Adopting and implementing a platform-based business model is fraught with problems and complications, many of which are poorly understood even by industry insiders. As they try to sort through the best practices for operating in this new business environment, senior managers need to carefully analyze the strengths of the business model of some of most successful companies before trying to imitate them. .
For a team to execute such a strategy quickly and seamlessly it must first thoroughly understand the components of such a business model and how they interact to produce unique customer value and formidable competitive advantage
The platform is a new way to organize wealth-creating activity.
The author details the components of a successful platform-based business model.
Platform-based business models seek to leverage the assets of third parties and in the process extend the value of economic activity to customers in ways that engage and benefit them. Senior leaders and operations managers alike need to understand that continuous innovation of customer value and policies that attract asset-rich partners and skillful developers is essential to the growth of the network.
