Post on 14-Apr-2017
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10 Insights to Make Networked Markets Work For You
This presentation consists of highlights from the interview with Moe Abdou,
founder & host of 33voices®.
Geoffrey Parker is Professor of management science at Tulane Univer-sity in the A. B. Freeman School of Business and is a Visiting Scholar and Research Fellow at MIT’s Initiative for the Digital Economy. He serves as
Director of the Tulane Energy Institute and also serves on the General Electric (GE) Africa technical workforce advisory board. He is the co-au-
thor of Platform Revolution: How Networked Markets Are Transforming the Economy--And How to Make Them Work for You.
Geoffrey Parker@g2parker
Professor of Engineering at Dartmouth College
A platform is a modern business model that harnesses technology to connect
people, organizations, and resources in an interactive ecosystem where extraordinary
value can be added and exchanged. Think:
Insight #1
A platform is a modern business model that harnesses technology to connect
people, organizations, and resources in an interactive ecosystem where extraordinary
value can be added and exchanged. Think:
Amazon
Insight #1
A platform is a modern business model that harnesses technology to connect
people, organizations, and resources in an interactive ecosystem where extraordinary
value can be added and exchanged. Think:
Insight #1
A platform is a modern business model that harnesses technology to connect
people, organizations, and resources in an interactive ecosystem where extraordinary
value can be added and exchanged. Think: Uber
Insight #1
A platform is a modern business model that harnesses technology to connect
people, organizations, and resources in an interactive ecosystem where extraordinary
value can be added and exchanged. Think: Airbnb
Insight #1
Insight #2
When compared to the traditional pipeline business models, platforms are superior in that they:
Insight #2
When compared to the traditional pipeline business models, platforms are superior in that they:
Scale more efficiently by eliminating gatekeepers
Insight #2
When compared to the traditional pipeline business models, platforms are superior in that they:
Unlock a new source of valuecreation and supply
Insight #2
When compared to the traditional pipeline business models, platforms are superior in that they:Use data-based tools to create
community feedback loops
Insight #2
When compared to the traditional pipeline business models, platforms are superior in that they:
Invert the firm by shifting its focus from internal activities to external activities
Insight #3
With any platform, the Core Interaction is the single most important form of activity that takes place - the exchange of value that attracts most
users to the platform in the first place.
Insight #4
A positive network effect is the main source of value creation and competitive advantage in a
platform business — think Uber & Paypal:
Insight #4
A positive network effect is the main source of value creation and competitive advantage in a
platform business — think Uber & Paypal:Riders attract drivers, and drivers
attract riders
Insight #4
A positive network effect is the main source of value creation and competitive advantage in a
platform business — think Uber & Paypal:Sellers attract buyers, and buyers
attract sellers
Insight #5
Platforms must perform three key functions in order to encourage a high volume of valuable core interactions:
Insight #5
Platforms must perform three key functions in order to encourage a high volume of valuable core interactions:They must pull the producers and
consumers to the platform
Insight #5
Platforms must perform three key functions in order to encourage a high volume of valuable core interactions:
They must facilitate their interactions by providing them with tools & rules
that make it easy for them to connectand exchange value; and
Insight #5
Platforms must perform three key functions in order to encourage a high volume of valuable core interactions:
They must match producers and consumers effectively by using information about each to
connect them in ways they find valuable
Insight #6
Case Study | YouTube’s launch strategy:
Insight #6
Case Study | YouTube’s launch strategy:It seeded the platform with content
Insight #6
Case Study | YouTube’s launch strategy:It created a curation dynamic on the platform to identify quality content by letting viewers
vote up or down videos they watched
Insight #6
Case Study | YouTube’s launch strategy:It leveraged producers to bring
in consumers; and
Insight #6
Case Study | YouTube’s launch strategy:It created a set of content creators who had an investment in the platform, had a user following, and would not be easily
incentivized to invest in another one
Insight #7
Monetizing a platform | Critical to business model design is a thorough
understanding of how value is created on the platform. Options for revenue creation:
Insight #7
Monetizing a platform | Critical to business model design is a thorough
understanding of how value is created on the platform. Options for revenue creation:
Charging a transaction fee - think Uber & eBay
Insight #7
Monetizing a platform | Critical to business model design is a thorough
understanding of how value is created on the platform. Options for revenue creation:
Charging for access - think Dribble & LinkedIn
Insight #7
Monetizing a platform | Critical to business model design is a thorough
understanding of how value is created on the platform. Options for revenue creation:
Charge for enhanced access - think Yelp & Twitter
Insight #7
Monetizing a platform | Critical to business model design is a thorough
understanding of how value is created on the platform. Options for revenue creation:
Charge for enhanced curation - think skillshare
Insight #8
Openness | A platform is ‘open’ to the extent that it has:
Insight #8
Openness | A platform is ‘open’ to the extent that it has:
No restrictions on participation in its development,
commercialization, or use
Insight #8
Openness | A platform is ‘open’ to the extent that it has:
Any restrictions are reasonable and non-discriminatory; and applies uniformly
to all potential platform participants
Insight #9
The most admired platforms obey these three fundamental rules of governance:
Insight #9
The most admired platforms obey these three fundamental rules of governance:
They always create value for the consumers they serve
Insight #9
The most admired platforms obey these three fundamental rules of governance:They don’t use their power to change
the rules in their favor; and
Insight #9
The most admired platforms obey these three fundamental rules of governance:
They don’t take more than their fair share of the wealth
Insight #10
“In general in technology, if you own a platform that’s valuable, you can monetize it.”
- Eric Schmidt on platforms
Reflect: Looking at your business from your customer’s eyes, what’s the one value that
she most desires that you’re not already providing?
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Tell us what you thinkJenna@33voices.com
Presentation by Chase Jennings
Insights by Jenna Abdou
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