Platform Product Management-3

In previous article, we understood the concept of platform, so now I am just summarising the difference between platform and linear product

A linear product refers to a traditional business model where a company creates a product or service and sells it directly to customers. The value flows in a linear, one-way fashion from the producer to the consumer.

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Characteristics

1. Value Chain: The company controls the entire value chain, from production to distribution to sales.
2. Direct Interaction: The company directly interacts with customers, who are the end-users of the product.
3. Revenue Model: Revenue is typically generated through direct sales of the product or service, often on a one-time or subscription basis.
4. Scaling: Scaling often involves increasing production capacity, expanding distribution channels, or enhancing the product itself.

A platform is a business model that creates value by facilitating exchanges between two or more interdependent groups, usually consumers and producers. Platforms often act as intermediaries or ecosystems that enable interactions and transactions.

Characteristics

1. Multi-sided Market: Platforms serve multiple user groups, such as buyers and sellers, drivers and passengers, or hosts and guests.
2. Network Effects: The value of the platform increases as more users join, creating a positive feedback loop.
3. Revenue Model: Revenue can be generated through various means such as transaction fees, subscription fees, advertising, and premium services.
4. Scalability: Platforms scale more easily as they grow with network effects and can leverage user-generated content or services.

Principles of Building Platforms

Building successful platform products requires a strategic approach that prioritizes consistency, user empowerment, ecosystem value, long-term thinking, and effective management of megaprojects.

Upholding Consistency: Consistency over time or trust in a platform stands tall as the bedrock upon which successful products are built. Consistency forms the linchpin of platform capabilities, shaping user perceptions and underpinning long-term viability.

The consequences of neglecting consistency in platform development can be dire. Instances of data breaches, privacy violations, or brand damage can erode user confidence and tarnish reputations irreparably. Moreover, regulatory fines and legal penalties may ensue, posing existential threats to businesses. Upholding consistency isn’t merely a matter of integrity; it’s a strategic imperative for business sustainability and compliance.

Unlocking Success with Self-Service Platforms: Self-service in a platform context refers to the capability for users to integrate with a platform independently, without the need for human assistance or changes to the platform’s codebase. Self-service plays a pivotal role in platform products by facilitating seamless integration and empowering users. By adopting an outside-in design approach (i.e., designing products or systems primarily focusing on external users or customers, rather than starting from internal capabilities or assumptions), platforms can cater to diverse integration needs and anticipate future use cases, ensuring long-term relevance and usability. Effective documentation, including onboarding guides and tutorials, is essential for guiding users through the integration process and reducing dependency on human assistance. Consistent communication through change logs, release notes, and roadshows keeps users informed about updates, roadmap plans, and the business value of the platform, driving adoption and engagement.

Unlocking Value: With platform product management, one principle reigns supreme: ecosystem value — the economic worth of the partners surrounding a platform which often surpasses that of the platform creator itself. But what exactly does ecosystem value entail, and why is it paramount in shaping successful platforms?Ecosystem value encompasses the collective value generated by a constellation of applications built on a platform, catering to a diverse array of users, customers/buyers, and businesses. At its core, ecosystem value underscores the interconnectedness and interdependence among platform participants, highlighting the bilateral relationship between the platform provider and its ecosystem partners. Platforms serve as catalysts for innovation and growth, fostering an entire ecosystem of applications that leverage their capabilities to create additional value. By nurturing a thriving ecosystem, platform providers unlock new opportunities for collaboration, expansion, and differentiation, driving sustained success in the dynamic digital landscape. Effectively managing ecosystem value requires advanced prioritization strategies. Platform product managers must navigate various capability requests while staying aligned with the overarching vision, mission, and strategy. Prioritization entails striking a delicate balance between short-term needs and long-term goals, ensuring that roadmap priorities are meticulously aligned with the platform’s guiding principles and strategic objective. The journey towards maximizing ecosystem value requires a mindset of adaptive platform thinking. Platforms are inherently iterative, requiring platform product managers to remain agile and responsive to emerging insights and evolving market dynamics. Embracing an opinionated view of the future while maintaining flexibility and openness to new ideas is paramount, allowing platforms to evolve organically and meet the ever-changing needs of their ecosystem partners.

Several platforms stand out for their high ecosystem value, where the economic worth generated by their partners surpasses that of the platform itself. Here are a few notable examples:

• Amazon Web Services (AWS): AWS provides a comprehensive cloud computing platform that enables businesses to build and deploy applications, host websites, and store data. Its ecosystem includes a vast array of third-party developers, software vendors, and service providers who leverage AWS’s infrastructure and services to deliver innovative solutions to customers worldwide.
• Google Play Store: Similar to the Apple App Store, Google Play Store is a platform for distributing Android applications to mobile users. It provides developers with access to a vast audience of Android device users and offers tools for app development, distribution, and monetization. The ecosystem includes developers, advertisers, and content creators who contribute to the diversity and richness of the Android app ecosystem.

These platforms exemplify the power of ecosystems in driving value creation and innovation, showcasing how platform providers can leverage partnerships and collaborations to foster growth and success in the digital economy.

Embracing Long-Term Thinking: Success with platform product management hinges on more than just short-term gains. Short-sighted product development can lead to missed opportunities and limited scalability. By contrast, long-term thinking enables platform product managers to anticipate future trends, envision complex use cases, and distill them into enduring capabilities. It fosters strategic, forward-looking approaches that lay the foundation for robust and sustainable platforms. The essential insights and practices for effectively managing megaprojects include: i) Structured Approach: Managing a megaproject begins with establishing a comprehensive and structured approach. This involves defining clear objectives, delineating project scope, and outlining key deliverables. By creating a detailed project plan that breaks down the initiative into manageable phases and tasks, project managers can provide clarity and direction to the entire team. ii) Risk Management: One of the critical components of megaproject management is risk management. Megaprojects often entail heightened levels of complexity and uncertainty, making it imperative to proactively identify and mitigate potential risks. The premortem technique emerges as a valuable tool in this regard, allowing teams to envision hypothetical failure scenarios and preemptively address underlying challenges. By conducting a premortem at the project’s outset, stakeholders can collaboratively identify risks, assess their potential impact, and devise mitigation strategies to safeguard project success. iii) Operational Meetings: Regular operational meetings serve as a cornerstone of effective megaproject management. These gatherings provide a forum for stakeholders to review project progress, address emerging issues, and align efforts toward overarching objectives. By fostering open communication and collaboration among team members, operational meetings facilitate timely decision-making and ensure that project activities remain aligned with long-term goals. iv) Sponsor Engagement: Engagement with project sponsors is vital for securing buy-in, obtaining necessary resources, and navigating potential roadblocks. Project sponsors, typically senior executives or key stakeholders, play a pivotal role in providing strategic direction, resolving conflicts, and advocating for project support across the organization. Maintaining ongoing communication and alignment with sponsors ensures that the project remains aligned with organizational priorities and objectives. v) Ongoing Risk Assessment: Risk assessment is an ongoing process throughout the lifecycle of a megaproject. As circumstances evolve and new challenges arise, project teams must continuously monitor and evaluate potential risks to project success. Regular risk assessments enable teams to adapt their strategies, allocate resources effectively, and implement timely interventions to mitigate emerging threats. By remaining vigilant and proactive in risk management, project managers can safeguard project outcomes and steer the initiative toward successful completion.

Segregation of Responsibilities between Platform and Application Teams:

1. Platform Team Responsibilities:

• Platform Development and Maintenance: Design, develop, and maintain the infrastructure, components, and services of the platform, ensuring scalability, reliability, performance, and security in supporting machine learning workflows and operations.
• Governance and Compliance: Implement and enforce governance, policies, and compliance requirements related to data, models, security, and regulatory standards, ensuring adherence, alignment, and conformance with organizational and industry standards and regulations.
• Platform Support and Operations: Provide support, troubleshooting, and operations management for the platform, addressing issues, incidents, and challenges encountered by users, teams, and stakeholders in using and operating the platform.

1. Application Team Responsibilities:

• Application Development and Training: Develop, train, and evaluate machine learning models and applications using the platform, leveraging the capabilities, tools, and services provided by the platform to accelerate and optimize the model development lifecycle.
• Deployment and Monitoring: Deploy, monitor, and manage machine learning models and applications in production environments, utilizing the deployment, monitoring, and management features and functionalities of the platform to ensure reliability, performance, and availability.
• Collaboration and Integration: Collaborate, communicate, and coordinate with the Platform team in leveraging and integrating the platform within the application development and operational workflows, ensuring alignment, integration, and collaboration in achieving shared goals, objectives, and outcomes.

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