Becoming Platforms Harnessing the power of communities, beyond crowd-sourcing and openness. Percorsi Erratici, Simone Cicero - 17/3/2014 Forlì

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Crowdsourcing?

Web 2.0 = Web as Platform

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Bidirectional Interactive Personal

"the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call. This can take the form of peer-production (when the job is performed collaboratively), but is also often undertaken by sole individuals."

CC Credits http://www.flickr.com/photos/68751915@N05/6848823919

κῦδος

“Software is eating

the world”

Marc Andreessen

Componentization

* breaking down into cost competitive and interchangeable pieces.

Illustration: Simon Wardley – blog.gardeviance.org

Increasing competition in demand and supply

"It takes all the running you can do, to keep in the same place.“

For an evolutionary system, continuing development is needed just in order to maintain its fitness relative to the systems it is co-evolving with.

Red Queen Effect

Illustration: Simon Wardley – blog.gardeviance.org

complexity

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Pioneers

Poorly understood markets, gaps to define, constantly undergoing changing dynamics, small numbers. Want to create the future.

Startups

Settlers

Increasing demand, growing market opportunities, mature products, growing revenues.

Platforms

Town Planners

Standardized demands, growing competition. Essential cost of doing Business. Self disruptions while optimize for operations.

Ecosystems & Industrialization

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The ILC Cycle

Illustration: Simon Wardley – blog.gardeviance.org

Innovate Leverage

Commoditize (repeat)

Facebook Doesn’t Want To Be Cool, It Wants To Be Electricity

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Illustration: Simon Wardley – blog.gardeviance.org

Startups Platforms

Ecosystems

interfaces CC Credits http://www.flickr.com/photos/39747297@N05/5229733647

• above the interface*: higher value systems (use case innovation) • under the interface*: process maturity, elastic provisioning, measuring (competition)

Valu

e Ch

ain

inno

vatio

ns

Microduino (microsize)

Flutter (long range)

Smartduino (modularity)

Access + Componentization +

Collaboration = highest disruption

rate ever

competition = coevolution

Fortune 500 companies life expectancy in 2013 is 15 years.

Was 70 in 1930.

Long tail = Diversification Diversification = Niches

Niches = Economies of Scope

“Economies of scope refers to lowering the average cost for a firm in producing two or more products”

“Toolkits for user innovation allow producers to

abandon attempts to understand user needs in favor of transferring it to users along

with an appropriate toolkit". Eric Von Hippel

“Unleash your creativity by customizing select products to create exactly what you want with eBay Exact. Simply select a product, choose a design, and add your own personal flair to create a unique item for yourself or someone special”

"Once you finish assembling it, you’re emotionally attached to that. You’ve basically gone through the process to build your own phone”

Moto X head product manager - Lior Ron

1 BILLION

Airbnb.com

29/04/2014

2008

2010

2012

Products

tools

Facilitated Contexts/Channels

Manufacturing

ARA

https://www.youtube.com/watch?v=iLnM6j5-fXg#t=248

openness as a resilience strategy

The LEGOfication of everything

The LEGOfication

of human?

“…all of these amazing digital technologies are coming together to create a world of mounting performance pressure.”

#occupygezipark

David De Ugarte, Las Indias

“In a time when technologies have drastically reduced the efficient scale of production, capital, instead of adapting itself to this reality, has fled towards the opacity of securitization and large-scale short selling. “

Paul Polman, Unilever CEO

“companies are waking up and realising that they can be inside the tent, shaping solutions, future-proofing their businesses”

New ways to business

multi–sided & multi

stakeholder business

It’s a (co) Design challenge

contexts motivations

vaue creation

Community (relations)

Centric

User (gap)

Centric

Platforms target P2P Communities: value creation comes from relations, transactions and exchanges

“Our job is to pick the best path to support that community. I can give you many examples where our gut told us one thing and the community pulled us in another, better direction.” Nathan Seidle, Founder of Sparkfun

Platforms

The right approach: methodologically focus on

identifying value exchanges and motivations

Design Thinking &

Platform Design

Understand the basic roles in the Platform

Consumers Producers Stakeholders (platform)

Val

ue

Ch

ain

Explore the core value creation relation

Consumers Producers Stakeholders (platform)

Val

ue

Ch

ain

Consider that additional roles may appear

Facilitators Curators Information Brokers Enabling actors

Val

ue

Ch

ain

peers

Peer Relations live through channels

Channels must be implemented to facilitate emerging value

exchanges.

In platforms, currencies such as trust and reputation may be

required to facilitate transactions and should be clearly valued.

The Platform Design Toolkit

…In the making

To be used:

• Design with platforms in mind • Identify value creation contexts

• Identify peer segments and actors • Identify opportunities (emerging transact.)

• Create new channels • Identify community support services

• Identify exchange currencies

Rel. in June 2013 as an iteration of the Business Model Canvas Key community Feedbacks: - doesn’t show logical value flows - BM Canvas structure not good for non linear business - doesn’t model platform lifecycle - doesn’t help to hack growth

Now working on a “Platform Design Toolkit”

(more than a single canvas)

The Platform Motivations Matrix (v 0.1)

The Platform Design Canvas (v 0.2)

Mostly Social /

Community dynamics (shared value)

Mostly p2p dynamics (exhanged value)

What’s the intrinsic motivation to participate? (problem solved for peer segments)

What are the key stakeholders contributing to the platform operation and mission?

What peer segments are present in the ecosystem? They could be producers, consumers or prosumers playing both the roles

What are the recurring transactions between the peer segments composing the ecosystem?

Through which channels do the peer segments get in contact and execute transactions?

How is the value exchanged and in what forms?

What are the key components of the platform? (resources, formats, infrastructures)

What services are available for the community to support value creation?

How is the value extracted and in what forms?

iOS

App store

Developers

Indie studios

Dev houses

App purchase

App review

App recommen.

App store

IDE

App checking

Promotions

Apple

AD network

Payment GW

New Use Cases

Cash flows for

devs

Brand visibility

Ad interaction

Users

Tech Firms

SMBs

WWDC

30% fee on transactions

IDE access fee

Apps purchase / Money Reviews / Cred

Wordpress

Developers

Bloggers

Agencies

Wp.org

Wordpress SW

Wordcamp

Runnnig Wp.org

Wordpress

New Use Cases

Brand visibility

Starting a blog

WP.com upgrades / Money Reviews / Cred

Tech Firms

Premium Theme

purchhase

wp.com

Purchases on

Third party shops

Upgrading a blog

Wp.com

Third Party

marketplaces

Personalized L&F Third party

stores/ecosystem

Browser

providers

Developers

WP backends

LAMP Stack

WP.com Theme upgrades / Money Free Code

Fees for services

thanks! Simone Cicero

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