Book | 2019

The Business of Platforms: Strategy in the Age of Digital Competition, Innovation, and Power

by Michael A. Cusumano, Annabelle Gawer and David B. Yoffie

Abstract

The Business of Platforms explores the strategic, economic, and technology management challenges of digital platform businesses. We have five major themes in the book: 1) The world’s most valuable companies are all platforms, in part because platforms have network effects, with the potential for a winner-take-all or winner-take-most outcome. 2) Platforms come in 3 flavors: innovation platforms, transaction platforms, and hybrid platforms. We suggest that the world is moving towards more and more hybrids, and we identify the key steps in building a successful platform. 3) Failure is more likely than winner-take-all: mispricing, mistrust, mistiming, and hubris lead to hundreds of failures. 4) Old “dogs” can learn new tricks: conventional companies can adapt to a platform world with a buy, build, or belong strategy. And 5) Platforms are a double-edge sword: abuse of power, bullying poor labor practices, and bad actors can undermine even the most successful platforms. The book concludes with an exploration of platform battles of the future, including voice wars (Alexa vs. Hey Google vs. Siri), ridesharing and autonomous car platforms, quantum computing, and CRISPR.

Keywords: strategy; technology; platform; Online Technology; Management; Competitive Strategy;

Format: Print Purchase

Citation:

Cusumano, Michael A., Annabelle Gawer, and David B. Yoffie. The Business of Platforms: Strategy in the Age of Digital Competition, Innovation, and Power. Harper Business, 2019.

About the Author

Photo
David B. Yoffie
Max and Doris Starr Professor of International Business Administration
Strategy

View Profile »
View Publications »

 
Campus Map
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→ Map & Directions
Copyright © President & Fellows of Harvard College