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How to Design a Platform

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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.
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