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Review
“Thorough and often provocative.†- Jeremy G. Philips, The Wall Street Journal“An authoritative guide to the role of online platforms: what they are, how they work, and what they mean for business and economics. Platform Revolution demystifies the concept by providing clear prose, insightful examples, and practical lessons.†- Hal Varian, chief economist, Google, and author of Information Rules“Platforms have transformed the economy over the last two decades, but the biggest effects are yet to come. Platform Revolution provides the first comprehensive framework for platform strategy and for predicting the winners and losers of future disruptions.†- Susan C. Athey, Stanford University, former chief economist, Microsoft“Platform Revolution is a manual for the disruption of your industry. You can either read it or try to keep it out of the hands of your competitors―present and future. I think it’s an easy call.†- Andrew McAfee, principal research scientist at MIT, coauthor of The Second Machine Age“Platform Revolution provides an exceptional synthesis of cutting-edge research that makes it must-reading for my MBA students. A key insight is that platform strategies can benefit all participants when they understand the underlying economics. Read the book and share it with your business partners. You’ll be glad you did.†- Erik Brynjolfsson, MIT Sloan School, coauthor of The Second Machine Age“In a very cohesive and comprehensive way, the authors provide deep conceptual insights and rich practical advice on platforms, the most important business organizations of our time.†- Ming Zeng, chief strategy officer, Alibaba“In the digital economy, platforms are transforming industries at high speed. Platform Revolution is an inspiring guide for business leaders to transform existing businesses to platform businesses.†- Jim Hagemann-Snabe, former CEO of SAP
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About the Author
Geoffrey Parker is a professor of engineering at Dartmouth College and a visiting scholar and research fellow at the MIT Initiative for the Digital Economy. Before joining academia, he held positions in engineering and finance at General Electric. He has made significant contributions to the economics of network effects as co-developer of the theory of two-sided networks. Parker's work has been supported by the Department of Energy, the National Science Foundation, and numerous corporations. Parker advises senior leaders in government and business and is a frequent speaker at conferences and industry events. He received his BS from Princeton and his MS and PhD from MIT.Marshall W. Van Alstyne is a professor at Boston University and a visiting scholar and research fellow at the MIT Initiative on the Digital Economy. Van Alstyne is a world expert on information economics and has made fundamental contributions to IT productivity and to theories of network effects. His coauthored work on two-sided networks is taught in business schools worldwide. In addition, he holds patents in information privacy protection and on spam prevention methods. Van Alstyne has been honored with six best paper awards and National Science Foundation IOC, SGER, iCORPS, SBIR and Career Awards. He is an adviser to leading executives, a frequent keynote speaker, a former entrepreneur, and a consultant to startups and to Global 100 companies. He received his BA from Yale and his MS and PhD from MIT.Sangeet Paul Choudary is a C-level advisor to executives globally on platform business models. He is an Entrepeneur-in-Residence at the INSEAD Business School and a Fellow at the Centre for Global Enterprise. He has been ranked among the top 30 emerging business thinkers globally by Thinkers 50. Sangeet writes the popular blog Platformed (platformed.info), and his work has been featured on leading journals and media, including the Harvard Business Review, MIT Technology Review, Sloan Management Review, the Wall Street Journal and The Economist. He is a frequent keynote speaker at leading conferences, including the G20 World Summit 2014 and the World Economic Forum events.
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Product details
Paperback: 352 pages
Publisher: W. W. Norton & Company; 1 edition (August 29, 2017)
Language: English
ISBN-10: 0393354350
ISBN-13: 978-0393354355
Product Dimensions:
5.5 x 0.9 x 8.3 inches
Shipping Weight: 9.6 ounces (View shipping rates and policies)
Average Customer Review:
4.6 out of 5 stars
199 customer reviews
Amazon Best Sellers Rank:
#24,600 in Books (See Top 100 in Books)
Every so often I lead workshops on pricing strategy. For the past several years I have been telling people that if you are in a conventional business (what Parker, Van Alstyne and Choudary call a 'pipeline business') and you are competing against a platform business you have already lost. Pipeline businesses do not have winning strategies against multisided markets, or as this book calls them 'platform businesses.' This book is the single best introduction I have read to Platform Businesses. If you use (and if you are reading this you do use a Platform Business, Amazon), are working on or may compete against a Platform Business you need to read this book. I have been recommending it to my own team at TeamFit.co to my investees and to companies that come to me for pricing advice.Platform Revolution has many strong points.It explains the feedback loops and network effects (positive and negative) that drive platform business dynamics, the chapter on monetization is excellent and the chapter on governance is a must read (I think I will send a copy to Vancouver's mayor). The book even has a short section on data ownership, which is likely to emerge as a major social issue over the next decade (ask yourself, why does the company I work for own my employee records, why don't I own them too!).Platform Revolution is not perfect of course. My main complaint is the lack of useful diagrams. The book is sketch poor and I found that I had to keep a notebook and pencil beside me as I read to make sure I was following all of the interactions of forces and to give me some mnemonics to remember what I was reading. This is good in that it helped me to build up my own mental models, but I would prefer to have shared sketches that I could use in business planning with other people. I also found the characterization of the two sides of a market as 'producers' and 'consumers' limiting. This is not a useful model to describe many two-sided market interactions, as the authors themselves noticed when they talked about dating sites (dating sites are a good thing to study to learn a lot about very dynamic two-sided markets). I also found the discussion of Porter's Five Forces to be simplistic and dismissive. This seems to be an MIT thing as other people associated with MIT have the same blinkers. A more useful approach would be to look at how each aspect of the five forces gets drawn into platform markets.There are some other good books to read on this theme. I would also recommend Platform Ecosystems by Amrit Tiwana, Matchmakers by David Evans and Modern Monopolies by Moazed and Johnson. But Platform Revolution is an excellent place to start.
Disclaimers: I do not know the authors; I did buy the book from Amazon; I have no financial stake in the book; I am not a robot reviewer. My summary is that this book is essential reading for anyone who is part of any of the digital revolutions going on today. This includes those in business and those in information technology. You need to include the "platform mentality" in your business planning. I didn't give the book five stars for three reasons. One, a few references in the text seemed really out of date. Apparently no one caught those in the editing process. Second, in truth, the platform revolution started quite a while ago. Companies like CH Robinson have been successfully using it in the logistics business years before Facebook. Finally, all is not roses in platforms. Who is going to guarantee the quality of Uber cars and drivers, for example? Online reviews (like this one) are not 100% reliable and only a few bad apples can ruin the barrel. But it is an exciting time and an exciting book.
As a software engineer working in California for several years I found the book to be disappointingly lacking in useful content. Since the book was written by academics, and since others had mentioned this book as a high-content alternative to other platform books out there I had high expectations. The book lacks a clear theory, and reads more as a list of activities that large platform companies have performed to succeed. If you've worked close to platform companies you've probably already heard it all before. I understand that this book may be useful to those that have not had any exposure to a platform company, but I just came off of reading the Innovator's Solution—a business book that is insight after insight even after you've worked in a business. Unfortunately, I cannot say the same about this book.The pros are that the book is well organized, well written, and the authors have given clear definitions and names to various elements of platform businesses. I was on the edge between giving it 3 stars or 2. Amazon's description of 2 stars is "I don't like it", which sums up my opinion.
A solid "101" level book. A little repetitive, but if you're not familiar with platforms, then the repetition is probably very helpful. If you are familiar with platforms, then this might not be as compelling of a good book for you. I found the chapter summaries to be good "Cliff's Notes" that allowed me to focus on the important bits and skim the redundant ones.
So I tend to agree with the authors’ point on the power of platform-based models to disrupt existing business models. No doubt some changes this wrought are for the better.But in December 2018, the story rings hollow, due to the frankly awful practices of many of the largest platforms. The complete inability of the “best†platforms (so-called by the authors) to consider seriously and honestly the way in which they use data strikes a mortal blow to the authors’ vision of a platform based economy. At best, we now know that such is possible only via massive regulation of the industry (which the authors are expressly opposed to) or by everybody giving up a right to privacy - often without knowing that they have. Hopefully the authors do not favor the latter; and their writing does make clear the potential for “negative externalitiesâ€, even if this one is not expounded upon.This isn’t to deny the basic premise; but the book needs a new edition in the post-2016 election, government data usage, Cambridge analytica era. I would read this book.
A great “owners manual†to platform businesses. Teaches what constitutes a platform business (the “whatâ€); teaches the challenges associated with platform businesses like the Chicken and the Egg or how to monetize this kind of business (the “howâ€); and, teaches why platform businesses are so successful (the “whyâ€).I loved this book.And, it has loads of citations so you can dig deeper.
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