Why do some Digital Platforms Thrive and others don’t?

Why do some Platforms thrive, creating & capturing more value as their networks grow? Why do others struggle or even fail? Individual consumers and corporations are making bets on platforms, from devices and operating systems we use, to app ecosystems & cloud services. We also bet on ride platforms, online payment & delivery services, social media networks, gaming platforms? It’s clear that platform ecosystems are playing an increasingly important role in our daily lives.

5 Key Network Properties Which Impact Platform Health

This HBR write up does a good job of outlining 5 key properties of networks, which ultimately impact the health and viability of a Platform. “Ultimately, when evaluating an opportunity involving a platform, entrepreneurs (and investors) should analyze the basic properties of the networks it will use and consider ways to strengthen network effects. It’s also critical to evaluate the feasibility of minimizing multi-homing, building global network structures, and using network bridging to increase scale while mitigating the risk of disintermediation. That exercise will illuminate the key challenges of growing and sustaining the platform and help businesspeople develop more-realistic assessments of the platform’s potential to capture value”.

You’ll find the full article here – it’s well worth the read.

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