Title
When standards become business models: Reinterpreting "failure" in the standardization paradigm
Author
Hawkins, R.
Ballon, P.
TNO Informatie- en communicatietechnologie
Publication year
2007
Abstract
Purpose - This 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/approach - A 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. Findings - The 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/value - This is an exploratory paper that aims to shed light on present-day concerns about "failure" in the standardisation paradigm.
Subject
Informatics
Marketing models
Modelling
Standardization
Information and communication technology
Market conditions
Mobile communication
To reference this document use:
http://resolver.tudelft.nl/uuid:31b10161-0da0-406b-b202-7140fd386410
TNO identifier
240146
Source
Info, 9 (5), 20-30
Document type
article