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Platform Business Model Strategies and Design
- 1. Multi-Sided Platform Strategies for Startups By Gustavo Carriconde
- 3. 1- Definition of platform business model 2- How to design a platform 3- The functions of platforms Summary
- 4. 1- Definition of platform business model
- 5. Books to read about platforms Please visit our Youtube channel to watch relevant content about platforms
- 6. Plot of land Platform concept is not new. Any marketplace connecting producers and consumers is considered to be a platform.
- 7. 19751968 19761911 PERSONAL COMPUTER 1994 SOFTWARE AND SERVICES 1994 1995 1995 1998 1999 SOCIAL MEDIA 2002 2003 2004 2006 2008 PLATFORM SHARING ECONOMY 2009
- 8. There are many different types of platforms. We will use the definition of platform as a business model.
- 9. Pipeline Business Model RAW MATERIALS COMPONENT MANUFACTURE ASSEMBLY SUPPLY DEMAND
- 10. Platform Audience building Matchmaking Tools and services Rules and standards SUPPLY DEMAND searchPlatform Business Model
- 11. SUPPLY side PlatformPipeline DEMAND side OWN the assets Linear value chain Optimize supply chain DO NOT OWN the assets Multi Sided value creation Enable interactions
- 12. “A platform is a business model that: creates value by enabling INTERACTIONS between two or more groups, usually PRODUCERS and CONSUMERS.” Alex Moazed
- 13. PRODUCERS CONSUMERS APIs Modules ML AI SOFTWARE ARCHITECTURE SERVERS APIs TECHNOLOGY IS NOT ENOUGH TO HAVE A PLATFORM
- 14. 13 Bi in content in 2018
- 15. Watch the video below to understand how platforms are changing human behavior. https://youtu.be/Z7IBMX5bdik
- 16. NETWORK EFFECT "A phenomenon whereby a product or service gains additional value as more people use it."
- 18. NETWORK EFFECT brings... User #1000 will bring value to user #1 CAC Revenue per user Retention Defensibility MARKETPLACE LIQUIDITY "Reasonable EXPECTATION of selling something you list or finding what you're looking for" Simon Rothman, Greylock
- 19. GROUP A GROUP B STRONG NETWORK EFFECT WEAK NETWORK EFFECT
- 20. VIDEOS EXPLAINING THE NETWORK EFFECT
- 22. 2- How to design platforms?
- 23. copy PLATFORM A PLATFORM B NO NETWORK EFFECT
- 25. Information Goods/Digital content Currency Services Exchanges INTERACTIONS Sequence of EXCHANGES
- 26. Information Goods/Digital content Currency Services ExchangesINTERACTIONS Takes place inside the platform
- 27. Information Goods/Digital content Currency Services ExchangesINTERACTIONS Inside the platformOutside the platform
- 29. Information Goods/Digital content Currency Services ExchangesINTERACTIONS ❏ Credit card ❏ Paypal ❏ Bitcoin ❏ Cash ❏ Attention ❏ Fame ❏ Influence ❏ Reputation Monetary Payments Intangibles
- 30. Information Goods/Digital content Currency Services ExchangesINTERACTIONS Monetary payment Producers Consumers platform
- 32. 1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED Platform Design 2- Design the CORE INTERACTION 3- Execute the PLATFORM FUNCTIONS to enable the core interaction
- 33. 3- Execute the PLATFORM FUNCTIONS to enable the core interaction 1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED Platform Design 2- Design the CORE INTERACTION CONSUMERSPRODUCERS Taxi ride Passengers Video creators Viewers Sellers Buyers Hosts Guests Drivers Video Goods Stays
- 34. COMPENSATECONSUME 3- Execute the PLATFORM FUNCTIONS to enable the core interaction PRODUCE TRIGGER Creator uploads the video Viewer searches and finds the video Viewer selects and watches the video Viewer likes the video and/or subscribes to the channel 1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED Platform Design 2- Design the CORE INTERACTION PRODUCER CONSUMER
- 36. 3- Execute the PLATFORM FUNCTIONS to enable the core interaction PRODUCE TRIGGER CONSUME COMPENSATE Passenger is transported to the destination 1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED Platform Design 2- Design the CORE INTERACTION Passenger makes the payment and review Driver becomes available Passenger creates a ride request
- 37. 1- Define the PARTICIPANTS and VALUE TO BE EXCHANGED Platform Design 2- Design the CORE INTERACTION 3- Execute the PLATFORM FUNCTIONS to enable the core interaction Start with the PRODUCER PRODUCER or CONSUMER starts the FIRST EXCHANGE VALUE is delivered to the CONSUMER by the PRODUCER. Inside or outside the platform CONSUMER pays the PRODUCER with the exchange of some CURRENCYINVENTORY PRODUCE TRIGGER CONSUME COMPENSATE
- 38. 3- The functions of platforms
- 39. Functions of a platform Audience Building Rules and standards Matchmaking Tools and services Core interaction
- 40. Functions of a platform Audience Building Rules and standards Matchmaking Tools and services PLATFORM CONSUMERS PRODUCERS Marketing channels Offline channels Case studies
- 41. Functions of a platform Audience Building Rules and standards Matchmaking Tools and services Artificial intelligence Relevant DATA
- 42. 3 BILLION VIDEOS "We believe that for every human being on earth, there's 100 hours of Youtube that they would love to watch." YouTube's director search engineer, Cristos Goodrow
- 43. Matchmaking
- 44. Matchmaking
- 45. Matchmaking
- 46. Matchmaking
- 48. Matchmaking
- 49. 2004 2009 2019 Top 5 companies by market cap are platforms
- 50. What we learned today Pipeline x Platform Network effect Platform design Interactions are exchanges Core interaction Platform functions 1- Participants and value 2- Core interaction 3- Perform platform functions 1- Audience building 2- Matchmaking 3- Tools and services 4- Rules and standards 1- Information 2- Goods/digital content 3- Services 4- Currency 1- Produce 2- Trigger 3- Consume 4- Compensate
- 52. Produce Trigger Consume Compensate How the PRODUCER creates PRODUCER or CONSUMER starts the FIRST EXCHANGE VALUE is delivered to the CONSUMER by the PRODUCER CONSUMER pays the PRODUCER with the exchange of some CURRENCYINVENTORY Define: PRODUCER CONSUMER INVENTORY FIRST EXCHANGE VALUE CURRENCY CORE INTERACTION