Moe and Sangeet Paul Choudary talk about how an emerging business model helps build large empires with minimum investment.
The Making of Platforms that Scales
If you’re a fan of business, you’ve got to marvel at the mind-blowing business model innovations that we’ve seen this past decade; most notably, the rise of platforms. Amazon and Google gave us a glimpse of what was possible in the mid to late 90s; but as the twenty-first century brought with it an affordable cloud infrastructure, the advent of social networks, and the transformation of mobile; the platform approach to creating value has forever changed the landscape of business. Look no further than the mighty Uber, not just for its impact on the global transportation industry, but more so for how it has become part of our everyday vernacular.
Ask Strategic advisor, Sangeet Paul Choudary what makes Uber run, and you might be surprised to hear, unequivocally, that it’s the interactions that it enables. “The value is in neither the technology nor the rate of user adoption. Value lies solely in the activity an ecosystem of connected users powers on the platform.” This was a fascinating insight for me, because as I watch the magnitude of scale that the likes of Uber and Airbnb are achieving, I had always put technology on the forefront. In his highly informative book, Platform Scale: How an emerging business model helps startups build large empires with minimum investment, Choudary lays out a thorough blueprint of what it takes to reimagine your business model.
Here are a few of the questions we explore:
The context of platform business model
The big misconception of platforms
The platform value equation - Producers & Consumers
Enabling interactions strategically
The most effective methods to ensure repeat interactions
The rules for building a scalable technology
The power of Data - How to leverage it at scale