Invisible Engines: How Software Platforms Drive Innovation and Transform Industries Review

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Invisible Engines: How Software Platforms Drive Innovation and Transform Industries ReviewEver wondered what iPods, Windows, Xboxes, PDAs and smartphones have in common? This book provides a useful analysis of the successful business practices that cut across all of these industries and have made their pioneers extremely rich and famous. I found it very insightful and surprisingly well-written - there are lots of well-chosen anecdotes which help the reader cope with the complexity of the subject.Invisible Engines: How Software Platforms Drive Innovation and Transform Industries OverviewSoftware platforms are the invisible engines that have created, touched,or transformed nearly every major industry for the past quarter century. They powereverything from mobile phones and automobile navigation systems to search enginesand web portals. They have been the source of enormous value to consumers and helpedsome entrepreneurs build great fortunes. And they are likely to drive change thatwill dwarf the business and technology revolution we have seen to this point.Invisible Engines examines the business dynamics and strategies used by firms thatrecognize the transformative power unleashed by this new revolution--a revolutionthat will change both new and old industries.The authors argue that in order tounderstand the successes of software platforms, we must first understand their roleas a technological meeting ground where application developers and end usersconverge. Apple, Microsoft, and Google, for example, charge developers little ornothing for using their platforms and make most of their money from end users; SonyPlayStation and other game consoles, by contrast, subsidize users and make moremoney from developers, who pay royalties for access to the code they need to writegames. More applications attract more users, and more users attract moreapplications. And more applications and more users lead to more profits.InvisibleEngines explores this story through the lens of the companies that have masteredthis platform-balancing act. It offers detailed studies of the personal computer,video game console, personal digital assistant, smart mobile phone, and digitalmedia software platform industries, focusing on the business decisions made byindustry players to drive profits and stay a step ahead of the competition. Shorterdiscussions of Internet-based software platforms provide an important glimpse into afuture in which the way we buy, pay, watch, listen, learn, and communicate willchange forever. An electronic version of this book is available under a CreativeCommons license.

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