Author(s): Geoffrey G. ParkerDownload
Publish: Published March 28th 2016 by W. W. Norton Company (first published February 22nd 2016)
Uber. Airbnb. Amazon. Apple. PayPal. All of these companies disrupted their markets when they launched. Today they are industry leaders. What’s the secret to their success?
These cutting-edge businesses are built on platforms: two-sided markets that are revolutionizing the way we do business. Written by three of the most sought-after experts on platform businesses, Platform Revolution is the first authoritative, fact-based book on platform models. Whether platforms are connecting sellers and buyers, hosts and visitors, or drivers with people who need a ride, Geoffrey G. Parker, Marshall W. Van Alstyne, and Sangeet Paul Choudary reveal the what, how, and why of this revolution and provide the first “owner’s manual” for creating a successful platform business.
Platform Revolution teaches newcomers how to start and run a successful platform business, explaining ways to identify prime markets and monetize networks. Addressing current business leaders, the authors reveal strategies behind some of today’s up-and-coming platforms, such as Tinder and SkillShare, and explain how traditional companies can adapt in a changing marketplace. The authors also cover essential issues concerning security, regulation, and consumer trust, while examining markets that may be ripe for a platform revolution, including healthcare, education, and energy.
As digital networks increase in ubiquity, businesses that do a better job of harnessing the power of the platform will win. An indispensable guide, Platform Revolution charts out the brilliant future of platforms and reveals how they will irrevocably alter the lives and careers of millions.
Some Reviews: 1,835 ratings 176 reviews in Goodreads.com
The core idea of the book talk about the new important role of platform in our present business where a incredible unlimited value is created by the free exchange flow among users and producers . And also the method to build it.
Why does it happen?
It’s because of the Internet which has totally changed the 21st business landscape. It has enabled 3 unlimited capabilities: Production, Distribution and Customization. The key to a successful platform is defining the core interaction which kind of value exchange will be the center of the platform and how it will process. In this interaction, a business have to define clearly 3 essential factors: Participants, value unit and filter and 3 corresponding functions: pull-participants, facilitate-value unit, and match-filter.Participants(Users, Producers and Managers): It bases on the advent of relationship trigger between users & producers. In another word, the growth of a side will lead to the traffic attract of the other side to the platform.In this platform, a participant can be both a user and a value creator(producer).
A manager(the business itself) have to be the one who will control the advent of value exchange.
Value unit creation: Platform is a new model of business in which a business no longer is the one creating values or make the end-to-end supply for customers, but become a intermediary which enables value exchange amongs multi-partners in communities. Platform enables users to create more values.
Necessary Requirement(Filter): To make this the business require a good filter system for participants to match the need amongs enormous participants from users and producers or else the platform will collaspe because of the overload informations and participants.
On another hand, with the platform, a business has to build their key metrics to measure what really matters. It almost about the interactions, the value creation and engagement of customers.
The book is very comprehensive, i.e. it has covered all the possible use cases that a platform could tackle, it has addressed all the issues that a platform could alleviate. The book is very impressive. They have produced a master piece. I have read this book after reading – The Power of Little Ideas, which also talks about building ecosystems or the third way of innovating. This book is a more formal approach toward such ecosystems and building a platform is one of the best business models. They have also included the situations in which platforms work and when they won’t! Towards the end the chapter about regulation is very boring, though it is important, but as with any other matter related to government this couldn’t be any interesting. So I don’t blame them, but they have included, in extreme detail, everything related to building platforms! I just loved the way they tackled the subject, they used examples that were most apt to each situation. This is definitely one of the best books that I have read so far and it is only one month into 2019! The value added by this book is immense i.e. every chapter adds value! The authors have never let a single sentence go to waste i.e. they did not drag on! They hit the target repeatedly. Their sentences are terse and they were complex and compound sentences, almost all of them. This happens when the authors are desperately trying to stuff more content into less number of lines. I just loved the way they tackled the issue in depth! But the book is very long, though the authors tried to stuff content into less number of pages. The bandwidth required to absorb the content in this book is huge. i.e. I had to take more breaks in between reading sessions!
This book describes thoroughly the concept of the platform business and how its powerful model is going to disrupt and dominate in this era (or as quoted by the author, “The Platform is Eating the World”) . The book is a great resource for someone who is building and running a platform startup, running a division of a company that operates as a platform, selling products and services through a platform or just understanding the macroeconomic trend that is coming.The author goes in-depth into the platform business and contrasts it with the traditional pipeline business, citing examples from existing platform business. The reader will learn many useful strategies in building successful platforms. Some of the ideas I gained from the book include: relentless focus of core interaction, focusing on the value to the producers; effective curation of network participants and leverage positive network effect; the service interface architectural principle in building the platform; the importance of governance – creating rules that govern how the participants in the platform should operate.
This is quite an academic book on the concept of platforms and how to make such businesses successful. Platforms as a concept and business model mean that managers have to focus on balancing each side and fostering value exchange in order to enjoy network effects. In contrast to pipeline businesses, platforms employ open innovation and therefore can scale much faster. The regulation of the ecosystem is crucial to ensure all stakeholders are happy. It indicates that next industries prone to revolution are finance, energy, education & medicine. Overall an interesting book, slightly to academicals and marginal value added for me.
Listened to audiobook while highway driving. Lots of good points, about how many platforms are replacing traditional modes of business. Air BnB disrupting the hotel industry, Lyft and Uber disrupting the taxi/limo industry, and the like. I wish the author had a little more gender sensitivity–he referred to “ladies’ night” at the bar repeatedly to illustrate some points. Surely there is a better analogy. And frankly, the narrator on the audio version was a bit dry. Otherwise, fine for a business book!