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 a strategic 4-phase framework for transforming from products to platforms, crafted by ex-McKinsey and Big 4 consultants. Enhance your business model today. Products to Platforms is a 22-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.
The shift from products to platforms is under evaluation—and being implemented—by many organizations. The drive behind such a shift is 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.
However, this transition is anything but straightforward. Research into successful platform businesses reveals that such a transformation necessitates a robust approach comprising the following 4 critical phases:
1. Attractive Product and Customer Base
2. Hybrid Business Model
3. Rapid Conversion
4. Identify and Seize Opportunities
Implementing this 4-phase approach helps the organizations transform from a product mindset to a platform-based business model and develop additional value sources.
The slide deck also includes some slide templates for you to use in your own business presentations.
Transitioning from a product-based to a platform-based business model is a strategic imperative for modern enterprises aiming to stay competitive. This PPT provides a comprehensive guide on how to navigate this complex transformation. It delves into the nuances of building an attractive product and customer base, essential for the initial phase of platform development. The focus is on creating modular and flexible core products that invite third-party collaborations, enhancing customization and scalability.
Understanding the market conditions, catalysts, and challenges is crucial for a successful transition. The document outlines the importance of identifying where and when these changes are occurring and the obstacles that may impede progress. This insight is vital for organizations to adapt and respond effectively to market dynamics. The guide emphasizes the need for a hybrid business model, blending product and platform strategies to create differentiated value propositions.
Rapid conversion of product users to platform users is another critical aspect covered in this document. It highlights the necessity of developing a value-delivering platform that attracts and retains users. The document also provides practical examples and case studies, illustrating how successful companies have navigated this transition. By following the outlined approach, organizations can unlock new revenue streams and achieve sustainable growth.
This PPT slide outlines the transformation from traditional products to product platforms, focusing on 3 key areas: Conditions, Catalysts, and Challenges. "Conditions" addresses market environments where transformation occurs, with examples like home appliances and automotive manufacturers. "Catalysts" identifies driving forces that trigger market changes, emphasizing the importance of timing in transformation. "Challenges" highlights obstacles companies face, stressing the need for strategies to enhance responsiveness. A visual representation shows vulnerability and resistance across sectors, indicating that industries like chemical products may be more resilient than commodities and food. This framework aids executives in evaluating market dynamics and internal capabilities for successful transformation.
Adopting a hybrid business model is essential for transitioning from a product-centric approach to a platform-based strategy. Companies often overlook the need to prioritize external products on their platform, limiting their ability to leverage a platform mindset. The case study of LEGO Mindstorms illustrates this transition, where a security breach prompted a shift from a defensive product focus to transforming their software into a platform, enhancing user engagement and sales. Similarly, Apple initially restricted third-party applications post-iPhone launch due to security concerns, but later embraced an open platform with the App Store, diversifying revenue streams and improving user experience. Hybrid models can create significant income opportunities, emphasizing the need for organizations to shift from a product to a platform mindset to unlock growth.
This PPT slide outlines the transformation of traditional product-based companies into platform-oriented businesses, highlighting examples like Amazon, Google, and Apple. This shift is driven by the scalability and customer engagement advantages of platform models. Organizations must navigate 4 critical phases:
1. Establishing an attractive product and customer base as a foundation for growth.
2. Creating a hybrid business model that integrates product and platform elements for operational flexibility.
3. Rapid conversion from a product-centric approach to a platform model to capitalize on market opportunities.
4. Identifying and seizing opportunities through a proactive approach to market dynamics.
While complex, this transition can be guided by insights from successful platform businesses.
This PPT slide outlines 3 critical elements for rapid conversion from product users to platform users. First, delivering adequate value is essential; platforms like SF Express demonstrate that insufficient value leads to minimal customer engagement. Second, launching connected products that align with brand values enhances platform adoption, as seen with Qihoo's virus-free app store, which resonated with security-conscious users and reinforced brand identity. Third, involving third parties in product upgrades is crucial for refining offerings; Minecraft's transformation into a platform through third-party developer contributions exemplifies how this fosters innovation and user engagement. These elements guide organizations transitioning to a platform model, emphasizing value delivery, brand consistency, and collaborative development.
This PPT slide outlines the platform model's role in enhancing product appeal and expanding the customer base. A platform model requires an attractive product to draw a substantial customer base, essential for customer retention and competition mitigation. Success hinges on defensible products that attract a critical mass of customers, enabling value creation and third-party engagement for growth. Without this foundational customer base, the platform's viability is compromised. For example, Qihoo 360 Technology leveraged free antivirus software to build a user base, gather feedback, and enhance trust, allowing for expanded offerings and new platforms. Developing attractive products and a substantial customer base is a strategic imperative for companies transitioning into platform models, fostering loyalty and innovation opportunities.
Source: Best Practices in Product Strategy, Platform Strategy PowerPoint Slides: Products to Platforms Transformation 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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