Thoughts on the 2017 MIT IDE Platform Summit
Eric Archuleta
Digital/Ai Transformation & Innovation Leader, Futurist, Change Agent/Ask me about Navigator?!
The Deloitte Digital Team of Transformation Fellows was excited to attend and participate in the MIT IDE Annual Platform Summit 2017. It was an amazing journey into the state of digital platforms and business models.
When we say PLATFORM we are talking about two-sided business ecosystems that connect buyers with sellers and how they are core to the Digital Transformation landscape. You know, the platforms that are consistently mentioned as memes on your social media sites (à la Uber, Airbnb, and those other asset-less unicorns that are all the rage on Wall Street right now).
The main focus of the summit was to explore best practices of these emerging ecosystem-based business models, especially for lagging legacy companies looking to transform digitally. The summit explored three key questions:
1. How do platform dynamics work?
2. What is the network effect, and how is it essential to building a platform-based business?
3. How can legacy enterprises best explore ways to “platform out” elements of their businesses?
We heard great debate around what a “Platform” IS and what it is NOT. One speaker argued, for instance, that a true platform is an ecosystem that does not participate in the product or service provided, but simply acts as a conduit to connect two or more parties. For example, from his perspective, Uber & Airbnb, are pure platforms, as they connect users and providers - and add value or trust via rankings and other features. This is in contrast to, say, large video streaming services, which own and curate content, then provide the content for a fee. In other words, they are more service providers, than “platform businesses.”
We also heard from large, Fortune 500 players who are exploring ways to revitalize their current offerings via platform businesses, both on the B2C and B2B sides of the house.
Other speakers discussed the importance of the fundamental “mindshifts” that must occur in order to succeed as a platform business, such as risk taking, community management, open collaboration – several things that legacy firms are struggling to infuse into their business models.
Overall, the day was filled with great information, an even better view (from the 6th floor of the MIT Media Lab), and great connections with dozens of leaders from top Fortune 100 companies.
To learn more about platforms and how they are rapidly transforming the face of business, here are a few books I’d recommend:
Platform Revolution: How Networked Markets Are Transforming the Economy--And How to Make Them Work for You, by Geoffrey G. Parker, Marshall W. Van Alstyne, and Sangeet Paul Choudary
Machine, Platform, Crowd: Harnessing Our Digital Future, by Andrew McAfee and Erik Brynjolfsson
Eric Archuleta
#Deloitte Digital
#Digital Transformation
#MITIDE
#Deloitte
Operational Improvement | Technology Focused
7 年Great conference on an important topic. Main theme is relevant to all and positioned as "beware the disrupters". Change is constant and this conference was a great view into how the digital landscape is changing business. "Where is your threat coming from?" -- or are you the disrupted of industries?
Customer Data | Customer Experience | Martech Integration | Marketing Technology
7 年Interconnected platforms and digital ecosystems will transform the way everyone does business. Right now, Uber and Airbnb have disrupted entire industries by recognizing this trend early. Others will have to follow to stay relevant. Great article, thanks for sharing the insights!
Innovation & Transformation Leader. Change Agent. Entrepreneur. ex Rolls-Royce, Dell, PwC. 5x Co-Founder. Digital Operating Partner. Catalyst for New Ventures & initiatives. Fractional CDO/CTO/CDIO Board Advisor.
7 年the key to a platform, no matter how you define it, is that it is an ecosystem-based business model. a shame i missed the conference this year, see you at the next one! #DigitalTransformation #MITIDE