Tuesday, October 3, 2017

Finding the Platform in Your Product

Classmate Sumit Aggarwal sends over an informative article published in the July-August edition of the Harvard Business Review -- "Find the Platform in Your Product". The title is fairly self-explanatory; the article looks at four ways in which products and services can become multisided platforms. Here's a sample:
Why seek to transform products and services into MSPs in the first place? As one Intuit executive told us, it comes down to “fear and greed.” Greed, of course, refers to the potential for new revenue sources that could speed growth and increase a company’s value. Fear refers to the danger that existing and incoming competitors will steal market share from your product or service. Transforming an offering into a platform might enhance your company’s competitive advantage and raise barriers to entry via network effects and higher switching costs. We’re not suggesting that every company should try to emulate Airbnb, Alibaba, Facebook, or Uber. But many companies would benefit from adding elements of a platform business to their offerings.

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