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Platform Strategy: How to Unlock the Power of Communities and Networks to Grow Your Business
During the last decade, platform businesses such as Uber, Airbnb, Amazon and eBay have been taking over the world. In almost every sector, traditional businesses are under attack from digital disrupters that are effectively harnessing the power of communities. But what exactly is a platform business and why is it different? In Platform Strategy, Laure Claire Reillier and Benoit Reillier provide a practical guide for students, digital entrepreneurs and executives to understand what platforms are, how they work and how you can build one successfully.Using their own "rocket model" and original case studies (including Google, Apple, Amazon), they explain how designing, igniting and scaling a platform business requires learning a whole new set of management rules. Platform Strategy also offers many fascinating insights into the future of platforms, their regulation and governance, as well as how they can be combined with other business models.Benoit Reillier and Laure Claire Reillier are co-founders of Launchworks, a leading advisory firm focused on helping organizations develop and scale innovative business models.
240 pages, ebook
Published April 21, 2017
81 people are currently reading
435 people want to read
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Displaying 1 - 9 of 9 reviews
February 1, 2019
Platforms are digital matchmaking infrastructures that enable members of different communities to connect and to transact. Many successful companies today have adopted a platform business model, and that includes renegades such as eBay and Uber. To outsiders, it may look like the hen with the golden eggs.
This book provides a clear and thorough discussion of the principles undergirding platforms, and their strengths and weaknesses. Chief amongst the latter is the considerable management complexity associated with platforms. They are by no means easy to initiate and to grow beyond a critical mass. Attracting and matching two communities in sync and in such a way that they add value to one another in a frictionless way is a delicate balancing act. Also, platforms may serve very different needs. Different typologies exist that reflect this complexity. Finally, platforms will most often not be leveraged in a pure form, but combined with other business models in a ‘platform ecosystem’.
Strategic challenges are to a certain extent mirrored by opportunities: complexity means that models are more difficult to copy. Distinctive for platforms serving different communities are the asymmetric pricing strategies that can be designed to attract and bond groups of users. Another distinctive characteristic is the network effects unleashed by platforms and that, when skillfully managed, allow for exponential growth. Also, platforms may be cleverly designed to match underused assets of one group to demand of another group. Infrastructurally these are lean business models that do not require the platform operator to own assets themselves.
This book will not only satisfy readers interested in the underlying concepts but also those looking for a practical model to build a platform strategy. That model centers on three elements: 5 primary activities (Attract, Match, Connect, Transact, and Optimize), and 6 enablers (UX, Payments, Infrastructure, Brand, Governance and Trust) that support the operation of a platform across different life stages (Pre-launch, Ignition, Scale-up and Maturity). The systematic discussion of these elements across the life stage takes up the bulk of the book.
The book closes with a chapter devoted to challenges facing regulators of platform models. The two main risks are platforms that end up being regulated when they shouldn’t have been, and platforms that are not regulated when they should have been. The authors recommend to refrain from kneejerk interventions and to leverage platforms' sophisticated data analytic powers to develop iterative, targeted approaches.
Final, mixed reflections concern the future of platforms. Technological improvements in databases, real-time communication and matching algorithms are set to improve the efficiency of platforms. The impact of innovations such as blockchain or AI is only hinted at. More substantively, talent platforms are set to deeply influence the world of work. The jury is still out on the potential of platforms to support a ’sharing economy’. The discussion on this subject is brief but touches upon both the positive and negative impacts of platforms. Finally, the authors turns to the potential of platforms to help address global challenges such poverty or environmental issues. The ideas presented are disappointingly perfunctory. But at least the authors recognize the gap in understanding and promise to dedicate the royalties generated by the book to the development and piloting of non-profit platform projects. 3.5 stars.
This book provides a clear and thorough discussion of the principles undergirding platforms, and their strengths and weaknesses. Chief amongst the latter is the considerable management complexity associated with platforms. They are by no means easy to initiate and to grow beyond a critical mass. Attracting and matching two communities in sync and in such a way that they add value to one another in a frictionless way is a delicate balancing act. Also, platforms may serve very different needs. Different typologies exist that reflect this complexity. Finally, platforms will most often not be leveraged in a pure form, but combined with other business models in a ‘platform ecosystem’.
Strategic challenges are to a certain extent mirrored by opportunities: complexity means that models are more difficult to copy. Distinctive for platforms serving different communities are the asymmetric pricing strategies that can be designed to attract and bond groups of users. Another distinctive characteristic is the network effects unleashed by platforms and that, when skillfully managed, allow for exponential growth. Also, platforms may be cleverly designed to match underused assets of one group to demand of another group. Infrastructurally these are lean business models that do not require the platform operator to own assets themselves.
This book will not only satisfy readers interested in the underlying concepts but also those looking for a practical model to build a platform strategy. That model centers on three elements: 5 primary activities (Attract, Match, Connect, Transact, and Optimize), and 6 enablers (UX, Payments, Infrastructure, Brand, Governance and Trust) that support the operation of a platform across different life stages (Pre-launch, Ignition, Scale-up and Maturity). The systematic discussion of these elements across the life stage takes up the bulk of the book.
The book closes with a chapter devoted to challenges facing regulators of platform models. The two main risks are platforms that end up being regulated when they shouldn’t have been, and platforms that are not regulated when they should have been. The authors recommend to refrain from kneejerk interventions and to leverage platforms' sophisticated data analytic powers to develop iterative, targeted approaches.
Final, mixed reflections concern the future of platforms. Technological improvements in databases, real-time communication and matching algorithms are set to improve the efficiency of platforms. The impact of innovations such as blockchain or AI is only hinted at. More substantively, talent platforms are set to deeply influence the world of work. The jury is still out on the potential of platforms to support a ’sharing economy’. The discussion on this subject is brief but touches upon both the positive and negative impacts of platforms. Finally, the authors turns to the potential of platforms to help address global challenges such poverty or environmental issues. The ideas presented are disappointingly perfunctory. But at least the authors recognize the gap in understanding and promise to dedicate the royalties generated by the book to the development and piloting of non-profit platform projects. 3.5 stars.
September 23, 2017
What to expect?
A very well researched, detailed and thoughtful overview of the history (brief) and status quo of digital platform business models in 2017.
A detailed and – from my point of view, very accurate description of the tasks, KPIs and success factors for the four sequential platform live stages.
General overview of adjacent topics such as pricing models.
Why only 4 stars?
This book is, for me, because it is hands-on and brief, a must-read for everyone working on a platform. It is guaranteed that it will equip the reader with a better structured and more well-rounded understanding of platform business models.
What I found missing was a more strategic viewpoint of the gravitational forces behind successful business models and today's alternatives – as in winner-takes-it-all and decentralized platform alternatives e.g. though peer-to-peer "bitcoin" protocols.
A very well researched, detailed and thoughtful overview of the history (brief) and status quo of digital platform business models in 2017.
A detailed and – from my point of view, very accurate description of the tasks, KPIs and success factors for the four sequential platform live stages.
General overview of adjacent topics such as pricing models.
Why only 4 stars?
This book is, for me, because it is hands-on and brief, a must-read for everyone working on a platform. It is guaranteed that it will equip the reader with a better structured and more well-rounded understanding of platform business models.
What I found missing was a more strategic viewpoint of the gravitational forces behind successful business models and today's alternatives – as in winner-takes-it-all and decentralized platform alternatives e.g. though peer-to-peer "bitcoin" protocols.
September 18, 2017
Businesses around the world are being affected by a series of new players in their fields. These innovative organisations work by providing an online service that establishes a direct connection between supplier and client. By concentrating on providing the service, it means that they have no need for facilities, stock, or other infrastructure required by the more established operations.
This book highlights how the use of an online platform can allow smaller companies the opportunities to reach new clients around the globe, and in the process, challenge the status quo. It illustrates how smaller organisations can quickly gain a commanding position in their various markets, and highlights many which are now becoming household names.
The authors examine the way in which these businesses have created a new approach to the specific business functions, and how it has driven other innovations. At the same time, they demonstrate how some of the more mature players have begun to adopt a similar strategy, and are using this as a way to maintain their market position.
At the same time, the authors also highlight some of the key problems; overcoming legislative issues, problems with cross boarding trading, or cultural anomalies. They provide some assessments of the finances involved, to demonstrate how and why the use of an online platform offers such significant benefits, to the organisations, and to society as a whole.
The book is extremely well researched and contains references to both academic studies and those from respected economic and financial institutions. The authors have many years’ experience within the field, and this is clear from the authoritative tone of the work; however, it is still easy to read and structured in a way that helps to build a clearer understanding of the topic, and offers some sensible advice that would be of real value across commercial sectors.
I found that the book covered most of the key points that are required in building a suitable platform strategy, and it provides some excellent advice on getting this right; but I did feel that the authors missed out by not discussing in more detail how to deal with more practical concerns of maintaining user satisfaction. Although it might be thought that the book would be for a limited “start-up” audience, there are many existing organisations that would benefit from considering the advice offered.
Overall, I enjoyed reading the book; as it shows, there are many aspects of online platform strategy that people still get wrong, but could easily improve.
Review by A P Sutcliffe MSc CCI, MBCS
Originally posted: http://www.bcs.org/content/conWebDoc/...
This book highlights how the use of an online platform can allow smaller companies the opportunities to reach new clients around the globe, and in the process, challenge the status quo. It illustrates how smaller organisations can quickly gain a commanding position in their various markets, and highlights many which are now becoming household names.
The authors examine the way in which these businesses have created a new approach to the specific business functions, and how it has driven other innovations. At the same time, they demonstrate how some of the more mature players have begun to adopt a similar strategy, and are using this as a way to maintain their market position.
At the same time, the authors also highlight some of the key problems; overcoming legislative issues, problems with cross boarding trading, or cultural anomalies. They provide some assessments of the finances involved, to demonstrate how and why the use of an online platform offers such significant benefits, to the organisations, and to society as a whole.
The book is extremely well researched and contains references to both academic studies and those from respected economic and financial institutions. The authors have many years’ experience within the field, and this is clear from the authoritative tone of the work; however, it is still easy to read and structured in a way that helps to build a clearer understanding of the topic, and offers some sensible advice that would be of real value across commercial sectors.
I found that the book covered most of the key points that are required in building a suitable platform strategy, and it provides some excellent advice on getting this right; but I did feel that the authors missed out by not discussing in more detail how to deal with more practical concerns of maintaining user satisfaction. Although it might be thought that the book would be for a limited “start-up” audience, there are many existing organisations that would benefit from considering the advice offered.
Overall, I enjoyed reading the book; as it shows, there are many aspects of online platform strategy that people still get wrong, but could easily improve.
Review by A P Sutcliffe MSc CCI, MBCS
Originally posted: http://www.bcs.org/content/conWebDoc/...
October 3, 2017
I read this book book. I must say this book is one of those books that it has helped me how to launch my product and also it has showed me the way to achieve my goals. I must admit that majority of my questions and problems are solved by writers. Guys I suggest you to read book because nowadays we need the books like this to help us
August 20, 2020
Buen libro para todos aquellos que tienen en su visión construir una plataforma
Práctico y con muy buenos ejemplos, analiza casos reales que permiten entender de una manera práctica el contenido del libro
Práctico y con muy buenos ejemplos, analiza casos reales que permiten entender de una manera práctica el contenido del libro
April 28, 2025
A good, brief overview of the business and implications of a platform strategy. Good ties to academic research and concepts without being too trite. A helpful intro for someone who is grappling with how to start or manage a platform product for the first time.
June 20, 2021
Great overview of platform businesses. If you already have some strategy experience with a platform company, most of the things will not be new though.
October 31, 2021
Bom livro para avaliar as várias fases e questões a ter em conta no desenvolvimento de uma plataforma digital
September 18, 2019
A good recommendation
Displaying 1 - 9 of 9 reviews