"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