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Platform Thinking

Platform Thinking. IT Partners Conference June 17, 2014 John Charles. Platform Thinking – What Changes?. Design To be a platform, a system must provide a useful function or service and allow 3 rd party access Network Effects P latforms have communities, products have features Value

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Platform Thinking

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  1. Platform Thinking IT Partners Conference June 17, 2014 John Charles

  2. Platform Thinking – What Changes? Design To be a platform, a system must provide a useful function or service and allow 3rd party access Network Effects Platforms have communities, products have features Value Platforms open themselves to and gain enormous value from 3rd party contributors/developers Platform-based Ecosystem

  3. For Nearly 2 Decades the Microsoft Platform Beat the Apple Product Source: Parker & Van Alstyne Microsoft opened their platform, licensed widely, and built a huge developer ecosystem. Apple kept their product closed.

  4. You know your business model is working when users of your platform do something you didn’t expect Model T Platform Hay Carrier Flour Mill Race Car Mobile Church Snowmobile Goat Carrier Sawmill

  5. Does Open Work? “We tried to create every feature in the world and said, ‘O.K., we can do it, why should we let a third party do it?’” (MySpace cofounder) DeWolfe “We should have picked 5 to 10 key features that we would be totally focused on and let other people innovate on everything else.” The Rise & Ignominious Fall of MySpace – Business Week 2011

  6. Platform Thinking – What Changes? Platform provider focuses on most valuable apps Strategy • Goal is transactions volume & creating user value • Don’t need to own the one-off resources/apps – simply convince those providers to join you Innovation • Platforms can be adapted to countless needs & niches that the platform’s original developers could not possibly imagine Value increases as others add to platform’s “Long Tail” Value Source: Van Alstyne (2014), “Platform Shift: How New Biz Models are Changing the Shape of Industry”

  7. The Pace of Change Seemed Somewhat Linear in the Past – but its Exponential Nature is Now Clearly Apparent • But, we must now optimize for: • Time to market • Rapid changes • User experience 2010’s Change • We optimized for: • Performance • Reliability • Cost 1990’s Time

  8. Much of Higher-Ed Seems to be Suffering from Boiling Frog Syndrome • Higher-ed’s biggest challenge is its time zone. It’s 9:30am, June 17, 2014 on the East Coast… …but the app portfolio at many institutions is stuck in the late 1990s or early 2000s • Higher-ed was ahead of the curve in terms of its use of technology… …but then the curve ran us over

  9. Google’s Eight Pillars of Innovation

  10. Why IT Organizations with Traditional IT Service Delivery Models and Practices Struggle to be Responsive – and Struggle to Support Innovation Gartner’s TCO analysis shows that 80% to 85% of an IT organization’s budget is consumed by simply “keeping the lights on” (KTLO). Backlog of IT Projects

  11. Consumerization Has Radically Changed User Expectations for Enterprise Apps Source: Innovator’s Guide (Mendix)

  12. To Remain Relevant, Higher-Ed IT Units mustReduce the Amount of Change-Induced Resource Consumption – the Key Enablerfor Lowering KTLO and Becoming more Responsive • Lower the change-induced resource consumption • Innovation & differentiation apps need to change frequently • Whereas, the core code-sets for ERP & other system-of-record apps do not • Reduce the app development overhead for all IT service providers • Shorten the app development time • Accommodate local work-process and workflow differences • Value Creation • Improved decision-making • Improved processes

  13. Transformation Strategy Platform-based IT Services Strategy & Tools Pace-based Application Change Strategy • - Buy or build new apps with robust sets of APIs • - Configure, but do NOT customize base code sets for newly acquired apps • - Publish APIs for all new apps • - STOP customizing legacy apps • - Publish APIs for legacy apps • - Change &/or add functionality “on top” of new & legacy apps using APIs & modern app development platforms • - Use mobile-ready, change-friendly app development platforms & toolkits

  14. Unlock Business Value & Enable Innovation

  15. Transformations in Responsiveness and Support for Innovation within the IT@MIT Ecosystem “Value-Add” for Distributed IT Units KTLO Reduction Productivity Expansion IS&T Transformation

  16. Timeline ✔ • Technology plan & associated proof-of-concepts • Financial plan & associated funding models • Governance plan & associated policy agenda • Communications plan & associated collaboration platforms

  17. If you believe in the power of people connecting… …embrace platforms If you converted your product/service to a platform… …what would it enable?

  18. Thank You! Questions or Comments?

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