Post on 03-May-2018
Beyond uber how platforms rule the world
Matthias Walter
T-Systems MMS
The platform innovation company
What are platform business models and why they are so successful
How to build and grow a platform business
See some examples beside the well-known
Full service Digital transformation Our solution portfolio
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37 years Customer projects in 2014
2.786
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The platform innovation company Customer Satisfaction
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Our customers love us and recommend us.
(Results from customer survey)
Reelection as Partner
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Revenue 2015 in Mio. €
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We are
1.600 Architects, Software Developer, System Engineers, Consultants, Projectleads, Tester, Security, Designer …
Digital Disruption?
Source: http://www.spiegel.de/fotostrecke/taxifahrer-proteste-gegen-uber-in-frankreich-fotos-fotostrecke-127851.html
Digital Disruption!
Source: http://www.spiegel.de/fotostrecke/taxifahrer-proteste-gegen-uber-in-frankreich-fotos-fotostrecke-127851.html
uber drivers > yellow cabs in nYC
Only 4 Years
Marc Andreessen
Why Software Is Eating The World By MARC ANDREESEN
August 20, 2011
This week, Hewlett-Packard (where I am on the board) announced that it is exploring
jettisoning its struggling PC business in favor of investing more heavily in software, where it
sees better potential for growth. Meanwhile Google plans to buy up the cellphone handset
maker Motorola Mobility. Both moves surprised the tech world. But both moves are also in
line with a trend I‘ve observed one that make me optimistic about the future groth of the
American and world economies, despite the recent turmoil in the stock market.
In short, software is eating the world.
More than 10 years after the peak of the 1990d
Twitter are ntro in Silicon
But …
„Software alone is a commodity. There is nothing stopping anyone from copying the feature set,
making it better, cheaper and faster.“
- FRED WILSON, FOUNDER OF USV -
What about those?
Market capitalization 1995 -> 2015
SOURCE: Mary Meekers „Internet Trends Report2015“
x 150
What is the business model?
Platforms rule the internet
SOURCE: Mary Meekers „Internet Trends Report2015“
13 of 15 = platform business
models
What is a platform business model?
Platform (n):
A multi-sides business model focused on creating value by facilitating transactions between two or more interdependent groups (usually consumers and producers).
SOURCE: Peter C. Evans
connects many peers
Producers
Consumers
PLATFORM
(multi-sided market)
Partners
Platform Owner
Linear Business
Sells a product or service to a
consumer
Owns one side of the transaction
Products have inherent value
„I derive value from my use of a product“
Platform Business
Facilitates a transaction between
multiple parties
Owns infrastructure that facilitates the transaction
Platforms add network value
„I derive value from other peoples use of the platform“
example
vs.
Other uses of the term „Platform“
Computing Platforms Product Family Platforms
Industry Platforms Platform as a Service
Platform becomes the new standard
Platform examples
Exchange Platforms
Maker Platforms
Services
Product
Payments
Investment
Social Networking
Communication
Closed Development
Controlled Development
Open Development
Content
Platforms today (2015)
number market capitalization employees
SOURCE: Global Platform Survey, The Center for Global Enterprise, 2015
Platform types
SOURCE: Global Platform Survey, The Center for Global Enterprise, 2015
Platform companies by type (2015)
Platform companies by type & region (2015)
Platforms by enterprise type (2015)
SOURCE: Global Platform Survey, The Center for Global Enterprise, 2015
Platform businesses in the S&P 500
1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
05
10
15
20
25
30
What are the factors that drive platform scale?
Key platform scale drivers
Network Effect powered by positive feedback
Minimal costs of production / distribution
Behavior design & community culture
Learning Filters
Virality (not recommendations)
Show me the money! (How can I build my own platform business?)
A lean (startup) approach
Ideate 1
2
3
4
Prototype Business Model
Build & Launch
Product-Market Fit
5
Scale
1
Generate a portfolio of ideas & select the most promising one
Build a team
Analyse technology trends
Be creative
Create Business model visions
Score visions & decide
Platform Business Visions
Platform Portfolio Matrix
Ideate
Pick your Role wisely
Partner -> contribute
Owner -> build & manage
Desktop for products
SOURCE: Mary Meekers „Internet Trends Report2015“
Mobile for services
SOURCE: Mary Meekers „Internet Trends Report2015“
On-demand platforms enabled by mobile + sensors + humans
SOURCE: Mary Meekers „Internet Trends Report2015“
Identifying Platform opportunities
Reduce high transaction costs or remove gatekeepers
Underserved groups that need each other
Potential complements
Latent supply
Large, fragmented supply
Platform portfolio matrix
Consumer Growth Rate
Re
ve
nu
e p
er
Pr
od
uc
er
Stars
Unknowns
2
Define the platform business model & collect early feedback
Define platform business model
Understand critical elements & success factors
Define and understand target user experience
Build partner relations
Get feedback
Platform Business Model Canvas
Digital Innovation Model
Customer Journey Map
Prototype business
model
Platform business model canvas
Owner
Consumer
Producer
Partner
Value Propositions
Value Transactions
Key Platform Components
3
Create and Launch a Minimum Viable Platform (MVP)
Understand Stakeholder Journeys
Agile development to speed up prototyping and MVP building
Define launch strategy considering key strategy components
Customer Journey Map
Digital Innovation Model
Design Sprints
Strategy Components
Build & launch
Key platform components
Audience Building
Tools & Services
Rules & Standards
Match Making
Chicken-and-egg solving strategies
1. Enter with significant pre-invest (e.g. XBOX)
2. Build a cooperative strategy (e.g. Android)
3. Act as producer (e.g. iPhone)
4. Use an evolution strategy (e.g. AirBnB)
5. Subsidize high-value users (e.g. UBER)
6. Target a user group to fill both sides (e.g. Etsy)
7. Provide single user utility (e.g. early Instagram)
4
Validate with real market feedback & decide
Perform Customer Interviews
Analyze acceptance and opportunities for growth and improvement
Review decision criteria, business plan and decide (pivoting)
Customer interview
Data analytics
Business plan
validate
5
Scale
Define & Plan Growth Options
Market
Features
Pivoting
Execution
Platform Business Model
Roll-Out Plan
scale
Mistakes to avoid
Don‘t try to be good at everything
Don‘t screw up pricing
Don‘t think: If we build it, they will come
Sounds good, but show me some examples?
Example: Smart City Platform Deutsche Telekom
smartcity platform Deutsche telekom
Producers Consumers
Partner Owner
Example: Hmm Deutschland gmbh E-health platform for barmer gek
One platform for all
End-to-end medical aid management
End-to-end medical aid management
Opticians and hearing aid specialists
154,000 doctors
21,000 pharmacies
Process takes just a few hours
Reduced transaction costs
Prozess komplett digitalisiert
10,000 medical aid stores
Medical aids delivered in hours
E-health platform Hmm deutschland gmbh
Producers Consumers
Partner Owner
21,000 pharmacies
Opticians and hearing aid specialists
154,000 doctors
10,000 medical aid stores
Example: MMS as a platform partner
Producers Consumers
T-Systems MMS
Owner
Example: T-Systems as a platform enabler
Producers Consumers
T-Systems Owner
Let‘s rule the world!
Start your own platform business!
Owner
Consumer
Producer
Partner
Free to use / download at
www.creatlr.com
One more thing
Recommended sources
Amrit Tiwana (2013)
Phil Simon (2011)
David S. Evans (2011)
David S. Evans Andrei Hagiu R. Schmalensee (2011)
S. P. Chaudary (2015)
Platform Business Model Canvas @ creatlr.com
Matthias Walter (2015)
Matthias Walter
Portfolio manager & Platform Business Innovator
Riesaer Straße 5 D-01129 Dresden, Germany
Tel.: +49 151 62433705 E-Mail: matthias.walter@t-systems.com Internet: www.t-systems-mms.com
Twitter: @digitalahead Blog: www.digital-ahead.de
Thank you!
backup
The value ecosystem
Producers Consumers
Partners Owner
Platform