This document discusses the economics of platform businesses. It begins by explaining what platforms are and some key factors that determine their success - economies of scale, network effects, and differentiability. It then examines each of these factors in more detail, providing examples of how they apply to companies like Google, Amazon, and Uber. The document also discusses pricing strategies for platforms and concludes with case studies analyzing how the three key factors drove the success of search, e-commerce, and ride-hailing platforms.
Jerry Chen, partner at Greylock and former VP of Cloud and Application Services at VMware, shares his Unit of Value framework for startups building a go-to-market strategy. He developed this strategy while managing product and marketing teams at VMware that shipped many “1.0” releases, including VMware VDI, Cloud Foundry, and vFabric, and continues to use the framework to evaluate companies as an investor.
A short walk through the world of affiliate models, old and new, two-sided markets in the modern digital world, and how Skyscanner uses these to drive its B2B products.
Is freemium a viable pricing strategy for cloud services?Izam Ryan
An in-depth study of the application of freemium pricing practice in the cloud services space that Amazon EC2, Google Compute Engine, Microsoft Azure and Rackshare compete in.
Submitted in partial fulfilment of the requirements of the Imperial MBA degree and the Diploma of Imperial College London. I was awarded a Distinction for this Pricing Strategy elective.
Excluding appendixes: 2,497 words
My keynote at the Open Exchange Summit in Nashville on April 18, 2018. I talk about the implications for many different kinds of companies of the fact that increasingly large segments of our economy are being dominated by algorithmically managed network marketplaces.
Economic Moats - For Early Stage Startups and Early Stage InvestorsBrian Laung Aoaeh, CFA
In order to grow into a company that endures, an early stage startup must protect itself from competition and strengthen its position within its market. Economic Moats make that possible. This presentation synthesizes a series of blog posts on that topic into a more user-friendly format. It is useful for startup founders, as well as early-stage investors in seed and series A technology startups.
Contents
1. Network Effects
2. Switching Costs
3. Intangibles
4. Cost Advantages
5. Efficient Scale
Jerry Chen, partner at Greylock and former VP of Cloud and Application Services at VMware, shares his Unit of Value framework for startups building a go-to-market strategy. He developed this strategy while managing product and marketing teams at VMware that shipped many “1.0” releases, including VMware VDI, Cloud Foundry, and vFabric, and continues to use the framework to evaluate companies as an investor.
A short walk through the world of affiliate models, old and new, two-sided markets in the modern digital world, and how Skyscanner uses these to drive its B2B products.
Is freemium a viable pricing strategy for cloud services?Izam Ryan
An in-depth study of the application of freemium pricing practice in the cloud services space that Amazon EC2, Google Compute Engine, Microsoft Azure and Rackshare compete in.
Submitted in partial fulfilment of the requirements of the Imperial MBA degree and the Diploma of Imperial College London. I was awarded a Distinction for this Pricing Strategy elective.
Excluding appendixes: 2,497 words
My keynote at the Open Exchange Summit in Nashville on April 18, 2018. I talk about the implications for many different kinds of companies of the fact that increasingly large segments of our economy are being dominated by algorithmically managed network marketplaces.
Economic Moats - For Early Stage Startups and Early Stage InvestorsBrian Laung Aoaeh, CFA
In order to grow into a company that endures, an early stage startup must protect itself from competition and strengthen its position within its market. Economic Moats make that possible. This presentation synthesizes a series of blog posts on that topic into a more user-friendly format. It is useful for startup founders, as well as early-stage investors in seed and series A technology startups.
Contents
1. Network Effects
2. Switching Costs
3. Intangibles
4. Cost Advantages
5. Efficient Scale
API and Platform Strategies to Win in Global and Local MarketsAxway
Learn why an API strategy is critical to business success in the business landscape from project, program, product, platform to ecosystems, and economy. Real examples of platform and API strategies will inspire you to implement a concrete plan across your organization.
Slides from my talk at the Price Waterhouse Coopers Deals Exchange conference on April 26, 2018. I talk about algorithmically manage, internet-scale networks and how they are changing the very nature of the economy, the shape of companies, and the competencies that are required for 21st century success. There are many similar themes to other talks, but this is tailored to a business audience, and very specifically to one concerned with how to do M&A in an age of dominant platforms.
API and Platform Transformation Patterns to Power Your BusinessAxway
Axway's Emmelyn Wang shows you how to use API design patterns to carry out digital agility for the business problems you’re trying to solve. Designing APIs that transform your business are crucial for thriving in the API Platform Ecosystem landscape.
Version April 26, 2000Sunil Chopra is the IBM Distinguish.docxjessiehampson
Version: April 26, 2000
Sunil Chopra is the IBM Distinguished Professor of Operations Management and Jan Van Mieghem is an Associate
Professor of Operations Management; both are at the Kellogg Graduate School of Management at Northwestern University.
Both are co-authors of "Managing Business Process Flows" (Prentice Hall 1999). Professor Chopra also is the co-author
of the new textbook "Designing and Managing Supply Chain Flows," (to be published by Prentice Hall), which inspired this
article.
Copyright 2000. All rights reserved, contact [email protected]
1
WHICH E-BUSINESS IS RIGHT FOR YOUR SUPPLY CHAIN?
by Sunil Chopra and Jan A. Van Mieghem
(Forthcoming in Supply Chain Management Review)
The Internet is revolutionizing the way companies
conduct business. Or is it? We argue that the value of
the Internet for a firm is strongly dependent on the firm’s
industry and on the strategy it pursues. A survey of firms
with an online presence displays wide disparities in
performance. While Dell has successfully used the
Internet to boost revenues and earnings, Amazon lost
$585 million on revenues of $1.6 billion in 1999. Firms
that fully exploit the revenue enhancements and cost
reduction opportunities offered by the Internet and
optimally integrate e-business with existing channels are
likely to be the big winners in the Internet age.
The Role of E-business in a Supply Chain
E-business involves the execution of business
transactions over the Internet. Companies conducting e-
business perform some or all of the following activities
over the Internet across the supply chain:
• Providing product and other information
• Negotiating prices and contracts
• Placing and receiving orders
• Tracking orders
• Filling and delivering orders
• Paying and receiving payment.
All these activities have been conducted in the past using
existing "channels" such as retail stores, sales people, and
catalogs. For example, companies like Lands End and
W.W. Grainger have used catalogs to provide product
information to customers.
Companies have used the Internet in a variety of
ways to enhance supply chain performance. Dell uses the
Internet to display all its product options to customers.
Companies like Solectron and Ford have used the
Internet to increase collaboration in product design. UPS
and Federal Express have used the Internet to allow
customers to track their packages.
Our goal is to characterize how different firms can
best use the strengths of the Internet to enhance the
performance of their supply chains. We argue that the
answer is industry and strategy specific and propose a
simple framework that managers can use make this
decision.
A Strategic Framework to Evaluate Supply Chain
Opportunities from E-business
The framework starts from the premise that supply chain
decisions must be evaluated in a strategic context based
on the answers to the following three questions:
1. What is your firm's desired strategic position?
2. Give ...
This is the keynote address from the July 17th, 2013 Becoming a Customer Company event. This was a co-sponsored event by Magnet 360, salesforce.com, and Marketo. This presentation includes slides as presented by Peter Coffee, Andy MacMillan, Scott Litman, and Jeremiah Owyang.
Everyone is talking about cloud computing and Software-as-a-Service (SaaS) these days. Almost every technology vendor has announced a cloud strategy – even the traditional software zealots. But what do cloud computing and SaaS mean for product managers? The impacts are more significant than you may think. From pricing and profitability measurement to sales and marketing, cloud is having a noteworthy influence on the day-to-day activities of product managers.
How to build and manage an Ecosystem for Innovationdnltan
Professor Arnoud De Meyer, co-author of the book "Ecosystem Edge: Sustaining Competition in the Face of Disruption" shares the PowerPoint slides that he uses to teach innovation for his MBA students.
www.ecosystemedge.com
Digital Evolutions: Startups, Platforms and EcosystemsSimone Cicero
This presentation was first released as Lecture in two Startup Accelerators lately. The presentation recaps on several digital trends and correlates them with Platform Design, previously covered in the record breaking "Future Proof Design" presentation available here: http://www.slideshare.net/Meedabyte/future-proof-design-and-the-platform-design-canvas.
In search for new ideas to frame Platform Design as a discipline in a more global discourse regarding the digital market, I went in search of complementary theories: most of this research have been consolidated in this lecture
In parallel, the Platform Design canvas is transforming into a more comprehensive Toolkit. See context here: http://wp.me/plmpp-uG
These are the (German) slides of my Keynote "Business. Value. Cloud." given at the IBS Workshop "Cloud Computing - Concepts and Applications" - the talk focuses on how business/value-thinking and development/co-creation is evolving and becoming one single approach from idea to product/service within 5 minutes (I believe this will be much faster in the future, i.e. towards seconds). The key drivers to this new approach are manifold - provided by the always on possibilities of the cloud, matching the philosophy of building things out of components with the iterative approaches of agile and lean development, and a change of our society's value systems expanding from a transaction-oriented economy towards a sharing economy.
How to Understand a Product Marketplace by Funding Circle PMProduct School
The presentation walks you through Giorgio Giuliani's journey to Product Management in the world of tech, talks about how to market your skills and how to get into the industry. It also touches on balancing knowledge and personal experience with what's best for a wider user group.
Be On Time with Digital Transformation: build platforms, access ecosystems, t...Simone Cicero
This presentation explains in a few slides how the convergence of new technologies and new habits and expectations is changing what the user expects from the firm and therefore the firm itself: this is digital transformation.
Firms are therefore evolving into post-industrial platforms, and to enable this transformation you need to move forward as an organization along three layers: technology platforms supporting your strategy, organizational design principles and building new innovation capabilities.
Plus: this presentation will link you to a new tool that we're about to release (as OCT 2015) - The Platform Design Toolkit 2.0 - see www.platformdesigntoolkit.com
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
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🟢 Card Verified
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Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
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USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
API and Platform Strategies to Win in Global and Local MarketsAxway
Learn why an API strategy is critical to business success in the business landscape from project, program, product, platform to ecosystems, and economy. Real examples of platform and API strategies will inspire you to implement a concrete plan across your organization.
Slides from my talk at the Price Waterhouse Coopers Deals Exchange conference on April 26, 2018. I talk about algorithmically manage, internet-scale networks and how they are changing the very nature of the economy, the shape of companies, and the competencies that are required for 21st century success. There are many similar themes to other talks, but this is tailored to a business audience, and very specifically to one concerned with how to do M&A in an age of dominant platforms.
API and Platform Transformation Patterns to Power Your BusinessAxway
Axway's Emmelyn Wang shows you how to use API design patterns to carry out digital agility for the business problems you’re trying to solve. Designing APIs that transform your business are crucial for thriving in the API Platform Ecosystem landscape.
Version April 26, 2000Sunil Chopra is the IBM Distinguish.docxjessiehampson
Version: April 26, 2000
Sunil Chopra is the IBM Distinguished Professor of Operations Management and Jan Van Mieghem is an Associate
Professor of Operations Management; both are at the Kellogg Graduate School of Management at Northwestern University.
Both are co-authors of "Managing Business Process Flows" (Prentice Hall 1999). Professor Chopra also is the co-author
of the new textbook "Designing and Managing Supply Chain Flows," (to be published by Prentice Hall), which inspired this
article.
Copyright 2000. All rights reserved, contact [email protected]
1
WHICH E-BUSINESS IS RIGHT FOR YOUR SUPPLY CHAIN?
by Sunil Chopra and Jan A. Van Mieghem
(Forthcoming in Supply Chain Management Review)
The Internet is revolutionizing the way companies
conduct business. Or is it? We argue that the value of
the Internet for a firm is strongly dependent on the firm’s
industry and on the strategy it pursues. A survey of firms
with an online presence displays wide disparities in
performance. While Dell has successfully used the
Internet to boost revenues and earnings, Amazon lost
$585 million on revenues of $1.6 billion in 1999. Firms
that fully exploit the revenue enhancements and cost
reduction opportunities offered by the Internet and
optimally integrate e-business with existing channels are
likely to be the big winners in the Internet age.
The Role of E-business in a Supply Chain
E-business involves the execution of business
transactions over the Internet. Companies conducting e-
business perform some or all of the following activities
over the Internet across the supply chain:
• Providing product and other information
• Negotiating prices and contracts
• Placing and receiving orders
• Tracking orders
• Filling and delivering orders
• Paying and receiving payment.
All these activities have been conducted in the past using
existing "channels" such as retail stores, sales people, and
catalogs. For example, companies like Lands End and
W.W. Grainger have used catalogs to provide product
information to customers.
Companies have used the Internet in a variety of
ways to enhance supply chain performance. Dell uses the
Internet to display all its product options to customers.
Companies like Solectron and Ford have used the
Internet to increase collaboration in product design. UPS
and Federal Express have used the Internet to allow
customers to track their packages.
Our goal is to characterize how different firms can
best use the strengths of the Internet to enhance the
performance of their supply chains. We argue that the
answer is industry and strategy specific and propose a
simple framework that managers can use make this
decision.
A Strategic Framework to Evaluate Supply Chain
Opportunities from E-business
The framework starts from the premise that supply chain
decisions must be evaluated in a strategic context based
on the answers to the following three questions:
1. What is your firm's desired strategic position?
2. Give ...
This is the keynote address from the July 17th, 2013 Becoming a Customer Company event. This was a co-sponsored event by Magnet 360, salesforce.com, and Marketo. This presentation includes slides as presented by Peter Coffee, Andy MacMillan, Scott Litman, and Jeremiah Owyang.
Everyone is talking about cloud computing and Software-as-a-Service (SaaS) these days. Almost every technology vendor has announced a cloud strategy – even the traditional software zealots. But what do cloud computing and SaaS mean for product managers? The impacts are more significant than you may think. From pricing and profitability measurement to sales and marketing, cloud is having a noteworthy influence on the day-to-day activities of product managers.
How to build and manage an Ecosystem for Innovationdnltan
Professor Arnoud De Meyer, co-author of the book "Ecosystem Edge: Sustaining Competition in the Face of Disruption" shares the PowerPoint slides that he uses to teach innovation for his MBA students.
www.ecosystemedge.com
Digital Evolutions: Startups, Platforms and EcosystemsSimone Cicero
This presentation was first released as Lecture in two Startup Accelerators lately. The presentation recaps on several digital trends and correlates them with Platform Design, previously covered in the record breaking "Future Proof Design" presentation available here: http://www.slideshare.net/Meedabyte/future-proof-design-and-the-platform-design-canvas.
In search for new ideas to frame Platform Design as a discipline in a more global discourse regarding the digital market, I went in search of complementary theories: most of this research have been consolidated in this lecture
In parallel, the Platform Design canvas is transforming into a more comprehensive Toolkit. See context here: http://wp.me/plmpp-uG
These are the (German) slides of my Keynote "Business. Value. Cloud." given at the IBS Workshop "Cloud Computing - Concepts and Applications" - the talk focuses on how business/value-thinking and development/co-creation is evolving and becoming one single approach from idea to product/service within 5 minutes (I believe this will be much faster in the future, i.e. towards seconds). The key drivers to this new approach are manifold - provided by the always on possibilities of the cloud, matching the philosophy of building things out of components with the iterative approaches of agile and lean development, and a change of our society's value systems expanding from a transaction-oriented economy towards a sharing economy.
How to Understand a Product Marketplace by Funding Circle PMProduct School
The presentation walks you through Giorgio Giuliani's journey to Product Management in the world of tech, talks about how to market your skills and how to get into the industry. It also touches on balancing knowledge and personal experience with what's best for a wider user group.
Be On Time with Digital Transformation: build platforms, access ecosystems, t...Simone Cicero
This presentation explains in a few slides how the convergence of new technologies and new habits and expectations is changing what the user expects from the firm and therefore the firm itself: this is digital transformation.
Firms are therefore evolving into post-industrial platforms, and to enable this transformation you need to move forward as an organization along three layers: technology platforms supporting your strategy, organizational design principles and building new innovation capabilities.
Plus: this presentation will link you to a new tool that we're about to release (as OCT 2015) - The Platform Design Toolkit 2.0 - see www.platformdesigntoolkit.com
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
2. WHY ECONOMICS IN PRODUCT MANAGEMENT?
¡ What is scalability in a business model?
¡ Can my business compete? How do I compete?
¡ What are the features I should launch which are really valuable for my company?
¡ What do buzzwords like: scale, asset light, rocket growth, really mean?
¡ Align with Organization goal and move to a strategy role.
3. PLATFORMS: AN INTRODUCTION
Examples of Platforms What is a Platform?
Platform businesses are
those which create value
by facilitating an
exchange between one or
more “sides”
“
”
Broad Definition
4. THE THREE FACTORS THAT MATTER
Economies of Scale: Only economies of scale in cost is being considered here.
¡ How much does it cost you to take on one extra unit?
1
2
3
Network Effects: When customer value for the product increases when one extra person
uses it.
¡ What type of network effects do I have?
¡ How can I make network effects more powerful?
Differentiability: When you are able to create a unique space in the user’s mind about
your product. It’s not internal, it’s just about the perception of the customer.
¡ How can I differentiate?
5. ECONOMIES OF SCALE
Demand Supply Curve
Supply Demand
The Demand-
Supply curve
we have all
come to
know so well
What exactly is the supply curve?
The supply curve is just the marginal
cost curve.
Marginal cost? The cost incurred on an
extra unit.
You’d be willing to sell that extra unit at
any value above the marginal cost of
making that unit.
Why is Supply Curve increasing? Where are the economies of
scale?
Economies of Scale do
exist. When diseconomies
of scale start appearing,
the marginal cost curve
goes up.
Drivers: Managerial, Cost of
RM, Cost of Capital, Huge
Capex etc.
Marginal Cost
Scalability -> Size of Company
Are there supply curves like this? Highly Scalable?
Marginal Cost
Natural Monopolies
Most tech companies are
asset light. Most tech
companies have the cost
structure of a natural
monopoly. And are asset-
light (low assets compared
to value of operations)
When the cost falls when one extra unit is serviced/produced
6. NETWORK EFFECTS
When the value of the service increases when one extra person uses it
Cross Side vs Same Side Network
Effects
Global vs Local Network Effects
Which ones are stronger?
Same Side network effects are stronger than Cross side because
there is a continuous cycle while in the other case there’s an
equilibrium
Global network effects are stronger than local network effects
because of higher number of users
Cross Side: When value is created for a user on one side
by onboarding a user on the other side. E.g. Uber
Same Side: When value is created for a user on the
same side by onboarding a user on the same side. E.g.
Facebook
Global: When value is created by onboarding a user
globally e.g. AirBnB
Local: When value is created for a user when the other
user is local e.g. Uber
Strong network
effects exist in case
of most platforms
7. DEMAND CURVE DUE TO NETWORK EFFECTS
What is the Demand
Curve?
Cumulative Willingness
to Pay.
Everyone has their own
demand curve, when all
that adds up, it becomes
a cumulative demand
curve.
Demand Curve
Critical Mass
Increasing Willingness to
Pay due to powerful
network effects
Diminishing Network
Effects, demand curve
returns to normal
8. DIFFERENTIABILITY
When you can create a unique space in the customer’s mind
Unique Value
Proposition
Unique Features
Is making unique features in technology products easy?
Uber launches a
new feature
Product
Managers in Ola
& Lyft will try to
immediately
begin reverse
engineering the
feature
Why do I even want to copy a feature?
Cost of convergence
(copying)
Does Windows go and copy every feature of
another OS?
Customer Switching Costs
Differentiability depends on Customer Switching
Costs & the Cost of Convergence (Copying)
9. Demand Curve Marginal Cost
Decided by the extent
of Network effects
Decided by the extent
of Economies of Scale
PUTTING IT ALL TOGETHER: THE DESTINATION
Can the
company price
discriminate?
Yes.
Theoretically,
they capture the
entire surplus
For now, let us
assume that the
company is a
monopoly
Assumption
Demand Supply Curve
Supply Demand
Natural Monopoly
Supply Demand
These are more powerful than even Natural Monopolies,
which tend to be highly regulated
10. PUTTING IT ALL TOGETHER: THE JOURNEY
For now, let us
assume that the
company is a
monopoly
Assumption
Competition
Scale Economies
Bigger Player is
able to price lower
Bigger player
grows faster
Network Effects
No diseconomies
of scale
There is no space
for competition,
the player
captures the
entire market
Bigger Player adds
customers faster
Bigger player
grows faster
Can you
differentiate in the
space?
If yes, you can still
create space for
yourself.
If no, then the
market turns into
a monopoly
The player which
reaches “critical
mass” first, will
become the
dominant player
Generally, Platforms have high economies of scale, strong network effects and low differentiability.
Hence, conditional to the above, the stable equilibrium of platforms is a monopoly
11. IMPLICATIONS
Why do you want Rocket Growth? Why the cash burn?
To reach the critical mass faster. To ramp up growth like crazy so that you reach the point
where your network effects fire up.
1
2
3
Is my company/product scalable?
Look for unending economies of scale. Make your company scalable.
As a smaller player in such a market, what should I do?
Create a differentiator. Try to increase switching costs for customer. Introduce features that
would make it costly for another competitor to copy. Create space for yourself.
12. EXERCISES
Which company does it make sense to expand overseas at an early stage?
AirBnB or Uber?
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2
3
You are thinking of starting up. In your chosen market, a bigger player already
exists. The switching costs are low and the convergence costs are high.
Should you enter the market? Can you create space?
You are thinking of starting up. In your chosen market, there is no new player.
The switching costs are low and the convergence costs are low. What should
you do?
13. EXERCISES
When should go for a cloud service provider and when should you not go for a
cloud service provider?
4
5
You are a PM in Flipkart. Amazon has approached you with a potential
collaboration. They want to partner to create a tool which lets suppliers
manage their inventory and pages etc. through a common portal on all e-
commerce platforms. What do you do?
14. CASE STUDY – GOOGLE & THE SEARCH MARKET
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2
3
Economies of Scale
Network Effects
Differentiability
Yes, there are economies of scale. Google File System is
highly scalable.
Yahoo was "unable to keep up with increasing demand
due to complex & inefficient infrastructure and rising
vendor costs“ : Techcrunch
Strong Global Network effects exist.
Same side network effects exist: Every additional
search improves results for everyone
Cross side network effects exist: More people
searching, more the businesses are interested
Convergence costs? Low
Switching Costs? Low
Even though Google was not the first move or the bigger player, higher scalability ensured that it
overtook Yahoo. Google is a monopoly in the search market.
15. CASE STUDY – AMAZON & E-COMMERCE
1
2
3
Economies of Scale
Network Effects
Differentiability
Amazon is not exactly asset light. Warehousing and
supply chains are expensive. However, compared to the
normal retail business the economies of scale are still
better and reaches diseconomies later. It has great
economies of scale in procurement however.
Amazon has country-wide Network effects
Amazon has Strong Cross Side Network effects:
One side needs to be continuously incentivised.
Convergence costs? Low
Switching Costs? Low, but High for Amazon
Amazon over the years has made some very smart decisions. First is Prime. Second is Cloud. Third is Ads.
16. CASE STUDY – UBER & RIDE HAILING
1
2
3
Economies of Scale
Network Effects
Differentiability
Yes, there are economies of scale. Higher capacity
utilisation of cabs, and software that can be deployed
globally means the economies of scale exist. However,
economies of scale are not as strong as Google.
Uber has very weak Global Network Effects
Uber has Strong Local Network Effects
Uber has Strong Cross Side Network Effects: One
side needs to be continuously incentivised hence
it undermines the Economies of Scale. Negative
Same Side network effects
Convergence costs? Low
Switching Costs? Low
There will be local monopolies or duopolies (specific cities will have a dominant player). What should Uber do?
17. PRICING
Flat Rate
• Single monthly or annual price
• Pros: Easier to sell &
communicate
• Cons: No price discrimination
and no nuance to sway them
Pay as You Go
• Pricing scales with usage e.g. AWS.
• Usage could be anything- time, memory
etc.
• Pros
• Reduces usage barriers
• Accounts for “heavy user” costs
• Cons
• Harder to forecast costs and
revenues
• Disconnects value from the product
Tiered Pricing Strategy
• Make number of packages appealing
to various segments
• Pros
• Appeal to multiple personas
• Price discrimination (lesser
money on the table)
• Upselling Route
• Cons
• Too much choice can be
confusing
• “Heavy User” risk
18. PRICING
Per User & Active User pricing
• Charge per user and active
user
• Pros: Simplicity, Predictable
revenue forecasts, revenue
scales with adoption
• Cons: Doesn’t reflect real
value, users have incentive to
cheat and higher churn rates
• Active user pricing reduces risk
of high adoption for the
customer, however, it doesn’t
matter for small businesses
(Slack does this)
Per Feature Pricing
• Use features as your value metric
• Pros
• Upgrade incentive is clear
• Some features may require higher
resource delivery
• Cons
• Packaging problem (Do you know
which customer values which
feature most?)
• Are you paying for features you
don’t want?
Freemium Pricing
• Free to use software supplemented by
paid packages
• Pros
• Foot in the door
• Viral potential
• Cons
• Revenue killer (packaging
problem)
• Devalue core service
Entirely referenced from: Link