1 / 31

IN 5430 Platform ignition, launch,bootstrapping, evolution

IN 5430 Platform ignition, launch,bootstrapping, evolution. Network effects – self-reinforcing processes. ). Multi-sided markets. Same side & cross-side effects Positive & negative effects Ex: Uber. Platform ignition. Critical mass -> explosion

barter
Download Presentation

IN 5430 Platform ignition, launch,bootstrapping, evolution

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IN 5430Platform ignition, launch,bootstrapping, evolution

  2. Network effects – self-reinforcing processes ).

  3. Multi-sided markets • Same side & cross-side effects • Positive & negative effects • Ex: Uber

  4. Platform ignition • Critical mass -> explosion • Mobile payment platforms in developing countries • Ignition, slow ignition, no ignition • Tactics • Zig-zag • Two-step • ..

  5. Launch tactics • Follow-the-rabbit (closed applic – open platf) • Piggyback (PayPal on eBay) • Seeding (value for one set of users) • Marquee • Single-side • Producer evangelism • Big-bang • Micromarket (Facebook)

  6. ’Multidimensional’ critical mass • Granovetter’s pedestrians: distribution of individual preferences. • Diversity of users (resources, location, motivation, knowledge, style, …) • Diversity of services • Which user first, second, .. • Which service first, second, .. • Arranging users and services

  7. ’Bootstrapping’ • Enclocypedia: ’She bootstrapped herself to the top’ – to manage on one’s own • Lifting yourselves by your hair • Booting a computer • Implementing a programming language • Language learning • Making a tool/network by means of the tool/network • ”Deliver a better today, rather than promise a better tomorrow”. • Late adopters adopt because the others have already • First adopters must adopt for another reason

  8. Identifying and arranging users and services • Multi-dimensional • Personal, individual • Use areas and situations • Technological aspects • Coordination/governance structures • Arranging preferences and dimensions (dynamically)

  9. Bootstrapping Network Technologies • Select motivated and knowledgeable users • Simple, non-critical, non-complicated use areas where no large organisational changes are required. • Select simple, relatively cheap and well supported technical solutions. • Users first, then functionality/technology

  10. Individual/personal preferences • Motivation, attitudes towards technology • Knowledge about technology

  11. Aspects of use areas and situations • Resources • Benefits of communication within a small network • Critical/non-critical activities • Complexity of tasks and work practices • Organizational changes needed

  12. Aspects of technology • “Distance” between users and designers/vendors • complexity • costs • flexibility • “allied with the future”

  13. Coordination and governance • Structures and institutions have to be established (bootstrapped) • “Standardization bodies” • Technology (protocols) • Work practices/procedures (protocols) • (The Internet is an example to learn from in this respect as well)

  14. Design strategy • Start with • simple, cheap, flexible solution • small network of users that may benefit significantly from improved com. with each other only • simple practices • non-critical practices • motivated users • knowledgeable users

  15. Bootstrapping design principles • Design initially for usefulness • Draw upon existing installed base • Expand installed base by persuasive tactics

  16. Boostrapping algorithm • Repeat as long as possible: enrol more users • Find and implement more innovative use, go to 1 • Use solution in more critical cases, go to 1 • Use solution in more complex cases, go to 1 • Improve the solution so new tasks can be supported

  17. Innovation and platform evolution • Combination • Cross-appropriation • Reconfiguration • Exaptive bootstrapping • Digital tech: “exaptiveness” • Norwegian Bank • Apple (Mac -> iPod/iTunes -> iPhone/Appstore -> ApplePay) • Amazon, Google, Facebook, ..

  18. Alibaba • 1999-2004: B2B platform for SMEs • Websites for customers • AliPay • Trustpass • Wangwang (IMS for haggling) • Taobao (C2C platform) • 2005: Yahoo China, “closing” Alibaba • 2006: Koubei.com (Lifestyle portal) • 2007: Alisoft, Aliloan, Alimama, …

  19. Facebook • Messaging system for students in Zukerberg’s class at Harvard– extremely simple • Adding features (groups, likes, ..), diffusing • Integration with • ad platforms • publishing platforms • Shopping platforms, corporate solutions, .. • Payment platform • ..

  20. Easypaisa • Telenor Pakistan (2017: 41 M subscribers) • 30 sales offices, 278 franchises, 300 K agents • Illiteracy (30-40%), 85% ( of 197 M) unbanked • Government & World Bank: Financial inclusion, “banking the unbanked” • Brachless banking regualtion • Bank led model • 4 levels of KYC requirements • 2015: re-verification of SIM cards

  21. Launch • 2008: 51% of Tameer Microfinance Bank (the rest in 2016, Telenor Microfinance Bank) • Oct 2009: Over-the-Counter (OTC) service • Agents (2.500) and franchises, utilities • All citizens • Utility bill payment, money transfer • End 2012: 8.000 agents, 100 M transactions • 2016: 75.000 agents in > 800 cities

  22. OTC • Low threshold for users • For all citizens • Attractive for agents • KYC requirements set limitations • Expensive • Manual operations by agents • Cash management

  23. M-wallet (account) • Launched 2010: bill payment and money transfer • No transaction fee (until 2016) • 25% discount on certain products • 2011: 1.200 agents could sign up users • “no” growth until 2015

  24. New services • Bulk disbursement: BISP (15% of population), salary, pension, .. • International remittances • Credit and savings • Air-time top-up • On-line shopping • Payment service (QR codes) • Insurance • B2B solution

  25. Technology • Mobile payment solution • Integration with mobil telecom tech • Integration with banking systems • Developing apps • Agents • individuals • Corporate portal • mWallet • POS terminals • Merchants • ..

  26. Relations between users and services • Many sides .. • Agents (and franchises) • Individuals • Shops • Corporations and governance agencies • International remittances organizations

  27. Variations within groups • Wealth, size • Location • Knowledge • Age • Long-term – short-term priorities

  28. Launch • OTC: low threshold, • Bringing onboard big organizations: BISP, utility providers

  29. Issues: OTC - mWallet • OTC • low threshold, all citizens • Attractive for agents • mWallet • Low added value for most users, illiteracy • Threatening agents’ business – partly depended on agents for opening account • Re-verification of SIM cards!

  30. Managing dependencies • Introducing more corporate organizations (BD) • New services • Shopping • University districts • --- • Slowly making mWallet more attractive for all • FINE GRAINED, CONTEXT SPECIFIC STRATEGY

More Related