no longer pursue innovation and maintain competitiveness solely by improving value chain activities. Rather, they have to become a platform intermediary among various participants' value network. Firms that successfully built up and internalized the platform now lead the telecommunication industry: on one side, there's opened Android platform, and on the other side, there's closed iOS platform. Each platform provider employs different platform policies, and these policies show different characteristics in the diffusion of each platform. To illustrate, the adoption rates of new operating systems are different: Android has adopted open policy, so it enjoyed relatively fast growth, but lags the adoption rate of new version's installed base far behind that of iOS. Meanwhile, iOS has adopted proprietary policy, so it the growth of user adoption was relatively slower than Android. However, frequent upgrade of Android platform resulted in so called fragmentation: while consumers enjoy wider choice of devices under opened platform, not all end users get benefit of version upgrade and this sometimes eliminates surplus generated around the platform. We see smaller fragmentation in more proprietary platform, iOS. In this study, the difference in the diffusion patterns of open and closed platforms will be analyzed using system dynamics analysis, and then the managerial implication regarding the policy and diffusion pattern will be discussed. (1) The diffusion of those two different types of platforms will be modelled using system dynamics modeling. To incorporate open and closed policy in the model, each model will be constructed in parallel. These models will be fit into historical data and used to predict the future trend. Predicted trend will be compared with real data to evaluate the accuracy of the model. (2) As a second step, the effect of open and close platform policy on diffusion pattern will be tested with variables used in the modeling. (3) Lastly, sensitivity test will be conducted to see whether platform intermediaries or platform participants can somehow manipulate the speed of diffusion. by Ilbae Yoon. S.M. in Management Studies 2014-10-21T17:24:13Z 2014-10-21T17:24:13Z 2014 2014 Thesis http://hdl.handle.net/1721.1/91069 892485880 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 75 pages application/pdf Massachusetts Institute of Technology
spellingShingle Sloan School of Management.
Yoon, Ilbae
Platform policy and its effect on diffusion : the case study of Android and iOS
title Platform policy and its effect on diffusion : the case study of Android and iOS
title_full Platform policy and its effect on diffusion : the case study of Android and iOS
title_fullStr Platform policy and its effect on diffusion : the case study of Android and iOS
title_full_unstemmed Platform policy and its effect on diffusion : the case study of Android and iOS
title_short Platform policy and its effect on diffusion : the case study of Android and iOS
title_sort platform policy and its effect on diffusion the case study of android and ios
topic Sloan School of Management.
url http://hdl.handle.net/1721.1/91069
work_keys_str_mv AT yoonilbae platformpolicyanditseffectondiffusionthecasestudyofandroidandios