Alan D. MacCormack () (Harvard Business School, Technology and Operations Management Unit) John Rusnak () (Harvard Business School) Carliss Y. Baldwin () (Harvard Business School, Finance Unit)
Abstract
A variety of academic work asserts that a relationship exists between the structure of a development organization and the architecture of the products that this organization produces. Specifically, products are often said to "mirror" the architectures of the organizations from which they come. Such a link, if confirmed empirically, would be important, given that product architecture has been shown to be an important predictor of, among other things: product performance; product variety; process flexibility; and future industry evolution. We explore this relationship in the software industry by use of a technique called Design Structure Matrices (DSMs), which allows us to visualize the architectures of different software products and to calculate metrics to compare their levels of modularity. We use DSMs to analyze a number of matched-pair products - products that fulfill the same function but that have been developed via contrasting modes of organization; specifically, closed-source (or proprietary) versus open-source (or distributed) development. Our results reveal significant differences in modularity, consistent with a view that distributed teams tend to develop more modular products. We conclude by highlighting some implications of this result and assessing how future work in this field should proceed, based upon these first steps in measuring "design."
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Paper provided by Harvard Business School in its series Working Papers with number
08-039.
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