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Superpowers of the Network Economy - How to Become a Platform

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SaaS Connect 2018 (San Francisco, CA).

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VIDEO: https://youtu.be/yGGT2Td6vRk

Superpowers of the Network Economy - How to Become a Platform
by Ross Garrett, VP Marketing, Cloud Elements

Published in: Marketing
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Superpowers of the Network Economy - How to Become a Platform

  1. 1. Cloud Elements 2017 - Confidential & Proprietary Build Platforms, Not Products Using 4 Superpowers of the Network Economy
  2. 2. Ross Garrett . VP of Marketing Cloud Elements @gssor Hello! My name is…
  3. 3. Cloud Elements 2017 - Confidential & Proprietary “ Marc Andreessen, Wall Street Journal August 2011 SOFTWARE IS EATING THE WORLD https://www.wsj.com/articles/SB10001424053111903480904576512250915629460
  4. 4. Cloud Elements 2017 - Confidential & Proprietary PROLIFERATION OF PUBLIC APIs 757% . Increase in Web APIs January 2010 - January 2016
  5. 5. YOUR API IS NOT ENOUGH There aren’t enough developers on the planet to consume all the APIs available today. Integration needs to be made easier. BE A PLATFORM.
  6. 6. Cloud Elements 2017 - Confidential & Proprietary DEFINING A PLATFORM In construction, a platform is something that lifts you up and on which others can stand. The same is true in business. By building a digital platform, other businesses can easily connect their business with yours, build products and services on top of it, and co-create value. “
  7. 7. Cloud Elements 2017 - Confidential & Proprietary PLATFORMS OFFER GREATER UTILITY CREATING AN INTEGRATION FABRIC THAT ENABLES USERS DEMOCRATIZING INTEGRATION AND MAKING IT ACCESSIBLE
  8. 8. Cloud Elements 2017 - Confidential & Proprietary MULTI-SIDED BUSINESS MODEL A platform company enables other businesses to build products on their technology Uses 3rd party integration to create adhesion and relevance across their market domain While also delivering service directly from their core product offering 1 2 3
  9. 9. Cloud Elements 2017 - Confidential & Proprietary Platform Examples
  10. 10. Cloud Elements 2017 - Confidential & Proprietary
  11. 11. Cloud Elements 2017 - Confidential & Proprietary
  12. 12. Cloud Elements 2017 - Confidential & Proprietary
  13. 13. Cloud Elements 2017 - Confidential & Proprietary
  14. 14. Cloud Elements 2017 - Confidential & Proprietary The Network Effect Introducing the 4 Superpowers
  15. 15. Cloud Elements 2017 - Confidential & Proprietary PLATFORMS = THE NETWORK ECONOMY Network effects are the phenomenon whereby goods or services becomes more valuable when more people use them, so there is a relentless focus on building as large a network as possible.
  16. 16. Cloud Elements 2017 - Confidential & Proprietary NETWORK ECONOMY 4 SUPERPOWERS OF THE MAGNETIC INFINITE REAL-TIME INTIMATE
  17. 17. Cloud Elements 2017 - Confidential & Proprietary MAGNETIC Networked companies are able to detect, organize, and expose very small units of value. Their competitive advantage is to deal efficiently with billions of small transactions and to capture value created outside their walls.
  18. 18. Cloud Elements 2017 - Confidential & Proprietary HOW IT WORKS MAGNETIC: STANDARD ECONOMY NETWORK ECONOMY Companies take raw materials in input and produce finished products that are sold to consumers. Companies identify & abstract value - as small as it is - and redistribute it to consumers and producers while taking a cut.
  19. 19. Cloud Elements 2017 - Confidential & Proprietary INFINITE Networked companies use highly scalable software and services to achieve near zero cost delivery. They can grow indefinitely in revenue with minimal impact on costs. Their competitive advantage is speed of scale and profitability.
  20. 20. Cloud Elements 2017 - Confidential & Proprietary HOW IT WORKS INFINITE: STANDARD ECONOMY NETWORK ECONOMY Companies see growth is constrained by their production capacity and by the marginal cost of production. Companies can serve additional customers at virtually no additional cost, giving them an infinite growth opportunity.
  21. 21. Cloud Elements 2017 - Confidential & Proprietary REAL-TIME Networked companies use real-time data feedback to instantly optimize market fit and improve products’ value. Their competitive advantage is first mover time-to-market.
  22. 22. Cloud Elements 2017 - Confidential & Proprietary HOW IT WORKS REAL-TIME: STANDARD ECONOMY NETWORK ECONOMY Companies produce and publish products to the market every other year. They don’t have information about their product usage for months. Companies produce and perpetually improve products through iterative development. They closely monitor the usage to answer user needs in real-time.
  23. 23. Cloud Elements 2017 - Confidential & Proprietary INTIMATE Networked companies use customer knowledge to fine-tune and personalize the experiences they deliver to each customer. Their competitive advantage is customer engagement and loyalty.
  24. 24. Cloud Elements 2017 - Confidential & Proprietary HOW IT WORKS INTIMATE: STANDARD ECONOMY NETWORK ECONOMY Companies produce and sell an identical product to all their customers, regardless of channel or segment. Companies offer tailored products and customization possibilities to each of their customers, creating an intimate and long-lasting experience.
  25. 25. Cloud Elements 2017 - Confidential & Proprietary Creating the Network Effect
  26. 26. Cloud Elements 2017 - Confidential & Proprietary THERE IS NO FUTURE OF HERMETICALLY SEALED CLOSED SYSTEMS IN THE NETWORK ECONOMY. EVERY TIME A CLOSED SYSTEM OPENS, IT BEGINS TO INTERACT MORE DIRECTLY WITH OTHER EXISTING SYSTEMS, AND THEREFORE ACQUIRES THE VALUE OF THOSE SYSTEMS. “ Kevin Kelly, Wired Co-Founder
  27. 27. Cloud Elements 2017 - Confidential & Proprietary 8 Ways Defined on how to start and run a successful platform business, explaining ways to identify prime markets and monetize networks
  28. 28. Cloud Elements 2017 - Confidential & Proprietary FLEXIBILITY Allow a multitude of companies to leverage the platform for their (often very different) use cases. Adapting to user needs 1 2 3 Enabling new types of integration users But it’s more than technology
  29. 29. Cloud Elements 2017 - Confidential & Proprietary LONGEVITY Platforms are often deeply integrated into the infrastructure of businesses. Longevity doesn’t mean be static 1 2 Think about how to deliver ongoing value Ensure integration changes with the times 3
  30. 30. Cloud Elements 2017 - Confidential & Proprietary Integration is the foundation of how people are brought to, and stay with the platform. INTEGRATION The power of the crowd 1 2 Make it easy to do business with you Platforms aren’t just for developers 3
  31. 31. Cloud Elements 2017 - Confidential & Proprietary WHY ARE PLATFORMS SO ATTRACTIVE? For the platform provider, there is one key reward in offering a platform over a traditional product...
  32. 32. Cloud Elements 2017 - Confidential & Proprietary GROWTH CLASSIC GROWTH NETWORK GROWTH T Network GROWTH OPPORTUNITY REWARD IS GROWTH
  33. 33. VALUE DELIVERED FROM A PLATFORM 60% CUSTOMER CHURN REDUCTION 15% INCREASE IN CUSTOMER LTV 20DAY REDUCTION IN SALES CYCLES 64% INCREASE IN UPSELL POTENTIAL
  34. 34. Ross Garrett VP of Marketing Cloud Elements @gssor Questions? CREDIT : FABERNOVEL, GAFAnomics, October 2014 - https://www.slideshare.net/faberNovel/gafanomics/2-2_This_work_was_made

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