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.
Explore platform business models with insights from ex-McKinsey & Big 4 consultants. Analyze Integrator, Product, and MSP strategies for digital transformation. Platform Business Models is a 31-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download 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.
This PPT slide outlines 4 strategic decisions for developing a Multi-Sided Platform (MSP) strategy: number of sides, platform design, pricing structure, and governance.
The "Number of Sides" refers to the distinct user groups interacting within the platform, influencing its structure and user engagement dynamics.
"Platform Design" encompasses the technical architecture and user experience, critical for enhancing user satisfaction and retention.
The "Pricing Structure" involves monetization strategies, such as subscription models and transaction fees, balancing user needs and revenue generation.
"Governance" includes rules and policies for interactions, essential for maintaining trust and smooth operations.
These interconnected decisions require careful analysis to create a robust MSP that meets market demands.
This PPT slide presents an overview of 3 distinct platform business models: Integrator Platform, Product Platform, and Multisided Platform (MSP). The Integrator Platform mediates between external innovators and customers, creating value through facilitated interactions while maintaining control over engagement. The Product Platform allows external innovators direct access to customers, fostering innovation and responsiveness without intermediary constraints. The Multisided Platform (MSP) enables direct transactions between external innovators and customers, promoting openness and flexibility without gatekeeping by the platform owner. A critical difference among these models is the level of control exercised by the platform owner, impacting operational dynamics and strategic positioning.
This PPT slide analyzes 3 platform business models: Integrator Platform, Product Platform, and Multisided Platform (MSP), focusing on control levels and autonomy for innovators. The Integrator Platform exerts the highest control, allowing the platform to dictate technical specifications and lock out external innovators, ensuring quality and consistency. The Product Platform provides some control while granting greater autonomy to innovators, who can engage directly with customers, fostering innovation and responsiveness. The Multisided Platform (MSP) offers the least control, allowing innovators to operate independently during development, with platform control exercised through contractual frameworks. This model can create a dynamic ecosystem, but may challenge quality coherence. The level of control influences innovation strategies and market engagement.
This PPT slide compares integrator platforms in competitive markets and collaborative communities. Examples of competitive markets include Apple Inc.'s iPhone, showcasing dominance in the mobile ecosystem, InnoCentive for scientific problem-solving, and Local Motors Inc. for automotive innovation. Ryz and TopCoder Inc. represent footwear and software development, respectively. In collaborative communities, Threadless exemplifies a user-driven T-shirt design platform, while Google Android highlights a collaborative software development model. The key distinction lies in operational models: Apple employs a market-driven approach, whereas Android fosters community engagement. Understanding these differences is essential for stakeholders assessing partnerships or investments in platform-based businesses.
This PPT slide provides an overview of Product Platforms, defining them as specialized systems that integrate features from various categories, enhancing functionalities for B2B and B2C markets. The 4 categories include:
1. Aggregation Platforms: Facilitate transactions and connect users through a hub-and-spoke model, streamlining processes and improving transaction efficiency.
2. Social Platforms: Foster social interactions and mesh relationship networks, enhancing collaboration and user loyalty.
3. Mobilization Platforms: Promote collective action and teamwork to achieve shared goals, vital for organizations focused on collaboration.
4. Learning Platforms: Facilitate knowledge sharing and trust-based relationships, supporting continuous improvement.
These platforms leverage strengths from different types to enhance operational capabilities.
The Product Platform model highlights the role of external innovators who utilize foundational technology to sell products directly to consumers, impacting customer relationships. This model risks eroding revenue and margins for standardized products as third-party customization increases, indicating a shift in market dynamics that could disrupt traditional pricing strategies. Innovators often set their own prices and control technical developments, enabling tailored features for B2B and B2C markets. The effectiveness of a product platform relies on its reach and perceived value, with broader appeal attracting more participants. Businesses must navigate challenges related to control and customer engagement while exploring opportunities for innovation and market expansion.
This PPT slide outlines the dynamics of competitive markets versus collaborative communities in open innovation. Competitive markets feature external innovators providing interchangeable components under a formal governance structure, focusing on profit through contracts and licensing agreements. In contrast, collaborative communities adopt an informal governance style, encouraging cooperative relationships and technology sharing, with contributions ranging from simple components to co-production. Value capture in collaborative models is linked to increased platform demand driven by community innovations. Examples include competitive markets like Nintendo Wii and Apple App Store, contrasted with open-source communities like Linux and Ethereum, illustrating the strategic choices organizations face in open innovation approaches.
Source: Best Practices in Business Model, Platform Strategy PowerPoint Slides: Platform Business Models PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
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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