How networked markets are changing the world economy

and

How these principles work for the Eventerprise platform

Platform revolution

… we are sharing access to services and goods.

In the world of shared economy …

.

supply economy of scale, driven by production efficiency: the bigger the business, the cheaper the costs of production

20th Century: metropole of pipeline businesses

Pipeline= traditional  business system with a linear value chainValue is produced upstream and consumed downstream. There is a linear flow, much like water flowing through a pipe.

producers ----------------------------> consumers

product

Platforms

= a business model using technology to connect people, organisations and resources in an interactive ecosystem in which amounts of value can be created

and exchanged

Characteristics of a platform business

1 - information important in business2 - eliminate inefficient gatekeepers3 - often serve more than one purpose4 - focus on VALUE creation instead of resources5 - inbound: people, resources and services from outside of the business6 - use data-based tools to create community feedback loops7 - new sources of value creation and supply8 - frictionless entry9 - effective curation

Participants Value unit Filter = most basic item of value that can be

exchanged

Architecture

Core interaction

How we translate it for Eventerprise:

Search find match

1 – Pull producer and consumer into the platform2 – Facilitate their interaction through tools and rules to connect and exchange3 – Match using information to connect in a mutually rewarding way

3 main functions

Encouraging users to spread the word to other potential users -> referral

Can be positive and negative, all effects must be managed.

Success through network effects

Viral growthIs pull based

Virtuous cycleSame side andcross side

effects

Community

= impact that users create for each other

Network effects

Structural impacts:

1. de-linking assets from their value2. re-intermediation: automated tools instead of non-scalable agents3. market aggregation: centralized markets serving widely dispersed customers

Platforms disrupt

because digital technology expands the reach, speed, convenience and efficiency

-> convergence of physical and digital

Launch: chicken or egg?

1. Follow the rabbit (pipeline to platform)

2. Piggyback strategy (connect w/ existing user base from different platform)

3. Seeding strategy (offer value units for one site of the platform first)

4. Marquee strategy (provide incentives, old school)

5. Single-side strategy (first single set of users, later platform)

6. Producer evangelism strategy (producers bring their customers)

7. Big bang adoption strategy (push messages, high volume of attention, e.g. Twitter)

8. Micro Market strategy (targeting a tiny market with already interacting members first)

MetricsDifferent metrics for different stages of platform business development

Startup phase:

- liquidity: minimum number of producers and consumers with high percentage of successful

interactions

- matching quality: accuracy of the search algorithm and intuitiveness of the navigation tools

- trust: degree to which users of a platform feel comfortable with the level of risk associated with

engaging in interactions on the platform

Monetarization strategies1. Charging a transaction fee

2. Charging for access

3. Charging for enhanced access

4. Charging for enhanced curation

“Rather than charging users to join their platform, the founders should be subsidizing their participation.”

The Eventerprise way:

5. Subscription

6. Cross-/upselling

7. Programmatic Advertisement

1. Platform against platform2. Platform against cooperation partner3. Two unrelated cooperation partners of a platform

“In the platform world, competition becomes less important than cooperation and co-creation.”

Control of relationships becomes more important than control of resources.

Competition in a new complexity:3 dimensional chess

“User commitment and participation is more important than the on-boarding and activation. Long live the pull

strategy which is creating value - real value though attractive content driven marketing, incentives, 3rd

party content and an offering which is driven by simple clear messages how we improve the life of our supplier

finding for them more business.” - gotz

+ 27 (0) 21 202 2250Eventerprise.com

info@eventerprise 

twitter.com/EventerpriseAG

Contact

https://www.facebook.com/eventerprise/?fref=ts

 https://www.linkedin.com/in/gotzthumecke https://za.linkedin.com/in/charlie-wright

https://angel.co/gotz-thumecke-1