Platform Scale

How an emerging business model helps startups build large empires with minimum investment

Today’s massively scaling startups do not sell a product or service. Instead, they build a platform on which others can create and exchange value. Yet, most new platform ideas fail because the business model design and growth strategies involved in platform businesses are poorly understood.

Finally, Platform Scale lays out a structured approach to understanddesign,  implement and  grow a scalable platform business. A maker’s manual for building a successful platform business today.


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SIX CORE CONCEPTS

1

Reimagine your business for platform scale

We are not in the business of building software. We are in the business of enabling interactions.

2

Leverage interaction-first design

Focus upon design of the producer-consumer core interaction and an infrastructure that will enable and govern this interaction.

3

BUILD CUMULATIVE VALUE & MINIMIZE INTERACTION FAILURE

Scale is achieved knowing the key decisions for maximizing the repeatability and efficiency of a platform’s core interaction.

4

SOLVE CHICKEN & EGG SCALING PROBLEMS

Overcome the vicious cycle of no activity by designing the conditions for sparking interactions.

5

DESIGN VIRAL GROWTH ENGINES

The viral canvas. Virality is a business design problem, not a marketing or engineering effort. It requires design before optimization.

6

ACCOUNT FOR REVERSE NETWORK EFFECTS

The counter view. Lookout for conditions where scaling interaction quantity and quality can be detrimental to a platform business.

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PRAISE

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Jon Oringer

A compelling framework for building platforms, networks and marketplaces. Essential reading for every entrepreneur and innovator.
– Founder and CEO of Shuttershock

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Patrick Vlaskovits

The leading resource for understanding business models for the networked age. Highly recommended for entrepreneurs and innovation professionals looking to build new platforms and networked businesses.
– New York Times bestselling author of The Lean Entrepreneur

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Michael Karnjanaprakorn

Sangeet’s work brings science and structure to a host of emerging digital business models. A must read for every serious entrepreneur and innovator building marketplaces or platforms.
– Founder and CEO, SkillShare

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Nir Eyal

Many understand the power of platforms. Few understand how they work. Only Sangeet tells you how to build them.
– Wall Street Journal bestselling author of Hooked

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Meng Wong

Sangeet is one of the deepest thinkers I know. He has helped countless startups understand and unlock their core value as platform businesses. His work sits next to Clayton Christensen and Geoffrey Moore.
– Co-founder of JFDI

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Kevin Dewalt

One of the best innovation strategists in the world and an expert on building platforms. His work is a must-read for entrepreneurs, investors, and innovators worldwide.
– Former EIR at NSF and Founder of SoHelpful.Me

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Fang Soong Chou

Sangeet’s work provides amazing insight into the success and failure of today’s business models, a resource that entrepreneurs and innovators cannot afford to ignore.
– General Partner at Pix Vine Capital

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Gary Forni

I’ve assigned this as mandatory reading for my C-team.
– CEO of TuffWerx and former Global Director of Marketing at Intel

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Kjetil Olsen

Should be part of the curriculum of every business school throughout the world.
– CEO & Managing Partner, Norselab (formerly, VP – International, UpWork)

about the authors

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Sangeet Paul Choudary

Sangeet Paul Choudary is a widely published researcher, industry keynote speaker and global CXO advisor on platform business models to high growth startups and Fortune 500 companies.

 

He is the co-chair of the MIT Platform Strategy Summit and an industry advisor to the Global Platform Data Project at Stanford University. He is an Entrepreneur-in-Residence at INSEAD Business School, an advisor at 500Startups, a Global Fellow at the Centre for Global Enterprise in New York and serves on the advisory board of CoFoundersLab, the world’s largest community of startup founders.

 

Sangeet is also the author of the upcoming book Platform Revolution (W.W. Norton & Company, early 2016), as well as a contributing author to Managing Startups (O’Reilly Media, 2013). He has been featured in Fast Company, Forbes, Harvard Business Review, MIT Technology Review, TechCrunch, Wall Street Journal, WIRED Magazine and other leading publications.

 

For all media-related, research-based advisory and speaker engagement services, contact him on email, @sanguit or www.PlatformThinkingLabs.com.

contributing authors

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Geoffrey G Parker is a professor at Tulane University and a research scientist at MIT

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Marshall Van Alstyne is a professor at Boston University and a research scientist at MIT

OUR NEXT BOOK

platform-scale-book-cover

By Geoffrey G Parker, Marshall Van Alstyne and Sangeet Paul Choudary

Platform Revolution: How Networked Markets Are Transforming the Economy & and How to Make Them Work for You will deliver the first comprehensive analysis of how platforms – as diverse as shoes, spices, dating, energy, home appliances, and education – use technology to match producers and consumers in a multi-sided marketplace, unlocking hidden resources and creating new forms of value.

Pre-order your copy now