Why High-Tech Commoditization Is Accelerating

Willy C.  Shih

Article | MIT Sloan Management Review | Summer 2018

Why High-Tech Commoditization Is Accelerating

Abstract

Knowledge embedded within state-of-the-art production and design tools is a powerful force that is leveling the global technology playing field. It democratizes innovation and makes future competition more challenging. This paper describes the knowledge flows through production and design tools, and it suggests that the increasing level of abstraction is enabling new players to innovate without understanding how the technology building blocks they are using actually work inside. This suggests that there are new rules of competition, where firms should move beyond commoditized parts and focus their differentiation strategies.

Keywords: Product design; product commercialization; product development; product development strategy; production; manufacturing tools; manufacturing; manufacturing industry; Engineering; Globalization; Goods and Commodities; Knowledge; Commercialization; Business Strategy; Corporate Strategy; Hardware; Technology Adoption; Consumer Products Industry; Auto Industry; Semiconductor Industry; Electronics Industry; Industrial Products Industry; Information Technology Industry; North America; Asia;

Format: Print

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Citation:

Shih, Willy C. "Why High-Tech Commoditization Is Accelerating." Art. 59420. MIT Sloan Management Review 59, no. 4 (Summer 2018): 53–58.

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Why High-Tech Commoditization Is Accelerating

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