5 reasons why businesses need Platform Thinking
MANILA, Philippines – It’s disrupting business models and prompting us to refine online strategies for growth.
Platform thinking is a key discussion at Rappler’s #ThinkPH forum this year to be held on April 30. (READ the highlights from our successful run last 2013)
One of our speakers will be Sangeet Paul Choudary, a widely recognized industry analyst, educator, and founder and CEO of Platform Thinking Labs. He is best known for his work on platform business models and multi-sided network effects.
For #ThinkPH 2015, Choudary will tackle "Platform Thinking: How it’s disrupting business models, and how you can harness its power to make your own ventures grow."
Below are some of Choudary’s key ideas on the digital economy:
1. New businesses have shifted from ‘pipe’ to ‘platform’ models
The flow of goods and information used to be one way: much like the flow of water from a pipe, businesses would create things, and customers would avail of them. Today, startups such as AirBnB and platforms like Wikipedia and Youtube became successful not by providing products but by becoming a platform for consumers and producers to create and share whatever they want and need.
2. Today’s economy is built on a network and driven by data
“Google’s crawlers, Uber’s Drivers and Instagram’s selfie-clickers are the new producers in the Platform Economy.The new economy runs on data. Data matches value units with filters.”
3. Platform-model businesses have been beating older and similar competitors
Facebook, Instagram, MINT: When they all launched, they were offering something familiar already, but they quickly overtook competition. That's because they were all built on platform-based strategies - a "business model that allows multiple participants (producers and consumers) to connect to it, interact with each other and create and exchange value." You'll hear more about this from Sangeet himself during our forum.
4. In redesigning your business as a platform, you’ve got to think of it like a game
“Before anything else, think about the core interaction that will drive your business. A large goal can be broken down into a set of simple actions for the users to perform repeatedly to obtain value from the game and progress towards the goal.”
5. Platforms aren’t the only solution
“The future of job creation isn’t simply about meeting supply and demand. All platforms have associated costs and benefits. To enable producers to actively participate on the platform, the platform must ensure that benefits far outweigh the costs and are higher than that on alternative channels.”
If you want to know more from Choudary and our other local and international speakers, sign up for #ThinkPH The Next Big Idea – Platform Thinking Summit, a one-day event which will be held on April 30, 2015, at 12 Monkeys Music Hall & Pub in Century City Mall, Makati. – Rappler.com