Session10

Question 1

Definition of Platforms

Answer 1

Platform: A foundation technology/service essential for a broader, interdependent ecosystem. Requires complementary innovations to be useful.

Question 2

Three Challenges of Platforms

Answer 2

1. Interdependencies: Managing complexity
2. Monetisation: Determining profit distribution
3. Leadership: Defining roles and rules

Question 3

Variance and Options in Platforms

Answer 3

Variance: Performance spread (good for platforms)
Options: Choices post-outcome (unique to platforms)

Question 4

Step Processes vs Platforms

Answer 4

Step Processes:
- High interdependence
- Hierarchical
- Low risk incentives
Platforms:
- Low interdependence
- Open, modular
- High risk incentives

Question 5

Types of Platforms

Answer 5

1. Transaction Platforms: Low entry/exit barriers, user commitment
2. Innovation Platforms: High entry/exit barriers, complementor investment

Question 6

Network Effects

Answer 6

Direct: Platform value increases with users (e.g., social media).
Indirect: User growth on one side benefits the other (e.g., game consoles).
Negative: Overcrowding, malware.

Question 7

Enabling Network Effects

Answer 7

1. Create stand-alone customer value (e.g., iPod).
2. Subsidise sides (e.g., ride-hailing).
3. Build simultaneous sides (e.g., Facebook).

Question 8

Winner-Take-All Outcomes

Answer 8

Enabled by:
- Standardisation
- Network effects
Prevented by:
- Low entry/exit barriers
- Market segmentation

Question 9

Platform Ecosystem Health

Answer 9

Key concepts:
- Bottlenecks (e.g., OS core).
- Rules by platform owner (e.g., app stores).
- Value creation and capture.