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About Formicio How Business Platforms Pull the Present Into The Welcome to our latest How business platforms pull the present into the bulletin, which focuses on future the impact of technology- enabled business platforms. Over the past decade technology-enabled business platforms – the likes of which include Amazon, iTunes and Facebook – have had a In our lead article Peter profound impact on our lives. They have ‘pulled’ us into a future that Boggis and I explore the is different to the one we might have envisaged. emergence of technology- enabled business platforms In their recent article How Business Platforms Pull the Present into and examine how they are the Future, Peter Boggis and David Trafford argue that these different from platforms of business platforms all have one thing in common: they changed our yesterday. We believe that individual and collective behaviour. They pulled our present into considerable lessons can be their future! A future that has now become so familiar it doesn’t feel learned from the like we’ve changed at all! But was this by accident? Did these things development and use of just happen or were they planned? these platforms, particularly how they can be used to Make no mistake: it was all planned. When Jeff Bezos launched ‘pull’ an organisation into its Amazon, he had a clear vision from the outset, as did Mark desired future. Zuckerberg at Facebook and the system architects at Apple. They In our second article we were all building a future in which they believed we would willingly share the insights of two participate. It’s a sure bet that system architects in the likes of thought leaders in this Google are doing the same now. space, Mark Bonchek and Sangeet Paul Choudary. In But how are these new business platforms different from the ones their featured article they that exist in most organisations today? In their view they differ in pose a counterintuitive four important ways: question facing all businesses today: how do I 1. They are extendable – new value-added services can be added enable others to create easily. value? 2. They are open – to new participants. 3. They support eco-systems – that extend across the value chain Finally, we review Phil from suppliers to customers. Simon’s book The Age of the 4. They are agile – not constrained by their underpinning Platform in which he technology and architecture. examines how Amazon, Apple, Facebook and Peter and David believe that the approach is equally applicable in Google have redefined strategy and organisational change where technology-enabled business. business platforms can be used to ‘pull’ an organisation into its desired future. As always, we welcome your feedback. To read their full article where they give examples of emerging business platforms, click here. Best regards _______________________________________________ David Trafford __________________ Three elements of a successful platform strategy About Formicio According to Mark Bonchek and Sangeet Paul Choudary, the rise of platforms is being driven by three transformational technologies: We work with people who cloud, social and mobile. The cloud enables a global infrastructure want to improve their for production, allowing anyone to create content and applications organisation’s future by for a global audience. Social networks connect people globally and delivering transformational maintain their identity online. Mobile allows connection to this global change. infrastructure anytime, anywhere. We provide both thought They argue that these three transformational technologies are leadership and thought forcing all businesses to answer a fundamental question that partnership on all aspects of underlies Platform Thinking: how do I enable others to create change from formulating value? strategy to managing migration. In their view the answer lies in a platform strategy that addresses: Throughout our work we 1. Connection: how easily others can plug into the platform to believe that it is important for share and transact. the client to retain ownership 2. Gravity: how well the platform attracts participants, both of their challenge and find an producers and consumers. approach that will work for 3. Flow: how well the platform fosters the exchange and their organisation. Our role is co-creation of value. to support and facilitate the process, while keeping the To read their article, click here. client true to their intent. _______________________________________________ Specifically we can help: The gang of four who set the benchmark Explore alternative futures In his book The Age of the Platform, Phil Simon describes Amazon, that are not only better, but Apple, Facebook and Google as The Gang of Four. He believes that achievable. they have individually built the world’s most valuable and powerful business platforms, and in doing so have done nothing short of Establish the conditions redefined business. necessary for successful transformational change. He believes that one thing The Gang of Four have in common is their ability to embrace intelligent risk and not being afraid to fail, Develop capabilities needed experiment and change. More importantly, they have spent a great to ‘pull’ an organisation into deal of time and money building extremely powerful and valuable an improved future. ecosystems, partnerships and communities that seek symbiotic and mutually beneficial relationships. More details can be found on our website. Furthermore, their platforms can quickly and easily scale, morph, __________________ incorporate new features (which he calls planks), and add new users, customers, vendors and partners. In other words they are not Parting thought constrained by legacy technologies and architectures. “Give me a lever long In a later chapter Simon gives his views on the most promising enough and a fulcrum on candidates for emerging platforms. His list includes Foursquare, which to place it, and I shall Twitter, Groupon, Adobe and Quora. Interestingly WhatsApp (founded move the world.” only in 2009 and recently acquired by Facebook for $19 billion) was not included. Obviously they were not on his radar screen when he Archimedes wrote the book – nearly three long years ago. Greek Mathematician _______________________________________________ 287 – 212 BC __________________ More Insights are available at www.formicio.com Follow us on: Formicio Limited, 180 Piccadilly, London, W1J 9HF Registered Office: 26 Hazelwood Road, Oxted, Surrey, RH8 0HZ Registered in England and Wales No 07146177 .
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