When standards become business models: reinterpreting “failure” in the standardization paradigm

Emerald - Tập 9 Số 5 - Trang 20-30 - 2007
Richard Hawkins1, Pieter Ballon2
1(Professor and Canada Research Chair in Science, Technology and Innovation, University of Calgary, Calgary, Canada.)
2(Programme Manager at IBBT‐SMIT, Vrije Universiteit Brussel, Brussels, Belgium and Senior Researcher at TNO‐ICT, Delft, The Netherlands.)

Tóm tắt

PurposeThis paper aims to explore the question: “What is the relationship between standards and business models?” and illustrate the conceptual linkage with reference to developments in the mobile communications industry.Design/methodology/approachA succinct overview of literature on standardization, business models and platform markets in the paper leads to a hypothesis on the relationship between present‐day standardization processes and business model design. This is then explored by means of three short case studies.FindingsThe case studies of Mobile‐ICT illustrate that regardless of institutional orientation or process, the most important standardization strategy for equipment and service providers is to create platforms that are open to the development of complementary products and services while at the same time preserving the proprietary edge necessary to ensure lock‐in effects. All three cases yielded strong reasons to doubt whether many of the traditional advantages of standardization (interoperability, economies of scale, positive externalities, etc.) will be achieved equitably for all of the stakeholders.Originality/valueThis is an exploratory paper that aims to shed light on present‐day concerns about “failure” in the standardisation paradigm.

Từ khóa


Tài liệu tham khảo

Afuah, A. and Tucci, C. (2001), Internet Business Models and Strategies, McGraw‐Hill Irwin, Boston, MA.

Ancarani, F. and Shankar, V. (2003), “Case study: Symbian: customer interactions through collaboration and competition in a convergent industry”, Journal of Interactive Marketing, Vol. 17 No. 1, pp. 56‐76.

Arthur, B. (1989), “Competing technologies, increasing returns, and lock‐in by historical events”, Economic Journal, Vol. 99, March, pp. 116‐31.

Baldwin, C. and Clark, K. (2000), Design Rules. Vol. 1: The Power of Modularity, MIT Press, Cambridge, MA.

Bekkers, R. (2001), “The development of European mobile telecommunications standards: an assessment of the success of GSM, TETRA, ERMES and UMTS”, doctoral thesis, Eindhoven: Technische Universiteit Eindhoven, Eindhoven.

Best, J. (2006), “Symbian: Linux, Microsoft less of a threat than our own customers”, silicon.com, January 25, available at: http://hardware.silicon.com/pdas/0,39024643,39155920,00.htm.

Blind, K. (2004), The Economics of Standards – Theory, Evidence, Policy, Edward Elgar, Cheltenham.

Braet, O., Ballon, P. and Dreessen, K. (2006), “Cooperation models for mobile television in Europe”, Proceedings of the ITS (International Telecommunications Society), 17th European Regional Conference, Amsterdam, 22‐24 August.

Bresnahan, T. and Trajtenberg, M. (1995), “General purpose technologies engines of growth?”, Journal of Econometrics, Vol. 65 No. 1, pp. 83‐108.

Camarillo, G. and Garcia‐Martin, M.‐A. (2005), The 3G IP Multimedia Subsystem (IMS): Merging the Internet and the Cellular Worlds, 2nd ed., Wiley, New York, NY.

Cargill, C. and Bohlin, S. (2007), “Standardization: a falling paradigm96”, in Greenstein, S. and Stango, V. (Eds), Standards and Public Policy, Cambridge University Press, Cambridge, p. 2,328.

Chesbrough, H. and Rosenbloom, R.S. (2002), “The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin off companies”, Industrial and Corporate Change, Vol. 11 3, June, pp. 529‐55.

Curwen, P. (2006), “Mobile television”, Communications & Strategies, Nos 62, 2nd quarter, pp. 183‐95.

David, P.A. (1985), “Clio and the economics of QWERTY”, American Economic Review, Vol. 75 No. 2, pp. 332‐7.

Eazel, W. (2006), “3G finally taking off in Europe”, vnunet.com, January 25, available at: www.vnunet.com/vnunet/news/2149131/3g‐finally‐taking‐europe.

Evans, D., Hagiu, A. and Schmalensee, R. (2005), “A survey of the economic role of software platforms in computer‐based industries”, CESifo Economic Studies, Vol. 51 Nos 2‐3, pp. 189‐224.

Faria, G., Henriksson, J., Stare, E. and Tamola, P. (2006), “DVB‐H: digital broadcast services to handheld devices”, Proceedings of the IEEE, Vol. 94 No. 1, January, pp. 194‐209.

Gawer, A. (2000), “The organization of platform leadership: an empirical investigation of Intel's management processes aimed at fostering complementary innovation by third parties”, thesis document, MIT, Cambridge, MA.

Gawer, A. and Cusumano, M. (2002), Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation, Harvard Business School Press, Boston, MA.

Hawkins, R. (1996), “Standards for communication technologies: negotiating institutional biases in network design”, in Mansell, R. and Silverstone, R. (Eds), Communication by Design: The Politics of Information and Communication Technologies, Oxford University Press, Oxford.

Hawkins, R. (1999), “The rise of consortia in the information and communication technology industries: emerging implications for policy”, Telecommunications Policy, Vol. 23, pp. 159‐73.

Hawkins, R. (2002), “The phantom of the marketplace: searching for new e‐commerce business models”, Communications & Strategies, Vol. 46 No. 2, July, pp. 297‐329.

Hawkins, R. (2003), “Looking beyond the.com bubble: exploring the form and function of business models in the electronic marketplace”, in Bouwman, H., Preissl, B. and Steinfield, C. (Eds), E‐life after the Dot‐com Bust, Springer/Physica, Hamburg, pp. 65‐81.

Hawkins, R. and Verhoest, P. (2002), “A transaction structure approach to assessing the dynamics and impacts of business‐to‐business electronic commerce”, Journal of Computer Mediated Communication, Vol. 7 No. 3, April, available at: www.ascusc.org/jcmc/vol7/issue3/hawkins.html.

Henderson, R. and Clark, K. (1990), “Architectural innovation: the reconfiguration of existing product technologies and the failure of established firms”, Administrative Science Quarterly, Vol. 35 No. 1, pp. 9‐30.

Iversen, E. and Tee, R. (2006), “Standards dynamics and industrial organization in the mobile telecom sector”, info, Vol. 8 No. 4, pp. 33‐48.

Katz, M.L. and Shapiro, C. (1986), “Technology adoption in the presence of network externalities”, Journal of Political Economy, Vol. 94 No. 4, pp. 822‐41.

Kindleberger, C.P. (1983), “Standards as public, collective, and private goods”, Kyklos, Vol. 26 No. 3, pp. 377‐96.

Kivisaari, E. and Luukkainen, S. (2005), “Markets and strategies for mobile broadcast in Finland”, paper presented at the International Symposium on Telecommunications (IST 2005), September 10‐12.

Lenahan, G. (2006), “The evolution of IMS: new business models”, IMS Magazine, available at: www.tmcnet.com/ims/0806/eye‐on‐ims‐new‐business‐models.htm.

Lindmark, S., Bohlin, E. and Andersson, E. (2004), “Japan's mobile internet success story – facts, myths, lessons and implications”, info, Vol. 6 No. 6, pp. 348‐58.

Magedanz, T., Knüttel, K. and Kath, O. (2004), “MDA‐based service creation for OSA/Parlay within 3G beyond environments”, in van Sinderen, M.J. and Ferreira Pires, L. (Eds), Model‐driven Architecture with Emphasis on Industrial Applications, Proceedings of the 1st European Workshop, MDA‐IA 2004, Enschede, The Netherlands, March 17‐18.

Morelli, A., Villamil, J. and Angelopoulos, N. (2006), “Entering the IMS era: the role of the service delivery platforms in helping companies achieve high performance through IMS deployments, Vol. 1”, September, available at: www.iec.org/newsletter/sept06_1/analyst_1.html.

Palama, P., Licciardi, C. and Moiso, C. (2003), “Service architecture for UMTS IMS: how to use it?”, paper presented at the 8th International Conference on Intelligence in Next Generation Networks, Bordeaux, France, March 31‐April 3.

Qingfeng, C. (2006), “The dialectics of mobile softswitch and IMS”, Huawei Technologies, No. 25, available at: www.huawei.com/publications/view.do?id=1161&cid=1802&pid=61.

Schmidt, S. and Werle, R. (1998), Co‐ordinating Technology: Studies in the International Standardization of Telecommunications, MIT Press, Cambridge, MA.

Sullivan, M. (2005), “IMS and SDPs must work together”, Light Reading, December 8, available at: www.lightreading.com/document.asp?doc_id=85361.

Tan, S.‐E. (2004), “Mobile and broadcast – convergence of technology and new business models”, CTI Working Papers No. 96, Center for Tele‐Information, Kongens Lyngby.

Ure, J. (2003), “Deconstructing 3G and restructuring telecoms”, Telecommunications Policy, Vol. 27, pp. 187‐206.

Vernon, R. (1966), “International investment and international trade in the product cycle”, Quarterly Journal of Economics, May, pp. 190‐207.

Waclawsky, J. (2007), “SIP's future: complicated and competitive”, Business Communications Review, February, pp. 22‐8.

Wilson, C. (2005), “VON: TelTel launches SIP VNO”, Telephony Online, September 20, available at: http://telephonyonline.com/voip/marketing/teltel_sip_svno_092005/.

Yoshida, J. (2006), “Protocol spat threatens to fragment DVB‐H market”, EE Times, March 2, available at: www.eetimes.com/news/latest/business/showArticle.jhtml?articleID=181500546.