Please enable JavaScript.

Coggle requires JavaScript to display documents.

Platform Revolution, G3 (IBS m1 Jan, TLHM 3 Vivian, IPCM 4 Angelica, IBS…

- - - - charging producers for entry fee
        
        Charging companies for access to their communities e.g.Dribble, LinkedIn
    - - Charging for producer
        
        Offering tools that help producers stand out
        
        Better positioning, more attractive presentation, or access to higher-value users
        
        e.g. Yelp,Google Adwords
        
        Careful execution is needed to avoid adding noise or misleading users, which could undermine user trust and weaken network effects.
      - Charging for consumer
        
        Lower barriers between users
        
        e.g. Dating platform
    - - Percentage of the transaction value / Fixed fee
        
        Latter is simpler and beneficial to users
      - Doesn't effect the growth of platform network effect
        
        Only occur when transaction
      - Challenge
        
        How do we keep transaction interaction within the platform?
        
        Temporarily blocking direct contact :red_cross:
        
        Expand their role as interaction facilitators, covering more value-creating activities :check:
        
        Developing interaction controlling tools is not easy
    - - For high-quality service or product
        
        Willing to pay for “guaranteed quality”
        
        e.g. Sittercity
  - - - Suppress participation and weaken network effects.
        
        Charging can improve quality
        
        e.g. high-end clubs
    - - When one group of users (e.g., men) highly values interacting with another group (e.g., women)
    - - Subsidize attractive star users who draw more users
        
        e.g. malls offer reduced rent to large retailers
    - - Provide a discount or subsidies to price-sensitive users to maintain network effects
        
        Careful assessment
  - - - How to generate revenues from the platform?
    - - Provide tools and services
      - Users use the resource in the ecosystem
      - Provide a check service
  - - - Manager maintain platform
        
        Charging will decrease users' willingness
      - Producers & Consumers effect each other
    - - Gillette razors
      - "Freemium"
    - - For producers / third-party providers
        
        Access to a community or market
        
        E.g., Airbnb
      - For consumers & producers
        
        Access to curation mechanisms that enhance the quality of interactions
        
        E.g., Amazon Market Place
        
        Access to tools and services that facilitate interaction
        
        E.g., Kickstarter
      - For consumers
        
        Access to value created on the platform
        
        E.g., YouTube
  - - - Zvents
        
        Value
        
        Listing every local events
        
        Failed to charge
        
        Sold to eBay in 2013
      - Meetup
        
        Cutting low-quality events and improving overall event success
  - - - generate backlash from users
        
        focus on creating additional value rather than reducing existing value.
    - - Charging for advanced product or service
    - - Led to complaint from producers and consumers
    - - Consider future monetization strategies and ensure the platform’s structure supports potential revenue models
- - - - food
      - forage
        
        Influence the army’s marching distances and supply frequencies
      - firewood
    - - Cash Flow
        
        Indicates the financial health of the company
        
        focusing on a few key metrics
        make efficient decisions & avoiding distractions from secondary details
      - Inventory Turns
        
        Measures inventory management efficiency
      - Operating Income
        
        Shows whether the business is profitable
  - - - value flow efficiency
        
        maximize output with minimal waste
    - - network effects
        
        prioritizing user interactions
      - Case Study: BranchOut
        
        Issue
        
        Rapid growth in users
        not translate into meaningful interactions
        
        Lesson
        
        Platforms should track whether users derive value from interactions, not just grow the user base
        
        New Metrics Needed for Platforms
        positive network effects
        
        Interaction Success Rate
        
        Repeat Interaction Rate
        
        enhancing value sharing
        
        Overall Value Creation
  - - - Growth Phase
        Reach critical mass and begin monetization
        
        Maturity Phase
        Sustain user engagement and platform competitiveness through innovation
    - - STAGE 1:
        METRICS DURING THE STARTUP PHASE
        
        STAGE 2:
        METRICS DURING THE GROWTH PHASE
        
        STAGE 3:
        METRICS DURING THE MATURITY PHASE
        
        Amrit Tiwana
        
        3 major requirements to
        reach maturity phase
        
        high-signal to noise ratio
        
        facilitate resources allocation
        
        drive innovation
        
        Traditional two sided platform
        
        platform monitor from
        producer side
        
        listing created
        
        outcomes achieved
        
        frequency of producer participation
        
        interaction falure
        
        calculated using
        traditional lifetime value (LTV) model
        
        by repeat producers
        
        platform monitor from
        consumer side
        
        searches
        
        rate of conversion to sale
        
        frequency of consumption
        
        Example
        
        Facebook &
        LinkedIn
        
        1 more item...
        
        Airbnb
        
        2 more items...
        
        Liquidity
        
        Matching Quality
        
        User Retention Benchmark
        
        Sales Conversion Rate
        
        Trust
        
        Measure participant reliability
        
        e.g., Airbnb photography, verified profiles
        
        Percentage of Listings Leading to Interactions
        
        Illiquid Situations
        
        e.g., no Uber cars available
      - ELEMENTS OF SMART METRICS DESIGN
        
        Eric Ries
        
        actionable
        
        clear guidance
        
        auditable
        
        real & meaningful
        
        accessible
        
        comprehensible
        
        Vanity metrics
        
        KEY:
        happy customer = value creating interactions