Please enable JavaScript.

Coggle requires JavaScript to display documents.

CDPSG3[PR] Ch3 – Architecture & Ch5 – Launch, Launch, Architecture,…

- - - - (1) provide incentives to attract members of a key user set onto your platform
        
        Example
        
        Microsoft (X-Box)
        
        Sony (playstation)
        
        Electronic Art(EA)
        
        Nintendo (Wii)
      - (2) purchase a marquee participant in order to obtain exclusive access to the seeds it produces
        
        Example
        
        Microsoft (X-Box)
        
        Bungie
      - (3) give the incentives to the customer whose participation is vital to the platform
        
        Example
        
        Paypal
        
        Swiss postal
  - - - create a business around products or services that benefit a single set of users
    - - convert the business into platform by attracting a second set of user want to engage in interactions with the first set
    - - service booking platform
        
        Open Table
      - India bus platform
        
        redBus
      - social networking site
        
        Delicious
  - - - design the platform to attract producers, who can induce their customers to become the user of it
      - provide business with tools for CRM
    - - solve the chicken-or-egg problem
      - producers benefit from data-driven cross-pollination
    - - crowdfunding platforms
        
        Indiegogo
        
        Kickstater
      - expertmarketplaces
        
        Clarity
      - educaation platforms
        
        Skillshare
        
        Udemy
      - B2B platform
        
        Mercateo
  - - - create value units that will be relevant to at least one set of potential user.
    - - attract other sets of users who want to engage in interactions with them to follow
    - - Google
      - Adobe
      - Paypel
      - Reddit
      - Quora
  - - - PayPel piggyback eBay
      - JustDial piggyback the existing Yellow Pages
      - Youtube piggyback Myspace
    - - connect with an existing user base from a different platform and stage the creation of value units in order to recruit those users to participate in your platform
  - - - Use one or more traditional push marketing strategy
        
        to attract a high volume of interest to your platform
    - - triggering a simultaneous on-boarding effect
      - creating almost fully-developed network virtually instantaneously
    - - Twitter
        
        SWXS
      - Foursquare
      - Tinder
        
        a frat party at USC
  - - - (2) Designing the platform to attract one set of users.
        
        Approach
        
        design a platform to provide tools, products, services, or other benefits that will attract one set of user
        
        customers
        
        producers
        
        Effect
        
        the existence of a critical mass of users on one side of marketplace attract users on the other side, leading to the positive feedback loop
        
        Example
        
        OpenTable
      - (3) Simultaneous on-boarding.
        
        Approach
        
        step1: create conditions such that value units can be created that are relevant to user even when the overall size of the network is small
        
        step2: strive to stimulate a burst of activity that will simultaneously attract consumers
        
        Effect
        
        kick in the network effect
        
        Example
        
        Racebook
      - (1) Stagying value creation
        
        Approach
        
        the platform managers arrange for the creation of value units that will attract more sets of user and demonstrate the potential benefits of participating in the platform
        
        Effect
        
        those initial users create more value units, attract still other users
        
        set up a positive feedback loop that leads to continuing in the platform
        
        Example
        
        Huffington Post
    - - use non-platform demonstration to model success
      - Avoid chichen-or-egg problem
    - - Intel v.s NTT
      - Amazon
    - - attract both user and producer ti the new platform erected on your project's proven infrastructure.
  - - - Facebook
        
        geographic focus
      - Stack overflow
        
        category focus
    - - targeting a tiny market that comprises members who are already engaging in the interactions.
    - - to enable the platform to provide the effective matchmaking characteristic of a large market even in the earliest stages of growth
- - - - How does it make a money
  - - - Giving new interactions on another network
- - - - Creating a set of higher-quality tools
  - - - Pirated videos and pornography
- - - - Without sellers who are willing to accept the new form of payment, buyers won’t adopt it
      - If buyers don’t adopt the new form of payment, sellers won’t invest time
- - - - New customers got $10 for signing up
      - Invite friends can get $10 referrals
    - - That people become regular users
      - User commitment was more important than user acquisition
    - - Only use mail & credit card
- - - - The crucial role of the value unit.
        
        ex
        
        Fasal
      - The core interaction starts with the creation of a value unit by the producer
    - - Enable the exchange of appropriate value units between users
      - ex
        
        search query
    - - producer
      - consumer
  - - - Feedback loop
        
        Single-user feedback loop
        
        Analyzes user activity, draws conclusions, and recommends new value units and connections that the user is likely to find valuable
        
        Multi-user feedback loop
        
        Activity from a producer is delivered to relevant consumers, whose activity in turn is fed back to the producer
      - Challenges
        
        Chicken-or-egg problem
        
        Keeping the interest of users who visit or sign up for the platform
      - Users found the platform valuable only after they had connected to a minimum number of other users
    - - Making it as easy as possible for producers to create and exchange valuable goods and services via the platform
      - Reducing barriers to usage
    - - The more data the platform has to work with the more accurate the filters, the more relevant and useful the information exchanged, and the more rewarding the ultimate match between producer and consumer
- - - - way
        
        Close monitoring of user behavior on the platform
        
        leave room for serendipitous discoveries, users themselves will find new ways to create value on the platform
      - Most of the activity is controlled by users, not by the owners or managers of the platform.
    - - analyze the degree of modularity the system has already achieved
        
        key tool
        
        design structure matrices
        
        Allow a visual examination of the dependencies in complex systems
      - integral architecture ➞ modular architecture
    - - Definition
        
        Modularity is a strategy for organizing complex products and processes efficiently. A modular system is composed of units (or modules) that are designed independently but still function as an integrated whole.
      - Why modularity is effective?
        
        When systems are cleanly partitioned into subsystems, they can work as a whole by connecting and communicating through well-defined interfaces.
        
        example
        
        APIs
      - long-term strategy
  - - - Definition
        
        Activities that are not central to the workings of the network but valuable only to particular users should be located at the edges of the network rather than at its heart.
      - applied to the design of a platform
        
        reasons
        
        When application-specific features are run by the app itself rather than by the core platform, the user experience will be much cleaner.
        
        A platform ecosystem can evolve faster when the core platform is a clean, simple system rather than a tangle of numerous features.
      - Example
        
        AWS
        
        focuses on optimizing a handful of basic operations
        
        data storage, computation, and messaging
        
        Other services, which are used by just a fraction of AWS customers, are restricted to the periphery of the platform and provided through purpose-built apps.
- - - - Three things Exchange on Platform
        
        Goods or Services
        
        Example
        
        On Facebook, photos, links, and posts with personal or other news are exchanged among users
        
        The things exchanged called value unit
        
        platforms feature sophisticated systems
        
        make it easy and convenient for value units to be exchanged
        
        Example
        
        UPWORK
        
        provides clients with built-in tools
        
        digital goods can be exchanged directly through the platform
        
        goods or services are exchanged outside of the platform
        
        Example
        
        Transportation services requested via Uber are delivered on real city streets using actual cars
        
        Currency
        
        other ways in which consumers “pay” producers in the world of platforms
        
        Example
        
        YouTube or followers on Twitter pay the producer with attention
        
        Sometimes the exchange of currency takes place through the platform itself
        
        Example
        
        Uber and Airbnb
        
        service delivery outside the platform
        
        money is exchanged through the platform.
        
        A platform that can internalize the flow of money to charge a transaction cut
        
        the fee of 10 percent of the sale price typically charged by eBay after a successful auction
        
        1.Information
        
        Why it’s important
        
        enables the parties to decide whether, and how, to engage in any further exchange.
        
        platform business must be designed to facilitate the exchange of information.
        
        Example
        
        Uber provides information about driver availability and location in response to passenger requests
        
        Yelp provides information about restaurants to enable users to choose a place to eat
        
        fundamental characteristics of a platform business
      - platforms allow direct connection between users
        
        a platform connects producers with consumers and allows them to exchange value