5.1 Pipelines, platforms, and the new rules of strategy - Van Alstyne Flashcards
1
Q
four types of players in the ecosystem of platforms
A
- the owners of platforms: control their intellectual property and governance
- providers: serve as the platforms’ interface with users
- producers: create their offerings
- consumers: using the offerings
2
Q
pipeline business
A
creates value by controlling a linear series of activities
3
Q
three key shifts to move from pipeline to platform
A
- from resource control to resource orchestration: resources are different for pipelines and platforms, it goes from materials to creating communities
- from internal optimization to external interaction: ecosystem governance becomes an essential skill, it goes from dictating processes to persuading participants
- from a focus on customer value to a focus on ecosystem value: sometimes requires subsidizing one type of customer in order to attract another, instead of maximizing the lifetime value of individual customers
4
Q
network effect
A
achieving higher ‘volume’ than competitors offers a higher average value per transaction, because the larger the network, the better the matches between supply and demand and the richer the data that can be used to find matches
greater scale generates more value, which attracts more participants, which creates more value
5
Q
accretive
&
depletive
A
accretive: the growth or increase by gradual addition
&
depletive: diminish in number or quantity
6
Q
three patterns of competitive threads
A
- an established platform with superior network effects uses its relationships with customers to enter another industry
- a competitor targets an overlapping customer base with a distinctive new offering that leverages network effects
- platforms that collect the same type of data suddenly goes after the same market that is still emerging
7
Q
metrics for platforms
A
- interaction failure
- engagement
- match quality
- negative network effects
