Platforms: Exponential Business Model Blueprint
Your roadmap to the platform business model. Networked markets are changing the landscape of business. If you’re not positioning in an existing platform, combining them, siphoning from them or creating your own then you will fade to black as the digital revolution completes its overhaul. Don’t be the horse of the 21st century. Implementing this core business model is essential to your existence.
2 Advisors To Guide You Through The Exponential Platform Business Model Transformation:
1.Sangeet Paul Choudary – Author of Platform Scale
“A global thought leader on the platform business model.” – Forbes
Harvard Business Review lists Sangeet’s work on platforms on their top 10 management ideas globally for the year 2016-17.
2. Salim Ismail – Author: Exponential Organizations, Founder: Singularity University at NASA Campus, Former VP Yahoo
Exponential Organizations, quickly reached No. 1 on Amazon’s “Best-Sellers in Business Management” and was named Frost & Sullivan’s “Growth, Innovation, and Leadership Book of the Year.”
We’re dealing with a networked economy in it’s infancy.
Some of the advice from Sangeet Paul Choudary in his book The Platform Stack, reminds us of Gall’s Law. Okay, for those of us who didn’t go to Harvard and have never heard of Gall to begin with, it basically states that a complex system evolved from a simple system and cannot be patched up to make it work, you must start over with a simple system.
To simplify the complex, glue a few large pieces of software together with API’s to create your platform essentially…
An API is an Application Programmable Interface. A piece of software written to allow two other pieces of software to communicate with each other in certain function allowed by each piece of software. Most platforms have these or allow them to be created and patched in.
Imagine your platfrom is a system with 3 sub-systems all glued together via API’s.
Your platform requires these 3 subsystems to serve each other in a specific manner for your platform to function properly. API’s work as the glue that hold your subsystems together and keep it simple.
In order for this to work, it requires that you follow these 3 steps:
- Break up your organization into small, clearly defined interfaces for interaction. Explicit architecture design needs to specify the various subsystems and their functions
- Identify and define how each subsystem will interact with each other
- Create a set of standards for ground rules of the overall system
What … in english? Let’s use an example…
Let’s say you have a business that has, oh I don’t know, 81 franchise location. Each location deals with 30 clients. Each of those clients uses the platform to reach customers.
Add to that all of the interactions that occur to transact business and you have a potential complex system.
Let’s break that down to the 3 steps
Clearly define interfaces for interaction:
• Franchise owner to client
• Client to customer
• Customer to client
2. Identify and define how each subsystem will interact with each other:
• Franchise owner will contact potential clients and manage onboarding them into the system
• Clients will upload their assets to the platform and create their profile
• Customers will find clients assets and transact business
3. Create a set of ground rules for the overal system:
This API centered approach is recommended by Sageet and focusing on the design of the interfaces first. These are the enablers of your platform.
Now go forth and prospect young padawan.
May the force be with you…