Is It Time to Build Your Own Platform?

What’s happening this week at the intersection of management and technology

Reading Time: 8 min 

Topics

Tech Savvy

Tech Savvy was a weekly column focused on new developments at the intersection of management and technology. For more weekly roundups for managers, see our Best of This Week series.
See All Articles in This Series
Like what you're reading?
Join our community
Member
Free

5 Free Articles per month, $6.95/article thereafter. Free newsletter.

Subscribe
$89 $44/Year

Unlimited digital content, quaterly magazine, free newsletter, entire archive.

Sign me up

Identifying an industry ripe for platform disruption: If you really want to create value, forget about burning platforms and start building them. A platform, explain Geoffrey Parker and Marshall Van Alstyne (professors at Tulane and Boston University associated with the MIT Initiative on the Digital Economy), and Sangeet Choudary, founder and CEO of Platform Strategy Labs, in Platform Revolution: How Networked Markets are Transforming the Economy and How to Make Them Work for You, is a “business model that uses technology to connect people, organizations, and resources in an interactive ecosystem.”

They contend that the ranks of today’s most valuable companies are increasing populated with those that successfully build and control platforms. Think Apple with iTunes, John Deere with its My John Deere Operations Center, and a host of other platform-based companies as diverse as McCormick Foods, Amazon, and Uber.

The problem with platforms is context. The authors think platform-based businesses eventually will come to dominate every industry, but they caution readers that the window of opportunity for launching a successful platform will vary according to the characteristics of a specific industry.

How do you know if and when your industry is ripe for platform disruption? As this excerpt from the forthcoming book (reprinted with permission) details, the emergence of platform businesses is most likely in highly-fragmented industries with non-scalable gatekeepers in which information is both a significant source of value and extremely asymmetrical. The emergence of platform disruption is less likely in resource-intensive industries that are subject to high levels of regulatory control and high failure costs.

Read the Full Article

Topics

Tech Savvy

Tech Savvy was a weekly column focused on new developments at the intersection of management and technology. For more weekly roundups for managers, see our Best of This Week series.
See All Articles in This Series

More Like This

Add a comment

You must to post a comment.

First time here? Sign up for a free account: Comment on articles and get access to many more articles.