MIE 480 Chapter Notes - Chapter 7: Dominant Design, Diminishing Returns, Disruptive Innovation
20 Jul 2020
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Document Summary
Set of technical specifications that producers adhere to when making the product, or a component of it. Battles to control the source of differentiation, and the value that such differentiation can create for the customer. Common set of features or design characteristics. Guarantees compatibility between products and their complements. Reduces confusion in the minds of consumers. Reduces production costs and risks associated with supplying complementary products. Leads to low-cost and differentiation advantages for individual companies. Helps raise the level of industry profitability. Standards emerge in an industry when the benefits of establishing are recognized. Technical standards are set by cooperation among businesses, through the medium of an industry association. When the government sets standards they fall into the public domain. Public domain any company can freely incorporate the knowledge and technology upon which the standard is based into its products. Make network effects work in one"s favor and against competitors.
