More from these Authors

• Working Paper | HBS Working Paper Series | 2013

  Hidden Structure: Using Network Methods to Map System Architecture

  Carliss Y. Baldwin, Alan MacCormack and John Rusnak

  In this paper, we describe an operational methodology for characterising the architecture of technical systems and demonstrate its application to a large sample of software releases. Our methodology is based upon network graphs, and allows us to identify define three fundamental architectural patterns, which we call core-periphery, multi-core, and hierarchical. We apply our methodology to a sample of 1,286 software releases from 17 applications, and find that 70 – 80% of these systems possess a "core-periphery" architecture under our classification scheme. This type of architecture is characterized by having a single dominant cyclic group (the Core) that is large relative to other cyclic groups and above a threshold with respect to system size. We find that the size of the Core varies widely, even for systems that perform the same function. These differences appear to be associated with different models of development—open, distributed organizations tend to develop systems with smaller Cores, while closed collocated organizations tend to develop systems with larger Cores. Our findings represent a first step in establishing some "stylized facts" about the fine-grained structure of large, real-world technical systems.

  Citation:

  Baldwin, Carliss Y., Alan MacCormack, and John Rusnak. "Hidden Structure: Using Network Methods to Map System Architecture." Harvard Business School Working Paper, No. 13–093, May 2013.

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• Supplement | HBS Case Collection | 2013

  The Congressional Oversight Panel's Valuation of the TARP Warrants (A) (CW)

  Carliss Y. Baldwin

  Citation:

  Baldwin, Carliss Y. "The Congressional Oversight Panel's Valuation of the TARP Warrants (A) (CW)." Harvard Business School Spreadsheet Supplement 213-704, April 2013.

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• Case | HBS Case Collection | 2013 (Revised from original 2011 version)

  Kroll Bond Rating Agency

  Bo Becker

  The established credit raters were criticized for inflating the mortgage credit bubble that imploded in 2008. A new rating agency, KBRA, is considering how to capitalize on the opportunity this presents and how to enter the industry. A small group of managers have to decide on a business model, how to meet hiring and funding needs, and what types of ratings to start with: municipal, corporate, or structured. Where are the needs for new ratings stronger? How can investors be convinced to use the new ratings? How can KBRA compete with Fitch, Moody's, and S&P?

  Keywords: Financial Instruments; Financial Management; Financial Services Industry;

  Citation:

  Becker, Bo. "Kroll Bond Rating Agency." Harvard Business School Case 212-034, April 2013. (Revised from original October 2011 version.)

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