What makes platform businesses tick?
A few days ago I came across How Google’s New Data Policy Ruined Nest . An interesting example of how to likely ruin a potentially great platform play.
Still, 7 (8, if you count in MSFT) of the 10 most valuable firms per January 2019 are digital platforms, many politicians are extremely wary of them these days, and almost all of our clients are trying to build platforms in one way shape or form. So what actually makes platforms tick?
The undisputed authority on platforms are Geoffrey Parker, Marshall Van Alstyne, and Sangeet Paul Choudhary. Their 2016 book “Platform Revolution: How Networked Markets Are Transforming the Economy” systematically discusses almost every aspect of platform business models and -thinking.
Since this weekend’s weather is forecast to be too good to spend it reading all day, here are three key chapters as Slideshare presentations:
- How Platforms are Changing Ecommerce
- Network Effects: Power of the Platform
- Platform Architecture and Design
As a result of studying 250 platform businesses, Julian Birkinshaw in his August 2019 HBR article How Ecosystem Businesses Change the Rules of Business Strategy has additional advice on dos and don’ts when building platforms.
I am looking forward to some gardening this weekend – while scheming on how to turn our new venture go3next.com into a platform.
Enjoy your weekend,