"Pipelines, Platforms, and the New Rules of Strategy" Article

What are the chief assets of a platform business?

(1) Information (2) Interactions

As Apple demonstrates, firms don't need to be only a pipeline or a platform, they can be _______________.

both

Because platforms require new approaches to strategy, they also demand new _______________ styles.

leadership

The _______________ roles that players assume can be either accretive or depletive.

new

An _______________ _______________ allows players to access platform resources and create new sources of value.

open architecture

Most successful platforms similarly manage _______________ to maximize positive network effects.

openness

In a pipeline's world, resources include... ?

tangible and intangible assets

The larger a company's network means... ?

the better the matches between supply and demand and the richer the data

Managers of pipeline business focus on what?

Growing sales

_______________ serve as the platform's interface with users.

Providers

What is an example of a depletive role swap in a platform business?

Providers competing with owners

Platforms often launch with a _______________ architecture and governance.

closed

In _______________, Apple was a weak, non-threatening player than was surrounded by big companies.

2007

_______________ use provider's offerings.

Consumers

_______________ _______________ allows players other than the owner to shape the rules of trade and reward sharing on the platform.

Open governance

_______________ businesses bring together producers and consumers in high-value exchanges.

Platform

Pipeline firms organize their internal labor and resources to create value by _______________ an entire chain of product activities.

optimizing

The _______________ of platforms control their intellectual property and governance.

owners

Some platforms encourage producers to create high-value offerings on them by establishing a policy of "_______________ _______________"

permissionless innovation

Greater _______________ generates more value, which attracts more _______________, which creates more _______________.

scale, participants, value

The platform's external orientation allows them to _______________ _______________ _______________ of production.

shed variable costs

What are the three key shifts in going from pipeline to platform?

(1) From resource control to resource orchestration (2) From internal optimization to external interaction (3) From a focus on customer value to a focus on ecosystem value

What are some metrics that managers need to track in a platform-based company?

(1) Interaction failure (2) Engagement (3) Match quality (4) Negative network effects

In a platform's world, the most important resource is... ?

the network

Platform executives must make smart choices about _______________ and _______________.

access, governance

In demand-side economies, external forces can be "_______________."

accretive

Understanding when external forces may either _______________ or _______________ value in an ecosystem is central to platform strategy.

add, extract

What makes building and scaling up platforms vastly simpler and cheaper, allows nearly frictionless participation, and captures a ton of data?

Information Technology

Managers of platform businesses focus on what?

Interactions, exchanges of value, and a strong up-front design

What important metric do pipeline enterprises focus on to assess the health of their busienss?

Inventory turnover

What is central to platform strategy?

Network Effects

What is the driving force behind every successful platform?

Network Effects

What is the phenomenon of increases in the value of a product to each user, including existing users, as the total number of users rises?

Network Effects

_______________ businesses create value by controlling a linear series of activities.

Pipieline

What is a business model that creates value by facilitating exchanges between two or more interdependent groups, usually consumers and producers?

Platform

By January 2015, the company's App Store offered ____ billion apps and had cumulatively generated $___ billion for developers.

1.4, 25

Network effects gave us Alibaba, which accounts for over __% of Chinese e-commerce transactions; Google, which accounts for __% of mobile operating systems and __% of mobile search; and Facebook, the world's _______________ social platform.

75, 82, 94, and dominant

Back in 2007 the five major mobile-phone manufacturers collectively controlled __% of the industry's global profits.

90

By 2015, the iPhone singlehandedly generated __% of global profits, while all but one of the former incumbents made no profit at all.

92

How much market share did Apple have in desktop operating systems and mobile phones in 2007?

< 4% and 0%

Network effects is also known as _______________-side economies of scale.

demand

What is an increase by natural growth or by gradual external addition; growth in size or extent?

Accretive

What are some examples of pipeline giants?

Walmart and Nike

What are the four types of players in a platforms business structure?

(1) owners (2) providers (3) producers (4) consumers

_______________ create provider's offerings.

Producers

Platform businesses competitive threats utilize...

(1) power in network (2) overlapping customer bases (3) chunks of data

What is an example of an accretive role swap in a platform business?

Consumers switching with producers

In supply-side economics, how do firms achieve market power?

Controlling resources, increasing efficiency, and fending off challenges

How can a platform business abruptly transform an incumbent's set of competitors?

Entering new industries and "shape-shifting"

What help platforms rapidly increase the volume of interactions?

Positive Spillover Effects

How did Apple and Google's Android system overrun the mobile phone incumbents?

They exploited the power of platforms and leveraged the new rules of strategy

Pipelines provide value to consumer; platforms offer a(n) _______________ that attracts both consumers and producers.

ecosystem

Platforms should focus on maximizing the value of the _______________ by utilizing network effects.

ecosystems

Most successful platforms launch with a single type of interaction that generates _______________ value with _______________ volume

high, low

In the internet economy, firms that achieve higher "_______________" than competitors are better-off.

volume