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• Supplement | HBS Case Collection | November 2019

  Innovation at Uber: The Launch of Express POOL

  Chiara Farronato, Alan MacCormack and Sarah Mehta

  This multimedia supplement accompanies the case “Innovation at Uber: the Launch of Express POOL” (case no. 619-003). Set in March 2018, the case follows ride-sharing company Uber as it develops and launches a new product called Express POOL. This multimedia supplement features a 10-minute Q&A session with Uber data science managers Duncan Gilchrist and Eoin O’Mahony as they field questions posed by students pertaining to the case.

  Keywords: Innovation and Management; Innovation Leadership; Innovation Strategy; Technological Innovation; Technology; Mobile Technology; Software; Technology Platform; Technology Industry; California; San Francisco;

  Citation:

  Farronato, Chiara, Alan MacCormack, and Sarah Mehta. "Innovation at Uber: The Launch of Express POOL." Harvard Business School Multimedia/Video Supplement 620-702, November 2019.  View Details

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• Case | HBS Case Collection | November 2019

  Apple, Einhorn, and iPrefs (Abridged)

  Carliss Y. Baldwin and W. Carl Kester

  In March 2013, Apple Computer has a very large cash balance, and is under pressure to return cash to shareholders. Hedge fund manager David Einhorn thinks Apple can "unlock value" by issuing perpetual preferred stock, dubbed iPrefs. Henry Blodget, CEO of Business Insider, disagrees, saying "you can't just wave your magic wand and make something of nothing." This short case is designed to support a discussion of "perfect" markets and the Modigliani-Miller capital structure irrelevance propositions. The case focuses on two questions: (1) From a shareholder's perspective, how is Apple's cash different from cash in a bank or money market account? (2) Can Apple create significant value for shareholders by splitting each common share into an iPref plus a common share?

  Keywords: markets; Stock Shares; Value Creation; Business and Shareholder Relations;

  Citation:

  Baldwin, Carliss Y., and W. Carl Kester. "Apple, Einhorn, and iPrefs (Abridged)." Harvard Business School Case 220-043, November 2019.  View Details

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• Working Paper | HBS Working Paper Series | 2019

  Design Rules, Volume 2: How Technology Shapes Organizations: Chapter 16 Capturing Value by Controlling Bottlenecks in Open Platform Systems

  Carliss Y. Baldwin

  The purpose of this chapter is to investigate the means by which firms capture value in open platform systems. I begin by arguing that the surplus value created by complementarities within a technical system will be split among the owners of the unique and essential components—the strategic bottlenecks in the system. However, most platforms must also execute a series of steps that are subject to “flow production” bottlenecks. Finding and fixing these flow bottlenecks is another way to capture value. In addition, two types of platform improvements provide further opportunities for value capture. “Accelerators” speed up the processing of options, while “subsidiary” platforms increase the range of options available to users. Finally, members of a platform system or new entrants may seek to supplant the owner of a strategic bottleneck by “disintermediating” platform components. I describe four generic methods of disintermediation: substitution, reverse engineering, platform independent complements, and platform envelopment.

  Keywords: open platforms; bottlenecks; flow production; Value Capture; disintermediation; Production; Management;

  Citation:

  Baldwin, Carliss Y. "Design Rules, Volume 2: How Technology Shapes Organizations: Chapter 16 Capturing Value by Controlling Bottlenecks in Open Platform Systems." Harvard Business School Working Paper, No. 20-054, November 2019.  View Details

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