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The big bang of the platform revolution

 Author: Martin Kelly, CEO, INNOVO

 We have seen companies like AirBnB, Facebook, Google and Uber grow unbelievably quickly. How have they done this?

 “In 2015, Uber the world’s biggest taxi company owns no vehicles, Facebook the world’s most popular media owner creates no content, Alibaba the most valuable retailer has no inventory, and AirBnB the world’s largest hotelier owns no real estate.”  Tom Goodwin, Sr. VP of Strategy, Havas Media


 They are operating on a revolutionary new business model and they are creating a totally new B2C economy.

 They have deployed the Platform Business Model and they are using it to disrupt entire industries at lightning speed. Following incredible success in B2C markets, the Platform Revolution is about to explode into B2B industries. If you are an established business in any industry, then the Big Bang of the Platform Revolution is about to hit you. Who would have believed that Google would pose a disruptive threat to the automotive industry.

 There is an excellent book by Larry Downes and Paul Nunes called ‘Big Bang Disruption’ which has been summarised in the Harvard Business Review: big bang disruption.  “A new kind of innovator can wipe out an incumbent in a flash”. This focuses on how rapidly changing technologies and innovations can disrupt companies and industries.

 What makes the Platform Revolution so awesomely powerful? It’s not is a particular technology although disruptive digital technology enables it. Instead, it is a completely new business model. The power of the Platform Business Model makes it inevitable that first movers will rapidly apply its disruptive power to your industry to seize market share.

 What is your strategy for the Platform Revolution that is upon us? Marshall W. Van Alstyne has given a brilliant webinar on this on Harvard Business Review: "how platform businesses are transforming strategy"

 It’s exciting or terrifying depending on whether you are a disrupter or about to be disrupted.

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