L9 - Digital Platforms, network models and metrics

Question 1

What is a digital platform?

Answer 1

A digital platform provides easy access to the data, business, and technology components that make up digital offerings. (Ross et al, 2019)

Question 2

What is a component, and what is API?

Answer 2

A component is a slice of unique code that perform a specific task

API stands for application programming interface. An API allows a component to exchange data with another component

(Ross et al., 2019)

Question 3

Two ways to acquire a digital platform?

Answer 3

1. Build a digital platform (incrementally)
2. Buy one (Monolithic offer)

(Ross et al., 2019)

Question 4

A digital platform consists of three repositories built on a base of cloud technologies, name the 3 repositories/components

Answer 4

1. Data components
2. Business components
3. Infrastructure components

Question 5

How does the operational backbone and the digital platform work together?

Answer 5

Through API linkages

Question 6

What is digitized and digital?

Answer 6

Digitization enhances operational excellence; digital enhances the customer value proposition.

Question 7

An operational backbone contributes to business success by ensuring reliable, stable, secure operations. Specifically, it does four things….

Answer 7

1. Supports seamless end-to-end transaction processing.
2. Provides reliable, accessible master data (i.e., a single source of truth).
3. Provides visibility into transactions and other core processes.
4. Automates repetitive business processes.

Question 8

There are three things leaders can do to accelerate digitization and improve the odds of successfully building an operational backbone:

Answer 8

1. Reduce business complexity
2. Narrow the scope of digitization
3. Lower your standards

Question 9

.

Answer 9

.

Question 10

What are the metrics used for traditional businesses?

Answer 10

● Key numbers like cash flow
● Inventory turns
● Operating income, as well as ancillary metrics like gross marking, overhead, and return on investment

Parker et al., 2016: Metrics

Question 11

What are the metrics used for platform businesses?

Answer 11

• Value of network effects measured in valuable matches/interactions
• > Repetition of desirable interactions

Parker et al., 2016: Metrics

Question 12

Metrics are designed to track the life cycle of the platform. What metrics are important in stage 1?

Answer 12

● Liquidity
● Matching quality
● Trust

Parker et al., 2016: Metrics

Question 13

Stage 2: Metrics during the growth phase. Hint: Divide into common, producer, and user side

Answer 13

• Common: Producer-to-producer ratio
• Producer side: Producer participation, outcomes achieved, interaction failure
• Consumer side: Frequency of consumption, searches, conversion rate, CTR

Parker et al., 2016: Metrics