8. …the system must provide a useful function or
service and allow 3rd party access.
Examples:
iTunes: Music, Apps SAP: execute ERP systems
Facebook: connect family, friends & acquaintances
Nike Fuel: Activity tracking and social benchmarking
Products have features,
Platforms have communities
To be a platform…
9. How are these related?
Each Side Attracts More of the Other
eBay Buyers
Expedia Travelers
Xbox Gamers
AmEx CardHolders
YouTube Viewers
AirBnb Renters
Mechanical Turk Jobs
LinkedIn Job Seekers
Android Users
eBay Sellers
Expedia Airlines/Hotels
Xbox Developers
AmEx Merchants
YouTube Videographers
AirBnb Hosts
Mechanical Turk Laborers
LinkedIn Employers
Android Developers
10. Apple iPod combined with iTunes
Apple iPod
$ $
Retailer
Music
Producer
Listener
$
11. Apple iPod post-Platform
(1) Remove supply chain
inefficiency
(2) Triangular platform
supply network
(3) Apple owns financial
chokepoint
(4) Apple helps users find
content
(5) Stronger Network EffectsApple
User Content
$$
26. Economic Importance of Platforms
Platform Growth
The Role of Data in Platforms
Implications for the Future
27. Discussion
Think of an existing product or service.
• How can you “platformize” it?
• Where are the network effects?
• How will you design the interaction?
• What are some digital challenges?
30. 3 of top 5 firms in 2013 by Market Cap.
Firm Market Cap in $Bn
Apple 438
Exxon Mobile 380
Google 291
Microsoft 282
Berkshire Hathaway 281
Economic Importance of
Platform firms
31. To price a platform with
network effects, who gets the
subsidy?
32. More Android Developers
… get more Android Uses
More Android Users
… get more Android Developer
Android Platform
33.
34.
35. 1. All teams will expose their data
2. Teams must communicate through interfaces.
3. No other form of interprocess communication
allowed
4. Interfaces, without exception, must be
externalizable.
5. Anyone who doesn’t do this will be
fired.
Bezos Platform Mandate
Hinweis der Redaktion
Coke, 13 year champ, dethroned
Children say “Google it” – not done with a marketing budget.
“Brands like Apple and Google and Samsung are changing our behavior: how we buy, how we communicate with each other, even whether we speak with each other,” Mr. Frampton said. “They have literally changed the way we live our lives.” – Jez Frampton, Global Chief Exec, Interbrands.
12 of 30 are platform firms, 6 of 10 are platform firms
ALL of the top 50 risers are platforms. FB at 52 and Prada at 72
Stuart Elliot NYT “Apple passes Coca Cola as Most Valuable Brand” Sept 29, 2013 p B5.
http://www.interbrand.com/en/best-global-brands/2013/Best-Global-Brands-2013-Brand-View.aspx
Coke, 13 year champ, dethroned
Children say “Google it” – not done with a marketing budget.
“Brands like Apple and Google and Samsung are changing our behavior: how we buy, how we communicate with each other, even whether we speak with each other,” Mr. Frampton said. “They have literally changed the way we live our lives.” – Jez Frampton, Global Chief Exec, Interbrands.
12 of 30 are platform firms, 6 of 10 are platform firms
ALL of the top 50 risers are platforms. FB at 52 and Prada at 72
Stuart Elliot NYT “Apple passes Coca Cola as Most Valuable Brand” Sept 29, 2013 p B5.
http://www.interbrand.com/en/best-global-brands/2013/Best-Global-Brands-2013-Brand-View.aspx
3 of 5, knock off energy & finance
Plot shows % top 20 by market cap
Pearson: match people to content, deliver content, certify learning
eBay
Google YouTube
Linked In Job Posts
First part is digitization
2005 Joseph Ratzinger / Pope Benedict XVI NOK 68B BBRY 16B (3x)
2013 Jorge Borgoglio / Pope Francis NOK 25B BBRY 4B (4x)
Info on Pope almost as important as the Pope