platform thinking - mit initiative on the digital economyebusiness.mit.edu/platform/agenda/slides/8...
TRANSCRIPT
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PLATFORM THINKINGDesign Principles for
Platform Business Models
http://platformed.info
Sangeet Paul Choudary
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Where users create value...
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DEVELOPERS USERS
Apps
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HOSTS TRAVELERS
Listings
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VIDEO CREATORS
VIDEO VIEWERS
Videos
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TWEET CREATORS
TWEET READERS
Tweets
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PRODUCERS CONSUMERS
SEEDS
@sanguithttp://platformed.info
Think roles, not markets!
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PRODUCERS CONSUMERS
SEEDS
Minimum information/content required to start an interaction
@sanguithttp://platformed.info
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PLATFORM
PRODUCERS CONSUMERS
SEEDS
@sanguithttp://platformed.info
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So how do we design a platform business?
@sanguithttp://platformed.info
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Processes
Interactions
PLATFORM
PRODUCERS CONSUMERS
PRODUCTION ASSEMBLY DISTRIBUTION
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PRODUCERS CONSUMERS
SEEDS
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Focus on the primary interaction
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Identify the SEED
Minimum information required to start the interaction
@sanguithttp://platformed.info
SEED
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Determine Producer and Consumer roles
@sanguithttp://platformed.info
PRODUCER CONSUMERSEED
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Build the Platform that enables this interaction!
PRODUCER CONSUMERSEED
PLATFORM
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MAGNET
PRODUCERS CONSUMERSSEED
Get the two roles on board!1
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TOOLBOX
MAGNET
PRODUCERS CONSUMERSSEED
Provide them tools to interact2
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MATCHMAKER
TOOLBOX
MAGNET
PRODUCERS CONSUMERSSEED
Use data to match the two roles3
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3 Use data to match the two roles
Provide them tools to interact2
Get the two roles on board1
@sanguithttp://platformed.info
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21
MAGNET
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Solving the Chicken and Egg problem
How do we get both roles in?
PRODUCER CONSUMERSEED
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Solving the Chicken and Egg problem
PRODUCER CONSUMERSEED
How do we convert consumers into producers?
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Solving the Chicken and Egg problem
PRODUCER CONSUMERSEED
How do we get producers to produce more?
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INCENTIVE DESIGN
FUN FAME FORTUNE
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Identify Key Actions
Create tools to enable these actions
creates value
consumes value
PRODUCER CONSUMERSEED
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Minimize friction in production and consumption
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CORRECT MATCHING
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Vote, Rate, Report
CURATION
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TRUST
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Three conditions for repeatable interactions
It’s all about data!
MATCHINGCURATION
TRUST
PRODUCERS CONSUMERSSEED
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@sanguithttp://platformed.info
MATCHMAKER
TOOLBOX
MAGNET
PRODUCERS CONSUMERSSEED
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Minimum Viable Platform
So that’s how you build the...
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@sanguithttp://platformed.info
The Minimum Viable Platform powers exactly one interaction
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Build the Multi-sided beast one
interaction at a time
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@sanguithttp://platformed.info
PROFESSIONAL PROFESSIONAL
Profiles
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@sanguithttp://platformed.info
PROFESSIONAL PROFESSIONAL
Discussion Posts
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@sanguithttp://platformed.info
PROFESSIONAL PROFESSIONAL
RECRUITER PROFESSIONAL
Job Listings
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@sanguithttp://platformed.info
PROFESSIONAL PROFESSIONAL
RECRUITER PROFESSIONAL
THOUGHT LEADER READERThought Leadership Piece
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@sanguithttp://platformed.info
PROFESSIONAL ADVERTISER
THOUGHT LEADER RECRUITER
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Scaling Platforms
EMPLOYEES
ALGORITHMS
USERS
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EXTENDERS
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@sanguithttp://platformed.info
MATCHMAKER
TOOLBOX
MAGNET
API Developers
Big Data Services
Platform Providers
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MONETIZATION
MONETIZATION
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TRANSACTION CUT
PLATFORM
PRODUCER CONSUMER
%CUT
1
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PAY FOR ACCESS
Producers pay for access to consumers
PLATFORM
PRODUCER CONSUMER
2
Promoted Posts
Dating Websites
Lead Generation
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PAY FOR ATTENTION
PLATFORM
PRODUCER CONSUMER
3
Ads
Jobs
MONETIZERS
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PAY FOR TOOLS
Users pay for access to better tools
PLATFORM
PRODUCER CONSUMER
4
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We are in the business of BUILDING FUNCTIONALITY
THE FALLACY
@sanguithttp://platformed.info
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We are in the business of ENABLING INTERACTIONS
INSTEAD...
@sanguithttp://platformed.info
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THANK YOU!http://platformed.info
@sanguit
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Identify Key Actions
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Identify Key Actions