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The Strategy of Platforms
- 1. The Strategy of Platforms CarlKatz VP of Channel Sales, Nextiva
- 2. What is aplatform?
- 4. • Connect individualsand organizations • For a common purpose or to share a common resource • So they can innovate or interact in ways not otherwise possible with the potential for nonlinear increases in utility and value • “Network effect” - each additional user can benefit from access to all the other users and innovations already available through the platform Platforms:
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- 6. Transaction Platforms: Large intermediariesor online marketplaces • Enable users to share information or to buy/sell/exchange • The technology and scale is what makes these platforms powerful • Value derivedfrom collecting transaction fees or advertising
- 7. Innovation Platforms: “Technological buildingblocks”that are shared to facilitatethe development of new complementary productsand services (usually by a 3rd party) • Enable users to build upon it, make it even better,and add ancillary services • ARPU: 4-5 times higher because they enable users to do more • 3-4x greater valuethan transactionalbecause innovation platforms givecustomers the ability to do more • Valuederived from selling/renting the platform or through advertising or selling ancillary services • Nextiva is an innovation platform: On top of the UCaaS platform, we havebuilt/added SaaS tools to increase productivityand gain competitiveedge in market, and opened up APIsto enhanceuser experience (IVR and other integrations),and on one platform.
- 8. Hybrid Platforms: TheMix of Both • Facilitate transactions while also allowing development of additional technology to be built onto/into their platforms • Many times, firms start with one type of platform (transactional or innovation) and build and integrate the second (ex: add a marketplace), or simply support both types of platforms.
- 9. • Seen asmore profitable and more valuable in the world economy than transaction platforms o Companies are often 4 to 5 times larger in terms of median sales and employees o Median Market Value: 3 times higher than tran • More value to the customer per unit, so the platforms can charge more per license o Avg Revenue Per Unit (ARPU): 4-5 times higher because the platforms enable users to do more • Complementary technology, usually developed by a 3rd party, stimulate demand for the platform by making new products and services that add significant value • The more complementary technology that is developed and added to a platform, the stickier the customers will become o Sticky customers = longer annuities. Benefits of an Innovation Platform
- 10. Benefits of anInnovation Platform Stickier Customers → Larger & Longer Annuities
- 11. PLATFORMS ARE THE FUTUREOF UCaaS
- 12. • Scalability: Thefuture value of a UCaaS company is dependent on their product portfolio and scalability of their product set • Customers want to minimize disparate tools and applications behind a single pane of glass • UCaaS Innovation Platforms are the future, as customers look for added functionality beyond the typical telephony/collaboration Platforms are the future of UCaaS
- 13. Platforms are thefuture of UCaaS • Example: Nextiva & Nextiva NextOSSuites o With NextOS Suites, Nextiva has developed added SaaS technology on top of our UCaaS platform o CRM, proactiveweb chat, surveys,customer sentiment technology goes beyond telephony o NextOS Relationships suites will eventually integratewith other UCaaS solutions • Nextiva is an innovation platform that enables customers to gain a competitiveedge in their market utilizing SaaS tools • API Access to enhance product experience with integrationsthat can assimilate into our product scope (ex: Inferencefor Advanced IVR) • As customers adopt more of the complementary NextOS SaaS technology (example: chat or CRM), they become stickier with the Nextiva platform and will maintain a longer lifecycle with the technology leading to partnersgetting longer annuities.
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