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I wanted to share a great article published in the latest volume of the JPIM. It discusses innovation in the form of digital platform ecosystems, network effects, and complementary products by analyzing the Phillips Hue connected lighting platform and its associated 3rd party apps.

There’s an extra layer of complexity, in terms of the quality of complementary products, with developing and selling a product that involves a digital platform ecosystem, especially due to the relational and reprogrammable nature of digital technology. Complement quality involves the extra functionality afforded to the platform along with the ability to interoperate with the core platform. Research on platform ecosystems tend to focus on just the quantity of compliments, but sustaining or enhancing quality over time is a critical component for platform owners to manage. Given the prevalence of digital platforms, it was interesting to dive deeper into the role of not only the complementors but also the platform owner and users.


Sustaining Complement Quality for Digital Product Platforms: A Case Study of the Philips Hue Ecosystem

Wiley Online Library		remove preview
Sustaining Complement Quality for Digital Product Platforms: A Case Study of the Philips Hue Ecosystem Innovation in a digital world increasingly revolves around open platforms that consist of a core technology and a large variety of complementary products developed by an ecosystem of independent complementors. View this on Wiley Online Library >

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Gabriela Pinotti
Graduate Research Assistant
Oakland University
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Gabi - 
This article was very interesting!
The complexity and interaction increases significantly when digital platform ecosystems are involved.
Navigating the app world, including end user and various product interaction expectations is not for the faint of heart 
You mention sustaining or enhancing quality over time as a critical component of the digital NPD process.

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[Sue] [Burek] [NPDP]
[kHUB Administrator]
[PDMA]
[Huntersville] [NC]
[585-314-4611]
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Gabriela, 
I found this study very interesting, particularly for the fact that prior research on product compliment did not particularly focus on quality or the necessary dynamic nature of compliments. It is evident that especially in an increasingly tech-dependent environment, this research is essential in product development and innovation. 

Though this study focused on Philips Hue and its surrounding ecosystem, I believe that this theory can expand beyond the realm of tech-dependent products and compliments. In all cases, complimentary product quality is dynamic as no ecosystem is ever static. Take for example cars. They are composed of various complimentary products such as radios, speakers, tires, etc. that each come together to either increase or decrease the overall quality of the final vehicle used by consumers. Each of the complimentary items must evolve not only to fit within the vehicles being made, but also to fit consumer preferences and to maintain prominence in in the market. A vehicle can be exquisitely built with all of the capabilities necessary for the current time period, but if the radio is a turndial with only AM and FM frequencies, the overall value of the car decreases significantly, no matter how many features are included in it. Same thing goes if rims from 50 years ago are placed on that vehicle. Every other aspect may be great, and there may be a large quantity of features, but the the value is not there. 

Of course this study applies much better to tech-dependent products where the quantity of compliments is virtually endless and quality and adaptability can often be overlooked causing major issues. But that should be the case in all product ecosystems.

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Victoria Oglesby
Oakland University
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Gabriela,

I found the case study of the Philips Hue Eco system very interesting and strongly agree with the study that quality of complements affect the value of the platform and also the fact that platform owners must govern and ensure the quality of the complement. This case study talk about Philips Hue connected lighting platform and its complementary third-party apps. With the continually evolving technology, the importance for complementary products increase and the sales of the complementary products and platform owners are strongly correlated. For instance, with the growing demand for E Vs , the requirement for complementary product that is the infrastructure for charging E Vs would also increase. If E Vs are sold in the market but not accompanied with good quality infrastructure for charging then the sales of EV s would drop. Overall, I believe that ensuring good quality easy- to-use complementary product is very important for tech products.

Saloni Shah
Oakland University

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SALONI SHAH
Oakland University
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