Platforms are networks of groups and individuals who are exchanging information and production and Platform businesses generate value by facilitating interaction and transactions between these groups. As your business explores its strategic path for the next decade, is it prepared to take full advantage of its ever-growing and valuable external network? Will your business be able to keep pace with new or existing competitors that are leveraging platforms to rapidly scale up the business and penetrate new markets?
30% of global economic activity is predicted to be mediated by platforms in 10 years’ time. Is your industry about to be disrupted? When platforms disrupt pipeline businesses, they tend to monopolize the markets making it critical that established businesses are first to market with platform strategies. Are at least one of your innovation efforts focused on possible platform models to launch or participate in?
We Can Help
We have developed a tested approach to modeling and visualizing platform models that reduce the cost and speed of modeling these complex systems.
Working with your strategy and innovation departments, we help define and translate your platform models to dynamic models so you can quickly begin assessing the impact of platform design decisions and begin developing a business case for your platform transition.
If you are a Director of Strategy or Innovation that is exploring a platform model and would benefit from quickly translating your platform vision to a dynamic model to explore the levers in your platform and share your platform vision with key decision-makers, we are confident we can assist you in taking your platform to the next level of design and deployment.
Get it Right the First Time!
Platform Models often fail because of decisions made early in the Platforms launch about whether to focus on building critical mass with consumers or producers first, as well as determining what level of critical mass is necessary before attempting to monetize the platform.
Modeling a platform model allows business model designers to clearly explore the im- pact of these and other key decisions in platform design and greatly facilitates efforts. It also helps visualize the platform in a way that helps explain the platform to others in a way that is intuitive and clear.
The danger of being disrupted if you operate a pipeline business very real and the cost of poor decisions early in platform design can be the difference between success and failure in a platform transition.
Benefits of a Platform Business
Grow and scale faster because of their limited capital requirement.
Benefit from the positive feedback loops of “two-sided network effects”
Dramatically increased word of mouth growth and efficiency of marketing
Platform businesses are the fastest growing and most sought after investment opportunities today.
Investors are increasingly likely to invest in platform model startups
Less than 2% of incumbent pipeline businesses have adopted platform strategies.