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Echelon 2013: Platform Thinking - Business Model Design by Sangeet Paul Choudary
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Echelon 2013: Platform Thinking - Business Model Design by Sangeet Paul Choudary

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Internet businesses are fundamentally different from offline businesses, and have led to the creation of entirely new business models that never existed in the past. What makes internet businesses so …

Internet businesses are fundamentally different from offline businesses, and have led to the creation of entirely new business models that never existed in the past. What makes internet businesses so different and how can one leverage this while building an internet business?

Building an internet business is not just about building technology; it’s about building technology that enables users to interact and create value for each other. How do you build technology that powers your business model? How do you create incentives for users to participate? How do you leverage data to solve users’ pain points?

This talk explores the design of internet business models. It boils them down to four fundamental questions that every internet business needs to ask itself. It also presents a methodical framework to move from an idea to a business, while focusing on what’s most important for your startup.

Sangeet Paul Choudary – Founder, Platform Thinking

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  • 1. PLATFORMTHINKINGBusiness Model Designhttp://platformed.info@sanguit
  • 2. He handlesProductHe handlesBusiness ModelX @sanguithttp://platformed.info
  • 3. Create valueConvert some of it to$$$&@sanguithttp://platformed.info
  • 4. 2types of business models@sanguithttp://platformed.info
  • 5. PIPESImage: Creative Commons/Flickr
  • 6. PRODUCER CONSUMERValue created upstream,delivered downstreamSOURCESTUFFCREATESTUFFSHIPSTUFFSELLSTUFF
  • 7. PLATFORMS
  • 8. DEVELOPERS USERSApps
  • 9. HOSTS TRAVELERSListings
  • 10. VIDEOCREATORSVIDEOVIEWERSVideos
  • 11. PROJECTCREATORSPROJECTFUNDERSProjects
  • 12. TWEETCREATORSTWEETREADERSTweets
  • 13. PLATFORMPRODUCERS CONSUMERSVALUE@sanguithttp://platformed.info
  • 14. Social NetworksUser Generated ContentCrowdSourcingMarketplacesAppDevPlatformsAdNetworksThe Sharing EconomyCollaborative PlatformsTHE USUALSUSPECTS
  • 15. SHIFT HAPPENS!@sanguithttp://platformed.info
  • 16. TV ChannelsYouTubeVIDEOCREATORSVIDEOVIEWERSCONTENTCREATORSTVCHANNELSVIEWERS
  • 17. EncyclopediaBritannicaWikipediaWRITERS READERSEXPERTWRITERSENCYCLOPEDIACREATORENCYCLOPEDIAREADERS
  • 18. Nokia,BlackBerry, TelcosiPhone, AndroidDEVELOPERS USERSTELCOS/HANDSET MFRSDEVELOPERS CONSUMERS
  • 19. HotelsAirBnBHOSTS TRAVELERSTRAVELAGENTSTRAVELERSHOTELS
  • 20. So how do we design aplatform business?@sanguithttp://platformed.info
  • 21. PLATFORMPRODUCERS CONSUMERSVALUE@sanguithttp://platformed.info
  • 22. PRODUCERS CONSUMERSVALUEWhat is the unit of valuefor your business?@sanguithttp://platformed.info
  • 23. PRODUCERSupplyCONSUMERDemandVALUEUNITUnit of ValueThe Value Unitpowers the interaction@sanguithttp://platformed.info
  • 24. PRODUCERSupplyCONSUMERDemandVALUEUNITPLATFORMEnables InteractionThe Platform enables it!@sanguithttp://platformed.info
  • 25. How does the platformenable interactions?@sanguithttp://platformed.info
  • 26. PRODUCERSupplyCONSUMERDemandGet the two sides on board!1MAGNETGet both sides inVALUEUNIT
  • 27. Provide them tools to interact2TOOLBOXProvide tools to interactMAGNETGet both sides inVALUEUNITPRODUCERSupplyCONSUMERDemand
  • 28. 3MATCHMAKERMatch both sidesUse data to match the two sidesTOOLBOXProvide tools to interactMAGNETGet both sides inVALUEUNITPRODUCERSupplyCONSUMERDemand
  • 29. 3 Use data to match the two sidesProvide them tools to interact2Get the two sides on board1@sanguithttp://platformed.info
  • 30. 31MAGNET
  • 31. Not just aboutconversionfunnelsTRAFFICUSERS
  • 32. PRODUCER CONSUMERSolving the Chicken and Egg problemHow do we get both sides in?VALUEUNIT
  • 33. Identify Key ActionsCreate tools to enable these actionsPRODUCER CONSUMERcreates valueconsumes valueVALUEUNIT
  • 34. CORRECT MATCHING
  • 35. Vote, Rate, ReportCURATION
  • 36. TRUST
  • 37. MATCHINGCURATIONTRUSTThree conditions for interactionsPRODUCER CONSUMERVALUEUNITIt’s all about data!
  • 38. MATCHMAKERMatch both sidesTOOLBOXProvide tools to interactMAGNETGet both sides inVALUEUNITPRODUCERSupplyCONSUMERDemandThe canvas so far...@sanguithttp://platformed.info
  • 39. MONETIZATIONMONETIZATION
  • 40. TRANSACTION CUTPLATFORMPRODUCER CONSUMER%CUT1
  • 41. PAY FOR ACCESSProducers pay for accessto consumersPLATFORMPRODUCER CONSUMER2Promoted PostsDating WebsitesLead Generation
  • 42. PAY FOR ATTENTIONPLATFORMPRODUCER CONSUMERMONETIZER3AdsJobs
  • 43. PAY FOR TOOLSUsers pay for accessto better toolsPLATFORMPRODUCER CONSUMER4
  • 44. MATCHMAKERMatch both sidesTOOLBOXProvide tools to interactMAGNETGet both sides inVALUEUNITPRODUCERSupplyCONSUMERDemandBringing in the MonetizerMONETIZERMakes us money
  • 45. MATCHMAKERMatch both sidesTOOLBOXProvide tools to interactMAGNETGet both sides inVALUEUNITPRODUCERSupplyCONSUMERDemandThe Platform ThinkingCanvasMONETIZERMakes us moneyEXTENDERAPI and Data Partners
  • 46. We are in the business ofBUILDING SOFTWARETHE TECH INDUSTRY FALLACY@sanguithttp://platformed.info
  • 47. We are in the business ofENABLING INTERACTIONSINSTEAD...@sanguithttp://platformed.info
  • 48. THANK YOU!http://platformed.info@sanguit

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