iddle). Once the technologies evolve, the interfaces needed are standardized, hence making it easy for a large number of companies to implement the system. From the viewpoint of the interfaces, large IT service companies with a well equipped competence pool tend to dominate Innovation Phase markets. Smaller product companies appear more often in the Productization phase where emerging standards can be utilized. In the last phase, the dominating design again favors large companies. Note also, that a small company adopting configuration B in the example (which is based on common internet technologies) has dropped the note delivery interface from the system offering. This means that this inexpensive configuration can be used by retail banks which are willing to drop this functionality Table 2 An example: Alternative interfaces used by a retail banking application. The interfaces used in configuration A in the middle are mainly from the Innovation phase and require a high level of competence (available only in a few software enterprises or in-house). The interfaces in configuration B on the right are from a later date and only require knowledge that is available with millions of software developers Hardware interfaces needed for A: Traditional configuration B: Configuration using only automation of the process in the innovation phase standardized interfaces Customer user interface ATM user interface (I) Web browser(S) Note delivery interface ATM messaging IF (I) - (excluded) Teller interface Windows PC (S) Windows PC (S) Server hardware Mainframe (I) Linux/Windows (S) Database Mainframe database(I) SQL database (S) P. Tyrväinen from their offering or are able to outsource it. Thus, the development of the set of technologies needed by a vertical industry (retail banking) impacts the cost/ functionality of the software offering available to the vertical industry compa- nies. But the lack or emergence of a new software offering can also impact the business model of the industry by creating a market for ATM outsourcing. 