Please enable JavaScript.
Coggle requires JavaScript to display documents.
THE INTRODUCTION OF PLATFORM REVOLUTION, G3 (Annie, Beining, Jessica,…
THE INTRODUCTION OF PLATFORM REVOLUTION
Introduction of Platform
the power of the platform
Using technology to connect people, organizations, and resources in an interactive ecosystem
create value
Well-known paltforms
Facebook
Alibaba
Uber
Airbnb
definition
A platform is a business based on enabling value-creating interactions between external producers and consumers.
purpose
To consummate matches among users and facilitate the exchange of goods, services, or social currency, thereby enabling value creation for all participants.
Pipeline
feature
traditional system
a step-by-step arrangement for creating and transferring value
platform
Eliminating gatekeepers
The value may be created, changed, exchanged, and consumed in a variety of ways and places,
all made possible
by the connections that the platform facilitates.
Unlocking new sources of value creation and supply
platforms disrupt the traditional competitive landscape by
exposing new supply to the market
sharing economy
loan someting to strangers
lower transaction costs
feedback loops
easy to find videos or rental properties that are likely to suit your needs
invert the firm
shift its focus from internal activities to external activities
ceproduct optimization
➜ ecosystem governan
internal employees
➜outside partners
Demand Economics Scale
Twentieth-century
Industrial era
giant monopolies
Created on
supply economies of
scale
driven by production efficiencies
Reduce the unit cost of creating a product
Service as the quantities produced increase
Twenty-first-century
Internet era
comparable monopolies
Created by
demand
economies of scale
driven by efficiencies in social networks, demand aggregation, app
development, and other phenomena
Bigger networks more valuable to their users
the fundamental source of positive network effects
Metcalfe’s law
the value of a telephone network grows
nonlinearly as the number of subscribers to the network increases
1 more item...
Network Effects
product's value increases as the number of users grows
production efficiencies
increasing produced quantities
reduce cost
companies control interface between consumer and provider are in an incredibly valuable position
Uber
global largest taxi firm
investors ponied up $1.2billion
return of share around $17billion
"a mind-boggling sum for a young company with only a few hundred million in revenue"
matching service
helps riders find drivers
less downtime
cut fares & stimulates demand
impact that number of users of platform has on value created for each user
positive networks effects
ability of large
well-managed platform community
produce significant value for user of platform
negative networks effects
possibility that growth in number of poorly-managed platform community
reduce value produced for user
main source of value creation& competitive advantage in platform busines
The Platform Revolution: How Will You Respond?
rise of platform is driving transformation in every corner
education
media
health care
energy
government
:checkered_flag: provide not a comprehensive /systematic overview
convey growing scope & importance of platform companies on world stage
fundamental exist DNA
create matches & facilitate interactions among producers & consumers
rise of platform
traditional business practice
strategy
operations
marketing
1 more item...
how platforms work
varying structures assume
numerous forms of value people create
almost limitless range of users people serve
Scaling Network Effects
To expand in size quickly and easily
scaling the value that derives from the Network effect
Google
a way to serve web page searchers by harnessing the work of web page
producers
Yahoo
using a tree structure of
subcategories within categories the same way librarians
Require
Both sides of the market grow proportionally
Example
Uber
one Uber driver can serve an average of about three Uber riders an hour
Non-Sense :no_entry:
to have one rider and 1,000 drivers—nor 1,000 riders and one driver
Frictionless entry
To quickly and easily join a platform
key factor
A platform to grow rapidly
the growth of a platform can be facilitated by an effect we call side switching
Two sided network effects
Example
Case of
Uber
:silhouettes:
drivers attract riders
riders attract drivers
positive feedback :check:
Case of
Local Bar
:champagne:
Discount to
female customers
Need to buy
Men's own drinks at full price
Result
financial losses :red_cross:
1 more item...
Network effects Vs Other growth- building Tools
Network effect
Price Effect
Evanescent
Attracting customers through
extraordinarily low pricing
difficult to sustain :warning:
Network effects create
the virtuous cycle
leads to the building of a longlasting
network
a phenomenon is
"lock-in"
Brand Effect
Stickier
people come to associate a particular brand with quality
Growth Building Tools
easy to confuse with network effects
Virality
“going viral”
the tendency of an idea or brand to be circulated rapidly and widely from one Internet user to another
Negative Network Effects
Their cause and cure
Negative network effects occurs
The growth in numbers that enable more matches
Producers
consumers
Lead to increasing difficulty
impossibility in finding the best match
Four Kinds of Network Effects
Negative same-side effects
more difficult for appropriate providers and customer to find one another
users from on side of the market on other users from the same side of the market
Positive Cross-side effects
users from one side of the market on users from the other side of the market
when users benefits from an increase in the number participants on the other side of the market
Positive same-side effects
the positive benefits received by users when the number of users of the same kind of increase
Negative cross-side effects
leading customer to abandon the platform
many varying digital rights management forms to read and accept
Structural Change Network
Internet Era
demand side economies of scale
Four broad categories based on their chief economic activity
Make business easier to look inside-out view
innovation
primary venue for activities
management of human resource
Industrial Era
supply side economies of scales
G3
Annie
Beining
Jessica
Suzan
