Platform Strategy Creating Exponential Value

in a Connected World

Futurist

Strategy advisor

Author

@rossdawson

“Ranked by market value, 60 of the

world’s 100 largest corporations

earn at least half of their revenue

from platform markets” - Prof. Thomas Eisenmann, Harvard Business School

Shifts

Strategy

Structure

Transition

Scalability

Organisations

Future

Shifts

Connectivity

Participation

Source:

We Are Social

Integration

Data at the core

Structure

Image credit: Grietje Haitsma

Multi-sided markets

Platforms

enable

value-creating interactions

between

external

producers and consumers,

based on an

open infrastructure

and

governance structures

Adapted from: Platform Revolution, Parker, van Alstyne and Choudhary

Connecting producers and consumers

Share Apply

Deliver Use

Sell Buy

Pay Receive

Write Read

Lend Borrow

Create Use

Create Consume

Create Use

Make Use

Product

Service

Content

Money

Apps

Capital

Reviews

Information

Designs

Intellectual property

Positive feedback loops

More users

More value for

users

Positive feedback loops

Source: IES Development Institute

Winner takes most

Transition

Rise of platforms

Uber valuation

Source: AltMBA, CBInsights

Media as platform

Finance as platform

Source: Lending Club

Home as platform

Fitness as platform

Retail as platform

Flickr credit: Jack Torcello

Marketing as platform

Car as platform

Image credit: BMW

Water platforms

Blockchain as platform enabler

Flickr credit: chrisgj6

Strategy

Focus on external value creation

Unlimited scalability

Image credit: NASA

Governance Participation

Value sharing

Regulation

Discovery Transactions

Trust

User experience

Key elements of platforms

Platform Strategy

Enable value-creating

interactions

Positive feedback

loops

Encourage external

innovation

Enhance existing

value propositions

Strongly broaden

scope of participation

Principles

Marketplaces,

facilitation,

aggregation

Single owner/

multiple owners

Open vs bounded –

participant selection

criteria

Boundaries of

ecosystem

collaboration and

competition

Positioning

Value for

participants

Governance

structures

Transparency and

information

boundaries

Address potential

negative feedback

loops

Personalized value

creation

Design

Orchestration and

facilitation

Community

management

User experience

Reputation

measures

Data gathering and

applied analytics

Capabilities

Single-sided/ two-

sided growth

incentives

Promote participants

Promote and support

interactions

Create value from

participation

Platform extension

Growth

Defining boundaries

Building platforms

Scalability

Building companies

Venture models

Financing

Ideas

Accelerator/

Incubator

Parallel

entrepreneur

Startup

services

Studio

Capital

Others Own

Cashflow

Exponential organisations

Source: Exponential Organizations, Salim Ismail

Platforms for scalable ventures

Internal ventures

Success criteria

Team structures

Defined synergies

Core functions

Administration processes

Metrics tracking

Reusable software modules

Replicable legal structures

Core capabilities

Startup processes

Growth hacking

Partnerships

Resource allocation

Talent

Funding

Brand

Lessons

learned

Data Spin-offs

Capital and cashflow

Visibility

Capabilities

Organisations

Building external networks

Shifting to an external focus

Function Emerging role

Finance Measuring and accounting for distributed value

creation

HR Managing external talent

Marketing Catalysing external communities, including

producers and developers

IT Enabling secure multi-participant information flows

Logistics Orchestrating external resources

Supply chain Catalysing value creation within provider networks

APIs to enable participation

Corporate communication as platform

Source: Geoffrey Parker and Marshall van Alstyne, MIT

Future

Value creation shifts to platforms

More efficient healthcare

The next generation of education

Image credit: One Laptop per Child

Cities are innovation platforms

Image credit: Roderick Elme

Government as enabling platform

Image credit: JJ Harrison

Shifts

Strategy

Structure

Transition

Scalability

Organisations

Future