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2020 MIT Platform Strategy Summit
July 8, 2020, Cambridge, USA
2020 MIT Platform Strategy Summit
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2020 MIT Platform Strategy Summit - Platform Review and Forecast
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  • Description
  • Transcript
  • Discussion

About the talk

Peter Evans, Geoffrey Parker, Marshall Van Alstyne (Summit co-chairs)

05:49 Some guide to the future

07:21 Business & Platform due to COVID. Pandemic market map

08:33 Negative demand shocks

09:43 Platform Pivot 1

11:18 Platform Pivot 2

12:23 Demand up! Riding the wave

13:18 Supply shocks

14:47 Pandemics and resilience

15:47 Efficient resilience

17:27 Platform business & operating model advantages

18:42 Platforms: review & outlook

19:37 Race for platform talent

21:07 Platform talent on the move

22:02 Platform job posting

22:47 Recruiting strategies

24:37 Platform talent roles

26:23 Platform require T-plus talent

28:01 Platfirm strategy - 10 year journey

29:09 Global platform talen acquisition

29:38 Key issues/ recomendations

32:31 Platform news, strategy & analysis

33:20 Platform working with Goverments

35:01 More than data Nationalism

38:01 Tools & strategy

38:20 Decision tree

39:48 Quibi is "midtail" content

40:59 Which platform investment is better?

43:28 Platform design

45:00 Analysis: Platforms & regulation collide

45:39 Atnitrust challenges

47:00 Atnitrust & The Invented firm hypothesis

48:10 How does value rise with Network Effects

50:14 Proposal: A trust market for false political ads

52:37 Platform research on

About speakers

Geoff Parker
Professor at Dartmouth College
Peter Evans
Managing Partner at Platform Strategy Institute
Marshall Alstyne
Questrom Professor of Management at Boston University Questrom School of Business
Pinar Ozcan
Professor at Entrepreneurship and Innovation at University of Oxford

I am a professor of engineering in the Thayer School at Dartmouth College where I also serve as Director of the Master of Engineering Management Program. In addition, I am a visiting scholar and research fellow at the MIT Sloan School’s Initiative for the Digital Economy where I lead platform industry research studies and co-chair the annual MIT Platform Strategy Summit. I work to understand the economics and strategy of network "platform" industries. I co-developed the theory of “two sided networks” which provides a mechanism to explain pricing in network markets. I work with numerous organizations to help them understand and craft their platform strategies. WW Norton published our book "Platform Revolution" in 2016 - this is our attempt to make the research accessible to a wide audience. It's now in 10 languages and we're gratified to hear that people are using it to help inform their platform strategies.

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Peter Evans is the Managing Partner at the Platform Strategy Institute, a consultancy dedicated management strategy and application of platform business models across a wide range of sectors. Peter has over 20 years of experience leading teams in identifying, framing, assessing, and communicating high-priority marketplace trends and disruptions that support business planning and investment prioritization. He has specialized in helping companies see around corners, anticipate key market trends and craft seminal thought leadership that framed major multi-year growth initiatives. At KPMG, he was a Principle in the Innovation and Enterprise Solution group responsible market and emerging technology sensing, innovation portfolio management and business development. To support the firm's intelligent automation strategy, he led a major study of how the world's largest enterprises are adopting artificial intelligence. Prior to joining KPMG, Dr. Evans was Vice President at the Center for Global Enterprise a nonprofit established by Sam Palmisano, former Chairman and CEO of IBM. He was instrumental in framing and delivering on the Center’s research, business education, and global CEO engagements. He also worked as an independent consultant for a variety of corporate and government clients, including the US Department of Energy, the OECD and the World Bank. He received his master's degree and PhD degree from the Massachusetts Institute of Technology.

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Marshall Van Alstyne is coauthor of the international bestseller Platform Revolution. He is one of the world's experts on network business models and is a Questrom Chair Professor at Boston University. He is a frequent speaker, board level advisor, and consultant to startups and global firms. His research has received half a dozen academic awards and appeared in journals such as Science, Nature and Harvard Business Review. Interviews appear regularly across Bloomberg, The Economist, The New York Times, The Wall Street Journal and National Public Radio. He studied computer science at Yale and information technology at MIT. He holds multiple patents; was among the first to measure the dollar value of social networks, and his theories of network businesses are taught worldwide. He is a husband and dad, who loves dogs, exercise, travel, and questions of governance.

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Pinar Ozcan is Professor of Entrepreneurship and Innovation at Said Business School at University of Oxford. She specializes in strategy, entrepreneurship, and the emergence of new markets. Her current research is on AI, fintech and digital platforms. Pinar completed her Ph.D. at the Stanford Technology Ventures Program (STVP) at the Stanford University Management Science and Engineering Department, and also holds a Master of Science and dual Bachelors degrees from Stanford.

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Good morning. Good afternoon. Have a good evening, too. I'm more than 850 participants from around the world. Welcome to the 2020 platform strategy Summit. I'm David Barrel executive director of the MIT initiative on the digital economy. The IDE. I trust that you and yours are healthy and these extraordinary challenging and virtual times while our team has been working. Remotely for months. We have been working and working extremely hard today will share some of the fruits of that labor. Are some of this being broadcast through a mighty video productions and zoom

in a webinar format. We can't see you, but we know you're there. If you are having technical issues, please send an email to webcast at MIT. Edu and our customer support College will be very responsive for questions. During each session will use the Q and a function on the bottom of your screen. You can then upload any questions you like our moderators myself and Devin cook will provide the speakers with these prioritize questions. I should also let you know that we are recording this event for future consumption and feel free to let us know. Let the world know what is going on

today via Twitter using hashtag MIT platforms. Our agenda, is the typical drink from the MIT firehose. Our event co-chairs again. This year are Jeff. Parker Marshall been Alstyne and Peter Evans. They will start us off with a 2020 platform review and forecast followed by Dr. Rowland Bush of Siemens. We're police today that we will have live music during our breaks in the morning with Steve and page or Barenaked. Ladies and the afternoon with Grammy award-winner Craig, the rest of the day will feature fireside chats with Jessica tan

of ping, on John, halamka of the Mayo Clinic platform, Connie, Chan of Andreessen, Horowitz and Scott cooked of Intuit Joseph. Kind of strategic Horizons will lead a panel on the experience economy with Andrew. Birnbaum of first tube media, Laura Simpson of side door and Ronald vandenhoff of seats to me. For your information to session with Jessica Stan was pre-recorded out of convenience. Before we get started. I wanted to take just a brief moment, to give you a thumbnail sketch of the MIT and issue on the digital economy. We have more than three dozen research projects going

on at any given time. We in the last 12 months have put on ten events on five continents with more than 7,000 attendees. We have 30 companies sponsor in Project teams of the analects lab, which is a course this fall. If you're interested in that and please reach out to me, my contact information will follow. We have two dozen digital fellows from industry and Academia public policy and the Press, including our newest fellow Maria, ressa CEO of rappler and Time Magazine, 2018 person of the year, or years of the inclusive Innovation Challenge. We've provided more than five million dollars to

organizations around the world. We're using technology to reinvent the future of work. The winners of the iic have gone on to raise more than 1 billion, dollars of venture capital serve, more than 350 million. People and created more than 7,000 jobs in 43 countries. And our team has been rewarded with numerous accolades as you can see on this list. This is the lineup of our new research themes including and Matt Andy McAfee working on tech4good Sandy Petland. Working on human AI Renee, Gosselin working on a human machine interface. A newcomer is John Horton, working on

labor, economics, and marketplaces Dean Echols, working on social networks, and experimentation and Dave, Rand working on misinformation and fake news. And as of July 1st, we have a new faculty director should honor. All has a new book coming out on September 15th, called the hype machine, how social media disrupts, our elections, our economy, and our health, and how he must have. I can't think of a more timely piece of work. We've been aggressive side of activities and we could not do any of this work without the generous support of our corporate members listed here as well. As our

donors from private foundations and individuals. Most of you are joining us today for this event as sincere. Thank you for all of your support. And now on with the show. I am very pleased to introduce our new event chair at event co-chairs all three with Masters and PhD degrees for a mighty. Jeff Parker is an IDE digital fellow and professor at Dartmouth College where he runs the master of Engineering Management program. He is co-author of the award-winning book platform Revolution, which gave rise to this event is co-author on that book is Marshall Van Alstyne. Professor at

bu, where is chair of the IRS department? Our third coach. There is Peter Evans managing partner at the platform strategy, Institute with previous leadership positions at GE the center, for Global Enterprise and KPMG collectively. These three code chairs. Are they I thought leaders on two-sided networks in business, Jeff Marshall and Peter. I yield the floor to your opening presentation on platform strategies. Thank you so much Dave. And thank you everyone for being here in this in this virtual format. And again at like the echo your, your thanks to carry Devin and the ID team for

the rapid to the to put this event together. So what I'd like to share now is a set of slides and some research, the Marshall and Peter and I have been doing over the last several months. I'm to really try to understand what's happened over the past year, and then to provide some, some guidance and a little bit of a beaut toward the future. So, of course, you couldn't possibly ignore what's been happening in the world with the pandemic. And so I'm going to talk about that. And some of the issues and the

ways that firms have been in organizations have have adapted to that. This is going to draw on some work with with Peter Marshall on pandemic stress, testing for power. But it also drop heavily on the world economic Forum study with Ninjago car in Jag Shrine of BU, in Cambridge University respectively. So, what we've seen is that you can break down the disruption into a couple of different ways to think about it. So, one is on the demand side and of course, we've seen both precipitous demand drops as well as explosions, but there's also the supply

side or you might suffer both, and we can take a screen archetypal patterns of the response to what is weather. The storm. This is when you don't have the ability to serve other markets and then you go quickly into resource conservation mode, so, The other one that we might think about is the rapid pivot or you can take your assets and then Supply other markets. And then, finally, we think of one that's ride the wave where demand explodes and then you pretty much hang on for dear life. So don't just take our word for it. We've also got some

data for the financial times published. And in that data, it shows two sets of responses. One is where we seen a platforms and Tech firms. See tremendous market cap guns up in the range of 400 billion dollars on the other side. And we also want to want to call out mate 1 billion ping, which is a firm in China, that Marshall has done some research with and we'll share the results of that in a few minutes. Of course, it's not all an upside story. We've seen some tremendous disruption in the finance and energy sectors

were market cap. Losses have actually been in the range of up to a hundred and thirty billion dollars. So as you can see, the pandemic has had differential impacts across sectors nephew. Look at the left hand side, and you look at those firms, of course. 3 ft will call those communication Services Energy Information Technology, but you represent you'll recognize many of those names as the familiar platform firms on that. We've been studying for over a decade. So what type of look at the negative demand shock? So, the International Energy agency has shown how oil demand

drop is actually and possibly belong to be for a number of reasons, by the decrease, economic activity, or honestly structural shifts in the way that we carry out our economic activity. You can see where the flight volume in North America and across the world. Had a nearly immediate drop in response to the pandemic and we saw that and other sectors as well as spending went down to nearly zero for in-person dining and the ride sharing platforms. Also saw nearly immediate drops

and I think these firms would be representative of archetype of to hunker down and indeed we saw an oil field services and in the oil companies for low Clans. Where did you know how often the employees? Front of the attempt to conserve resources for the future and then hopefully, for the up check, but it's not all a story of just hunker down. So it's kind of fun to think about how firms do a pivot. And so here's a story from Boston where the food truck which many of us who went to MIT might remember those.

And of course, once college campus is closed or the business districts are shut down. You would think that demand his pretty much evaporated and that was the case. However, a delightful Story by Kai Ryssdal on Maria Hahn Horst describe the system, by where lunch trucks were able to serve a whole new demands stream that they hadn't previously known about or at least they didn't need to serve which was out in the suburbs. So the food trucks go there and then they were able to get to Suburban communities, but they

didn't previously know much about and then connect and served them. Now. That's demand, pattern tends to be a lot more episodic. So it's not that steady every day. I go to the same place because the dining experience out in the suburbs as more dinner and people don't want to do the same thing day after day. And so enter our familiar triangular platform structure. In this case. There's a company called best food trucks and it's able to aggregate demand information on the left hand side, and then match that to the trucks. On the right hand side, and allow them to

have a direct exchange of value. We seen a second platform of it which is fans in town and Peter. We'll talk a bit more about that. But what's interesting is they have literally 58 million users and the idea was that they would allow for those users to be able to communicate with one another but also to be able to know when their favorite bands were in town and then go to the concert then use natural all of that activity, just collapsed 2-0. And so their platform pivot was to create new digital experiences

and again to allow for music fans have direct exchange has a value so that they could support their favorite artists, even though there was this downturn in the in-person performance capabilities. And again, you're looking at this triangular platform structure where the bands in town Popham is able to observe demand patterns and then make the direct linkages, which would be difficult. Music fans to do by themselves. The next pattern that we've seen as a sort of the explosion of demand and riding the wave and it did, this can be every

bit as disruptive as the demand fall because you're trying to scale rapidly. So we've seen where instacart is aiming to add 250,000 Shoppers and where is zoom has topped the weekly download charts up for weeks or months on end. And that's the very technology that we're using here today. It's actually some concern that the tech Giant's in particular. The giant platforms are uniquely well-positioned to benefit from this and I'll show you in a few minutes. There might be some business model and operating model reasons to think that that's the case. And the Marshal will

go a little bit more in to see the Regulatory and policy issues surrounding this later on. On the flip side, with also noticed, a lot of demand shock and it first, you are rather a lot of supply-side shock and it first you might think, you know, where is that coming from? And it turns out that labor supply has been a critical Factor. So the st. Louis fed did an analysis across different sectors and as it turns out when your labor force is hunkered down at home and you haven't restructured the environment for safe working conditions. And the work can't

necessarily be done efficiently online that leads to a dramatic reduction in the supply side. And so there comes a lot of reduced economic activity. You can see that on the right hand side of this figure in a little bit more detail and her will dig into the automotive supply chain. So, if you go up the supply chain, you might think about microchip, factories in Asia on. Once those shut down, then the inventory is depleted. And then perhaps in Europe, you might have a boss or North America done. So that would be the sub-assembly supplier in

aggregate says, components and subassemblies. And then ships them to Automotive companies. And again, as the inventory depletes down, then all of a sudden this apply susus and the lower-middle graph shows that it could take up to the end of the year for this supply-side, shock to recover. Got two sides going on, but had a tremendous impact on the overall economy. On the supply side. We usually see the resilience or the ability to respond to supply-side disruption as kind of a story about insurance,

where organizations are asked. What are you willing to pay for resilience? And then the traditional Solutions are well, you can add into Tori or you can restore and locate the supply closer to the demand. Now by definition, that means that instead of State those costs would be higher or else. You wouldn't have seen the launch in Supply chains in the first place. What we found when we were working with a number of firms in the world economic Forum study, was that firms that have been able to make end-to-end digital connections to sense? Change the customer needs and demands and then

reconfigure rapidly. The supply chains that deliver those needs and actually fared much better and through those initial interviews that let us to think careful. About separating business models from operating models. And so what we saw was that it really matters that you get the match right? Because the right business model has to match up to the right operating model. We're by the business model. I mean, the way that you realized revenues and the operating model is the way that you deliver value. And now, if we shipped back to thinking

about platform, business models tend to differ from Von's and to operate marketplaces where they take fees or percentage transaction Cuts or they facilitate in get paid for access from one user type to another We can then look at the familiar picture and many of you will have seen us from our our presentations in the past month. Let's just a little between traditional companies where the value accumulates stage 2 stage, 2 stage and you emphasize supply chain control optimization, but you don't really have strong Network effect,

contrasting, that to what we've called the inverted firm, or the inverted platform form, where there is relatively more value that occurs outside the firm, and you're able to, and aggregated data across a wider, variety of participants to facilitate matching $0.02 new demand patterns and to encourage interactions that might not previously have taken place, until we would argue that in a time of Destruction. The lower business model and operating model operating together are actually considerably more resilient and flexible. And

what are the reasons for that is that this is more fluid and demand and Supply Arrangements where you can plug in new partners and serve new demand, allow for the ability to pit? It, which means to quickly match existing Supply the new demand, and the ability to scale, which is where we see quickly matching new Supply to existing, or increasing demand. In the ability to aggregate data, end-to-end across markets, and the supply chain allows you to see better than competitors or traditionally operating in these vertical siloed.

Now, none of that can compensate for a complete change, but it may give firm some run room as they wait for the emerging on the recovery to some sort of steady-state, a new normal with that. I'd like to hand off to Peter. We'll talk about some of the platform talents implications of adapted to these different business and operating models. So, welcome, everybody. It's a great pleasure to be with you. Again. If you recall last year, I spoke about platform Innovation and there's no sign that platforms are stopping

innovating. And in fact, they become powerful engines of innovation. But today, what I'd like to do is turn and look at Talent. We just complete did a, a major study of platform talent and it's pretty clear that platforms. Don't run on their own, you know, we can look at a business models and the technologies that run beneath them. But a key component, actually, successfully launching and running platforms is the talent that you bring on board to be able to exercise and execute on those strategies. so,

Let me. Get to my next slide and ask some key questions about what's happening in the talent. Landscape. First question is, is there a race for platform Talent? You know, what is the supply and demand picture look like II, who is looking for that Talent? What kind of companies are out there looking Third is the skills and experience. We know what kinds of capabilities are they looking for? And then finally, how well is that recruiting process working? As I was saying, how well is that recruiting process working?

So we think this thing is you would think with the collapse of demand is is Jeff mentioned. You would see a retrenchment of of job offerings, are their job searches in the platform space, but we actually find it. That's not the case. We've been tracking and watching what's been posting regarding platform related jobs. And it looks pretty healthy. I even companies in the financial services which have been hit by the global pandemic or still out there hiring. Here's an example of just, a few jobs have been posted recently. American Express is

looking for a senior manager platform strategy, Walgreens, which is owned by Alliance boots. Looking for a head of product for platform Solutions. USB is looking for a platform lead, for digital strategy and platforms. You've got Financial, not only the financial services, but also Healthcare companies. Looking for platform, head of strategy and operations. And of course, the big platform players are out there hiring as well. So, these kinds of positions are in demand. We've also seen in this is was in the works, obviously before covid, but some of the

incumbent retail companies, like Nike have recognized that platform strategies are important and have sought very senior seasoned veteran platform Executives to run their initiatives. Nike tapped, the former president and CEO of eBay. He was in Ed eBay for many years and so has deep experience on how to run a platform. He started as CEO of Nike in January, and we're seeing, if you will Frost what's happening, for example, twitch? Just hired a senior executive from Spotify. There's a lots of interesting

moves that are taking place at the senior management levels, broadly at what's been happening in in the hiring space to get a better handle. And so this is a data, we are able to analyze 11,000 job postings over the last year. So this goes back to 2019 and you can see it's really a global phenomenon. You've got companies in North America Europe, Asia, and Latin America, Middle East and Africa. All looking for platform Talent. These bubbles are the number of jobs per company. So this represents over

2,500 companies, the big bubble. You see near the center of North America. There is is Amazon so I can see that there are a lot of platform related. Jobs. Is some of the tactics that companies are using, which indicate that there is scarcity in the market is, is that in some cases, a single roles are being reposted in multiple cities. This is one example, here's a position for a senior director of developer relations. This is a position to manage your external developer Community. This this position is looking for 10 years of experience, in

Combined developer relations, software development, and Partnerships to really Drive their ecosystem strategy. And you can see that they've posted the same role in 16 different cities across the US really to tap, I guess into those local market. So it's interesting that, you know, there's these companies that are seeking National and in some cases Global initiatives, but they really need to zero in, on the local markets, to be able to tap into our least post and publicize the positions that they're seeking. It was looking. We find it that when you break out kind of the the most active

players in the market there, really three kinds of companies. One or what I call the replenishes. These are the existing native platform companies that are either. Continue to grow is just Jeff pointed out that they've seen a surge in demand and so they need to hire people to meet that but also to replenish attrition and things of that nature. So they're out in the market, very actively thing of the builders which of the startups and they may have reached an inflection point where they need to build out more staff and so they're in the market but the biggest players are actually incumbents

that we don't necessarily see listed in typical list of platforms, but have adopted platform strategies and they need the talent to be able to drive those initiatives. What are the key roles the really about 6 that you see when you wanted to go through dozens of these job postings 1 or around platform. Strategy is quite a number of roles that are posted there. Actually seeking explicit knowledge around how to formulate Dry Creek, Road Maps, both from Market perspective, but also technology perspective. And you have more product management, which is an

interesting category. These are the people that are put in charge of actually running the platform, which is a multidisciplinary kind of role. Then you have the platform ecosystem managers in East,. Variety of titles. They can be Network partner of all sorts of different titles for this role, but it's really about that inverted firm strategy of managing her external ecosystem. New York platform Engineers on these platforms are often big complex and they're also changing. You know, you don't just set up a platform and leave. It you're constantly evolving and

improving it. And so to do that, many companies are seeking Engineers that understand Platforms in a running platform strategy, from an engineering standpoint, that you have a hold data in a. We talked a lot about day, too. But you need to put people in charge of helping to, to manage the strategies around data aggregation data management to the both the technology, as well as the policy and governance internal to the firm. And then while we're also seeing an increasing number of platform privacy and compliance is the regulatory, landscape changes and a marshall is

going to speak to some of the regulatory issues. You need people in the company that are really focused on that. And the complexity in that area is increasing and so you need specialized power. For that. Now, we will have to historically. There has been a recognition that, you know, putting in place these Information Systems. It systems really require what people call a t-shape talent you need, deep technical expertise, but you also need these water competencies, but would use look and analyze the platform Talent. You really need the t-shaped people

plus, and the range of capabilities that the job postings indicate is, is actually quite complex. They're looking for people that understand Communications thought. Leadership can do solution, architect dating, and communication, and advocacy in evangelism. They also went deep analytics, and both economic organizational behavior things like machine, learning coding, even an apis. So that analytic capabilities and then to programming to make that, you know, functional part of your digital transfer. And then they also want people

with acute business Acumen, you know, to be able to understand how to run initiatives, understand building business plans, communicating to senior Executives and kind of garnering the consensus that you need in the organization, but also external late to your external platform a ecosystem. So, the demands on these kinds of rules are quite stunning and it's extremely difficult to find one person that can meet all of these capabilities. And so, a lot of companies turn to building a platform teams going to give an example of one company that's doing that and

that's Thomson. Reuters. They've really been on a 10-year journey to evolve a platform strategy, starting. Well, Bailey's began before 2010, but the big announcement was in September 2010. When they announced the establishment of Icon, which was taking all of their financial data. Publicly traded companies and really creating an ecosystem and making it possible for third parties to build applications, that enhance the value of that. And they grew that 2 / 20000 external developers in the apis necessary to drive that. And then in 2018. They

spawn that out as it a separate company, which was called Ravenna Dove. And then in 2019. This was bought by the London Stock Exchange for 27 billion dollars. So that strategy seems to have worked. I would think you're saying is when you look at the last year of their postings around platforms. They've been a very active player and seeking platform Talent. They post it over 65 positions in five different countries around the world. And so this map shows you this both in terms of the geographic spread, but also the seniority level. They're looking for

entry-level folks, Associates, director. As well as a mid senior level. So they're really trying to populate the entire organization. So watch to conclude here, let me throw out some key issues in and recommendations. When you look at the recruiting side you find that. They're actually not any that I can discern of recruiting companies that specialize in platform Talent. There are plenty that are out there looking for digital talent, but we would argue that there are really special unique characteristics of the folks that you need to drive your platform

strategy. So there seems to be an opportunity to create a specialty practices to help the recruiters because some of the job postings all that you see they're looking for they claim. They're looking for five more time with but the descriptions with their writing aren't very good and still there may be a disconnect between what the firm is is speaking in terms of leadership is announced as their strategy and then by the time it gets through HR down to the recruiters, there may be a disconnect. So, tightening that up could be very valuable. You also see the Large incumbents face some of the

highest challenges, you know, it's not sufficient to hire just one or two people in a very large organization, like, an Indian or financial institution, like JPMorgan has a nit spend a night over 9 billion dollars. So hiring one person is an organization of that size. Does you very little? So you need to really hire in a programmatic way similar to what the preventive Thomson. Reuters, it done until you see the incumbents that are really pushing a platform strategy. Launching platform hiring programs, but it it's it's not exactly clear if that is a completely

well-orchestrated in and how a coherent the hiring strategy is and also how that matches up with internal training because it's not, you can't get all of your talent just by hiring from outside. You're going to have to do a lot of internal training, not just the people that you hire on board, but the people that are going to be affected by I need to come on board to your platform strategy. And then finally, there's no platform talents or certification that you might see the big the big data field, his is gotten onto the

SD. Now you can get certifications for Big Data but platform you don't see that so there could be an opportunity to create a badging or credentialing system in this space that would help a better match supply and demand that the Marshal. I fear I look forward to doing this. Let's see if this works. I'm afraid. We're all trying to Texas two step four step process. So make sure you're actually getting quite right. Let's see if this works out for sharing the slides. I hope that's working for everybody.

So there's the first step. Correct, this player. You sing the center in full screen. Take it away for you to see what's happening in the couple tacos around the world. Second thing is actually a strategy for example of change. So entertaining to the particularly good thing. These days with everyone staying at home. Is that the case for? Why might that not be the case? And then what's happening in the house? Formal modeling of those kinds of things. Might actually lead to some social good to start with what is happening. I was on the platform. Take a look at the figure on the

right. Is a really interesting grass like a QR codes, how to put together by ten cents in Alibaba. And here you can use this, actually to gain access to Cafe shoe shopping malls, and restaurants, actually quite interesting if you didn't really say, but my taxes and turned yellow, if you've been in The Hot Zone Allred, if you reported symptoms, begin you access or denies you access to different parts of the world, by the way, that part of presentation put together by Connie Chandler. Be with us later. This afternoon has an extensive set of a background of what's happened. If I do, hope

you'll ask a question about that this afternoon to come out about. That is an apple and Google's case. They have started cooperating at the operating system later. So you can actually Trace one device to another and see of might have been exposed. This race is fascinating to see questions because one of the issues is going to be. Will these tracing phenomena disappear? Post covid-19? Unlike an app. It's much harder to remove. Imagine police actually asked me how

much that would still be around. Also interesting scale, question really into trust issues. I mean in China Course, San Antonio above our huge United States collectively. Covered 98% of mobile. It's quite remarkable. You wouldn't be able to get that coordination. If it were a couple of Dozen come from a company. So, it's an interesting question, but whether or not there are benefits to some of these large companies and what you can actually do with the crates in

value, intentions going on, a lot of nationalism day to residency requirements. You may not also been following list. Happening between India and China has been skirmishes over the Border as a result of that, the Indians and now band several of the platform technology application so I can send message on TiK ToK by do maps translate why. But which is their version twittering are quite interesting, of course, find file for censorship, which has no Authority whatsoever, but it is interesting that these now we're gaining national

attention at the platform level and even the governance in your direction, but use an open question. Williams has also been much in the news for the first time ever. Fact-checked voter fraud questions or, or issued by the president works Facebook, remove hate speech icons in Reddit, bans, the Donald subreddit for him to be in consequence. Donald Trump and sign an executive order to try to curb the protections of section 230. The law in United States that have dolls platforms for decisions. They make regarding editorial

content of the users that they post politics. For example, Jack Dorsey is said that Twitter will not accept any political advertising whatsoever. This is interesting and challenging is, how does a newcomer again, the following advertising extreme Mark Zuckerberg policing at all? They said, basically, it shouldn't be the province of the platform to the Arbiters of Truth. Saint John. We can pretty much as you as you like, but what's interesting, of course, is that the conservatives feel we are being unfairly

censored in and out. I think Ted Cruz Trump and a couple others and I'm moving to parlor, which is a conservative friendly site. That says it won't. Censor other presents to each other. Things of that sort. This has led to a lot of interesting controversy in the stop hate for profit movement has garnered about five hundred different firms. That it said they would stop advertising at least the pause button on advertising on Facebook to see if it makes a difference may not have noticed. This is actually one of the lead Advocates who this turns out to be Jim

steyer. The older brother of Tom Sawyer. That's all that ran for president was quite interesting. The shape 75 billion off the stock price of Facebook. I got her number is in fact larger than the total assets with Market capitalisation of Twitter. So it's really quite a bit of overtime on that seems to come back to be really interesting to see what happens over with the policies. In general, a little bit of the tools and strategy. We wanted to provide advice and one number of you out in the audience, interested in the

question of, what does it take? You know, what resources, do you need and what their decision do that? So we put together a couple of thoughts on precisely how to do that. First question. You must ask is will your Market friends for me to Market perform from the Mars platform to always be plugged anymore. I understand. Is it going to be This case is really questioning. Will it be in Furniture? So that is how much is the value is information on modular? Is it to the third parties? Can add value

of an aircraft is so complex. They have a hard time. Do I get to work if I can? Can you control? The relationship is the answer to both. Those questions are true. And absolutely, you should run full scan ahead and try to be the platform is the answer to either of those questions use negative. Then you might try to actually build a Coalition. In this case. Maybe you can create a saturated platform in this case collection of number back. Number contact, a company not together. She didn't

might be with Federated section. I could probably do need to get product on someone else's. Thinking through the different ways. You might actually articulate where you might fall and I talked to him space was a really interesting question. Where should you choose your products in here? So you might think that entertainment would be Big B Statz better than shelter in his home. With increasing course goes back to the definition of a platform to facilitate interaction. So what you like to do is either high-value

interactions with content space. At the head of the long tail might be worth a Kronos, alternatively. You might actually try high-volume interactions this case, it might be YouTube or ticktok. Extremely is the third parties are creating more content. Again. This is the inverted firm. We get a huge numbers of different parties building out your ecosystem. I'm cooking for Kirby with a chosen is low. Volume low volume in this case because neither fish nor fowl are neither value strategy, lower the volume.

Common question, you're an actual like to turn into some real serious and rigorous analysis. We've done is actually grow, Network. Effects are actually grow the value of your car or Biltmore cups. Maybe we can discount to attract the user base or maybe we should design, never get socks to three additional value or maybe their architectural controls. We can, I switch users on the platform to Houston from the next JoJo with Annalise Groupons data, for a full year, 150 different markets, 1800 value of the Baseline,

value of the marginal incremental, value of individual user was about $54. Go to the 10-K report to look at some of the data to analyze a couple of different strategies. So, if you take a look, for example of marketing require different, users comes out after you consider, the full customer acquisition cost lower price, is a little bit here. You might actually want to raise price, a little bit of supposed to lower price. If you start to get this far,

greater leverage, if you start to design network of socks, you imagine, for example, you can use the data of One Direction, to help improve the operations of another Merchant than that, might be a way in which it partners are creating value for other partner, very deep into it. If you can keep control of the relationship relationship with you, in that case, without you is rather extraordinary little different. If you're interested in this I usually try popcorn value. So it's a huge difference order magnitude difference in value. The takeaway here is at least one

is disordered mind to difference in the architectural design for platform supposed to just the marketing platform. Also, in reference to some of the work computer mentioned. You're going to want to hire Talent. It is capable of doing the same things over toward the right, as you actually build out your firm more contacts. Again, if you don't believe that, take a look at the analysis of the two different companies in Groupon, you redeem, your groupon merchant. And here's the problem. Once you have had the haircut for the oil change for the pizza. You can go direct the merchant

without ever going through Groupon again in Groupon. They have to build a relationship of fresh each time. It's in effect. A leaky bucket, you get the customer and Illusions number By contrast the broom. Just highlighted earlier than a grown explosively in China. You can handle the order and scheduling for the platform to the pothole. They designed network is Fox. The data can be used to tell you which products sell and which products don't sell. You can identify products or Target consumers, kilometer radius that would like to

purchase from you. Meet one takes the data and recommends. The stores. New locations that are underserved trading, immense value again partners. Are creating value for other partner, is using that data in a sec Network. To get more females mate, Swan on a per-capita basis. As five times, the value be used as a group and its market capitalization is 56 times, the market value Groupon design, reflects design, platform strategies work. There's some really interesting results on that

news and some of the antitrust into the larger questions here, this conversation. So we were in DC for the section 230 hearings Innovation for fostering unaccountability. That is as you might recognize build bar with a particular perspective on this, and then paper with Jeff and Virgos petropolis was presented to school of where Mr. Was actually speaking on this very issue. Really interesting question. So, how do we address the issues of a speech? What is challenging, is it the traditional test antitrust? Just don't work with iPhone world. When

the first questions is market, share dominance. If you got market share, is it hot, is it going to be used? But here's a question or Max or self-driving cars is Amazon in electronic, Commerce or cloud services or grocery business is boundaries, are extremely indistinct. Is often moving from competitive markets to, you know, how to do all Khalifa Monopoly, are they restricting output in order to raise the prices, but thanks for checking your pulse in your sails. Google's not restricting, your search has were not getting the kinds of

restricted output that you normally get prices unusually high. So you got a small extent as a small but significant increase in price or is there a predatory pricing so that you can actually drive can creditors out and actually take over the market will? It's fascinating again. We did some of the original research Countryside Market. The price is zero in this case and that is the profit-maximizing price as you charge a different side of the market. For all the traditional test antitrust doesn't work. If you look at the analysis

or creating Are you outside The Firm support the inside? It's often been argued even indeed in the presidential election, that it states that platform break up. And we argue Grey Cup fragments the user base. Reducing the scale of networking sites and things were just showing. Yes, it does great competition which could affect prices, but those are already zero the challenges that it destroys value, buy fonecta affecting production, that is harder to use the data from one group to another actual trade-in

value. Things like gdpr indeed. They do restore privacy and islands of hidden information or reducing value. Need to ask a question. How do you create volume? And then, how do you actually reducers? After some research, the washing machine that shows in the industry concentration has actually really gdpr competition has actually gone down, as income has become even more in trash. I want to give you a formal intuition as to why some of these interventions don't work. Better ones. Would be, of course. This might easily

have to give you at least one equation. That,, everyone should understand. So, how is value created in the platform. Everyone should recognize not Castle on very straightforward. Like it rises, effectively employed, or in this case of the quadratic, what would happen? Put the company, second three, separate forms, Facebook, Instagram WhatsApp. It's really straight for a very, very simple Nelson to show each one. But you square it because you got a third of the total value. You can't take value from One Division and use it to create value for other divisions or it's in the mate. One case

learning from one store to actually help another store. You actually move, that's all you suggest. There are other options which could work so we should intervene. So I might do that. Maybe we can grab competitive access to data across the network and here we have a model from Europe. Actually, in the open banking legislation PS3 under this legislation. You were allowed to actually, Grant access to other parties and you had to put the power to grant that permission. What this does. Is it invites third

parties in to come in. Great value on your behalf using your data. In this case. You're adding ecosystem Partners as opposed to subtract. It ecosystem Partners in here. You can see the ocean adding in, in scoring, in create much more value in effect. We can come by with some of these data access ID. Would you all be able to give us much more talk when you're done, creating value? Supposed to ways that actually destroy Valley one laptop? When it goes into other things? We talked about her forget about

lies and political ads. Is there a way to do it. In fact, we can use the principles in one possible solution to the word oppose. How about politician simply warrant their claims in add but placing a certain amount in escrow. In this case, the new allows third-party fact, check. And it's a very straightforward process where the cleaned or never challenge than the pleasure has responded to claims are challenged and they turned out to be true in the pleasure has responded. But everyone always ask a question. Of course, we'll

see who gets to decide. In fact, we've already solved that problem. We use the exact same mechanisms were already using for our own government, which is we split the legislative, the Judiciary and executive branches. So one group Disturbed Define fake news or false as you could even get Fox News in CNN to agree on the perhaps the definition but they don't get to. Then the fact that we get to judicate using the predefined definition note. This is even stronger than current conditions. At the moment. They can't use their own definition. But now we have to use independently decided that for me,

then Facebook would be the executor. Notice the Elegance of us in the sense that no party has a bias in this and sent it directly favored, and who gets to make the decision and no party hasn't Facebook, isn't he simply are the executor also has an interesting property, honest. And had no coffee whatsoever. And contrast lies are expensive in this case because you keep forfeiting. Pledges. How do we know when a product is valuable know a phone or a piece

of architecture or whatever comes with a guarantee, right? You know a high-quality product is one that comes with a z as what comes with no guarantee whatsoever. So for those of you that are complaining about your politician, you wouldn't come since might have only ourselves to blame. No guarantee. So any of the setup was short, so if you're interested in some of the articles that your income supply-side and demand-side shocks, then you can take a look at the winning race for survival. If you want to look at the antitrust issues. Here's the research. If you're looking at the

truth markets or false ads on Platform, tallantworth One. Look these questions. How uses trade platform value. You can find This research ssi.com., I think it's time to thank you for doing it. Thanks Marcia. We do have a couple of questions and I'll try to, to point them in One Direction other, but others should feel free to weigh, and we've only got about the five minutes. So, just during your session, a question came in about what happens when consumers owned and or control their personal data and databases and we'll share it only with trusted brands that use private

Edge, AI Marshall pointed to one potential solution in his deck, but curious about your response. And it gets into transaction costs because if the consumers own your own data, which part of the regulatory framework available on the terms that they want. So, what we would expect to see is your merchants of essentially agents or middle men, who could be intermediaries to them, bargain on behalf of consumers. I'm with the other brands and platforms to use the data on the terms that they find acceptable, and then you can aggregate across numerous consumers and their data.

So great question. Peter there are a bunch of questions that came in about the human resource component of, of platforms, a couple of them are more about bias. One was platform investors are doing well. Gig workers are getting laid off. What's the role of platforms and increasing wealth, inequality be interested to hear about what organizations are seeking plat Allen and they're further thoughts on training and lastly. What about a recruiting after covid? And posting on different cities where where all remote now and may well be for some time pick any one

or or jump on a wall. Great. Thank you. Yeah, I mean the gig worker question has moved into the policy realm where different jurisdictions are beginning to set up different regimes. The work that we were doing is really around platform management. So Less on the worker, Side. Then on who's running the platforms and actually this work is actually led me to think that there may be a need. Now for maybe a section of a course on platform ethics and you know platform management. We do teach platform strategy, but kind of what does it take to run a platform. There's also a

lot of work that needs to be done on corporate training around platforms. And what kind of curriculum makes sense and also for professional career development. Is there opportunities to add a platform Dimension as I wasn't. This research demonstrates. There's just growing demand for this type of work and it's an exciting career. So it's some it's a really interesting opportunity. Thanks, Peter and Marshall just 60 seconds left. There's a question about how Alibaba in China work for the government to

work covid. Think that the US government could do so with Twitter Facebook or the US platform. I like that question actually think they can in me. She would personally I think that we could be an awful lot more if you simply look at the the rate of spread of covid in the United States relative to most other industrialized countries. We're not going to spread as much as we could. And I think it's wonderful to work with some of those platforms to try to stop that. Stop that spread. So absolutely be awesome. Thank you are a couple of other questions that

will will address offline. Appreciate that very much. And I wanted to now, turn it over to Marshal to give an introduction of a doctor, Bush plays Marshall.

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