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.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
ABOUT FLEVYPRO
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Trusted by over 10,000+ Client Organizations
Since 2012, we have provided business templates to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact
that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world.
"
– Roberto Pelliccia, Senior Executive in International Hospitality
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."
– David Coloma, Consulting Area Manager at Cynertia Consulting
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."
– David Harris, Managing Director at Futures Strategy
"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."
– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"
– Debbi Saffo, President at The NiKhar Group
"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.
The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."
– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.
"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for
the customer, Flevy and the various authors. This is truly a service that benefits the consulting industry and associated clients. Thanks for providing this service.
"
– Jim Schoen, Principal at FRC Group
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.
Click main image to view in full screen.
