An Overview and Framework
for Postal Platforms
September 19, 2013

Outline
● The concept of platforms
 What is a platform? Why are we talking about them today?
 Examples of commercial platforms & ecosystems
● How to apply this concept to the Postal, Mailing & Shipping
industry
 Postal ecosystem and infrastructure
 A postal platform: Why and How?
 Next Steps
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Concept of platform
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Concept of Platforms
● Business model
 Bringing revenue
 Bringing innovation
 Managing risk
● Infrastructure
 Operating system, distribution system
● Applications that interact with users
● Rules of the game
● Network effects
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Microsoft versus Apple
1981-1997
● Apple launched the personal computer market but Microsoft
licensed widely, building a huge developer ecosystem. By
the time of the antitrust trial, Microsoft had more than 6
times the number of developers.
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Developer
Ecosystem

Apple versus Microsoft: Key
Business Model Difference
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Apple Mac
Users Claris
Mac OS
• Charged ~$10,000 for SDKs(*).
• Controlled OS & HW and dominant Apps.
• Vertical integration choked network effects
Apple Microsoft
• Microsoft had 6-10X developers
• Open APIs / Cheap SDKs
• Controlled OS, licensed.
• Strong network effects.
Users Dvprs
MS Windows
Dell IBM … HPProviders
Sponsor
(*) Software Development Kit

Microsoft versus Apple
1998-2009
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● Using a platform strategy, Apple becomes the most
valuable tech firm in the US, representing $310Bn to
Microsoft’s $204Bn. Chart shows % growth.
“I sell songs in order
to sell phones”
Network
Effects

Network Effects
Users (Demand)
● Consumers of the platform services; they can
be individuals, businesses, organizations, etc.
Users (Solution Developers)
● They provide product or services that attract
users to the platform – information, services,
answers, music, games,
Providers
● The contact point for users and value-added
providers. Providers offer common platform
components and define rules to facilitate the
services.
Sponsors
● Responsible for the overall organizing structure
for the platform: the rules and governance of
the ecosystem. May control the underlying
platform technology and IP rights.
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Sponsor
Provider
Users
(Demand)
Users
(Developers)

Microsoft & Apple
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Today, Apple is a PlatformToday, Microsoft is a Platform

Other examples
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• Evolved from a single purpose application
• Android & Chrome operating systems,
Docs, Gmail, Calendar, and Chrome
browser,
• Droid phone, Android tablets,
Chromebook, and Music Store
• Google Books, Product Search,
Checkout, Wallet, and Cloud Computing.
• Google+, Google Games, Groups, Orkut,
Blogger, and Hangout.
• 500 M users, over 50% log in
every day, 200M using their
mobiles.
• Over 250 M interact with
Facebook across 2 million other
websites
• 20 million applications are
installed per day
• 3 million messages are sent
every 20 minutes.
Giving people the power to shareOrganizing Internet Information

What is a platform?
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Infrastructure
• Physical
• Information
• Financial
Applications
Developers
Planks
Users

Platforms get enormous value from
3rd party developers
Most firms can only
concentrate on most
valuable apps
Profits increase when
others add to platform’s
“Long Tail”
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In House or Third-Party?
● iTunes/Facebook applications developers are primarily
“entrepreneurs”
 Investing time, providing ideas and concepts,
 Developing unique marketing strategies and campaigns
 Risking capital, develop and commercialize products
● Platform sponsors have responsibilities too
 Manage plank rules (IP, revenue sharing, appropriateness)
 Run developer forums
 May subsidize or promote certain projects
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Lessons from today’s Platforms
● Winners in a platform market generally
 Have the “best” platform strategy, not necessarily the “best” product
 Follow their mission, leverage their strengths, study the market
● It’s better to maximize the value of their infrastructure and
intellectual property, not the terms and conditions that
maximize intellectual property protection
Source: Shapiro, C. and H. Varian (1998). Information Rules (Harvard Business School Press). p5.
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How Do We Apply This to the
Postal, Mailing and Shipping
Industry?
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What do we have?
What’s missing?
Infrastructure 
Ecosystem 
Applications ?
Business Model 
Strategy 
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The Postal Infrastructure
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The Postal, Mailing & Shipping
Ecosystem
● The postal ecosystem
 Consumers
 Advertisers
 Publishers and Printers
 Consolidators, third-party logistics providers, and other transporters
 Banks and financial services providers
 Policy makers and Regulators
 Postal operators and couriers
 Technology suppliers and other service providers
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The postal platform
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Infrastructure
• Physical
• Information
• Financial
Planks
Shipper S R Receiver
eCommerce eGovernment
New Logistics Market intelligence
Innovation
Private
Capital

Example: Leveraging Communities
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R Receiver

Example: The Moving Community
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R
Change of
address records

Moving to a Platform Business…
● The platform business model can have a transformative
effect on the postal ecosystem
 Re-imagining the mail business with innovative applications
 Extending the value of the mail and the value of the postal
infrastructure
 Creating two-sided network effects
● Moving to this new business model requires:
 A strategic approach that aligns mission, corporate strengths and
market needs
 The identification of application “zones”
 “Planking”: The definition and implementation of a platform program
within the enterprise
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Application Zones
● eCommerce
● Retail services
● Financial services
● New Logistics
● eGovernment &
community informatics
● eMailboxes & electronic
services
● Marketing, Affinity &
Market Intelligence
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Etc.…

Next Steps
● Charter document
 Strategic analysis: Mission, strengths, market needs
 Business case for a platform strategy
 Application zones
 Blueprint
● Establish planks
 Platform organization
 Communication plan and outreach
 Business plan, rules, I/P, “give and take”
 Implementation, new internal processes
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In Summary
● A platform business model can have a transformative effect
on the postal, mailing and shipping ecosystem
 Bringing a continuous stream of innovation
 Mitigating risks and conserving capital
 Creating network effects
 Extending the life of the mail
● A strategic focus is required
 Mission, strengths, market needs
● A plan must follow
 Outreach
 Applications
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Thank You
Questions, comments: bmarkowicz@decisionanalysis.net

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> insight > action > transformation