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Platform business model

Platform business model


Anh Thi Nguyen

December 07, 2020


  1. Platform business model Presenter: Thi Nguyen Dang Anh How big

    companies has elevated the platform business model to dominate the world economy?
  2. Agenda 1. Overview of the business platform model 2. How

    to start a platform business?
  3. The story of mobile phones In 2007, the world was

    dominated by these phone brands Nokia Motorola Sony Ericson Sam Sung
  4. Global mobile phone marketshares 2007

  5. In 2007 Steve Jobs introduce the first iPhone

  6. After 8 years

  7. What makes iPhone so successful? In 2008, Steve Jobs introduced

    the App Store
  8. Apple iPhone's revenue boosted after 2008

  9. Platform business

  10. Uber and airbnb start to replace traditional business models

  11. Instagram a, platform company was worth $1 billions after two

    years with only 13 employees
  12. Top 7/10 most valuable companies are platform based companies

  13. What make the business platform model so successful?

  14. 1. Business platform model

  15. Roles in a business model Producer Consumer

  16. Pipeline business model

  17. Slow Hard and costly to scale Drawbacks of the Pipeline

    business model
  18. Platform business model A user in a platform can play

    both roles: producer and consumer.
  19. An example of a platform

  20. 1. Eliminate uneffcient and slow gatekeepers Characteristics of a Platform

  21. How users know if a product/service is good or not?

    Ratings define the quality of a good or a service
  22. 2. Reduce the need to own physical infrastructure and assets

    Characteristics of a Platform
  23. 3. Have matchmaking mechanisms to connect the right producers to

    the right consumer Characteristics of a Platform Uber matching Youtube recommendation
  24. 4. Govern the platform by rules and standards Characteristics of

    a Platform Grab ride prices Youtube community rules and policies
  25. Characteristics of a Platform Summary Eliminate ineffcient and slow gatekeepers

    Reduce the need to own physical infrastructure and assets Have matchmaking mechanisms to connect the right producers to the right consumer Govern the platform by rules and standards
  26. Platform network effects

  27. Positive network effects 1. Direct network effect(same side effect) 2.

    Indirect network effect(cross-side effect)
  28. Platform network effects 1. Direct network effect(same side effect) More

    users lead to more users, the more valuable the network is Example: Social network platform - Facebook, instagram, Snapchat
  29. Platform network effects 2. Indirect network effect(cross-side effect) The more

    consumers on the network, the more valuable that network is to producers, and vice versa. Ex: Uber case study
  30. • Facebook, Twitter: spammy, offensive, rude comments and posts by

    users • YouTube: Offensive, discriminating, sexual videos • Google: pages optimised for search engines but providing only low-quality content to humans • LinkedIn: Fake profiles, references • AppStores: low-quality apps, bloatware, malware Negative network effects
  31. • Maximize the number of positive effects • Minimize the

    number of negative effects A Platform should:
  32. Feedback loop A feedback loop is what drives users to

    use the platform more and more
  33. Types of platform

  34. Our VNG

  35. 2. How to start a platform business ?

  36. Design Build Launch Govern Steps to start a platform business

  37. Step 1: Design

  38. Type of exchanges in a platform

  39. Design: The core interaction The core interaction is the single

    most important form of activity that takes place on a platform
  40. 1. Participants: Producer, Consumer 2. Value units: created by the

    producers • Videos on Youtube, tweets on Twitter • Profiles on LinkedIn, available cars on Uber 3. Filter: is an algorithmic, software-based tool help consumers receive value units that are relevant and valuable to them • Uber matching algorithm • Youtube recommendation algorithm The core interaction
  41. Step 2: Build

  42. Build: Pull, Facilitate, Match The functionalities of a platform should

    be built to serve one of these purposes:
  43. Step 3: Launch

  44. Chicken or Egg, which came first? Solve the problem. Who

    came first, consumer or producer?
  45. Solutions Seeding and weeding • Dating apps create fake profiles,

    fake interactions to attract users Seeding fake demand • PayPal converted a base of eBay sellers, into PayPal users, by faking buyer-side demand for the service Subsiding • Uber paid drivers even when they weren’t transporting customers • Customers get free rides or subsided rides
  46. Step 4: Govern

  47. 1. Maximize the overall value of the whole network by

    constantly improve feedback loops. 2. Launch small • Facebook first launched with a narrow focus connecting students within Harvard and then ultimately to everyone. 3. Focus on critical mass and quality ahead of money • It tooks Amazon 10 years to become profitable 4. Create real value and share it fairly with all participants How to govern platforms successfully?
  48. • A platform is a business model that uses technology

    to facilitate exchanges, interactions between producers and consumers. • A platform use network efffects to pull more users and keep users stay with a feed back loop. Summary
  49. The End

  50. Book recommendations

  51. Q & A

  52. Contact: nguyendanganhthi247@gmail.com