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Business platforms > Exam > Flashcards

Exam Flashcards

1
Q

The general definition for a platform

A

A new business model that uses technology to connect people, organizations, and resources in an interactive ecosystem in which amazing amounts of value can be created and exchanged

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2
Q

A platform is a business based on

A

Enabling value-creating interactions between external producers and consumers

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3
Q

The platform provides:

A

An open participative infrastructure for these interactions and sets governance conditions for them

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4
Q

The overall purpose of a platform

A

To consummate matches among users and facilitate the exchange of goods, services or social currency thereby enabling value creation for all participants.

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5
Q

How and why does platform scale more easily? (compare to pipeline)

A

scale more effectively, network effects

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6
Q

Ecosystem definition:

A

Loose networks of suppliers, distributors, outsourcing firms, makers of related products, and many other companies

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7
Q

Explain what the key stakeholders are in a two-sided platform and how they each add value to the platform – provide examples.

A

participants and customers - TIKTOK example

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8
Q

Characterize the advantages and disadvantages of attracting users during the launch of a platform using a freemium pricing model.

A

free –> then fee
- don’t want to pay for something that were free
- 1-2% goes from free to paying

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9
Q

Explain two different launch approaches that platform managers can use to beat the chicken-and-egg problem – provide examples of why they are effective.

A

follow the rabbit strategy: Amazon
Seeding: Reddit
The single side strategy: Open table

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10
Q

Explain the three overall principles of launch strategies

A
  1. Staging value creation - Huffington post blog example
  2. Designing the platform to attract one set of users - Opentable focused first on restaurants
  3. Simultaneous on-boarding - Facebook, started in a small niche then went big
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11
Q

Explain the 4 principles of platform governance

A

laws: rules within the platform: Good and bad behavior (slow and fast feedback)
Norms: Communities and reflect behavior (design). Build a community on how to act. –> Pinterest. (trigger, action, rewards, investment)
Architecture: Algorithms used to reward
Market: Social currency (fun, fame, fortune)

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12
Q

How does platform governance relate to market failure?

A

1) Information assymetry (ebay)
2) Externalities (positive or negative - data sharing or netflix example)
3) Monopoly power - (ebay –> powerful seller)
4) Risk

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13
Q

What are network effects? Define the different kinds and provide examples

A

Single sided network effect
positive: Excel sharing
Negative: the more riders - more waiting time

Cross sided network effect:
Positive: more on airbnb
Negative: Dating example (bad curation and match)

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14
Q

What is the core interaction of a platform ( The Why and the How)

A

The why = Core interaction
1. participants, 2. value unit, 3. Filter
The how = scale it effectively
1. Pull (chicken or egg), 2. facilitate, 3. Match

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15
Q

Explain why platform managers ideally want to incorporate all types of exchange on their platform.

A

1) Information, 2) Service/Goods, 3) Currency = the more exchanges, the more value can be captured.

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16
Q

Vareties of openness

A
  1. decisions regarding sponsor and manager participation
  2. decisions regarding developer participation
  3. Decisions regarding user participation
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17
Q

Sponsor and management participation

A
  1. propetarity model (apple)
  2. Joint venture model (Visa)
  3. Licensing model (Microsoft)
  4. Shared model (Android)
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18
Q

Developer participation

A
  1. Core developers
  2. Extension developers (airbnb)
  3. Data agrregators (Google/FB)
19
Q

Provide examples of platform metrics in the three different stages

A

Start up: Liquidity (high interaction), matching and trust. Activity and not only downlads
Growth: Conversion rate (producer activity) –> TGTG (LTV)
Maturity: Defend decline (innovate, ressource allocation)

20
Q

Growth building tools

A

Virality, price, brand effects

21
Q

Scalability Tools:

A

Frictionless entry, boundary condition

22
Q

Casual loop diagrams

A

are an important tool for representing the feedback structure of systems. Communicating the important feedbacks you believe are responsible for a problem

23
Q

Three types of disruption

A
  1. delinking assets from value creation. (Airbnb)
  2. re-intermediation (Amazon/publishers)
  3. Market aggregation (Ebay)
24
Q

Business model radar

A

5 steps

25
Q

Business model radar

A

5 steps

26
Q

Monetization strategy - excess value

A
  1. from consumer - access to value
  2. producers –> access to comunity
  3. producers + consumer (tools and services)
  4. producer + consumer (matching/enhance curation)
27
Q

Monetization: Differentaite customer segements - how and why?

A

Monetize some parts of the customer segment.
1) charging all users
2) charge one side and subsidize the other
3) charge most and subsidize stars
4) charge some and subsidize price-sensitive

28
Q

Modularity

A

independent modules on top of each other. Remember that the core interaction must be simple! Easier to add on but not to integrate systems with the core interaction.

29
Q

How platforms re-configures value

A
  1. Reconfiguring value creation (supply)
  2. Reconfiguring value consumption (behavior)
  3. Reconfiguring quality control
30
Q

Which industries are more likely to be disrupted?

A

Information heavy industries, fragmented, information assymetries

31
Q

Which industries are less likely to be disrupted?

A

High regulatory control + failure costs + resource intensive

32
Q

What factors must be reached for a pipeline to become a platform?

A
  1. information and 2. community to add value to what it sells.
33
Q

Ways to monetize

A
  1. Charging for a transaction fee (airbnb)
  2. Charging for enhanced access (tinder)
  3. Charging for access (many apps now a days)
  4. Charging for enhanced curation (babysitting app)
34
Q

An open vs. too closed platform (advantages & disadvantages?)

A

Open: wiki - bad curation (amanda Knox example)
closed: cannot contribute value

35
Q

Governance definition

A

Set of rules: Who should participate and how to divide the value?

36
Q

Smart self governance

A

1) Internal transparency: treat colleagues as customers.
2). Participation - give external partens a voice.
= Treat people fair

37
Q

The three A’s in metrics and meassure

A

Actionable, Accesible, Audible

38
Q

Porter’s five forces

A
  1. barganing power of suppliers
  2. barganing power of customers
  3. threat of substitutes
  4. threat of new entrants
  5. level of rivarly
39
Q

Competition at three levels

A
  1. platform against platform (xbox)
  2. Platform against partner (Amazon)
  3. Partner against partner (app developers)
40
Q

How platforms compete (specific methods)

A
  1. Preventing multihoming by limiting platform access (alibaba - advertisement)
  2. Fostering innovation, then capturing its value (own the important things)
  3. Leveraging the value of data (amazon testing)
  4. Redefining mergers and acquisitions (M&A)
  5. Platform envelopment (steal from others - snapchat/insta)
  6. Enhanced platform design (airbnb vs craiglist)
41
Q

Winner take all market

A

Supply economies of scale (large fixed production costs)
Strong network effects (e.g., Amazon, Uber)
High multihoming or switching costs (e.g., mobile phones)
Lack of niche specialization (Universal needs amongst consumers)

42
Q

Four sources of value creation

A
  1. Novelty (new products),
  2. Lock-in (loyalty, customization),
  3. Complementarities (value adding),
  4. Efficiency (selling info)
43
Q

Value-in-use

A

Business platforms (1 decks)

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