Digital Domino Affect
The emergence of economic hubs is rooted in three principles of digitization and network theory. The first is ______ law, which states that computer processing power will double approximately every two years.
What is Moore's Law?
This technology may give commuters more free time while driving, opening up new possibilities for advertisers and mobile app companies.
What are autonomous vehicles?
______ firms dominate individual markets, and they take the network-based assets that have already reached scale in one setting and then use them to enter another industry and "re-architect" its competitive structure-- transforming it from product-driven to network-driven.
What are hub firms?
In traditional product and service businesses, the value creation curve typically flattens out as the number of consumers increases. Some ________ technologies, however, exhibit increasing returns to scale.
What are digital technologies?
This company has been facing increasing regulatory challenges in Europe, where regulators are concerned about the dominance of both its search advertising business and its Android platform.
What is Google?
Modern digital technology enables the sharing of information at near-zero marginal cost, and digital networks are spreading rapidly. ________ law states that a network's value increases with the number of nodes (connection points) or users-- the dynamic we think of as network effects.
What is Metcalfe's Law?
In a future when people are no longer behind the wheel, cars will become less about the driving experience and more about the ____________ offered
What are apps and services?
An example of a hub firm is _______ Financial, the Alibaba spin-off that builds on data from Alibaba's already vast user base to commoditize traditional financial services and reorganize a good chunk of the Chinese financial sector around their platform.
What is Ant Financial?
In contrast with traditional product and service businesses, network-based markets exhibiting increasing returns to scale will, over time, tip toward a ________ set of players.
What is narrow?
Ethics are not just about financial considerations; social concerns are equally important. Centralized platforms, such as _________ for accommodation bookings, have been found to be susceptible to racial discrimination.
What is Airbnb?
The third principle, a lesser-known dynamic originally posited by the physicist Albert-László Barabási is the notion that digital-network formation naturally leads to the emergence of ______________ loops that create increasingly important, highly connected hubs.
What are positive feedback loops?
Car companies are investing heavily in map technology companies, mobile connectivity, and this _____-sharing technology, such as Lyft.
What is ride-sharing?
Google's Android and related technologies form "_______________"; that is, they own access to billions of mobile consumers that other product and service providers want to reach.
What are competitive bottlenecks?
This practice enables participants on one hub's ecosystem to easily join another which can significantly mitigate the rise of hub power.
What is multihoming?
Building and maintaining a healthy ecosystem is in the best interests of hub companies. For example, Google and Apple earn billions in revenue from the _________ that run on their platforms.
What are third party apps?