The concept of platform was developed a few years ago to describe new economic models such as iTunes, ebay and others who bring the services of other private companies into their infrastructure as a revenue multiplier. This webinar will present the concept and its applications to the postal world.
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The Concept of Postal Platform and Its Applications
1. An Overview and Framework
for Postal Platforms
September 19, 2013
2. Outline
● The concept of platforms
What is a platform? Why are we talking about them today?
Examples of commercial platforms & ecosystems
● How to apply this concept to the Postal, Mailing & Shipping
industry
Postal ecosystem and infrastructure
A postal platform: Why and How?
Next Steps
2
4. Concept of Platforms
● Business model
Bringing revenue
Bringing innovation
Managing risk
● Infrastructure
Operating system, distribution system
● Applications that interact with users
● Rules of the game
● Network effects
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5. Microsoft versus Apple
1981-1997
● Apple launched the personal computer market but Microsoft
licensed widely, building a huge developer ecosystem. By
the time of the antitrust trial, Microsoft had more than 6
times the number of developers.
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Developer
Ecosystem
6. Apple versus Microsoft: Key
Business Model Difference
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Apple Mac
Users Claris
Mac OS
• Charged ~$10,000 for SDKs(*).
• Controlled OS & HW and dominant Apps.
• Vertical integration choked network effects
Apple Microsoft
• Microsoft had 6-10X developers
• Open APIs / Cheap SDKs
• Controlled OS, licensed.
• Strong network effects.
Users Dvprs
MS Windows
Dell IBM … HPProviders
Sponsor
(*) Software Development Kit
7. Microsoft versus Apple
1998-2009
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● Using a platform strategy, Apple becomes the most
valuable tech firm in the US, representing $310Bn to
Microsoft’s $204Bn. Chart shows % growth.
“I sell songs in order
to sell phones”
Network
Effects
8. Network Effects
Users (Demand)
● Consumers of the platform services; they can
be individuals, businesses, organizations, etc.
Users (Solution Developers)
● They provide product or services that attract
users to the platform – information, services,
answers, music, games,
Providers
● The contact point for users and value-added
providers. Providers offer common platform
components and define rules to facilitate the
services.
Sponsors
● Responsible for the overall organizing structure
for the platform: the rules and governance of
the ecosystem. May control the underlying
platform technology and IP rights.
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Sponsor
Provider
Users
(Demand)
Users
(Developers)
10. Other examples
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• Evolved from a single purpose application
• Android & Chrome operating systems,
Docs, Gmail, Calendar, and Chrome
browser,
• Droid phone, Android tablets,
Chromebook, and Music Store
• Google Books, Product Search,
Checkout, Wallet, and Cloud Computing.
• Google+, Google Games, Groups, Orkut,
Blogger, and Hangout.
• 500 M users, over 50% log in
every day, 200M using their
mobiles.
• Over 250 M interact with
Facebook across 2 million other
websites
• 20 million applications are
installed per day
• 3 million messages are sent
every 20 minutes.
Giving people the power to shareOrganizing Internet Information
11. What is a platform?
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Infrastructure
• Physical
• Information
• Financial
Applications
Developers
Planks
Users
12. Platforms get enormous value from
3rd party developers
Most firms can only
concentrate on most
valuable apps
Profits increase when
others add to platform’s
“Long Tail”
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13. In House or Third-Party?
● iTunes/Facebook applications developers are primarily
“entrepreneurs”
Investing time, providing ideas and concepts,
Developing unique marketing strategies and campaigns
Risking capital, develop and commercialize products
● Platform sponsors have responsibilities too
Manage plank rules (IP, revenue sharing, appropriateness)
Run developer forums
May subsidize or promote certain projects
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14. Lessons from today’s Platforms
● Winners in a platform market generally
Have the “best” platform strategy, not necessarily the “best” product
Follow their mission, leverage their strengths, study the market
● It’s better to maximize the value of their infrastructure and
intellectual property, not the terms and conditions that
maximize intellectual property protection
Source: Shapiro, C. and H. Varian (1998). Information Rules (Harvard Business School Press). p5.
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15. How Do We Apply This to the
Postal, Mailing and Shipping
Industry?
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16. What do we have?
What’s missing?
Infrastructure
Ecosystem
Applications ?
Business Model
Strategy
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18. The Postal, Mailing & Shipping
Ecosystem
● The postal ecosystem
Consumers
Advertisers
Publishers and Printers
Consolidators, third-party logistics providers, and other transporters
Banks and financial services providers
Policy makers and Regulators
Postal operators and couriers
Technology suppliers and other service providers
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19. The postal platform
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Infrastructure
• Physical
• Information
• Financial
Planks
Shipper S R Receiver
eCommerce eGovernment
New Logistics Market intelligence
Innovation
Private
Capital
22. Moving to a Platform Business…
● The platform business model can have a transformative
effect on the postal ecosystem
Re-imagining the mail business with innovative applications
Extending the value of the mail and the value of the postal
infrastructure
Creating two-sided network effects
● Moving to this new business model requires:
A strategic approach that aligns mission, corporate strengths and
market needs
The identification of application “zones”
“Planking”: The definition and implementation of a platform program
within the enterprise
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24. Next Steps
● Charter document
Strategic analysis: Mission, strengths, market needs
Business case for a platform strategy
Application zones
Blueprint
● Establish planks
Platform organization
Communication plan and outreach
Business plan, rules, I/P, “give and take”
Implementation, new internal processes
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25. In Summary
● A platform business model can have a transformative effect
on the postal, mailing and shipping ecosystem
Bringing a continuous stream of innovation
Mitigating risks and conserving capital
Creating network effects
Extending the life of the mail
● A strategic focus is required
Mission, strengths, market needs
● A plan must follow
Outreach
Applications
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