Claim: “The history of architectural innovation is on his side. Source: Why Elon Musk’s New Strategy Makes Sense” by Joshua Gans
I’ve seen many people encouraging Musk’s integration of Solar City with Tesla, but it strikes me as a weak move. There is some synergy between electric cars and home PV, but electric energy is mostly fungible. Only if local utilities use really dumb pricing schemes for solar power would it be useful to bypass them if you have an EV. (Admittedly, many utilities do exactly that.)
Second, his closing argument contradicts a lot of other analysis. I have not read Gans book. But he writes that:
As I outline in my book, The Disruption Dilemma, the companies that have thrived in the face of architectural disruption of this kind are those that have kept all the parts close and in control rather than spread them out.
But, “keeping all the parts under your control” rules out 99% of startups. And it also seems historically incorrect. IBM, when it started the IBM-PC revolution, did so by surrendering control of almost everything, including the OS, processor, hard drive, and applications. IBM made all of these things for its mainframes, but it revolutionized the industry by NOT controlling them for personal computers. And this was certainly architectural disruption – the shift from a closed to an open architecture.
I’ll have to look at his book. Or ask my friend Liz Lyons down the hall, who was his student.