System Architecture Dynamics
The case of Japanese Car Navigation Systems
This paper attempts to clarify how the integration of software and hardware
is related to product systems and product development organization in the
growing electronic equipment market in the IT age. As a framework for analyzing
the effect of integration, we will examine the influence of software on
product functions, product development organization and product innovation
by introducing the concept of system architecture, which represents the
nature of a system, and is defined as a combination of hardware and software.
As a particular case, Japanese car navigation market is analyzed. Regarding system architecture, we discuss how both software and hardware have open architecture dynamics, how those dynamics have several trajectories, and have a major impact not only on cooperation between product development structure and external organization, but also on innovation.
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