Emerging Tech

When Open Architecture Beats Closed: The Entrepreneurial Use Of Architectural Knowledge

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Executive Summary

This paper describes how entrepreneurial firms can use superior architectural knowledge to open up a technical system to gain strategic advantage. The strategy involves, first, identifying "Bottlenecks" in the existing system, and then creating a new open architecture that isolates the bottlenecks in modules and allows others to connect to the system at key interfaces. An entrepreneurial firm with limited financial resources can then focuses on supplying superior bottleneck modules, and while outsourcing and allowing complementary to supply non-bottleneck components.

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