Article Summary 6.docx - Article Summary 6 Pipelines...

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Article Summary 6: Pipelines, Platforms, and the New Rules of StrategyApple and to a lesser extent Android went from 0% to dominating the phone market by exploiting the power of platforms and leveraging the new rules of strategy they created. Platform businesses that bring together producers and consumers are taking market share from traditional businesses. Firms that fail to create platforms and adapt will not be able tocompete. Platforms have existed for many years, but IT has made it simpler andcheaper for businesses to create one. Platforms has a structure with four types of players: owners, providers, producers, and consumers. Traditionalpipeline business create value by controlling the value-chain. By combiningthat model with a marketplace that connect developers and owners, apple was able to create a platform. The move from pipeline to platform involves three key shifts: from resource control to resource orchestration, from

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