A framework, a methodology and a set of strategic elements to help entrepreneurs (and enterprises) deploy a platform approach, swiftly hack growth and outperform competition.

1. Winning in an Era of Platforms
A radical approach to swiftly grow, transform
markets and outperform competition
Floyd DCostaDec, 2013

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Winning in an Era of Platforms
Change is here! A new breed of enterprises is disrupting
markets and transforming complete industries
From Google and Amazon to Apple and Facebook, platform businesses are
dominating the landscape and displacing market leaders faster than ever
before
Organization Market Cap
Apple 438
Exxon Mobile 380
Google 291
Microsoft 282
Berkshire Hathaway 281
Position Brand
1 Apple
2 Google
3 CocaCola
4 IBM
5 Microsoft
Top 5 firms in 2013 by Market Cap. InterBrand: 2013 Best Global Brands
Ref: Bloomberg, InterBrand and Marshall van Alstyne

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Winning in an Era of Platforms
The product based business model, as it stands
today, is broken
Many traditional product strategies are based on management principles,
methods and approaches developed in 20th century
VS

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Winning in an Era of Platforms
LINEAR VALUE CHAIN
While traditional businesses source
material, add value, sell and ship
finished products to customers….
NETWORKED VALUE CIRCLE
…. the emerging business leaders
develop platforms, establish network
ecosystems, and connect consumers
with a virtually endless array of options
(of resources) to choose from
What’s at the core of this change? A shift from linear
value chain models to networked value circles
Ref: Global Networked Value Circle Report [Harris, Mckay, DCosta and Eavenson]

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Winning in an Era of Platforms
What’s driving the change? A confluence of emerging
technologies is catalyzing the platform business
The Result: A
level playing field
required to
succeed in
business
1
23
4
Mobile
With varying degrees
and capabilities, mobile
technology provides
access to platforms
anytime, anywhere
Data
Data and analytics
facilitates matchmaking -
connecting value
consumers with relevant
value creators
Social
The world is becoming
hyper-social. Social
networks allow people to
maintain an online
identity, connect, and
communicate globally
Cloud
Cloud computing provides
the underlying
infrastructure to quickly
build and deploy digital
platforms at fraction of the
original cost

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Winning in an Era of Platforms
• Cost and revenue are generated, both to
the left and the right of the value chain
• Because of network effects, platforms
enjoy increasing returns to scale.
• Value grows as the platform matches
demand from both sides.
• Users will pay more for access to a
bigger network, so margins improve as
user bases grow.
By harnessing dual-sided network effects, platforms are able to grow swiftly,
revolutionize marketplaces and substitute incumbents
Why are platform businesses winning? Dual-sided
network effects
• In traditional businesses, growth beyond
some point usually leads to diminishing
returns:Acquiring new customers
becomes harder as fewer people, not
more, find the firm’s value proposition
appealing.
Ref: Strategies for Two-Sided Markets [Eisenmann, Parker and van Alstyne]

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Winning in an Era of Platforms
So how do businesses succeed in this fast
evolving ‘Platform Era’?
“In the future, businesses will no longer compete over superior products, but
over better evolved platforms”
01
A Definition
02
A Framework
03
An Approach
04
Some Strategic
Elements

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Winning in an Era of Platforms
Defining a ‘platform’ – Understanding the paradigm shift
from owning to enabling value creation and consumption
Platforms enable the creation and exchange of value between users, with
the business only providing the infrastructure enabling users to interact
Source: Bloomberg Business Week, Yahoo Finance
• Facebook bought Instagram for $1B .
• Instagram has only 13 employees. But
it has 30 million users
• Wall Street investors recently
gave Twitter a $24.9 billion valuation.
• Twitter has only $500 million in
revenue, no major physical assets,
and no profit.
• Similarly, LinkedIn is worth $26 billion.
• And Facebook, despite a poorly
executed IPO, is now valued at $120
billion, making it one of the 30 most
valuable companies in the world.

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Winning in an Era of Platforms
Getting started - A five point framework to seed,
cultivate and harvest platform thinking
Business Model
Innovation
democratize value
creation
Network Value
Circles
redefine competition
Open Innovation
Culture
a radical new ethos
Social
A positive impact
Prosumerism
blurring between value
creators and consumers
Technology
every company, an IT
company
Remember, a platform is a system, which other entities should be able to
easily connect with, build products and services on top of it, and co-create
value

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Winning in an Era of Platforms
The way forward - A high-level approach to
crafting platforms
Strategy is crucial - Deploying traditional ‘linear’ thinking, would definitely
result in a wasted opportunity for a network business
Map and understand
the ecosystem
[industry and
organization]
Identify opportunities in the
value chain to harness
networks and channel co-
creation [Think beyond your own
products and services]
Incubate partnerships
and nurture multiple-
sided communities;
enable peer segments to
interact via your platform
Experiment; Hack
growth [focus on
enhancing the system, to
enable others to easily
connect, create and
consume higher value
propositions on top of your
platform]
Leverage technology;
develop a digital platform to
enable the effortless creation,
exchange and consumption of
value
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4
3
2
5

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Winning in an Era of Platforms
Getting it right – Basic elements of a successful
platform strategy
Based on their overall position and approach, platforms place varying
emphasis on each of the three building blocks.
• The Toolbox creates connection by
making it easy for others to plug into the
platform
• The Magnet creates pull that attracts
participants to the platform with a kind
of social gravity.
• The Matchmaker fosters the flow of
value by making connections between
producers and consumers.
• Connection: how easily others can
plug into the platform to share and
transact
• Gravity: how well the platform attracts
participants, both producers and
consumers
• Flow: how well the platform fosters
the exchange and co-creation of
value.
Ref: Three Elements of a Successful Platform Strategy [Bonchek and Choudary]
3 determining success factors 3 building blocks

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Winning in an Era of Platforms
If you have a query, suggestion, request or
comment, I’d like to hear from you!
Connect
linkedin.com/in/floyddcosta
@floyddcosta
floyddcosta@gmail.com
“A platform is a system that can be ….., adapted to countless needs and niches that the platform’s
original developers could not have possibly contemplated, much less had time to accommodate.”
- Marc Andreessen
www.ThePlatformWay.com