The document discusses the significance of networks, platforms, and ecosystems in scaling products and businesses, emphasizing the concepts of network effects and the flywheel effect for business sustainability. It outlines strategies to enhance value propositions, customer engagement, and market fit to drive sales and profits. Additionally, it highlights the interdependence of ecosystems, networks, and platforms in maximizing competitive advantages.

1. Harness the Power of Networks,
Platforms, & Ecosystems
Scale your Product and Business
© 2018 National University of Singapore. All Rights Reserved
Mr. Lee Boon Kee, NUS-ISS
Mr. Richard Tan, NUS-ISS
13 July 2018
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LD 2018: Harness the Power of
Network & Platform Effects

2. Agenda
• Networks, Platforms & Ecosystems
• Harnessing The Power
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Network & Platform Effects

3. Networks, Platforms & Ecosystems
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Network & Platform Effects

4. Products
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LD 2018: Harness the Power of
Network & Platform Effects

5. Platforms
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LD 2018: Harness the Power of
Network & Platform Effects
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6. The Mobile Apps & Phone…
LD 2018: Harness the Power of
Network & Platform Effects
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7. Secured Payment Platforms …
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B2C Ecosystem
Secured Payment Platforms
LD 2018: Harness the Power of
Network & Platform Effects
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8. Platforms + Networks
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LD 2018: Harness the Power of
Network & Platform Effects
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9. Ecosystem Evolution
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Linear Value Chains Horizontal Platforms
“Any-to-any”
Ecosystems
LD 2018: Harness the Power of
Network & Platform Effects
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10. Networked Ecosystem
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LD 2018: Harness the Power of
Network & Platform Effects
Key Exchange
Host Assist
Pricing Data
Cleaning Services
Dynamic Pricing
ECOSYSTEM

11. Amazon
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LD 2018: Harness the Power of
Network & Platform Effects
• Lower Prices  increase customer visits
• Increase customers visits  increase
sales volume
• Attracts more commission 3rd party sellers
to site
• Increases economies of scale & greater
efficiencies by leveraging fulfilment
centers and server farms
• The loop accelerates

12. Digital Strategy
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LD 2018: Harness the Power of
Network & Platform Effects
New Space
Digital Tools
“Clicks and Mortar”
Digital Flywheel

13. Digital Journey
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LD 2018: Harness the Power of
Network & Platform Effects
Digital
Journey
Agile
Continuous
Delivery
Test and Learn
DevOps
Data-driven
Decision-
Making
Bi-Modal IT
Customer
Engagement
External
Collaboration

14. Harnessing the Power
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Network & Platform Effects

15. The Concept of the Flywheel – “Enabler”
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https://www.jimcollins.com/concepts/the-flywheel.html
https://www.jimcollins.com/article_topics/articles/the-flywheel-effect.htmll
LD 2018: Harness the Power of
Network & Platform Effects
© 2018 National University of Singapore. All Rights Reserved
• Jim Collins, author of “Good to Great”
- Start off with a few key initiatives
- Ensure these initiatives feed & drive by
each other
- Will build & enable business sustainability
- End result – the business sustainability
becomes self-reinforcing & self sustaining
- Company & Product goes from good to
great!

16. Typical Product Lifecycle…
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Gap in the
market?
Market in
the gap?
How to grow the market?
Product Market Fit Product Scaling / ExtensionProblem / Solution Space
Dev Scaling Sustainability ExitIdeation
Product
Scaling Product
Extension
LD 2018: Harness the Power of
Network & Platform Effects
© 2018 National University of Singapore. All Rights Reserved
What are the
pre-requisites
for scaling?

17. Network Effects – Defined…
Wikipedia: Positive Effect in economics & business also known as Network
Externality or Demand side economies of scale
Present when the value increases according to number of others using it
Direct and Indirect Network Effects
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Usage Value
Superior
Perceived
Value
What is
your USP?
© 2018 National University of Singapore. All Rights ReservedLD 2018: Harness the Power of
Network & Platform Effects
Customer
Validation
Customer
Engagement
Customer
Voice
Product
Market
Fit

18. Network Effects – Key Outcomes…
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Network & Platform Effects
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 Product Market Fit
 Costs increase
Linearly
 Value Increases
Exponentially
Source: Eric Jorgenson; Medium, Evergreen
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19. Platforms - Defined…
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Network of
User Groups
Multi-sided
Feedback
Flywheel
Effect
© 2018 National University of Singapore. All Rights ReservedLD 2018: Harness the Power of
Network & Platform Effects
It is a market place…a complex network of
interconnected business systems & infrastructure

20. The Ecosystem Intersection…
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Ecosystems
Networks
Platforms
 Separate but inter-related
 Independent and inter-dependent
Maximum advantage is gained when you
achieve the confluence of these 3 phenomena!
LD 2018: Harness the Power of
Network & Platform Effects
© 2018 National University of Singapore. All Rights Reserved
The philosophical question:
“Who came first - the Chicken or the Egg?”

21. Ecosystem Advantages Include:
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LD 2018: Harness the Power of
Network & Platform Effects
Entry Barriers
Economies of Scale
Recognition & Value
Financial Benefits
• “Moat” protection
• Market dominance
• Increased demand
& supply
efficiencies
• Value creation
• Market recognition
• Increase in sales,
revenue & profits

22. Power to Drive the Ecosystem…
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Network & Platform Effects
Differentiated
USP for different
Users
Product Market Fit –
effective Business
Models & GTM
strategy Develop Industry
collaboration
Leverage
Economies of Scale

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LD 2018: Harness the Power of
Network & Platform Effects
Source: Tata Consultancy Services

24. Product & Business at Scale
1) Ensure there’s a product market fit
2) Leverage the power of the Network,
Platform & Ecosystems to increase:
- Value Proposition
- Customer Base
- Sales and Profits
- Market Share
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Network & Platform Effects
© 2018 National University of Singapore. All Rights Reserved

25. Product
Thinking For
Organizations
Customer-
Centric vs
Market-
Centric
Internal vs
External
Collaboration
Stability vs
Speed
Recommended Courses
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LD 2018: Harness the Power of
Network & Platform Effects
Customer
Validation
Customer
Engagement
Customer
Voice
Product
Market
Fit
Product
Vision
Go to
Market
Growth &
Exit
Digital Product Strategy