Digital platforms have completely reshaped everyday life in the modern world; nevertheless, innovation leaders do not always understand the importance of the digital platform impact or how to use platform-based business models to create value for all businesses, not just digital services and startups. This text provides a framework as well as practical tools to effectively utilize digial transformation in any and all organizations. Platform ecosystems are complicated, but this book will help those interested in the platform world to become platform thinkers-those who are able to put platform-based mechanisms at the center of digital business transformations-by training them to read the platform world around them and then guiding them in writing new platform models. Chapter 3 focuses on transactional platforms and the peculiarities they have in their design phase. Value drivers are discussed and how they impact the relevance of platform providers' work. Early obstacles, such as the launching phase and pricing dynamics, need to be overcome for the platform to be successful; the chicken-and-egg problem is discussed in depth along with tips on how to address it. Strategies to help platforms grow and prosper are offered, including strategies to allow two-sided, transactional platforms to evolve through introducing new transaction lines. For example, businesses could let the two sides interact in new ways or introduce new supply sides.
Digital platforms have completely reshaped everyday life in the modern world; nevertheless, innovation leaders do not always understand the importance of the digital platform impact or how to use platform-based business models to create value for all businesses, not just digital services and startups. This text provides a framework as well as practical tools to effectively utilize digial transformation in any and all organizations. Platform ecosystems are complicated, but this book will help those interested in the platform world to become platform thinkers-those who are able to put platform-based mechanisms at the center of digital business transformations-by training them to read the platform world around them and then guiding them in writing new platform models. Chapter 4 looks at orthogonal platforms in more detail. The role data plays in orthogonal platforms is explored. Several cases are used to highlight various strategies-such as client-as-a-source and client-as-a-target strategies-that exploit the value of data generated during a digital service, including examples involving Apple, Nike, and Netflix. Nevertheless, these strategies have implications for both privacy concerns and business model transparency. These issues are complex and do not have easy answers, but brief discussions on each are given at the end of the chapter.
Digital platforms have completely reshaped everyday life in the modern world; nevertheless, innovation leaders do not always understand the importance of the digital platform impact or how to use platform-based business models to create value for all businesses, not just digital services and startups. This text provides a framework as well as practical tools to effectively utilize digial transformation in any and all organizations. Platform ecosystems are complicated, but this book will help those interested in the platform world to become platform thinkers-those who are able to put platform-based mechanisms at the center of digital business transformations-by training them to read the platform world around them and then guiding them in writing new platform models. Chapter 5 explores platform thinking as a mindset in and of itself. The platform thinker is an innovator who uses the power of platforms; the concept of idle asset hunting is the primary capability of platform thinkers-they identify idle assets, design value propositions, and then get the players they need on board. Ultimately, companies that are platform thinkers will be able to shape the industry more effectively than those that are not. Cases involving Booking.com, Chiara Ferragni, WhatsApp, and Amazon are described in depth through the lens of platform thinking to demonstrate how these four companies evolved over time. Other cases are also offered throughout the chapter.
Digital platforms have completely reshaped everyday life in the modern world; nevertheless, innovation leaders do not always understand the importance of the digital platform impact or how to use platform-based business models to create value for all businesses, not just digital services and startups. This text provides a framework as well as practical tools to effectively utilize digial transformation in any and all organizations. Platform ecosystems are complicated, but this book will help those interested in the platform world to become platform thinkers-those who are able to put platform-based mechanisms at the center of digital business transformations-by training them to read the platform world around them and then guiding them in writing new platform models. Chapter 6 offers a framework for putting platform thinking into action. This framework supports platform thinkers by fostering innovation through a platform lens and is based on four steps: step back and read, where you are; dive in and read, what you have; dive in and write, where you may go; and step back and write, the roadmap to get there. Each of these steps is described in detail. Existing tools (such as the Business Model Canvas and value maps) as well as ad hoc created tools (such as the Idle Asset Canvas and the Platform Thinking Canvas) are used in the framework to support innovators, their ideas, and the structuring process to develop platform thinking.
Digital platforms have completely reshaped everyday life in the modern world; nevertheless, innovation leaders do not always understand the importance of the digital platform impact or how to use platform-based business models to create value for all businesses, not just digital services and startups. This text provides a framework as well as practical tools to effectively utilize digial transformation in any and all organizations. Platform ecosystems are complicated, but this book will help those interested in the platform world to become platform thinkers-those who are able to put platform-based mechanisms at the center of digital business transformations-by training them to read the platform world around them and then guiding them in writing new platform models. Chapter 7 provides a brief, noncomprehensive list of topics that impact platforms and platform thinking but that were not covered in this text, including regulation, industry dynamics, value sharing, B2B platforms, sustainability, and emerging technologies. Technology is constantly changing at a faster and faster pace; nevertheless, even with future technological changes, the platform thinking mindset will still be relevant and applicable and will allow businesses to find and exploit opportunities within technological advances.
Launched in May 2013, Patreon was the leading subscription-based platform in the online crowdfunding market. For over five years, the company operated successfully and expanded its large base of artists and content providers (known as "creators" on Patreon) and their fans and contributors (known as "patrons" on the platform). Patreon charged its content creators a standard 5 per cent fee, plus transaction costs, offering the artists over 90 per cent of the crowdfunded amounts. However, the founder and chief executive officer of Patreon realized that the company could not survive by maintaining the current uniform pricing and services structure. Patreon had to develop a set of more advanced tools to attract new content creators to the platform and enhance the experience of the contributing patrons. Patreon had to revise its pricing strategy to pay for the development of new services, grow its customer base, and improve the company's profitability.
According to Microsoft's latest Work Trend Index survey, about half of employees are experiencing burnout. In this article, the authors discuss the importance of measuring all of the factors that contribute to burnout; its three primary symptoms; its impact in the workplace; and what leaders, managers, and employees can do to mitigate burnout's negative effects.
This case unfolds around the first-ever approved personalized cancer treatment, how Novartis wrapped it into a new business model design, and how Novartis scaled it. Novartis - one of the largest pharmaceutical companies in the world - is, among other ventures, discovering, developing, and marketing patent-protected prescription medicines, as well as addressing unmet medical needs and diseases for which no effective treatments or cures exist. In late 2011, Novartis executives became aware of a revolutionary treatment technology developed by researchers at the University of Pennsylvania (UPenn). This technology was designed as a one-time, personalized drug to cure certain types of cancers such as lymphomas and leukemia. Section Chief of Cellular Therapy and Transplant at the Children's Hospital of Philadelphia Stephan A. Grupp, MD, Ph.D. commented on the innovation as follows: "I've been an oncologist for 20 years, and I have never, ever seen anything like this." After approaching UPenn scientists, Novartis decided to develop and commercialize this technology as the company possessed the relevant capabilities. This case series then explores the introduction and scaling of this new treatment over three parts. Case A describes the various challenges Joe Jimenez, the then CEO of Novartis, faced during the launch of the new treatment in 2016. Case B (separate) focuses on the persistent problems with drug manufacturing and scaling this part of the business model design after its launch in 2017. Lastly, case C (separate) examines how Novartis solved the persistent problems and envisioned the future in this new, inspiring area of medicine.
This case unfolds around the first-ever approved personalized cancer treatment, how Novartis wrapped it into a new business model design, and how Novartis scaled it. Novartis - one of the largest pharmaceutical companies in the world - is, among other ventures, discovering, developing, and marketing patent-protected prescription medicines, as well as addressing unmet medical needs and diseases for which no effective treatments or cures exist. In late 2011, Novartis executives became aware of a revolutionary treatment technology developed by researchers at the University of Pennsylvania (UPenn). This technology was designed as a one-time, personalized drug to cure certain types of cancers such as lymphomas and leukemia. Section Chief of Cellular Therapy and Transplant at the Children's Hospital of Philadelphia Stephan A. Grupp, MD, Ph.D. commented on the innovation as follows: "I've been an oncologist for 20 years, and I have never, ever seen anything like this." After approaching UPenn scientists, Novartis decided to develop and commercialize this technology as the company possessed the relevant capabilities. This case series then explores the introduction and scaling of this new treatment over three parts. Case A describes the various challenges Joe Jimenez, the then CEO of Novartis, faced during the launch of the new treatment in 2016. Case B (separate) focuses on the persistent problems with drug manufacturing and scaling this part of the business model design after its launch in 2017. Lastly, case C (separate) examines how Novartis solved the persistent problems and envisioned the future in this new, inspiring area of medicine.
This case unfolds around the first-ever approved personalized cancer treatment, how Novartis wrapped it into a new business model design, and how Novartis scaled it. Novartis - one of the largest pharmaceutical companies in the world - is, among other ventures, discovering, developing, and marketing patent-protected prescription medicines, as well as addressing unmet medical needs and diseases for which no effective treatments or cures exist. In late 2011, Novartis executives became aware of a revolutionary treatment technology developed by researchers at the University of Pennsylvania (UPenn). This technology was designed as a one-time, personalized drug to cure certain types of cancers such as lymphomas and leukemia. Section Chief of Cellular Therapy and Transplant at the Children's Hospital of Philadelphia Stephan A. Grupp, MD, Ph.D. commented on the innovation as follows: "I've been an oncologist for 20 years, and I have never, ever seen anything like this." After approaching UPenn scientists, Novartis decided to develop and commercialize this technology as the company possessed the relevant capabilities. This case series then explores the introduction and scaling of this new treatment over three parts. Case A describes the various challenges Joe Jimenez, the then CEO of Novartis, faced during the launch of the new treatment in 2016. Case B (separate) focuses on the persistent problems with drug manufacturing and scaling this part of the business model design after its launch in 2017. Lastly, case C (separate) examines how Novartis solved the persistent problems and envisioned the future in this new, inspiring area of medicine.
In May of 2023, President Biden faced a crisis of debt. The debt ceiling was about to be breached, while House Republicans demanded cuts of $3.5 trillion if they were to raise the ceiling. President Biden refused. The case consists of excerpts from President Obama's and President Trump's Economic Report of the President, and from President Biden's Fiscal Budget for 2024, as well as charts and tables describing the U.S. economy.
After four successful years on the market, the founder and chief executive officer of Sanzo Brands Inc. (Sanzo) was looking for ways to continue the momentum and growth of his company. Sanzo was an Asian-inspired flavoured sparkling-water beverage company with an innovative approach to marketing and branding. Rather than promoting its sparkling water through traditional media channels, Sanzo relied on a digital-brand story approach and adopted social-media marketing tools in a mass-marketing environment. Alessandro Roco knew this was the right product at the right time, but his greatest concern was how to maintain the social-media buzz and continue to build the community around the brand. He wondered how Sanzo should manage social media to keep the community engaged and the brand story relevant.
In its effort to fight climate change, the Royal Bank of Canada (RBC) established its RBC Climate Blueprint, an enterprise strategy to accelerate clean economic growth and support its clients in a socially inclusive transition to net-zero. RBC holds itself accountable to this plan through its Environment, Social, and Governance (ESG) Performance Report, which quantifies the bank’s climate change actions. Any business activities that contradict RBC’s strategy may adversely impact the bank’s reputation. This study was carried out in response to a strategic decision-making requirement from RBC regarding Bitcoin and new technology investment. The case discusses the definition of cryptocurrency, the Bitcoin mining process, energy consumption associated with the mining procedure, and the impact of Bitcoin mining on climate change. After thoroughly describing and analyzing each topic, we will draw conclusions about the effects of Bitcoin mining energy consumption on climate change. At the end of the study, we will be able to answer this question: What environment-related reputational risk might RBC face if the bank were to support products and services around Bitcoin?<br><br>The Ivey Business School gratefully acknowledges the generous support of Pierre Lapointe, MBA ’83, in the development of this case.
Faraaz Usmani, heir to the family-owned Herbo Drugs & Pharmaceuticals, a small private Unani pharmaceutical company in Prayagraj, India, planned to expand the company’s business to other states to cover most parts of India. Before implementing this ambitious plan, Faraaz needed to conduct a feasibility study by applying some popular capital budgeting tools such as net present value, internal rate of return, and profitability index. He first projected the cash flows for ten years with an initial investment of ₹6.5 million financed with 80 per cent equity and 20 per cent debt. He expected sales to grow by 15 per cent annually for the next five years, 10 per cent from year 6 to year 10, and a perpetual growth rate of 5 per cent afterward. Faraaz understood that the estimation of the cost of capital was a key step in his analysis. He discovered that finding the cost of equity for a private firm was tricky because stock return information was not available to estimate beta. The case introduces the basics of cost of capital (i.e., weighted average cost of capital) and capital budgeting. It focuses on the details of how to estimate the cost of equity for a private firm.