V09 From products to platforms
Key Conzepts: - Platforms - Step processes and options - Product architecture - Platform strategies Abilities: - Critical assessment of different platform strategies - Understanding what makes a product a platform -
Key Conzepts: - Platforms - Step processes and options - Product architecture - Platform strategies Abilities: - Critical assessment of different platform strategies - Understanding what makes a product a platform -
Set of flashcards Details
| Flashcards | 19 |
|---|---|
| Language | Deutsch |
| Category | Micro-Economics |
| Level | University |
| Created / Updated | 05.01.2020 / 13.01.2020 |
| Licencing | Not defined |
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What is the definition of platform.
- A platform is a foundation technology or service that is essential for a broader, interdependent ecosystem of businesses
- The platform requires complementary innovations to be useful, and vice versa
Name 2 different functions for performance of a step-processs and platform functions.
Variance:
Random spread out of the performance of production steps / platform complements from the average.
Options:
Things (complements) you can decide to choose. -> only exists for options!
What is sharing economy and what are its effects.
Sharing economy is a way of distributing goods and services, where individuals are said to rent or share things like their cars, homes and personal time to other individuals in a peer-to-peer fashion.
Effects:
- Much more employees (individuals on platform)
- Only few make money (platform owner)
Explain the effect of performance variance in a step-function vs. on a platform.
Given a performance variation in process/element of: 20, 40, 60.
What is the total performance in a step-function bzw. platform?
Step-function:
The performance of the whole supply chain is determined by the bottleneck performance. Therefore performance variance is contraproductive. Total Performance: 20.
Platform:
On a platform the option with the highest performance can be chosen. Performance variance is good for platforms. Total Performance: 60.
What are de characteristics of step process and platform organizations?
- Step process (result in large, vertically integrated firms)
- Interdependence
- Hierarchy
- Coordination
- Risk-aversion
- Integrality
- Platforms (result in small firms with large ecosystems)
- Independence
- Openness
- Option value
- Risk increase (for complements!)
- Modularity
- Innovation, variation
processes are becoming platforms. Why now?
Digitalisazion is a great catalyst because of the following features.
- Separating information from physical assets
- Explosion of access
Name two different types of Platforms. Describe, give an example and explain what they rely on.
Transaction Platforms:
"Serves as an intermediary for direct exchange." - rely on commitment
(Bsp: Air BNB, Twiter, App-Stores)
Innovation Platforms:
"Serves as a technological foundation upon which other firms develop complementary innovation" - rely on investment
(Bsp: Apple IOS, Andriod, Linux, Nintendo)
Hybrid Companies:
"Take both roles of an transaction and innovation platform"
(Bsp: Apple, Google, Microsoft, Facebook, Amazon)
Chicken and egg problem: If network effects are important how do you get the interacting groups/customers on board? Name 3 possibilities with an example each.
- Create stand-alone value for customers (Single-Player mode for X-Box)
- Subsidize one or multiple sides (TWINT pays for signin in)
- Bring aboard multiple sides at the same time (UBER starting in one city and exand)
