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Lean Innovation Summit 2019 - Hugo Raaijmakers - Start and deliver your platform business journey

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Hugo Raaijmakers - PA Consulting @ Lean Innovation Summit

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Lean Innovation Summit 2019 - Hugo Raaijmakers - Start and deliver your platform business journey

  1. 1. © PA Knowledge Limited | 1 Start and deliver your platform business journey
  2. 2. © PA Knowledge Limited | 2 What is a platform business model? Value and data exchange Value and data exchange Value exchange PRODUCERS CONSUMERS PLATFORM A platform business model creates value by facilitating interactions between groups using a common technology platform Special characteristics: o Ecosystem o Data control points o Network effects
  3. 3. © PA Knowledge Limited | 3 Platform businesses generate high profit margins You can scale fast with limited costs You gain value with each new participant ASSET-LIGHT NETWORK BUILDERS You can radically reduce the cost of interaction among participants REDUCE TRANSACTION COSTS
  4. 4. © PA Knowledge Limited | 4 In comparison, traditional incumbents are facing challenges ‘Chicken and egg' problem in attracting consumers and producers Ignoring ‘think big, start small, scale fast’ approach Timing – too late in the game.. Winner takes all Lack of data control points, so little differentiation Too customer-centric, one-sided platform approach
  5. 5. © PA Knowledge Limited | 5 Designing successful platforms Three key learnings
  6. 6. © PA Knowledge Limited | 6 Every organisation needs a platform strategy First learning
  7. 7. © PA Knowledge Limited | 7 Platforms are the dominant business models to build competitive advantage in a digital economy Whether building your own platform or partnering with other platforms, every company will need a strategy for the platform economy Firms that do not actively pursue a platform strategy risk commoditization by platform firms on their industry Why every company needs a strategy for the platform economy 1 2 3
  8. 8. © PA Knowledge Limited | Digital ecosystems are dissolving and reshaping traditional industries Every organisation needs to determine its role and position in the ecosystem
  9. 9. © PA Knowledge Limited | 9 BIGTECH IS EXPANDING INTO INCUMBENT INDUSTRY DOMAINS THE RISE OF THE SUPER-APPS Large organisations are being disrupted in the new ecosystems • Apple Pay • Prime Health • Amazon Whole Foods • Tencent • Uber
  10. 10. © PA Knowledge Limited | 10 You have to determine your strategic role in the ecosystem WILL YOU BECOME A PLATFORM ORCHESTRATOR? WILL YOU PARTICIPATE ON OTHER PLATFORMS? WILL YOU DEVELOP OR ACQUIRE A PLATFORM BEYOND YOUR CORE BUSINESS? Beyond Banking Beyond Insurance • ING + Funding Options • Philips HealthSuite Aetna
  11. 11. © PA Knowledge Limited | 11 Become an innovator Second learning
  12. 12. © PA Knowledge Limited | BECAUSE PLATFORMS DEAL WITH HIGH UNCERTAINTY AND NEED EXPERIMENTATION AND VALIDATION You need an innovation engine
  13. 13. © PA Knowledge Limited | 13 ‘Experimentation is at the core of how Uber improves the customer experience, running over 1,000 experiments at any given time’ Uber Engineering “Given a 10% chance of a 100 times payoff, you should take that bet every time. But you’re still going to be wrong nine times out of 10.” Jeff Bezos "Of course, you're not happy when people say 'no.' Have a good sleep, wake up, and try again.“ You need an experimental mindset at your core Jack Ma Uber Amazon Alibaba.com
  14. 14. © PA Knowledge Limited | 14 Assessing your ecosystem Designing network effects Parallel testing of consumer and producer needs Defining your role in the ecosystem Defining the control point of the platform Assessing partnerships Identifying your core assets Defining the core method of interaction on the platform You need a platform innovation process…the usual approach to innovation doesn’t work Platform Business Models
  15. 15. © PA Knowledge Limited | 15 You need to fundamentally transform the way you operate Third learning
  16. 16. © PA Knowledge Limited | 16 You need new capabilities for platform design, development and execution ECOSYSTEM BUILDING PLATFORM ORCHESTRATION SERVICE EXPERIENCE AI/DATA MANAGEMENT INNOVATION The ability to understand and connect consumers, producers, regulations, governments, partners to constantly evolve the value of the ecosystem The ability to govern a platform, stimulating positive behavior, drive growth of interactions and value creation for all participants The ability to surpass the user’s expectations at every point of contact, by delivering excellent operations at scale with continuous improvement The ability to acquire, validate, store, protect and process data to ensure the accessibility, reliability and timeliness of the data of its users The ability to design and develop new initiatives using platform innovation methodologies, tools and systems
  17. 17. © PA Knowledge Limited | Emerging digital ecosystems require an open technology approach
  18. 18. © PA Knowledge Limited | You need to become a data-driven company with differentiating data sets
  19. 19. © PA Knowledge Limited | 19 Key recommendations CREATE A PLATFORM STRATEGY BECOME AN INNOVATOR TRANSFORM THE WAY YOU OPERATE ✓ Identify your role in the ecosystem ✓ Define your Platform Business Model ✓ Define to be open or closed ✓ Create an innovation engine ✓ Create an experimental mindset ✓ Platform Innovation Methodology ✓ Develop Platform capabilities ✓ Develop an Open Architecture ✓ Implement a Data driven mindset, and create (data control points)
  20. 20. © PA Knowledge Limited | 20 Are you ready to start your platform business journey?
  21. 21. © PA Knowledge Limited | Hugo Raaijmakers, PA innovation strategist and platform expert hugo.raaijmakers@paconsulting.com @HugoR www.paconsulting.com Get in touch

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