From footpath to Facebook: Building a platform

I’ve been interested in what constitutes a “platform” and how platforms spawn and nurture ecosystems for quite some time.  We’ve been exploring these ideas in this blog over the last few months.

In this post I’d like to start identifying some of the key factors that anyone thinking about innovating or building a platform must consider.  To do that, I’d like to start, as the title suggests, by reviewing the first platforms.

The first platforms were paths, rivers and other means of improving human interaction and communication.  As interactions were improved and information flowed more easily, civilization, which is just a form of an ecosystem on a platform, developed.  Roads, canals and other forms of improved transportation simply became a better platform, and allowed the Romans to create financial and trade mechanisms not equaled until the 19th century. Continue reading

Platform understanding is growing

I have put some focus back on the platforms recently, as this is becoming a real imperative to understand the whole meaning and implications of platforms, with the necessary management they require, so as to enable us to rethink different business models for the future.

There are without doubt real business implications in taking on a platform strategy as they really will be having such a transforming effect on all we do within companies and way beyond with others, including customers and even past competitors. They uproot the present and much of the established practicies.

They are changing the face of markets, industries, and competition but we within the established business world, mostly formed in the 20th centure seem slow to recognize their incredible impact, if we applied this platform thinking towards our own business, what would it mean?

There is a recognition that all innovation does not occur inside, it occurs from ‘open’ collaboration. It occurs from engagement and appreciating many others have better insights and possible answers, it is the power of combining them that has such economic consequence and great value creation potential. Our businesses are all becoming based on platforms.

The difficulty for many of us is first understanding what a platform is all about. The getting a clearer picture of the different types of platforms. Each has different tasks in building their specific “network effect” and how they are set up to interact and the type of problems they are attempting to solve. Some are really open, some are seeking growth, some are seeking collaborators to come together and work on ‘cracking’ more complex problems that one individual company would not be able to do.

In some of my recent updating of the platform breaking scene, I came across a terrific site that has created an open initiative to help entrepreneurs and organizations of all sizes to relate and build successful platform businesses, called Platform Hunt. Continue reading

Moving beyond the “ten types” of innovation

Many innovators are familiar with the concept of the “ten types” of innovation developed by Doblin.  If you aren’t familiar with the model, it describes different potential outcomes for innovation, beyond “product” innovation.

Doblin’s ten types includes innovation outcomes based on channels, business models, services, customer experiences and other factors.

As a fan of the model, I return to it and reference it constantly, because far too many innovators narrow their focus and only create new product innovations, when markets and customers are clearly interested in much broader and more diverse innovations.

But as a fan of the ten types model I can also see some of its shortcomings, and one of those is its lack of “depth”.  The ten types model expands the perspective of innovation in terms of breadth – from a single outcome called “product” to a range or spectrum of offering types.  But the model lacks definition around “depth” – building a description of a platform or ecosystem of innovation.  Continue reading

Ecosystem approaches are simply radically different, be ready.

There are significant differences between the ecosystems we might consider. Let’s reflect a little here, some recap and explore some further thoughts.

They all have complexity, they all need highly collaborative platforms to exchange and build through, they all need constant focus on aligning individual ecosystem players needs with the vision and prospective rewards this can bring to all participating parties.

The more engagement with the final ‘consumer’ throughout the process of insight,  discovery to solution building, to eventual proposition outcomes needs the highest ‘active’ attention and communicating for all involved.

Continue reading

Adjusting to the Changing Landscape of Ecosystems

the changing landscape for ecosystem and platform thinking

We all are being told repeatedly that opportunities will increasingly emerge outside of the traditional established lines of business, as new digital technology solutions take increasing hold in our adjusting to the changing landscape of our thinking in ecosystem designs.

The issue is how we go about adapting to these and taking advantage of the changes all businesses are undergoing. These will be through different approaches to designing and extracting the potential value gained and will form around ecosystems and their management, through technology solutions provided by platform providers.

I am not sure how you feel, but It seems disruption is in everything, in what we need to undertake, in what is coming towards us in change. It has a common purpose, often far less sinister than promoted.

Disruption is requiring us to re-equip and open up, as we learn to deal in this changing world where connections can emerge from anywhere at any time, offering a new ‘line of sight’ onto an existing business concept.

We need to respond quickly and in those different, collaborative ways. Digital challenges are everywhere, to explore and exploit. Continue reading

The Future Is Within Health Ecosystems

Source: IBM Institute for Business Value

I have struggled to get my head around the effect of ecosystems within the healthcare system; it is so complex.

In recent weeks, I have recognized the barriers and opportunities around the challenges of building ecosystems for health services to deliver real change within our healthcare and its management.

To help me, I have found some excellent observations to gain this deeper appreciation of the complexities involved. The links are shown at the bottom of this post.

This is my opening summary to relate my understanding of how ecosystem designs might help change this vital sector of our economies.

The first starting point is that the patient themselves have to become the centre of any future healthcare system, based on ecosystem solutions. Why? Firstly, the patient or customer will increasingly be demanding and expecting personalized treatment and want to be able to shop around to achieve this. Secondly, they are expecting and wanting to be part of a controlled method and choose advice and care delivery more than ever. Thirdly, they will shop for quality and cost as the cost models will increasingly look for this personalization to determine the premiums. The final customer will be central to drive the change, and the providers of ‘services’ keen to reposition themselves as responsive to this ‘need.’

Continue reading

Blockchain and distributed ledgers as innovative platforms

It had to come to this eventually.  The emergence of Blockchain and distributed ledger systems illustrates how innovation is moving from focus on products and services, which are interesting but don’t provide a long-lasting competitive advantage, to a focus on platforms and ecosystems.

Over the last few weeks this need for a lasting competitive shift in focus was emphasized as Ford pushed out its CEO because he wasn’t changing the company fast enough. As discussed in this blog previously, the automotive sector must rethink its competitive position.  Increasingly, people want flexible transportation – from cabs, Uber, public transportation and/or their cars.

The automotive manufacturers (Ford, GM, Fiat, Mercedes, etc) must shift their focus from building physical cars to providing transportation – a shift in thinking and strategy.

In a very similar manner we can see that banking and financial services are moving from offering discrete services (mortgages, loans, checking/savings accounts, etc) and are considering how to either own or integrate with larger platforms and ecosystems, because the older conventions are less attractive to emerging customers and technology is advancing so quickly that soon many different companies and industries can offer banking-like services.

Distributed ledgers and Blockchain may point out a new competitive platform that some firm is going to capitalize on.  For example, we can imagine a time in the not too distant future where a large company that supports and relies on an extended supply chain – the automotive industry for example – could dictate that all of its supply chain participants must interact using Blockchain.  Then we’d have a company spanning, industry wide ERP like platform.  If this sounds crazy, don’t laugh.  The government of Dubai just announced that within five years every entity that interacts with the government must do so using Blockchain.

Continue reading

Many-to-Many (M2M) Business Ecosystems are far more challenging

Our experiences determine to a large degree, success or failure. When you are reliant on others to collaborate and exchange knowledge, for the better good, you need to make sure there is a consistent validation process.

Building the multi-sided solutions where an ecosystem of providers is collectively working towards finding solutions that radically advance on existing ones, you have to enter these type of relationships with your eyes wide open, they are extremely hard and demanding.

They are complex in their relationships, collaborating and exchanging knowledge and expertise to get to a given ‘transformation’ point. You have to become adaptive.

They are differences in the different types of business platforms and who engages with whom and where they enter the value building chain. In my last post “Seeing differences between B2C and B2B within Ecosystems and Platforms” I covered the major differences between them.

Here in this post, I explore the considerable differences between ones that are one-to-many in the relationship that most of our digital platform solutions have been evolving into (B2B, B2C) and many-to-many. The complexity rises to a very different level. Continue reading

Seeing differences between B2C and B2B within Ecosystems and Platforms

Jeffrey wrote a recent post “No walled gardens in B2B platforms” and started with this: “Paul and I have noted throughout our writings on platforms and ecosystems the key differences between companies that interact primarily with consumers (B2C) and companies that interact primarily with other corporations (B2B)”

I wanted to highlight some key differences as a follow-up post and was beginning to work on this when up “pops” a really valuable article by McKinsey “Finding the right digital balance in B2B customer experience”.

Jeffrey and I have championed the idea that customer experience is the ultimate innovation outcome, based on strong ecosystems and platforms so this caught my attention. The article does a good job of focusing the B2B companies to putting customer-centricity and experiences at the heart of their strategy. This offers good advice on the one-to-one model but less on the complications of many businesses working with other business on a two-sided platform of multiple participants

The writers for this McKinsey article, rightly point out the root of the problem is that while the role of customer journeys is central to both B2B and B2C, their incidence and importance are different for B2B and they go on and explain the chief differences.

I’d like to “lift out” these four chief differences McKinsey defines and discuss these more in the multi-sided platform context and ecosystem needs, going beyond the customer experience ones. Continue reading

No walled gardens in B2B platforms

Walled Garden Illustration by David Simonds

Paul and I have noted throughout our writings on platforms and ecosystems the key differences between companies that interact primarily with consumers (B2C) and companies that interact primarily with other corporations (B2B).  This difference is especially important when we begin to think about platform dominance.

You see, Facebook interacts primarily, almost exclusively, with customers (B2C) as such it’s platform serves to provide almost the entire interaction between Facebook and its customers.  We could almost return to the days of old, when AOL was your conduit to the internet, when we talked about “walled gardens”, because that’s what many of the pure play B2C platforms are – walled gardens, meant to provide as much of the platform as possible.  Their goal is “stickiness”, attracting you and keeping you plugged into their platform, consuming their content.

On the other hand, industrial companies are definitely as engaged in platform development, but their solutions require more than one platform. Continue reading