4 Marshall Van Alstyne Platform Revolution
Summary
TLDRMarshall Van Alstyne discusses the transformative impact of digital platforms on traditional business strategies. He illustrates how industry giants like Nokia and Kodak were disrupted by new market entrants like Apple and Instagram, highlighting the shift from supply-side economies of scale to demand-side network effects. Van Alstyne emphasizes the importance of interactions, community ownership, and the need for frictionless entry and exit in platform ecosystems. He also addresses the challenges of competition in the platform era and the role of AI and machine learning in enhancing matchmaking within these ecosystems.
Takeaways
- 😀 The intersection of digital and economy is a key area of focus, particularly in the realm of two-sided networks and platforms.
- 🎓 Marshall Van Alstyne's expertise lies in computer science, economics, and strategy, with a significant emphasis on two-sided networks.
- 📚 His teachings on two-sided networks are popular among MBA students and are now being shared more widely through a book.
- 🚀 The nature of industry and competition has changed, with new strategies required for firms to compete effectively in today's digital landscape.
- 📈 The traditional barriers to entry such as brand recognition, supply chain economies, and regulatory protection are no longer as insurmountable due to the rise of digital platforms.
- 📱 Apple's success in the handset industry, capturing 92% of profits, exemplifies how new entrants can disrupt established markets with innovative strategies.
- 🚗 Companies like Uber and Airbnb demonstrate the value of platform businesses, outperforming traditional giants in their respective industries.
- 🔄 The strategy in platform businesses involves focusing on interactions, network effects, and managing the ecosystem, rather than just product differentiation or cost advantages.
- 🤝 Boundaries in platform businesses are often blurred, with participants taking on multiple roles as both producers and consumers.
- 🤖 AI and machine learning play a crucial role in enhancing the matching function of platforms, creating wealth through more efficient and effective transactions.
- 🌐 Owning the community and relationships is more valuable than owning technology alone, as it allows for easier integration of new technologies into the platform.
Q & A
What is the main focus of Marshall Van Alstyne's expertise?
-Marshall Van Alstyne's expertise lies at the intersection of digital technology and the economy, with a particular focus on two-sided networks and platforms.
What significant change in the handset manufacturing industry did Marshall Van Alstyne highlight?
-Marshall Van Alstyne highlighted that in 2007, seven companies controlled 99% of industry profits, but by 2013, Apple alone controlled 92% of the industry profits, indicating a significant shift in the competitive landscape.
How does the value of a platform increase according to the transcript?
-The value of a platform increases as more users join the ecosystem, creating network effects and demand economies of scale, which in turn attract more users and further increase the platform's value.
What is the role of interactivity in platform business models?
-Interactivity in platform business models is crucial as it leads to frequent user interactions, creating network effects and driving demand that scales with the growth of the user base.
Why is it beneficial for platforms to have their sources of value 'monetize' rather than 'multi-home'?
-Platforms benefit from having their sources of value 'monetize' on their platform exclusively (mono-home) rather than 'multi-home' across multiple platforms because it helps in capturing more value and data, which is essential for the platform's growth and control.
What traditional tenets of strategy does Marshall Van Alstyne suggest are no longer as effective in the current competitive landscape?
-Marshall Van Alstyne suggests that traditional tenets of strategy such as product differentiation, cost advantages, and owning inimitable resources are less effective due to the changing nature of competition and the rise of platform business models.
How does the role of competition change in the context of platform businesses?
-In platform businesses, competition is multi-dimensional and often involves 'coopetition' or 'frenemy' relationships, where traditional competitors may become complementary within the ecosystem.
What is the significance of the community in platform strategy according to the transcript?
-The community is significant in platform strategy because owning the community relationships allows for easier integration of technology, creating a competitive advantage over those who only possess technology without a strong community base.
Why might a platform business model see fewer mergers and acquisitions compared to traditional businesses?
-Platform businesses might see fewer mergers and acquisitions because they benefit from keeping innovation incentives high, compartmentalizing business and technology risks, and solving information asymmetry problems by observing partner transactions on the platform.
How can companies that are not platform businesses optimize their success in a platform world?
-Companies that are not platform businesses can optimize their success by participating early in ecosystems, choosing partners carefully, and focusing on creating value through information and community within the platforms they engage with.
What role does AI and machine learning play in the matching function of platforms?
-AI and machine learning play a crucial role in the matching function of platforms by improving the efficiency and effectiveness of matches through data analysis, recommender systems, and reputation systems, ultimately creating more wealth through better matches.
Outlines
📚 Introduction to Digital Economy and Two-Sided Networks
The speaker introduces the concept of the intersection between digital technology and the economy, highlighting the expertise of the next speaker, Marshall Van Alstyne. Trained in computer science, economics, and strategy, Van Alstyne specializes in two-sided networks and platforms. The speaker mentions a popular MBA session on this topic, expressing initial regret that Van Alstyne's knowledge would be widely shared through a book, but ultimately agreeing that widespread understanding of platforms benefits everyone. The speaker emphasizes the importance of coordination in two-sided networks and encourages the audience to read Van Alstyne's book, suggesting they even give copies to competitors to foster collective understanding.
🌟 The Transformation of Industry and Competition
Van Alstyne discusses how the nature of industry and competition has changed, using examples like the handset industry where once-dominant companies like Nokia and Blackberry lost out to Apple, which wasn't even in the industry initially. He points out that traditional strategies and barriers to entry didn't protect these companies. Van Alstyne also mentions other industries like transportation and hospitality, where new entrants like Uber and Airbnb have significantly disrupted the market. He emphasizes the importance of understanding these changes to engage in new forms of competition and suggests that traditional business strategies must evolve to account for these shifts.
🔄 The Dynamics of Modern Strategy and Competition
The paragraph delves into the traditional principles of strategy, such as creating barriers to entry and product differentiation. Van Alstyne contrasts this with the modern focus on interaction and network effects, where user engagement creates value. He gives examples like Apple's device interactions and how they foster network effects, leading to new barriers to entry. The speaker also discusses how boundaries can change, with companies like Uber and Airbnb blurring the lines between buyers and sellers. He emphasizes the importance of managing these interactions to create value and the need to balance mono-homking and multi-homing strategies to control the ecosystem.
🌐 The Shift to Platform-Centric Business Models
Van Alstyne explains the shift from traditional business models to platform-centric ones. He points out that in a platform model, the focus is on interactions and community, rather than just controlling resources. The speaker discusses how platforms like Salesforce leverage their user base to develop new features, creating a market exchange that accelerates growth. He also touches on the importance of keeping technology modular to manage risk and innovation. Van Alstyne suggests that less merger and acquisition activity is typical in platform businesses, as they prefer to keep partners at arm's length to maintain innovation and manage risk.
🤝 Navigating the Platform World and Future Predictions
The speaker addresses the question of whether every company needs to be a platform, acknowledging that not every firm can or should be one. He suggests strategies for companies that can't build platforms, such as partnering on someone else's platform or leveraging spare capacity and resources. Van Alstyne also discusses the importance of data and AI in matching functions on platforms, emphasizing how better data leads to better matches and thus more wealth creation. He concludes with a note on the upcoming executive education program on platform strategies.
🤖 The Role of AI and Machine Learning in Platform Matching
In this segment, the role of AI and machine learning in enhancing the matching function of platforms is explored. Van Alstyne explains that platforms aim to create matches between different parties, and the better the data they have, the better they can facilitate these matches. He mentions recommender and reputation systems as examples of AI techniques that improve matches. The speaker also points out that platforms can create new capabilities that expand the sets of possible matches, not just improve the efficiency of existing ones.
Mindmap
Keywords
💡Two-sided networks
💡Platform strategy
💡Network effects
💡Ecosystem
💡Monetization
💡Competitive advantage
💡Regulation
💡Supply-side economies of scale
💡Demand-side economies of scale
💡Complementarity
💡Modularity
Highlights
The speaker, Marshall Van Alstyne, is a renowned expert in the intersection of digital technology and economy, particularly in two-sided networks and platforms.
His teachings on two-sided networks are popular among MBA students, indicating the practical value of understanding platform strategies.
The speaker's book on platform strategies is set to become a blockbuster, suggesting its potential to widely influence business practices.
Understanding platforms is beneficial not only for individual businesses but also for the entire ecosystem they operate in.
Two-sided networks can benefit from coordinated efforts, unlike traditional competition, where uniformity is not advantageous.
The nature of industry and competition has changed, as evidenced by the rise of companies like Apple in the handset industry.
Traditional barriers to entry such as brand recognition and economies of scale are no longer as effective due to the changing competitive landscape.
Companies like Uber and Airbnb have disrupted traditional industries, demonstrating the power of platform business models.
The value of a platform is in its ability to facilitate interactions and create network effects, which are new forms of competitive advantage.
Boundaries between buyers and suppliers can be blurred, allowing for more dynamic and flexible business models.
Platform strategies involve managing the ecosystem to ensure that value is captured and not just created.
The speaker emphasizes the importance of community ownership in platform strategies, as it facilitates the addition of technology more easily.
Traditional strategies focused on product differentiation and cost advantages, but platforms require a focus on interaction and community.
The role of AI and machine learning in platforms is crucial for matching supply and demand effectively.
Investments in capabilities can expand the sets of possible matches on a platform, creating new forms of value.
Not every company can be a platform; strategies for non-platform companies involve careful partner selection and leveraging existing ecosystems.
The speaker will be part of an executive education program on platform strategies, offering further insights into this business model.
Transcripts
so the idea is about bringing you
knowledge of the intersection of digital
and the economy see there and that's
exactly where our next speaker lives he
was trained as a computer scientist also
as an economist and strategist
he's been particularly apply 'near in
the field of two-sided networks and
platforms in fact it's probably my most
popular session that I teach to my MBA
students is basically when I channel our
next speaker Marshall Van Alstyne and I
explain to them about two-sided networks
and platforms and the students love it
and so it's with a twinge of regret when
I found out that he was going to write
this up as a blockbuster book and just
let everybody know about it and I was
thinking oh there goes one of my my
competitive advantages knowing this
stuff from up from Marshall and now
everyone's going to know it and those of
you who have been coming to the annual
conferences I've also been benefitting
from Marshalls insights and deep
research in this area but it's only a
twinge of regret because I think it's
actually good for more and more people
to learn about that not just because I'm
altruistic and I want the world to be a
better place but also because the more
people who in your ecosystem will
understand platforms the better off you
are as well that unlike some types of
competition two-sided networks actually
benefit when people are on the same page
and coordinate with each other and the
work that Marshalls been doing has been
showing how effective that can be so I
encourage you to take a look at this
book I think we've got signed copies of
it for our sponsors available there and
you can also of course buy copies of it
at Amazon or elsewhere and give it to
all of your your competitors and members
of your ecosystem so a please join me in
welcoming Marshall Van Alstyne
we'll have to thank you for that kind
introduction because a lot of the
economics I learned I learned from Eric
so just applying these techniques in new
ways so I want to convince you that
nature of industry and competition has
genuinely changed I'm not quite sure you
know exactly which organizations you
might be with but how would Taiyo to
compete with Ford might be the old rules
of strategy how might try to compete
with uber really the new rules of
strategy or how might Kodak have
anticipated some of the problems that
it's facing and looked into the future
to see what kinds of competition it
should be addressing let's start with a
couple of facts I really want to show
you how competition has changed and why
it's changed to see if it can give you a
couple of rules for manipulating how you
would engage in new forms of competition
the data are really rather compelling if
you look at the number of handset
manufacturers in 2007 seven of them
controlled 99% of industry profits and
these were named companies most of you
will recognize Nokia on blackberry and
anyone still willing to admit carrying a
blackberry these days well what's
fascinating is that these were Nokia
Samsung Sony Ericsson Motorola
Blackberry others 99% energy profited
controlled and they had what by all
accounts but and what we teach in
business school were insurmountable
barriers to entry they had name brand
recognition they had supply chain
economies of scale they had world class
logistics in telecommunications you're
often protected by regulatory barriers
protection what's interesting is if you
look at even the research dollars Nokia
alone had spent 40 billion dollars in
R&D and should have had phenomenal
features to protect them in these
marketplaces and yet something happened
six years later one company had 92
percent of industry profits and that
company wasn't even in the industry at
that point so Apple is now controlled 92
percent of the profits Samson was only
one with other small amount of profits
and everyone else had zero or negative
profits in the industry what's
interesting you want to ask the question
is it likely that all seven incumbents
lacked in execution strategies and had
clueless management to their benefit I
give them more credit I think not I
actually think that what's happened is
that strategy has changed the nature of
competition in these industries has
changed something different is happening
but don't just take a look at
telecommunications how about another
couple of industries I will just give
you a couple others you might be
familiar with take a look at the data
where's we go to this how many of you
knew that uber is now more valuable in
BMW
BMW found it a century ago all right I
was actually a Munich for their for
their Centennial the park capital
markets put them at 53 billion dollars
uber is now valued in the private equity
markets at 60 billion dollars I found
out from one of their staff just
yesterday okay they've now almost
doubled their employees are now up to
7,000 employees as opposed to it as
opposed to 5,000
similarly Marriott 200,000 employees 17
billion dollars in the Airbnb founded
only in 2008 is worth 21 billion dollars
Walt Disney you know how many of us have
seen have our kids watch these movies we
have we have there everyone knows and
loves their content and yet Walt Disney
is worth half of Facebook even if these
numbers are off by a factor of two it's
extraordinary what's going on the one
that's not quite comparable is Kodak
versus Instagram we compare the numbers
from their heyday versus the
point-of-sale Kodak I love it as example
of a true industrial Eric company
founded in 1888 reached its zenith one
hundred and forty five thousand
employees thirty billion dollars and yet
Instagram had only 13 employees when it
sold for a billion dollars something's
different something really is different
and in the nature of industry these days
so I want to start with so what are the
traditional tenets of strategy this is
what we've been teaching for you know 15
years and I studied this in this very
building 20 years ago I don't admit it's
that long ago but what we learned about
is the forces what you want to segregate
supply and demand you want to create
barriers to entry for others entering
your markets you want product
differentiation so chipping heart charge
high prices or you want
costs in order to have a cost advantage
and can offer low prices all you want to
own and control the inimitable resources
so that your competitors can't do the
same things you do what is it that firms
are doing differently today well one of
the things I want to draw your attention
to is we're now focusing on interaction
so Apple has you interacting with their
device every couple of hours those
interactions are constantly taking place
those interactions are creating the
network effects these are demand
economies of scale the frequency of
these interactions are creating the
relationships the network effects that
are creating the demand that come as a
scale or new kinds of barriers to entry
as the demand curve moves out as more
people join the ecosystem the value
Rises which increases value the
ecosystem which attracts more people
which brings more people which brings
more value to the ecosystem that
interactivity users creating value for
users is what's creating a lot of that
value it's a different mechanism
another thing is that boundaries can be
altered you're not just subjugating
buyers and suppliers to keep them out
now you may be mixing and matching them
you can ride with over today and
drive with them tomorrow you can stay
with Airbnb tonight and host with them
tomorrow the best example of this was
actually Salesforce when when they got
started they had one hundredth the
number of Engineers that s AP and Oracle
had how did they manage to get moving so
quickly they had one their clients built
new features on top of their platform
they marketed these features to other
clients their demand became their supply
that increased the number of folks
working on the products by an order of
magnitude and help them grow incredibly
they had a market exchange in b2b space
two years ahead of the Apple iTunes
Store known is that
comput headed competitors run keeping
them out entirely can become
complementary it just has to be on your
terms it is the case that both Apple and
Google allow Microsoft Skype onto the
platform both Apple and Google allow
Amazon eReader onto the platform under
specific cases where they bring you
value you want to come in the trick
whenever possible is to actually get
them to Mono home you want the sources
of value to be on your platform if
possible but not on the competitors
platform you want to see if you can
manage that as opposed to multi-home you
want their sources of value to
multi-home you want your sources of
value to Mono home to stick with you
competition is now also
multi-dimensional the way that it didn't
used to be of course its platform one
platform it's Apple versus Google it's
myspace versus Facebook it's
Android you know it's BMW versus Toyota
but you now also have to think about
keeping your sources of value on
platform this is that mono homing versus
multihoming you MySpace sorry Facebook
doesn't want Zynga on myspace Apple
doesn't want Angry Birds on Android if
they can help it that's one of things
that you can try to manage if you can if
you can reward folks to keep them in
your ecosystem then you have to make
sure that partners don't exploit other
partners if that happens you can drive
one side of this feedback market off
platform so when Zynga started sending
out spam notices to too many of the
users on Facebook Facebook had to turn
that down and ratchet that off if folks
could exploit Apple is magnificent at
keeping malware and porn and bad
software off of the iTunes platform that
protects the ecosystem you look after
both sides of the market to maximize the
value of those interactions
you also have to make sure that they're
creating value for the platform and not
just taking it away if Zynga starts to
tip the interactions off platform into
the cloud Facebook doesn't capture that
value anymore if it's the case that
Google Maps starts to tip those
interactions off the Apple iPhone Apple
doesn't capture that value anymore you
must be very careful about capturing the
data and capturing the value on your
terms even as these competitors create
value on top of the platform
another element of this is critical you
don't have to own all the critical
resources if this were Windows you might
own Word PowerPoint and Excel your phone
comes preloaded with a dozen apps the
mapping the contact manager the phone in
the browser there are the critical
things but you want the ecosystem to
create all this incremental value in
your behalf you don't need to own that
and if you do try to control it you'll
restrict the growth of the ecosystem the
way that keeps the value small when in
fact your task is to grow it as much as
possible
one other interesting observation we
find is that you'll probably see on a
platform less mergers and acquisition
than in a traditional business model so
of course you use M&A to enter new
businesses in the way my Facebook took
over Instagram or Apple bought Siri to
enter voice or Google bought Android to
enter mobile these big systems that they
don't have but once the platform's
established more often than not you'll
want to keep folks at arm's length for a
variety of reasons the first one has
been obvious for a long time it's been
true for for ages even before platforms
not acquiring the business keeps the
innovation incentives what happens as
soon as you buy a Silicon Valley startup
well the founders leave to go to another
Silicon Valley startup right this way
you keep them off platform where you
still have the incentive to keep
innovating the second thing is what
happens if an app fails you
compartmentalize that risk by keeping it
on platform as distinct so you've
compartmentalised the business risk by
keeping it separate it's a business
version of modularity that same thing
applies also to the technology you
compartmentalize the technology risk if
someone builds their stack and PHP
someone else in Java someone else in
assembly code you don't want to own
those technological headaches by keeping
it as modulized components on ecosystem
partners attached to the platform you
compartmentalize the technology risk in
addition to compartmentalize the
business risk
lastly you solve an information
asymmetry problem if you keep a partner
and you can observe their transactions
on platform now you know how many
transactions are doing and what those
transactions are worth before this you
had to send an army of accountants in to
go examine the private books of the
company know how much value they're
really creating now you can see what
kind of compliment they would be and
solve that information asymmetry problem
before doing an actual acquisition so
each of these reasons you get an
advantage
from the modular ecosystem and the
reconfigurable components and less M&A
in the small things even as you might
still observe them in the large things
one last thing I want to draw your
attention to is predicting the
competition
publishers know how to deal with other
publishers Houghton Mifflin knows how to
deal with mcgraw-hill how do you do it
you own the distribution channels to the
schools in the bookstores and you own
the copyrighted material so that you
can't get
competition that's owning the
indispensable asset how does Toyota
compete with Ford well I invented
just-in-time inventory they know
operations and supply chain as well as
anybody how to swatch compete with Timex
low-cost or fashion or differentiating
into sports its feature and product and
differentiation by the traditional rules
of strategy none of these inside their
industries anticipated competition from
Amazon Netflix Facebook Samsung Timex
and swatch are now having fits for Apple
watches
they don't have the ecosystem they've
just got the technology how would you
anticipate that and how might you deal
with how would you even think about
solving those kinds of problems the
traditional way of anticipating
competition is effectively to define the
boundaries of your industry based on the
features that you produce so if you look
at the features of your watch your car
your service are you product
differentiation should already low cost
in this so well I would assume overlap
with an iPod or how it is how would i
pod interact with an iPhone or PSP
personal selling personal Playstation or
another device it's a feature overlap to
distinguish the differences in product
that's not the right way to think about
things in platforms it's this external
value creation it's the community the
ecosystem that's creating value what you
want to do is to look for who has the
relationship
who owns the community thing but in the
following way if you own the community
it's much easier to add a technology to
a community then we used to add a
community to a technology I'll say that
again it's easier to add a technology to
a community than it is to add a
community to a technology technologies
duplicatable or its functions our
duplicatable but if you only relation
relationship it's very straightforward
to bring in new things exactly as Apple
brought in video it brought in accessing
the web it brought in these watches and
other devices if you own the community
you own that relationship it's very easy
to have either your own technology or
partner technology brick come in and
take over just the individual product
space so to summarize there are several
key features that really define the
differences in strategy so first of all
the boundaries are no longer distinct
and you're not always trying to dominate
one in fact the boundaries can be very
blurry and you're now in the frenemy and
coopertition space indeed even the
overlap between producers and consumers
is very high they are not distinct in
the same way second you'd focus on the
core competencies previously now you
need to focus on the core interactions
how much you're getting them to engage
with your products and services so that
others can attach to that as well
formerly we focused on supply-side
economies of scale now we must focus on
demands that economies of scale I know
it's not that supply-side doesn't matter
of course it matters it will always
matter but we now also need to focus on
the network effects and demand side
economies of scale that distinguishes
these new business models it's not just
owning an immutable resource it's
getting partners to bring those
resources to you to you and it's not
just those it's the community itself as
an asset what can your community bring
to you and how can you motivate them to
contribute what they have and keep it on
your platform as it and keep it off
competing platforms and it's no longer
barriers to entry and boulevards for
exit in that case you're trying to keep
the other folks out and anyone was
weakened struggling you wanted to kick
them out of the ecosystem as fast as
possible here it's frictionless entry of
demand and supply you want as many users
as possible
uber gives away bribes to get new
drivers and riders in the system Airbnb
gives away bribes to get into people
into the system it's frictionless entry
of demand and supply we flipped the
logic what's happening and you're
opening around key control points that
you can monetize and the innovation is
no longer just by the firm that's why
the firm wasn't together with an open
ecosystem those things together or what
helped
the new tenets of strategy in the
platform business models so with that
I'm very happy to take any further
questions we've covered just a tiny
piece of this strategy chapter but there
are a whole number of different things
about getting these things launched
about how you build the network effects
one of the architectures of these
businesses to help them launch an
increase in value they're also as these
grow enormous marketplaces and become
gigantic firms monopolies today like the
monopolies of a century ago how do we
regulate them what are the antitrust
implications as these firm become
juggernaut so with that I'm happy to
take any questions I
just wanted to add one point Marshall
while we do have the book available in
June we'll be launching the first
executive education program on platform
strategies featuring Marshalls co-author
of platform revolution Jeff Parker and
each of our stakeholders gets five free
seats to that so if you'd like to
participate in that please let me know
floors open for questions
thanks Marshall great talk what are the
questions that I see in talking to a lot
of companies is is
do they have to be a platform you know
in a lot of sectors you can if you look
at it not every not every participant
can be a platform you know there'll be
some that went in and developed the
platform so do you have a view of what
the strategy should be for those who
can't build the platforms or won't be
the winning platforms how do they
optimize their success in a platform
world or can they now Paul think that's
a great question so not every firm can
be a platform not every program can be a
platform so it's partly a function of
how far along the ecosystem is and what
the assets of the particular company are
the earlier you start the greater the
chances that that firm can be a platform
after a while they're probably going to
have to be a partner on someone else's
platform and after that they're probably
going to be off platform I mean imagine
now trying to create the latest greatest
app on Android it would be extremely
difficult to do it the earlier you can
participate the earlier you can be the
platform the later then you're going to
have to choose your partners carefully
and after that you're probably going to
have very very tough time again in most
cases these markets concentrate we can
want to take home markets so you want
earlier advantages if you can acquire
them we have a long list of tests of
things to help you decide what firms can
do there so look for expensive
gatekeepers can be displaced look for
spare capacity and resources just as
with Airbnb and with uber
look for industries where you can create
incremental value through information
and through community those are those
are excellent places to actually try to
seek leverage in shifting a business
model into becoming a platform
thanks Marshall this is Prashant from
Accenture inch of high performance a
fascinating presentation my question is
about the technology beneath the
platform so actually the two-part
question first is matching the
fundamental function of platforms and if
so what is the what is the role of AI
what is the role of machine learning in
that matching function
so the goal of the platform is to
consummate the match you want as many
matches as possible whether it's people
and content people in people people and
ideas whatever you the goal of the
platform were to consummate the match
the way to do that use data on both
sides of the market you need data on the
consumption and any data on the supply
and the better the data you have the
better you can do that match if you look
at recommender systems are a crucial or
you know element of that Netflix has
that Google has it Google is really good
at getting you exactly what you want
when you search whether it's a YouTube
video whether it's a product search
that's a recommendation that's an
artificial intelligent techniques other
recommender systems reputation systems
all of those are better constituting
match I'll give you a really simple
reason every time you create a match in
an economic sense you are creating
wealth you're creating a transaction
where two parties come together to
create wealth the more of that you do
the more wealth you create that's what
you've got to do
imagine this rods work but there's
Matthew together to make a match more
efficient
but in two sided markets you can also
create new capabilities yeah a matter
for uber an app that makes you able a
recommendation that improves things so
it's not just efficiency of match in
multi-sided markets that and the
platform's you describe you're creating
capabilities that also can improve the
quality of a match so it's a dual knot
so it's not just efficiency it's a
different form of effectiveness so as I
have to thank microphone for adding
quite correctly that we really really do
need to invest also in the capabilities
you can you could create better drivers
you could create better environments at
Airbnb you can create better
capabilities on either side which allows
to in some sense what you're doing is
you're expanding the sets of matches
that are possible so you don't just take
the matches as given you can also make
investments in ways that create new
kinds of matches and that's a very
important point okay I encourage all of
you to seek marshal out to ants to
answer any of your questions but now
we're going to take a 10-minute bio
break also as Eric mentioned we do have
signed copies of the book for all of our
corporate members donors and
stakeholders those are at the
registration table so we'll see you back
in this room for the productivity
employment in inequality panel session
in ten minutes okay thank you
تصفح المزيد من مقاطع الفيديو ذات الصلة
The Invisible Hand - Full Video
중국의 청년 실업 원인은 '테무'와 '알리익스프레스' 때문이다 | 안유화 교수 #2 [투자Insight]
What Does Apple's Falling Revenue Indicate? | Vantage with Palki Sharma
Why are GIANT Edtech companies FAILING in India? : Edtech Crash Case study
3 X + | Rogério Canhoto | TEDxUCPPorto
Multi-sided Platform Strategy - Part 1
5.0 / 5 (0 votes)