14. Standards: The proto-platform
• Language
• Math notation
• Electrical outlets
• Fire hydrant hoses
• Rail gauges
• Gas tanks
• Payment terminals / systems
• Operating systems
14
Who else?
16. Definition of a platform
• A foundation technology or set of components (could also be a
service) used beyond a single firm
• Allows multiple parties (“market sides”) to transact across the
platform
• Value of the platform may increase non-linearly with more users –
depends on strength of network effects
16
20. Virtuous Circles
20
Buyers join the
platform
Which
encourages
sellers to
participate
Which
encourages
more buyers to
join
Which brings
more sellers
onbaord
24. Uber: Double sided network effects
24
Riders Drivers
$10 off your
next ride for
each referral
$400 to
referred
drivers after
50 trips
(Toronto)
Uber
Advertisers
25. Social Media: Double sided
network effects
25
Content
Consumers
Content
Creators
Shared
content with
friends
Links and
collaborations
with other
creators
Facebook, Instagram,
YouTube, TikTok, etc.
Advertisers
29. McCormick Spices is in the
platform business
29
https://www.youtube.com/watch?time_continue=157&v=L5yx7G9HY20
(Start at 1:24)
30. Products have features, platforms
have communities.
Building these communities will be
an essential ingredient going
forward.
30
31. Where do we see platforms?
Platforms unlock unmonetized areas
31
Sector Platforms
Transportation
Healthcare
Retail
Education
Sports, Fitness, Recreation
Labour
Home Improvement
Entertainment
Travel
Childcare
Banking and Finance
32. Where do we see platforms?
32
Sector Platforms
Transportation Uber, Lyft, Toro, HonkMobile
Healthcare OpenCare, RateMDs
Retail Amazon, eBay, Shopify, Etsy
Education Edx, Kahn Academy, TED
Sports, Fitness, Recreation Fitbit, myfitnesspal, Strava
Labour Upwork, Mechanical Turk, GetFriday
Home Improvement Homestars, Jiffy
Entertainment YouTube, Twitch
Travel AirBnB, VRBO
Dating and Relationships Tinder, Bumble, Grindr, OK Cupid
Childcare HelloSitter
Banking and Finance Lendingloop, Lending Club, Prosper
33. Successful Platforms
Creates connection by making it easy for others to plug into the
platform. This infrastructure enables interactions between participants.
For example, Apple provides developers with the OS and underlying
code libraries; YouTube provides hosting infrastructure to creators;
Wikipedia provides writers with the tools to collaborate on an article;
and JC Penney provides stores to its boutique partners.
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1. The Toolbox
34. Successful Platforms
Creates pull that attracts participants to the platform with a kind of
social gravity. For transaction platforms, both producers and
consumers must be present to achieve critical mass. Apple needed to
attract both developers and users. Similarly, eBay needed both buyers
and sellers. Platform builders must pay attention to the design of
incentives, reputation systems, and pricing models. They must also
leverage social media to harness the network effect for rapid growth.
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2. The Magnet
35. Successful Platforms
Fosters the flow of value by making connections between producers
and consumers. Data is at the heart of successful matchmaking, and
distinguishes platforms from other business models. The Matchmaker
captures rich data about the participants and leverages that data to
facilitate connections between producers and consumers. For
example, Google matches the supply and demand of online content,
while marketplaces like eBay match buyers to relevant products.
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3.The Matchmaker
36. 36
“A platform is a system that can be … adapted to
countless needs and niches that the platform’s
original developers could not possibly have
contemplated…”
Mark Andreeson: Venture Capitalist,
Netscape Founder, Board HP, eBay
38. Things to consider
• Where’s the opportunity to platform-ize
• Create a platform or join an existing platform?
• How do you create trust within a platform?
38