Transitions: Pipelines to Platforms

Transitions: Pipelines to Platforms

The new hotness in business models is that of a platform. What is a platform and how is it different than the “pipeline” business model of the past? In this episode, David and Justin discuss platforms from all angles and provide pragmatic tips for leaders to consider in this exciting and daunting transition. Here are the notes from the show:

  • Thomas Edison is often given credit for inventing the light bulb, but rarely do people realize he came up with the idea for the electric grid that would be used to power light bulbs. The grid is a fantastic example of a platform solution – sometimes referred to as a marketplace solution because it brings people together on two sides of the transaction – in the case of Edison it was end consumers as well as electric device makers.
  • Platform businesses are based on enabling value-creating interactions between external providers and consumers. The platform provides an open, participative infrastructure for these interactions and sets governance conditions.
  • The platform’s overarching purpose: to consummate matches among users and facilitate the exchange of goods and services or social currency, thereby enabling value creation for all participants.
  • Pipeline, as we are using it in this episode, is suppliers go into the company, which works through processes, people, assets, structures, and products and services to the customer.
  • Check out what Doug Berg is up to at MyAlerts
  • Top 3 reasons platforms outpace pipeline business are:
    • Efficient scaling
    • Unlock new sources of value
    • Feedback loops

 

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