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How Platforms Are Disrupting Every Industry
1. The Inner Workings Of
How a combination of forces is eating every industry…
and why yours could be next?
DIGITAL
DISRUPTION
Sangeet Paul Choudary | Geoffrey Parker | Marshall Van Alstyne
platformrevolution.com
2. Based on the book
Platform Revolution
platformrevolution.com
3. TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
A comprehensive and practical guide to the new platform economy
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16. Let’s dig into working
out these patterns
platformrevolution.com
17. Too busy to get all the details?
Download this deck
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18. Better still,
click here to get the whole book.
All pre-orders unlock access to exclusive bonus frameworks. Details here.
19. TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
Learn about all aspects of the Platform Revolution
CLICK TO PRE- ORDER
38. A host of technologies ranging from cheaper
publishing tools and mobile connectivity to wearables
and 3D printers are democratizing access to the tools
of production. Anyone can be a producer.
platformrevolution.com
39. Networked platforms aid
the creation of large
open ecosystems, by
connecting producers to
consumers and enabling
them to interact
platformrevolution.com
41. It provides a plug-and-play
infrastructure that enables
them to connect and
interact with each other
platformrevolution.com
42. Finally, it leverages data to
connect the most relevant
producers and their
products or services with
consumers
platformrevolution.com
43. TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
Learn about every aspect of the platform revolution
CLICK TO PRE- ORDER
46. Most Internet applications during the 1990s involved
the creation of highly efficient pipes - online systems
for distributing goods and services that outcompeted
incumbent industries
Disruption 1.0:
Efficient pipes ate inefficient pipes
platformrevolution.com
48. News and print media were
the first to feel the heat
Disruption 1.0:
Efficient pipes ate inefficient pipes
platformrevolution.com
49. Amazon’s initial rise as an e-commerce store
eventually led to Borders’ fall, as the latter
failed to compete with the better distribution
economics of Amazon
Disruption 1.0:
Efficient pipes ate inefficient pipes
platformrevolution.com
50. Netflix followed a similar
playbook to beat Blockbuster
Disruption 1.0:
Efficient pipes ate inefficient pipes
platformrevolution.com
51. Amazon and Netflix still followed
the pipe model but won through
superior distribution economics
Disruption 1.0:
Efficient pipes ate inefficient pipes
platformrevolution.com
54. This has been the dominant shape
of disruption over the last decade
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
55. Networked platforms scale rapidly in their
ability to create value and coalesce an
open ecosystem
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
56. The marginal cost of scaling both
supply and demand is minimal
▪ Efficient Pipe: Marginal costs of scaling
demand was near-zero
▪ Platform: Marginal cost of scaling both supply
and demand is near-zero
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
57. Network effects powered by positive
feedback lead to rapid scale
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
59. Apple and Android leveraged an
ecosystem of developers to disrupt
Nokia and Blackberry
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
60. Nokia and Blackberry used the pipe
model, sourcing and vetting the apps
that were pre-loaded into handsets
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
61. Apple created an extendable
handset using the app store’s
ecosystem of developers
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
62. Android created the infrastructure
for anyone to build a phone
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
63. Airbnb has built an alternate global market for
travelers accommodation without investing in
building or leasing a single room
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
64. Traditional hotels have higher marginal
costs of expansion and servicing and
much smaller network effects
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
65. Amazon’s marketplace scales with
the warehouse distributed across its
partner merchants
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
66. Traditional incumbents like Target
and WalMart find it difficult to
compete against this
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
67. Carpooling and ridesharing platforms,
like Blablacar, allow consumers to share
rides with each other for a small fee
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
68. These platforms are posing significant
threats to public transportation
Disruption 2.0:
Platforms eating Pipes
platformrevolution.com
69. And to the very idea
of car ownership
Disruption 2.0:
Platforms eating Pipes
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71. A third wave of disruption
Disruption 3.0:
Pipes start behaving like Platforms
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72. Traditional pipe incumbents are
leveraging the same principles
to scale like platform startups
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
73. Pipes have traditionally
scaled in one of two ways
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
74. Vertical integration:
Own more of the flow through the pipe
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
75. Vertical integration:
Media and manufacturing firms
regularly rely on vertical integration
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
76. Horizontal integration:
Widen the pipe to push more value through it
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
78. Apple rewrote the
playbook on integration
Disruption 3.0:
Pipes start behaving like Platforms
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79. Apple’s products and services
are integrated to each other
over the cloud, using data
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
80. Ownership of multiple Apple products
is more useful, because of their ability
to interact with each other
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
81. Nike’s FuelBand, connected shoes and
mobile apps follow the same playbook
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
82. Nike is pursuing ecosystem
integration, like Apple
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
83. GE is integrating its machines
- The Industrial Internet
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
85. GE’s machines interact with each other,
learn from each other and provide better
and more reliable service
Disruption 3.0:
Pipes start behaving like Platforms
platformrevolution.com
89. With the rise of
electronic health
records, healthcare is
information-intensive
platformrevolution.com
90. Sensors and the internet of
things have the potential to
convert any industry based
on physical assets into an
information-intensive industry
platformrevolution.com
92. TODAY: Welcome to the platform revolution
NETWORK EFFECTS: The power of the platform
ARCHITECTURE: Designing a platform
DISRUPTION: How platforms conquer industries
LAUNCH: Launching a successful platform
MONETIZATION: Capturing the value
OPENNESS: Defining user and partner rights
GOVERNANCE: Policies to manage value creation
METRICS: Measuring what really matters
STRATEGY: How platforms change competition
POLICY: Regulating platforms
TOMORROW: The future of the platform revolution
More decks coming up featuring other chapters of the book
CLICK TO PRE- ORDER
All pre-orders unlock access to exclusive bonus frameworks. Details here.
93. Better still,
click here to get the whole book.
All pre-orders unlock access to exclusive bonus frameworks. Details here.
94. Get your copy of the slides
Download this deck
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