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*CDPS-G4-[PR] Ch3–ARCHITECTURE & Ch5–LAUNCH image, Group 4 1242C30D…
*CDPS-G4-[PR] Ch3–ARCHITECTURE & Ch5–LAUNCH
Principles for Designing
a Successful Platform
END-TO-END PRINCIPLE TO PLATFORM DESIGN
Amazon has been especially effective at opening APIs to its modular services
What is APIs & How do APIs work?
Application Programming Interface (APIs) let computers talk to each other
E2E also facilitates Network Growth
E.g:
Mac OS X
: E2E vaslty improved efficiency & upgrade
Microsoft
: failure to heed E2E principle of introducing Vista
The exchange of value
Exchange of information
Uber
provides
information about
driver availability
and
location of passenger requests
Upwork
allows companies and freelancers to exchange information to facilitate
hiring decisions
Yelp
provides
information about
restaurants
to enable users place to eat
Exchange of goods or services
Upwork
: Digital goods like Slide decks and videos, can be exchanged directly through the platform
Outside of the platform
Transportation services
requested via
Uber using
actual cars
Dinner reservations
made via Yelp in
actual restaurants
Exchange of currency
Example
Community members on sites like TripAdvisor, Dribbble.
The producer is a political pundit or business leader, he gains value in the form of growing influence as a thought leader
Three key components of the core interaction
Participants
Needs at least two participants
The producer is the one who creates value
The consumer is someone who consumes value
Example
I can list a house on Airbnb (produce) and book a house on Airbnb (consume)
I can post content (produce) and watch content (consume)
The value unit
Allows the user to decide if they want to go ahead to exchange their currency (whether money, time, information) to receive the final good or service.
Example
eBay or TradeMe
VU is Information, not physical products or real-life services
The value unit for Uber
is the
listing of available cars and drivers
– not the actual driver and car itself.
The filter
Delivers specific value units to specific customers
Core interaction
Most important activity on platform
Should be easy，attractive，valuable to users
8 Ways to Launch a Successful Platform
The Single-Side Strategy
Attract single side of users first
Later convert a platform by attracting second set who want to interact with first set
Restaurant &consumer
Bus seating inventory management system&consumers
The Marquee Strategy
Provide incentives to attract members of a key user onto platform
Single group of users so important
Can make or break the success of the platform
Provide cash payment or special benefits
The Producer Evangelism Strategy
Attract producers first who can induce customers to become users of platform
Producers will bring consumers to platform
The Seeding Strategy
Create the relevant Value units
the more users attracted, the more other sets of users
encouraging a culture of high quality contribution
Google
Android smartphone
designing many stunning Apps
Adobe
PDF document-reading tool
IRS
good taxes players
seeding may be simulating "fake" value units
Dating services
Reddit
7.The Big-Bang adoption Strategy
Push strategy
Twitter at SXSW 2007
The most distruptive and risky strategy Allow taking advantage to the new stysem
The fastest migration process, requires the most preperation
Very difficult to rollback, difficult to test in production
Required the least effort of $ and time
Foursquare at SXSW in 2009
Tinder in 2012
2.The Piggyback Strategy
The Micromarket Strategy
Targeting A Tiny Market
Facebook in Harvard University
Focus on Quality at an existing micromarket
Reduce the Critical Mass
Same in the other Campus and then let the cross Campus Friend Connections
The follow-the-rabbit strategy
Staging value creation
Arrange the creation of value units
Create one or more users
demonstrate the potential benefits
Positive Feedback Loop
i.g.
The Huffington
Designing the platform to attract one set of users
Designed to provide as the items below
Products
services
Tools
other benefits
Peoducers
i.g. OpenTable
Restauranteurs
Dining Plans
Consumers
Simultaneous on-bording
Value Producing Interaction
Marketing Strategies of Platform
DESIGNING FOR VIRAL GROWTH
Pull strategies
Platform Business
Creating network effects to scale up way faster
Content Marketing must be designed attractively
E.g: Paypall
Push strategies
Traditional business
Trying to reach as many people as possible through specific
marketing and communication channels
Make potential customers aware of your brand
E.g: Instagram
Paypal-Online
payment
two sides of a market—the chicken-or-egg problem
Reduced the friction involved in accepting online payments
Increased its base of consumers by incentivizing new sign-ups
User commitment was more important than user acquisition
Today, PayPal produces a major portion of
eBay’s revenues and profits
VIRAL GROWTH or Platform Expansion
Four key elements
Sender
Users spread self-created value units to get social feedback
Bring them fun, fame, fulfillment, or fortune—or some combination of these rewards.
Value Unit
Spread on an external network and demonstrate the platform’s value
Spreadable
helps to start an interaction on an external network
E.g: Share Instagram story to Facebook
non-spreadable
business platform
confidential info
External Networks
identifying
Build growth and find it creative
Value-adding to connect with users
Recipient
Facebook user see the picture of Instagram
Visit to Instagram
Become the Sender
100 Millions Active Users in 2 years
Group 4
Vivian
Eric
Dora
Cindy
Connect with an existing user base
stage the creation of value units
Recruit users to take part in
Justdial+phone directory service
Paypal+eBay
Youtube+Myspace
CUSTOMER
(User)
WAITER
(API)
KITCHEN
(Web Server/computer)
Facebook is the close network of Instagram
IP
(Internet Protocol)
End-Host
End-Host
Use to receive requests and return something
