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Platform Thinking
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Transcript of Platform Thinking
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Platform Thinking
IT Partners ConferenceJune 17, 2014
John Charles
Platform Thinking – What Changes?
Design• To be a platform, a system must
provide a useful function or service and allow 3rd party access
Network Effects• Platforms have communities, products
have features
Value• Platforms open themselves to and gain
enormous value from 3rd party contributors/developers
Platform-based Ecosystem
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For Nearly 2 Decades the Microsoft Platform Beat the Apple Product
Microsoft opened their platform, licensed widely, and built a huge developer ecosystem. Apple kept their product closed.
Source: Parker & Van Alstyne
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Model T Platform
Flour Mill
Mobile Church
Sawmill
Race Car
Hay Carrier
Snowmobile
Goat Carrier
You know your business model is working when users of your platform do something you didn’t expect
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“We tried to create every feature in the world and said, ‘O.K., we can do it, why should we let a third party do it?’” (MySpace cofounder) DeWolfe
“We should have picked 5 to 10 key features that we would be totally focused on and let other people innovate on everything else.”
The Rise & Ignominious Fall of MySpace – Business Week 2011
Does Open Work?
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Platform provider focuses on most valuable apps
Value increases as others add to
platform’s “Long Tail”
Source: Van Alstyne (2014), “Platform Shift: How New Biz Models are Changing the Shape of Industry”
Valu
e
Platform Thinking – What Changes?
Strategy• Goal is transactions volume &
creating user value• Don’t need to own the one-off
resources/apps – simply convince those providers to join you
Innovation• Platforms can be adapted to countless
needs & niches that the platform’s original developers could not possibly imagine
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The Pace of Change Seemed Somewhat Linear in the Past – but its Exponential Nature is Now Clearly Apparent
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1990’s
2010
’s
Chan
ge
Time
But, we must now optimize for:• Time to market• Rapid changes• User experience
We optimized for:• Performance• Reliability• Cost
Much of Higher-Ed Seems to be Suffering from Boiling Frog Syndrome
• Higher-ed’s biggest challenge is its time zone. It’s 9:30am, June 17, 2014 on the East Coast…
…but the app portfolio at many institutions is stuck in the late 1990s or early 2000s
• Higher-ed was ahead of the curve in terms of its use of technology…
…but then the curve ran us over
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Google’s Eight Pillars of Innovation
Innovation
Have a mission
that matters
Think big but
start small
Strive for continual
innovation- not
instant perfection
Look for ideas every-where
Share everything
Spark with imagination -
fuel with data
Be a platform
Never fail to fail -
continue to learn
and iterate
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Why IT Organizations with Traditional IT Service Delivery Models and Practices Struggle to be
Responsive – and Struggle to Support Innovation
IT Budget0%
10%20%30%40%50%60%70%80%90%
100%
Capacity for New ProjectsKTLO (En-hance, Maintain, Operate)
Gartner’s TCO analysis shows that 80% to 85% of an IT organization’s budget is consumed by simply “keeping the lights on” (KTLO).
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Backlog of IT Projects
Consumerization Has Radically Changed User Expectations for Enterprise Apps
Source: Innovator’s Guide (Mendix)11
To Remain Relevant, Higher-Ed IT Units must Reduce the Amount of Change-Induced Resource Consumption – the Key Enabler for
Lowering KTLO and Becoming more Responsive
Pace-based Application
Change Strategy
Platform-based IT Service Strategy &
Tools
Responsive IT Operations &
Services
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Lower the change-induced resource consumption• Innovation &
differentiation apps need to change frequently
• Whereas, the core code-sets for ERP & other system-of-record apps do not
Reduce the app development overhead for all IT service providers• Shorten the app
development time• Accommodate local work-
process and workflow differences
Value Creation• Improved
decision-making• Improved
processes
Transformation Strategy
Innovation & Pilot Project
Apps
Daily or Weekly Changes
App Systems that Create
Differentiation
Monthly or Quarterly Changes
All Other Mission Critical Apps (ERP, etc.)
Semi-annual or Annual
Changes
- Buy or build new apps with robust sets of APIs- Configure, but do NOT customize base code sets for newly acquired apps- Publish APIs for all new apps- STOP customizing legacy apps- Publish APIs for legacy apps- Change &/or add functionality “on top” of new & legacy apps using APIs & modern app development platforms- Use mobile-ready, change-friendly app development platforms & toolkits
Pace-based Application Change Strategy
Platform-based IT Services Strategy & Tools
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Unlock Business Value & Enable Innovation
BUILD Applications Better & Faster
• Reduce time to market
• Accelerate app development by 10x
RESPOND Quickly to Changes &
Opportunities
• Capitalize on new opportunities before they are gone
• Accommodate constant updates
ENABLE the Business & Accelerate Innovation
• Eliminate project backlog bottlenecks
• Open platforms to extension by others
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Transformations in Responsiveness and Support for Innovation within the IT@MIT Ecosystem
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Series1
Distributed IT Capacity for New Projects
Central (IS&T) Capacity for New Projects
Central (IS&T) Capcity Consumed "Keeping-the-Lights-On"
Baseline IT
Resource Profile
Early “Wins”
Systematic Redesign
Efforts
“Agile” IT Ecosystem Profile
“Value-Add” for Distributed IT Units
IS&T Transformation
KTLO Reduction
Productivity Expansion
Timeline
Jan-Jun
• Listening Tour & Community Engagement (Consensus Vision, Goals, & Guiding Principles)
Jul-Aug
• Formulate Findings & Develop Strategies for Realizing the Vision
Sep-Oct
• Community Engagement in Finalizing IT Strategies
Nov-Dec
• Approval of IT Strategic Plan & Publication of Implementation Roadmaps
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✔
• Technology plan & associated proof-of-concepts• Financial plan & associated funding models• Governance plan & associated policy agenda• Communications plan & associated collaboration platforms
If you believe in the power of people connecting…
…embrace platforms
If you converted your product/service to a platform…
…what would it enable?
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Thank You!
Questions or Comments?
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