Implications of the dynamics of the new networked economy for e-business start-ups: the case of Philips’ Access Point

Explores how the spread of connectivity and the introduction of new standards is driving the emergence of entirely new value constructs that deliver to multiple stakeholders. Examines the new economics of network growth and the associated “economics of increasing returns”. Looks at the dynamic trajectory of this function from the perspective of new business development at the various stages of the trajectory, and derives management implications for each stage in terms of appropriate competitive and market strategies, organizational structure and management practices. Applies the resulting framework to discuss specific implications for the business start-up of Access Point, Philips’ new multimedia, voice technology-based information and on-line services venture that has at its core a disruptive technology.