‘Invisible Engines’ Series

The use of software platforms to drive innovation and transform industries has exploded since the 2006 publication of my book Invisible Engines with MIT Professor and former Sloan School Dean Richard Schmalensee and Harvard Business School Professor Andrei Hagiu. This blog series will explain how software platforms are going to transform the payments industry and why you will be touched by this new revolution and perhaps even want to be one of the entrepreneurs or investors who pioneer this new area.

I. The Invisible Engines that Drive Innovation and Transform Industries

I’m first going to provide background on the technology and business models behind invisible engines. I’m then going to show why this is important for payments and describe some of the main players that are leading the revolution at this point.

II. How the iPhone Invisible Engine Provided a Catalyst for the Mobile Phone Industry

Apple’s success has shaken up the mobile phone industry in many countries around the world. It has unleashed tens of thousands of entrepreneurs and created a multi-billion dollar application industry for mobile devices. Here is how an invisible engine helped make this.

III. The New Age of Invisible Engines: How Software Platforms Will Drive Growth in the Next Decade

Invisible Engines tells the story of how software platforms have transformed industries including computers, video games, and handheld devices and then accelerated innovation. It then examines the forces behind the various business models that have been adopted in these industries.

IV. What’s in the Cloud for Payments?

 

When we speak of “payments in the cloud” we are using the term in a broader sense than it is usually used in the information technology world. Cloud computing simply refers to accessing software and hardware over the internet.

V. Why the Payments Industry Needs a Catalyst to Drive Payments Innovation

I’ve explored how invisible engines drive innovation and transform industries. I’m now going to explain how they will do that in the payments industry. This entry explains why the payments industry needs a catalyst to ignite innovation.

VI. Can IP Commerce Create the Apps Store for Payments?

There’s no Steve Jobs strutting on the stage, massive consumer buzz, or slick television ads about how there’s an app just for you. But there are some things you’ve probably heard about and a soon-to-be known Denver based company, IPCommerce, is the invisible engine that’s powering them.

VII. PayPal X’s Global Payments Development Platform

 

When it comes to using invisible engines to drive innovation and transform industries, PayPal is the first out of the gate in the payments industry and well ahead of the traditional players. This online payments giant claims that “PayPal X is the first and only global payments platform open to third-party developers.