Driving a successful Platform Strategy

By Simon King

When reviewing service portfolios, I think we we have a major problem - Diversity.

Darwin informs us that Diversity is Good.

Survival of the Fittest ensures the best solution dominates.

And it's true. Diversity enables Optimal performance in different sets of conditions. But it also drives Risk, because future conditions are an unknown. And it drives Specialization of capabilities which can limit flexibility.

What does this mean for IT?

From a resource perspective such consumption comes at a cost. In the past we have selected Best of Breed solutions for problem domains. As a result we spend a lot of time and money on just making it work.

• Integrating solutions. 
• Building data warehouses. 
• Keeping systems running.

Too much is being spent on just Keeping The Lights On rather than innovating to support and drive the business. As a result the business impression of  IT is that of an expensive but necessary step child. Barely tolerated because they're part of the family.

What's the alternative?

One solution to a Best of Breed approach is to open things up with a Platform. A Platform doesn't try to do everything itself.

A Platform provides a foundation on which other Services can be deployed.

A Platform elevates the level of functionality.

A Platform interconnects organizations - suppliers and customers.
Current examples of such Platforms include:

• Amazon for e-commerce
• eBay for auctions
• iTunes for content
• Salesforce for customer relationship management

Platform Thinking

But building a Platform doesn't automatically ensure success. There are some unique differences in the dominant Platforms of today.

Each of the example Platforms has a set of common capabilities that make them so effective

1. Connection: Simple for others to plug into the platform to share and transact
2. Gravity: strong attraction for participants - producers and consumers
3. Flow: fosters the exchange and co-creation of value

Today, every organization is faced with the fundamental question underlying Platform Thinking.

How do I enable others to create value? 

Building a better mousetrap may have worked in the past - but it's left us with high cost and low differentiation. A platform might just do the trick.

Are you defining a platform approach to take advantage of the opportunities they offer? 

Recommended reading
http://www.chiefmartec.com/2012/05/marketing-technology-suite-platform-or-portfolio.html: Scott Brinker
http://www.amazon.com/Marketing-Playbook-Battle-Tested-Capturing-Keeping/dp/1591840384: John Zagula and Richard Tong