Platform Strategy

Platform Strategy

A platform strategy is a strategy built around a foundation that other products, services, and participants build on, rather than around a single product. It comes in two distinct kinds: a reuse-and-efficiency platform — a lowercase-p platform of reusable building blocks and interfaces that lowers cost and speeds development — and a value-compounding platform whose worth grows with adoption through network effects, which BRI Associates calls a PIVA (Platform of Increasing Value of Adoption). The two are not better or worse than each other; they differ in intent, expected returns, execution requirements, and risk, and they can be complementary. Most platform-strategy trouble comes from confusing the two — for example, building a reuse platform but expecting a PIVA's market-share economics.

Where it fits — and where to go deeper

Platform Strategy is one of BRI Associates' signature concepts. BRI's distinctive contribution is twofold: the P-vs-p distinction — separating a value-compounding platform (a PIVA) from a merely reusable lowercase-p platform, used not to rank the two but to align intent, expectations, and execution — and the PIVA–RPP dovetail, which pairs platform potential with a Company Fit / RPP assessment, since platform plays typically require Resources, Processes, and Priorities most established companies don't have. For the full treatment — the two kinds of platform, why the compounding kind is so powerful, and why most companies don't succeed — see the Platform Strategy pillar at /supporting/platform-strategy. Related Terminology Index entries: PIVA; Resources, Processes & Priorities (RPP).

Sources

  • Annabelle Gawer & Michael A. Cusumano, Platform Leadership (Harvard Business School Press, 2002) — the levers of platform leadership, coring, and tipping.
  • W. Brian Arthur, "Increasing Returns and the New World of Business," Harvard Business Review (July–August 1996).
  • Marshall W. Van Alstyne, "Platforms Beat Products: Platform Economics" (UBS, 2014).
  • Marco Iansiti & Roy Levien, "Strategy as Ecology," Harvard Business Review (March 2004).
  • BRI Associates, Strategy & Innovation Methodology — the P-vs-p distinction and the PIVA–RPP dovetail (/supporting/platform-strategy).
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