Rolls-Royce uses engine sensor data to lock out competitors and improve products

Evidence

The raw material of data remains as central to this platform as to any other. Sensors are placed on all the engines and massive amounts of data are extracted from every flight, combined with weather data and information on air traffic control, and sent to a command centre in the United Kingdom. Information on the wear and tear on engines, possible problems, and times for scheduling maintenance are all derived. These data are immensely useful in blocking out competitors and in securing a competitive advantage against any outside maintenance firm that may hope to break into the market. Data on how the engines perform have also been crucial for developing new models: they enabled Rolls Royce to improve fuel efficiency and to increase the life of the engines, and generated another competitive advantage over other jet engine manufacturers. Once again, platforms appear as an optimal form for extracting data and using them to gain an edge over competitors. Data and the network effects of extracting them have enabled the company to establish dominance. — Nick Srnicek, Platform Capitalism, 67

Categorization

• XREF: Extends the Zuboff rival framework — data extraction as competitive moat rather than surveillance per se, a distinction relevant to the reader’s platform-vs-surveillance-capitalism comparison.