2024/02/21

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11:18

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EM.413 Bruce Cameron System Architecture meeting

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Industry platforms

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Differentiating between suppliers and partners in a two sided market

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Partners

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earn proportionally to your revenue

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has access to your customers

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no contractual obligation

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has network effects

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Suppliers

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earn directly from you

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detached from your customers

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contractually bound

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no network effects

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Network effects

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actions by others create value for you

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eg

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my mom joining a network means I can call her for free

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how much does an additional user increase the value of other users

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how much does an additional user increase the demand for the other market side

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Feel the marble

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opening up your environment, others need to believe

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rules will be evenly enforced

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you won’t compete against them

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Industry platforms are high risk

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Only 17% succeed (sample of 250 firms)

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average lifetime 5 years

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reasons

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mispricing on one side

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failure to develop trust

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prematurely dismissing competition

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entering too late

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Open architecture

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Distributed contributions

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Stated open not always open in practice

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Are DSMs just categories?

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every connection is an arrow

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