3. “It seems to me that there
are four companies that are
exploiting platform
strategies really well.”
--Google Chairman Eric Schmidt
All Things D Conference, 5.31.11
Phil Simon - The Age of the Platform 3
6. Little p vs. Big P
A fundamentally new business model
embraced by scores of companies
A set of integrated planks: features,
apps, products, or services
Enhanced by vibrant ecosystems
Phil Simon - The Age of the Platform 6
7. In 1998, Google wasn’t a platform; it
was an amazing and very profitable
search engine.
So, why change? Why become a
platform?
Phil Simon - The Age of the Platform 7
8. In the Age of the Platform, even really
powerful single-purpose companies can
be cannibalized very quickly—
something Google’s top brass has
understood for quite some time.
Phil Simon - The Age of the Platform 8
9. By adding Gmail,
Maps, Docs, Plus,
Blogger, YouTube,
and a bevy of
planks, Google
has become the
powerful platform
it is today.
Phil Simon - The Age of the Platform 9
10. Frequently add important planks to their
platforms
More consumer-oriented than business-
oriented
Rooted in emerging technologies
And one more thing…
Phil Simon - The Age of the Platform 10
11. Phil Simon - The Age of the Platform 11
Photo from Fast Company
12. There is no one right way, but…
Scale, experimentation, and speed are
critical
It’s essential to add new and popular
planks
The Gang of Four crosspolinates
• Intelligently uses other platforms as
planks in their own
Phil Simon - The Age of the Platform 12
14. Today, platforms hinge upon the
strength of their ecosystems
•Partners, developers, users, customers, and
communities
Phil Simon - The Age of the Platform 14
15. Partners and developers need sufficient
incentives
Partners and developers need powerful
tools
• Open Application Programming
Interfaces (APIs)
• Free Software Development Kits (SDKs)
Phil Simon - The Age of the Platform 15
Hello. My name is Phil Simon and today I want to talk to you an entirely new age: The Age of the Platform.
But first, let’s try an experiment.
Ask everyone to please stand up for a moment.
If you use Amazon products or services at work or at home, then please sit down. Repeat.
Schmidt at the time was the CEO of Google; he is now the Chairman of the Board.
Which companies? Amazon, Apple, Facebook, and Google. He called them “the gang of four.”
In the book, I contend that these companies have done nothing less than redefine business.
Because of their platforms, the gang of four has been enormously successful.
Amazon, Apple, Facebook, and Google have ushered in a new age….
Welcome to The Age of the Platform.
But let’s first get our terms straight. WHAT DO WE MEAN BY ‘PLATFORMS’?
4 bullets – success begins with a common understanding of terms
Big P vs. Little P (operating systems, telephone lines)
And not just for the Gang of Four. Emerging platforms. Planks.
A platform is nothing without its planks. Talk about one-stop shopping.
Third parties, developers, users, customers, communities. These ecosystems extend platforms in new and interesting directions. Use Twitter/Tweetdeck example.
Does this seem abstract? Let’s look at an example: Google.
Better than AltaVista, Lycos
After first – why did Google change? Christensen writes about this in The Innovator’s Dilemma.
Google didn’t want to become Microsoft. A company that has struggled to reduce reliance upon core products like Windows and Office. CNET tablet example
Unable to innovate and change course because it was so successful.
So, we know the why. What about the how?
Pic animation
Google became a platform by adding planks – Gmail, maps, Android, Docs, Reader, YouTube, etc.
4 bullets. This was one of the questions on my mind while researching the book.
Talk about Amazon adding planks. Apple changing its name in 2007.
Consumerization of IT. Rise of the prosumer.
Cloud. Mobility. APIs, SDKs
And one more thing…
Each company got to this point through their iconic and visionary leaders.
Rupert Murdoch buying MySpace; no one would ever confuse him for Mark Zuckerberg.
I want to spend most of my time today talking about how the Gang of Four built its platforms.
3 bullets
Contrast Amazon (get big fast) with Facebook (2006, Friendster). Apple’s ecosystem isn’t entirely open; Android is.
MENTION TWITTER, RUBY ON RAILS, SCALA.
Google added + despite three previous failures in adding a social plank
Google has an official Twitter feed; Amazon has a YouTube channel.
Now, let’s talk about ecosystems.
THIS NOTION OF A PLATFORM IS NOT NEW. SO, WHAT HAS CHANGED?
What’s different now about platforms compared to the late-1990s?
Rejection of ‘not invented here.’ Stronger ecosystems = stronger platforms.
This is not just about a company’s R&D dept
It’s not just about the technology; it’s about what you can do with it.
RIM – bad apps.
3 bullets
Talk about 70/30 split. One without the other doesn’t make any sense.
tools
2a – APIs – definition. They allow computers and devices to talk to one another. Think GUI
2b. Watching a TED video on a 12-year old who builds Apps for the app store
Let’s talk a little more about these ecosystems in action. Here are some examples.
Amanda Hocking signed a $2m book deal with St. Martin's Press
Mark Pinkus – he is the reason that your FB friend feed has all of this Mafia Wars crap.
There’s no one quick fix.
Continuous evolution.
It’s about culture more than technology.