News and Awards

  • Keystone Chairman and HBS Professor Marco Iansiti expands on why digital leaders post higher gross margins, profits, and revenue per employee than digital laggards in a new study entitled, “The Digital Business Divide: Analyzing the operating impact of digital transformation,” featured recently on
    Read the full story and access the study, here: cio-image
  •’s 2017 Top Ranked Consulting Firms: Keystone Strategy has been named to‘s 2017 Top Ranked Consulting Firms in North America with two top 10 placements for both innovation and internal mobility. Read more about Keystone Strategy here: vault-top-ranked
  • The CFO Leadership Council News:  Keystone’s own Director of Finance Julius Gloeckner is featured in the CFO Council News blog detailing why he thrives in Keystone’s entrepreneurial setting.  Read more about Julius Gloeckner and Keystone CFO Council Logo
  • Top 10 Boutique Strategy Consulting firm by IvyExec: Keystone has been ranked a Top 10 Boutique Strategy Consulting firm by IvyExec in their annual consulting firm rankings. Read more about Keystone  ivyexec_logo
  • Consulting Magazine Rising Star: Congratulations to Keystone’s Sam Price who was just named one of Consulting Magazine’s Rising Stars of the Profession for 2016. To read more about Sam and her work at Keystone, go to Consulting MagazineConsulting Mag Rising Star
  • Professor Iansiti releases One Strategy which analyzes how a management team tweaked and optimized the fine line between strategy and executionone-strategy
  • Professor Pisano wins the 2010 McKinsey Award for “Restoring American Competitiveness”

Keystone experts are thought leaders in their fields and are prolific writers on their findings. The experts create leading analytical frameworks for evaluating ecosystem strategy, innovation processes, IP evaluation, antitrust analysis and more. The research of our experts provides Keystone with unique access to large, cross-sectional studies of industry players. Please contact us to learn more about our experts' research.


Making the Business Case for Leveraging Data Center Interconnect for Business Continuity

by Ed Tittel
Juniper Networks, 2013

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Building an Enterprise IPv6 Test Lab

by Jeff Carrell and Ed Tittel, Oct 31, 2011

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Why Leaders Don’t Learn from Success

by Gary P. Pisano and Francesca Gino
Harvard Business Review, April 2011
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Set-Asides and Subsidies in Auctions

by Susan Athey, Dominic Coey and Jonathan Levin
October 2010
Set-asides and subsidies are used extensively in government procurement and natural resource sales. We analyze these policies in an empirical model of Forest Service timber auctions. The model fits the data well both in-sample and out-of-sample. Our estimates suggest that restricting entry to small businesses substantially reduces efficiency and revenue, although it does increase small business participation. A bidding subsidy for small business appears to be more effective at achieving distributional goals, increasing revenue and eliminating almost all of the efficiency loss. A small business bidding subsidy also increases the average profits of both large and small firms, compared to a set-aside policy. We explain these findings by connecting to the theory of optimal auction design.
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Dynamics of Open Source Movements

by Susan Athey and Glenn Ellison
September 2010
This paper considers a dynamic model of the evolution of open source software projects,focusing on the evolution of quality, contributing programmers, and users who contributecustomer support to other users. Programmers who have used open source software aremotivated by reciprocal altruism to publish their own improvements. The evolution ofthe open-source project depends on the form of the altruistic benefits: in a base case theproject grows to a steady-state size from any initial condition; whereas adding a need forcustomer support makes zero-quality a locally absorbing state. We also analyze competitionby commercial firms with OSS projects. Optimal pricing policies again vary: in some casesthe commercial firm will set low prices when the open-source project is small; in other casesit mostly waits until the open-source project has matured.
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The Evolution of Science-Based Business: Innovating How We Innovate

by Gary P. Pisano
Harvard Business School Working Papers, February 19, 2010
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The Determinants of Individual Performance and Collective Value in Private-Collective Software Innovation

by Ned Gulley and Karim Lakhani
Harvard Business School Working Papers, February 2010
We investigate if the actions by individuals in creating effective new innovations are aligned with the reuse of those innovations by others in a private-collective software development context. This relationship is studied in the setting of eleven “wiki-like” programming contests, where contest submissions are open for reuse by others, each involving more than one hundred contributors and several thousand attempts to generate, over a one-week period, the “best” software solution to a difficult programming challenge. We discuss the implications of these findings in light of the literature on private-collective innovation with an emphasis on the importance of considering both individual and community perspectives as they relate to knowledge creation, reuse and recombination for innovation.
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Measuring the Perpetrator and Funders of Typosquatting

by Tyler Moore and Benjamin Edelman
Proceedings of the Fourteenth International Conference on Financial Cryptography and Data Security, January 2010
We describe a method for identifying “typosquatting”, the intentional registration of misspellings of popular website addresses. Using regression analysis, we find that websites in categories with higher pay-per-click ad prices face more typosquatting registrations, indicating that ad platforms such as Google AdWords exacerbate typosquatting. However, our investigations also confirm the feasibility of significantly reducing typosquatting. We find that typosquatting is highly concentrated: Of typo domains showing Google ads, 63% use one of five advertising IDs, and some large name servers host typosquatting domains as much as four times as often as the web as a whole.
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Varied Experience, Team Familiarity, and Learning: The Mediating Role of Psychological Safety

by Bradley R. Staats, Francesca Gina, and Gary P. Pisano
Harvard Business School Working Papers, September 16, 2009
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A Structural Model of Sponsored Search Advertising Auctions

by Susan Athey and Denis Nekipelov
September 2009
This paper develops a new model where online advertiser bids apply to many user queries, while the quality scores and the set of competing advertisements may vary from query to query. In contrast to existing models that ignore uncertainty, which produce multiplicity of equilibria, we provide sufficient conditions for existence and uniqueness of equilibria. In addition, we propose a homotopy-based method for computing equilibria given advertiser valuations and the distribution of uncertainty. We then propose a structural econometric model. Finally, we apply the model to historical data for several keywords.
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Position Auctions with Consumer Search

by Susan Athey and Glenn Ellison
May 2008
This paper examines a model in which advertisers bid for “sponsored-link” positions on a search engine. The value advertisers derive from each position is endogenized as coming from sales to a population of consumers who make rational inferences about firm qualities and search optimally. Consumer search strategies, equilibrium bidding, and the welfare benefits of position auctions are analyzed. Implications for reserve prices and a number of other auction design questions are discussed.
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Enterprise IT Capabilities and Business Performance

by Marco Iansiti

Better information technology makes a quantifiable, positive difference in business performance. The core finding of this multi-country research study from Keystone Strategy, Inc., sponsored by Microsoft Corporation and conducted under the direction of Professor Marco Iansiti of the Harvard Business School.
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Exploring the Structure of Complex Software Designs: An Empirical Study of Open Source and Proprietary Code

by Alan MacCormack, John Rusnak and Carliss Y Baldwin
Management Science, October 2005
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IT Drives Growth

by Marco Iansiti
Keystone Strategy research shows a high correlation between IT capability and profitable business growth. Firms that build high capability IT systems grow faster than firms that do not, and do so while increasing both revenue and profit.
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Ecosystem Strategy: Keystones and Dominators

by Marco Iansiti
Due to an increasingly distributed industry structure, the focus of competition is shifting away from the management of internal resources, to the management and influence of assets that are outside the direct ownership and control of the firm. In this paper, we introduce a framework for studying and understanding the management of innovation and operations in business ecosystems.
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