Monday, November 29, 2021

g-f(2)693 THE BIG PICTURE OF THE DIGITAL AGE (11/29/2021), MIT SMR, Competing on Platforms




ULTRA-condensed knowledge


"g-f" fishing of golden knowledge (GK) of the fabulous treasure of the digital age, Digital Transformation, Platform Economy (11/29/2021)  g-f(2)426 


Lessons learned, MIT SMR 

EXCEPTIONAL “Full Pack GK Container”

Competing on Platforms 


      • Companies must find new competitive strategies to succeed on dominant internet platforms.
        • The dominant online platform companies are now the most valuable companies in the world, and their growing power over other organizations is enabling them to rewrite the rules of business strategy.
        • Platform-dependent businesses must recognize the power dynamics and risks intrinsic to platform-controlled markets. And they must develop strategies that leverage a platform’s resources while mitigating its power over them.
      • Every organization dependent on a platform (or considering becoming so) must be aware of the dangers and, from the beginning, understand its options. Every business must realize that on the other side of the screen, the platform’s strategists and computer scientists are accessing and analyzing ever-greater reservoirs of data and leveraging more sophisticated algorithms to capture a greater portion of the total value of the platform economy. But as we’ve shown, the companies that live on those platforms are not helpless, and there is an enormous amount of value in the market — certainly enough for platform owners and platform-reliant organizations to share.


          Genioux knowledge fact condensed as an image


          References


          Competing on Platforms, Donato Cutolo, Andrew Hargadon, and Martin Kenney, March 09, 2021, MIT Sloan Management Review, MIT SMR.

          Spring 2021 Issue, VOLUME 62, ISSUE #3, March 09, 2021, MIT Sloan Management Review, MIT SMR.

          g-f(2)184 THE BIG PICTURE OF THE DIGITAL AGE (3/30/2021), MIT SMR, Competing on Platforms.




          Extra-condensed knowledge


          Lessons learned, MIT SMR 


              • The Research. 
                • The authors drew upon in-depth discussions and interviews with entrepreneurs in the U.S. and Europe, and ongoing research into the rise of the platform economy and the impact of platforms on entrepreneurship.
                • Their work is also informed by engagements as advisers to businesses and investors on their platform strategies, and to government organizations on regulating the platform economy.
              • In the past decade, digital platforms have profoundly reorganized markets and industries and redefined the dynamics of value creation and competition. They have created marketplaces that have spawned an enormous number of platform-native startups. And as these have grown and prospered, existing businesses have felt compelled to join the platform economy, viewing participation as necessary for growth and even survival.
              • The Risks of Platform Dependence
                • Given increasing evidence that platforms are likely to use their enormous powers for their own benefit, businesses need a clear understanding of the implications of operating on a platform in order to avoid becoming subordinate entities. Competing effectively in these markets requires businesses to recognize the ways platforms limit the control they have over the three sources of competitive advantage.
                • Platforms limit construction of a unique value proposition. Developing a company’s value proposition and presenting it to a target customer segment is core to competitive strategy. 
                • Platforms own the customer relationship. As the intermediary between the customer and the provider, the platform controls the relationship: The seller knows only what the platform wants it to know.
                • Platform-dependent businesses lose room to maneuver. Strategy theorists argue that when companies discover a profitable strategic fit, they maintain their position through a unique configuration of activities that deliver added value to a defined set of customers. 



              Condensed knowledge



              OPPORTUNITY, MIT SMR 

                  Four Strategies for Thriving as a Platform-Dependent Business

                  • We’ve identified four strategies that companies can experiment with to leverage the resources the platform provides while mitigating the tendency to become subservient to it. Organizations may consider the following responses, depending on their singular situations and needs.
                  • 1. Change channels. Multihoming is a way to change the power dynamic by offering products or services in multiple sales channels.
                  • 2. Use the platform to market yourself. Just as it has become necessary for businesses to transact on platforms, it is also critical for them to market on them. After all, 47% of consumers begin their online product searches on Amazon.
                  • 3. Play the algorithm game. Whether a business’s goal is to raise its visibility, gain more reviews, or improve its search rankings, it’s necessary to game the system of algorithms that govern the platform.
                  • 4. Diversify income streams. Establishing a successful presence on a platform can produce an enormous volume of traffic that can be leveraged to diversify income streams. This diversification can take many forms. 


                  Some relevant characteristics of this "genioux fact"

                  • Category 2: The Big Picture of the Digital Age
                  • [genioux fact deduced or extracted from MIT SMR]
                  • This is a “genioux fact fast solution.”
                  • Tag Opportunities those travelling at high speed on GKPath
                  • Type of essential knowledge of this “genioux fact”: Essential Analyzed Knowledge (EAK).
                  • Type of validity of the "genioux fact". 

                    • Inherited from sources + Supported by the knowledge of one or more experts.


                  References


                  “genioux facts”: The online programme on MASTERING “THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)693, Fernando Machuca, November 29, 2021, blog.geniouxfacts.com, geniouxfacts.com, Genioux.com Corporation.


                  ABOUT THE AUTHORS


                  PhD with awarded honors in computer science in France

                  Fernando is the director of "genioux facts". He is the entrepreneur, researcher and professor who has a disruptive proposal in The Digital Age to improve the world and reduce poverty + ignorance + violence. A critical piece of the solution puzzle is "genioux facts". The Innovation Value of "genioux facts" is exceptional for individuals, companies and any kind of organization.




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