This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Platform Business Models) is a 31-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
Enabled by new capabilities in the Digital Age, many organizations are trying to shift from a Products to Platform business model. The drive behind such a shift can also be attributed to the huge success of platform companies—e.g., Amazon, Google, and Apple. These organizations started out as a retailer, search engine, and computer manufacturer, respectively, but later transformed into Platform models.
In creating a Platform, there are 3 distinct Business Models that exist:
Each type of Platform Business Model has a different degree of control for the platform—and likewise, different level of autonomy for the participants. Building and managing a successful platform is difficult—it requires carefully balancing strategic tradeoffs among various participant groups. We examine each model in depth and provide numerous examples.
Additional topics discussed include Open Innovation, Markets vs. Communities, Type of Product Platforms, Platform Design, among others.
This deck also includes slide templates for you to utilize in your own business presentations.
This presentation delves into the intricacies of Open Innovation, emphasizing the pivotal decision between competitive markets and collaborative communities. It outlines the contrasting dynamics and governance structures of these two approaches, providing a comprehensive analysis to help you navigate the complexities of Open Innovation Management. The framework also explores the critical role of external innovators and how their contributions can be harnessed effectively within different market structures.
The PPT further breaks down the three primary platform business models—Integrator, Product, and Multisided Platforms (MSP)—highlighting their unique control mechanisms and participant autonomy. Detailed examples and case studies illustrate the practical applications and strategic considerations for each model. This resource is essential for executives aiming to leverage platform strategies to drive innovation and growth in their organizations.
Source: Best Practices in Business Model, Platform Strategy PowerPoint Slides: Platform Business Models PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
This PPT slide outlines 4 essential strategic decisions involved in developing a Multi-Sided Platform (MSP) strategy. It emphasizes the importance of these decisions in crafting a successful MSP, which has become a prevalent business model in recent years. The slide identifies the key areas of focus: the number of sides, platform design, pricing structure, and governance.
The "Number of Sides" refers to the different user groups that interact within the platform. This decision is crucial as it determines the platform's overall structure and the dynamics of user engagement. Each side must be carefully considered to ensure that the platform can effectively facilitate interactions among its participants.
"Platform Design" addresses how the platform will function and the user experience it will provide. This includes the technical architecture, user interface, and the overall usability of the platform. A well-designed platform can enhance user satisfaction and retention, which are critical for long-term success.
The "Pricing Structure" is another vital decision. It involves determining how to monetize the platform while balancing the needs and expectations of different user groups. This could include subscription models, transaction fees, or freemium options. The right pricing strategy can significantly impact user acquisition and revenue generation.
Lastly, "Governance" pertains to the rules and policies that will govern interactions on the platform. This includes user agreements, dispute resolution mechanisms, and overall platform management. Effective governance is essential for maintaining trust and ensuring a smooth operation.
These 4 strategic decisions are interconnected and require careful analysis to build a robust MSP that meets market demands. Understanding these elements can provide valuable insights for potential customers looking to navigate the complexities of platform strategy.
This PPT slide provides a comparative analysis of 3 distinct platform business models: Integrator Platform, Product Platform, and Multisided Platform (MSP), focusing on the varying levels of control exerted by the platform and the autonomy granted to external innovators.
The Integrator Platform is characterized by the highest degree of control. It allows the platform to completely lock out external innovators, thereby maintaining significant leverage over them. This model enables the platform to dictate technical specifications that must be adhered to for any external solutions to be integrated. Such stringent control ensures that the platform can maintain quality and consistency across its offerings.
In contrast, the Product Platform retains some control, but allows for greater autonomy for innovators. The platform can impose certain restrictions, particularly regarding technical specifications. However, it no longer maintains ownership of the customer relationship, which empowers external innovators to engage more freely with customers. This shift can lead to increased innovation and responsiveness to market needs.
The Multisided Platform (MSP) represents the model with the least control. Innovators operate with a high degree of autonomy, as they do not need to engage directly with the platform owner during product development. The platform's control is primarily exercised through contractual and regulatory frameworks, which set the terms of usage for the innovators. This model can foster a more dynamic ecosystem, but may also introduce challenges in maintaining quality and coherence across the platform.
Understanding these distinctions is crucial for organizations considering which platform model to adopt, as the level of control directly impacts innovation strategies and market engagement.
This PPT slide presents an overview of various types of Product Platforms, emphasizing their integration of features from different platform categories. It defines a Product Platform as a specialized type that can be enhanced through the development of new functionalities, catering to both B2B and B2C markets. The structure is divided into 4 distinct categories: Aggregation Platforms, Social Platforms, Mobilization Platforms, and Learning Platforms.
Aggregation Platforms are characterized by their ability to facilitate transactions and connect users with resources. They typically operate on a hub-and-spoke model, which suggests a centralized approach to managing interactions. This model is essential for organizations looking to streamline processes and improve efficiency in transactions.
Social Platforms focus on facilitating social interactions and connecting individuals within communities. They are designed to foster mesh relationship networks, which can enhance collaboration and engagement among users. This type of platform is crucial for businesses aiming to build strong community ties and enhance user loyalty.
Mobilization Platforms are geared toward facilitating collective action. They aim to move people together to achieve shared goals, promoting longer-term relationships. This aspect is vital for organizations that rely on teamwork and collaboration to drive results.
Finally, Learning Platforms emphasize the importance of facilitating learning. They bring participants together to share insights over time, fostering deep, trust-based relationships. This approach is particularly beneficial for organizations focused on continuous improvement and knowledge sharing.
Overall, the slide effectively outlines how Product Platforms can leverage the strengths of various platform types to create a more robust offering, appealing to potential customers looking to enhance their operational capabilities.
This PPT slide presents an overview of 3 distinct business models for platforms: the Integrator Platform, Product Platform, and Multisided Platform (MSP). Each model is visually represented with icons and brief descriptions, highlighting their unique characteristics and functions.
The Integrator Platform is positioned as a mediator between external innovators and customers. This model emphasizes the platform's role in facilitating interactions, suggesting that it creates value by connecting these 2 parties. The description implies that the platform owner maintains a significant level of control over the engagement process.
Next, the Product Platform is illustrated as a model where external innovators have direct access to customers. This setup indicates a more decentralized approach, allowing innovators to engage with customers without intermediary constraints. The implication here is that this model may foster innovation and responsiveness to customer needs, as external parties can directly influence product offerings.
Finally, the Multisided Platform (MSP) is depicted as a model where external innovators and customers can transact directly. This structure suggests a high degree of openness and flexibility, enabling various stakeholders to interact without the platform owner acting as a gatekeeper. The slide notes that a critical difference among these models lies in the level of control exercised by the platform owner, which can significantly impact operational dynamics and strategic positioning.
Overall, this slide serves as a foundational overview for understanding platform business models, providing insights into how different structures can influence innovation, customer engagement, and operational control. It is essential for decision-makers to consider these distinctions when evaluating platform strategies.
This PPT slide outlines the contrasting dynamics between competitive markets and collaborative communities within the context of open innovation. The left side details characteristics of competitive markets. Here, external innovators contribute variations of components that are interchangeable, emphasizing a formal governance structure that relies on strict, rule-based relationships. The focus is on profit, with external innovators often engaged in competitive interactions. Value capture for platform owners is achieved through direct contracts and licensing agreements with these innovators.
On the right side, the slide shifts to collaborative communities. It highlights a more informal governance style, where contributions from external innovators can vary from simple component offerings to co-production efforts. Relationships among innovators are cooperative, fostering technology sharing and deliberate spillovers. This environment encourages a blend of motivations—both intrinsic and extrinsic—that drive innovation activities. Notably, value capture in this model may not be direct; instead, it is linked to increased demand for the platform resulting from the innovations contributed by the community.
Examples provided reinforce these concepts. Competitive markets are illustrated with references to Nintendo Wii and the Apple App Store, where third-party developers are incentivized to create competing products. In contrast, open-source software communities like Linux and Ethereum exemplify collaborative communities, showcasing how shared innovation can thrive in less formal structures. This slide effectively delineates the strategic choices organizations face when considering their approach to open innovation.
This PPT slide presents an overview of the Product Platform model, emphasizing the role of external innovators who operate between the platform and the end customers. It highlights that these innovators leverage foundational technology to sell products directly to consumers, which alters the dynamics of customer relationships. The platform retains some control, particularly over design restrictions,, but the direct engagement with customers is diminished.
Key points include the potential erosion of revenue and margins for standardized products as third-party customization options become more prevalent. This suggests a shift in market dynamics where external innovators can disrupt traditional pricing and product strategies. The slide warns of increased risks if these innovators decide to integrate upstream, which could further complicate the platform's position.
The text also notes that innovators typically have the autonomy to set prices and maintain control over technical developments. This flexibility can be advantageous, allowing for the introduction of new features and products tailored for both B2B and B2C markets. The effectiveness of a product platform is tied to its reach and the perceived value of its offerings; a broader appeal can attract more participants to utilize the platform.
Overall, the slide underscores the importance of understanding the implications of the Product Platform model for businesses considering this approach. It suggests that while there are opportunities for innovation and market expansion, there are also significant challenges related to control and customer engagement that must be navigated carefully.
This PPT slide provides a comparative overview of integrator platforms across 2 distinct categories: competitive markets and collaborative communities. On the left side, examples of competitive markets are listed, showcasing companies that operate within traditional competitive frameworks. Apple Inc.'s iPhone, with its application store, is highlighted as a leading example, emphasizing the company's dominance in the mobile ecosystem. InnoCentive illustrates a platform for scientific problem-solving, while Local Motors Inc. focuses on car design, demonstrating innovation in the automotive sector. Ryz and TopCoder Inc. are also included, representing footwear and software development, respectively.
The right side of the slide shifts focus to collaborative communities, where platforms thrive on user interaction and shared contributions. Threadless serves as an example of a community-driven T-shirt design platform, allowing users to submit and vote on designs. Google Android is noted for its collaborative approach to software development, where various developers contribute to the operating system's evolution.
A key takeaway is the distinction made between the operational models of these platforms. While Apple and Android both operate in the mobile space, they embody different strategies: one is a market-driven approach, while the other fosters community engagement. This differentiation is crucial for stakeholders to understand when assessing potential partnerships or investments in platform-based businesses. The slide effectively illustrates how integrator platforms can vary significantly in their operational dynamics and market positioning.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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