This document summarizes a presentation about digital platforms. It discusses how platforms create value through network effects and multi-sided markets. It presents results from a global platform survey that found most unicorns or billion dollar startups are platforms, and that Asia and North America lead Europe in platform unicorns. It proposes establishing a European Observatory of the Platform Economy to support platform growth in Europe through data collection, knowledge sharing, and executive training on platform strategies.
Digital Competition Strategies for Every Strategist
1. 1
Don’t Get Ubered: What Every Strategist Needs
to Know About Digital Competition!
Annabelle Gawer, PhD
Surrey Center for the Digital Economy
Bryan Kirschner
Apigee Institute
29. ▪ Introduction: Why do platforms matter?
▪ Platform Fundamentals
– - What are Platforms / How Platforms Create Value
• - Network Effects / Platform Business Models
▪ Results from the Global Platform Survey
▪ The European Platform Observatory
▪ Discussion + Q&A
Agenda
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9
30. Some of my publications on (mostly digital) platforms
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31. Agenda
Technological Platforms
A Gawer’s Platform Research
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1
Platform strategies
“Platform Leadership”
• Platform Leadership (HBR
2002)
• The Elements of Platform
Leadership (SMR 2002)
• How companies become
platform leaders (SMR 2008)
Platform competition (economics and strategy)
• Platform owner entry and innovation in complementary markets (JEMS
2007)
Platform governance (organization theory)
• The organization of technological platforms (RSO 2010)
• Institutional work as logics shift: The case of Intel’s transformation to platform leader
(Org Studies 2013)
• Innovation Policy within Private Collectives (Technovation, 2013)
Platform evolution
(management &
organization theory)
• Modelization, graph
theory
• Ecosystem governance
• Platform boundaries
• Platform business
models
Conceptual clarification, leadership role in platform research
• Platforms, Markets and Innovation (2009)
• Bridging differing perspectives on technological platforms (Research Policy 2014, 6000 downloads, “best paper”
AOM 2014)
• Encyclopedia & Handbook chapters
• Conference and symposia organizer / international reputation
• Keynote speaker
Platform innovation (innovation studies)
• Industry architectures as determinant of successful platform
strategies (EMR 2009)
• Industry platforms and ecosystem innovation (JPIM 2013)
34. #
Most unicorns are platforms#
70%
30%
Platforms
Non Platforms
Global Unicorns = 115
Source: P. Evans, CGE; CB Insights, Capital IQ, CrunchBase, 2015
Platform = 80 of 115 companies, $300B valuation
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35. Netflix has over 70 million members in over 190 countries. Users watch more
than 125 million hours of TV shows and movies per day.
Sources: About Airbnb at: https://www.airbnb.com/about/about-us; Netflix at: https://media.netflix.com/en/press-releases/netflix-is-now-available-around-the-world; About LinedIn at:
https://press.linkedin.com/about-linkedin; https://support.google.com/googleplay/answer/2843119?hl=en
Airbnb provides accommodation listings in more than 34,000 cities and 190
countries. There are over 2 million listings world-wide; Paris alone has more than
28,000 listings.
LinkedIn has over 400 million members in over 200 countries. Over 70 percent
of users are outside the US. Over 100 million unique users access LlinkedIn
each month.
Google Play apps and digital content: Over 1.6 million Android apps are
available in 136 countries world wide; Google Play movies available 105
countries; books available in 75 countries; music available in 62 countries.
Platforms provide basis for rapid global scale
The New Multinationals
36. Google play’s platform services
Apps, movies, books, music
No. of Services
4 services
3 services
2 services
1 service
No service
Russia
Source: Google Play country availability: https://support.google.com/googleplay/answer/2843119?hl=en-GB
37. Google play’s platform services
Apps, movies, books, music
No. of Services
4 services
3 services
2 services
1 service
No service
Russia
Source: Google Play country availability: https://support.google.com/googleplay/answer/2843119?hl=en-GB
40. Innovation Platforms
40
Innovation platforms are technologies
that facilitate the development of
complementary innovation in
innovation ecosystems (Gawer &
Cusumano, 2002; Gawer, 2009)
• Economies of scope in innovation
• Sharing IP and tools to connect (APIs)
• Reduced search cost of
complementary innovators
• Reducing barriers to entry for
complementors in complementary
innovation
42. The API Economy
Google creates APIs to extend search and analytics beyond their own services
43. www.imperial.ac.uk/business-school Option 1
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3
ServiceData
Consumes
Produces
Improves
experience
Many free services
One data set
and common semantic
The more context
the more efficient
and the more value
Virtuous Feedback Loops in Digital Platforms
Internet Service Provider
Value enriched
Data
generates
revenue
Example:
Search/Information Mgmt :
#
Rated auction/Selling:
43
User
BI Based Revenue Models
(eg Advertisement)
Core Semantic
Data Set
Mindmap
44. Dating
Bars
Amazon
market-place
Transactional
Air BnB
UBER
Google
ARM
Intel micro-
processor
The platform serves as an intermediary for
direct exchange or transactions, subject
to network effects
Innovation
The platform serves as a technological
foundation on top of which other firms
develop complementary innovations
Facebook for
Developers
Apple iOS
Apple App
Store
Google
Android
Facebook
SAP NetWeaver
Innovation
Platforms
MSPs
Match.com
Google
Play
Apple
AUTOSAR
Qualcomm
PLATFORMS
50. Companies
Pla-orm
ecosystem
Hierarchal
Organiza7on
+
Physical
Assets*
Asset
Heavy
Daimler
Moovel
Johnson
Controls
Panop7x
GE
Predix
Samsung
Tizen
Asset
Light
Google
Google
Play
Uber
Uber
app
Airbnb
Airbnb
app
Priceline
Booking.com
Structure
*
Includes
HQ,
other
rooOops,
retail
outlets,
manufacturing
plants,
service
shops,
etc.
Pla-orm
Mixed
Apple
App
store
Amazon
App
store
Enterprise
type
Examples
Reshaping enterprise structure#
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51.
52. 64 / $3,123B
27 / $181B
82 / $930B
Global unicorn platform startups
Europe is lagging
N. America
Europe
Asia
Source Global Platform Database 2016
Platform companies with a market value of US$1b or more on Dec 1, 2015
53. Global unicorn platform startups by city
Source: P. Evans, CGE, CB Insights, Capital IQ and CrunchBase, 2015.
54. European Platform Landscape
Source: Global Platform Survey, Center for Global Enterprise, 2016
Concentration in “Beer Drinking” Countries, Some in “Vodka Dinking”,
none in “Wine Drinking” Countries
Country
City
55. What is needed to support platform growth in Europe?
- Reliable and complete data on platforms: To inform businesses and governments
- Critical mass of knowledgeable actors
- Knowledge + Experience networks, and shared expertise around platforms
- Executive training for managers:
- Platform strategies
- Platform business models
- How to develop innovative ecosystems
- Please share your ideas !