Summary of Platform Revolution: by Geoffrey Parker, Marshall Van Alstyne, and Sangeet Choudary | Includes Analysis
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Summary of Platform Revolution by Geoffrey Parker, Marshall Van Alstyne, and Sangeet Choudary | Includes Analysis
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Platform Revolution by Geoffrey Parker, Marshall Van Alstyne, and Sangeet Choudary is a comprehensive look at the emergence of
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Summary of Platform Revolution - Instaread Summaries
Overview
Platform Revolution by Geoffrey Parker, Marshall Van Alstyne, and Sangeet Choudary is a comprehensive look at the emergence of platforms as market dominators, their competition against pipeline businesses, and best practices in founding and managing platforms.
Platforms connect two types of users in order to exchange something of value. This is different than the traditional pipeline model of business where something of value is created by transferring it from producer to producer with the consumer receiving it at the last step. Platforms are dominating production processes particularly because they reduce the costs of value creation, consumption, and quality control. Platforms serve consumer-facing markets as well as business-to-business markets and can power rapid growth through economies of scale.
Each side of the network depends on the other side to be in place in order to function, so a central challenge of any platform is to recruit users on both sides. User growth on one side of the platform attracts more users on the other side as the result of the network effect,
which describes how changes to one aspect of a network can influence other parts of the network. Platforms can spend money on schemes to attract users to a network and make that money back with the subsequent growth on the other side of the