How Networked Markets Are Transforming the Economy and How to Make Them Work for You

I read this book after I had finished reading "Platform Scale" by one of the authors (Sangeet Paul Choudhry). I was concerned that this book might repeat a lot of the content of the first one. As it turned out this book was more focused on the business aspects of platforms. It is a well written book and I learned a lot from it.

If you are thinking about a startup, or wondering how the new companies are displacing the old ones- this is a must read book. Just purchased an additional one, as one of the startups that I am advising would not let it go ..Enjoy it and share it, as it will bring clarity to everyone about the impact and possibilities of platforms, while enjoying real world examples..

After having read Platform Scale last year, I found a fair amount of repeat content but generally with new valuable perspectives. In many ways the two books are complementary. If you're building a platform as my team is, this is the playbook your team needs to work from.

I studies business economics a while ago - platforms were missing there. This book delivered a lot of examples of current platforms, their challenges, chances and their management and how they can dwvelop their diruptive power. I learned a lot!

Great book for anyone trying to understand these new platform based businesses and their respective ecosystems. Content covers a comprehensive view of how such platforms are created, successful, and opportunities and challenges that lie ahead.

I was introduced to Platform revolution by a friend and I can thank him enough for that. It happened it was exactly what I needed at the time since I was considering launching a project. I was amazed by how well presented and explained the various concepts were. It was great to read and understand what differentiates platforms from the Pipeline concept and how they already transformed many major industries. The platform revolution will ultimately transform our world in many interesting and unpredictable ways and if there is a book that can take you into a must traveled journey in the most interesting and friendly way "Platform revolution" is the book to read. Don't forget to follow the many interesting posts in the Platform Strategy blog.

Very intelligent book. So intelligent I couldn't understand much of it. I felt bad, until I gave it to my brother, who is an actuary, and owns a very successful business. HE couldn't understand it either. That made me feel better. Guess I was looking for something a bit more simple, that an average, technology-illiterate person like me could understand. But really, I think people in the field the authors are in would benefit from reading this, so I gave it three stars.

Personal Background & Summary
Platform Revolution is best seen as a workbook of case studies on how platforms are changing the business landscape. If you approach the book from the perspective that it will tell you explicitly how to build a platform, you will be disappointed. The book is meant to inspire discussion around a new framework for building businesses, the specifics of which will be different for each platform. For reference, I am a growth equity technology investor that is highly familiar with the concepts brought up in Platform Revolution. In the interest of full disclosure, I was a collaborator with Sangeet on his prior project, Platform Scale. Regardless, I've done my best to give my objective perspective on Platform Revolution.

Chapter 1 - Welcome to the Platform Revolution - Is meant to bring the reader up to speed on the basic principles of platforms, which ones are currently operating right now at scale, and how value exchange has shifted from a linear supply chain to one that contains producers and consumers interacting in a myriad of ways. This chapter was less useful for myself, as I was already familiar with most of the concepts, but will serve the broader audience well. While I found the platform examples useful (AirBnB, Uber, etc.), the examples of individuals and how they were affected were slightly idiosyncratic and less widely applicable.

Chapter 2 - Network Effects - The authors' point about expanding the size of a market due to network effects is a potent one, and not necessarily intuitive at first. I'd encourage the reader to take some time to think about how non-linear growth in a platform is actually a feature.

Chapter 3 - Architecture - The biggest value derived from this chapter is actually quite simple, the equation of how participants, value units, and curation form a core interaction. Understanding the core "unit" of a platform, or of one you are attempting to build, is a great way to think about platform architecture.

Chapter 4 - Disruption - The greater point of delinking assets from value is a great point, and has been discussed less quantitatively at length by the media as the "sharing economy." It's worth understanding why this actually works at a micro-economic level. While its difficult to truly fault the authors on the section describing how incumbents can fight back, as it is incredibly difficult to shift your entire business model if you are an incumbent, this was the weakest section of the chapter.

Chapter 5 - Launch - Chapter 5 is most helpful for understanding how to seed your platform, but is only truly useful when combined with the "core interaction" of your platform. In order to obtain a self-sustaining platform, you need to understand both the seeding and the mechanic, without perfecting both simultaneously, your platform will leak users or dollars or fail to provide enough value altogether.

Chapter 6 - Monetization - The most important point to be had from this chapter, which I don't believe is discussed as well as it could be, is not only how can you derive revenue from your core action (which is discussed) but how can you derive profit from it. A number of platforms have generated enormous scale and the bookings to show for it, but the bottom line profits are less clear at this point in their history. This is an ongoing question in my mind as the Ubers of the world march toward potential public offerings.

Chapter 7 - Openness - This chapter is more of a corollary to launching in my opinion, and can have critical effects on the construction of the core interaction of the platform and seeding the community. This chapter is best seen as a discussion point and less of a best practice.

Chapter 8 - Governance - The basic line to debate in building a platform is how to govern and set the basic rule sets of the platform. Again, these feed into your core interaction and how quickly it can occur. Your platform must have some set of rules to protect both producers and consumers from bad actors, in this case, the best platforms have norms that are ultimately self-reinforcing by the community at large.

Chapter 9 - Metrics - Everybody loves a good metric, especially technology investors. So which metrics apply to platforms? Yet again, your metrics should primarily be measuring aspects of your core interaction, how often it is occurring, for which populations on the platform, how profitable it is, etc. But more broadly, the authors' 3 metrics for platforms are helpful to think about as well: liquidity, matching quality and trust. These are broad enough that you the reader need to think through what those mean relative to your core interaction and platform.

Chapter 10 - Strategy - I found this chapter to be the least useful in the entire book, aside from the point of Winner Take All markets, which are especially important to think about in the context of platforms. Most of the chapter is spent on general business strategy that while relevant to platforms, readers with business / tech backgrounds are already familiar with.

Chapter 11 - Policy - The bottom line of this chapter is that regulation for platforms is coming, and you as a platform building need to understand how it might affect you (use of contractors / etc), and especially your core interaction.

Chapter 12 - Tomorrow - One of the best chapters in the book, if only because of this sentence - Industries that are most prone to platform transformation in the near future include those that are information-intensive, those with unscalable gatekeepers, those that are highly fragmented, and those characterized by extreme information asymmetries. If this is the only item you take away from the book, you will know which industries are going to be platformed next and/or which to go after.

Overall - A great handbook for understanding how platforms work and the underlying mechanics of how they operate and scale. Readers would be wise to spend some time building their intuition of how all the disparate parts of a platform can come together to produce value - that is where the highest degree of innovation will occur.

The title of this brief commentary refers to the rise of the platform as a business and organizational model on which Geoffrey Parker, Marshall Van Alstyne, and Sangeet Paul Choudary focus in their brilliant book.

They pose two interesting questions: How can a major business segment be invaded and conquered in a matter of months by an upstart with none of the resources traditionally deemed essential for survival, let alone market dominance? And why is this happening today in one industry after another?”

Again, the answer is “the power of the platform,”a new business model embraced by Airbnb, Uber, Alibaba, and Facebook…and previously by the store, YouTube, Wikipedia, iPhone, Upwork, Twitter, KAYAK, Instagram, and Pinterest, among others. As is also true of the Worldwide Web that Tim Berners-Lee devised more than twenty years ago, the platform’s c ore functions are connectivity and interactivity. Its overarching purpose is to “consummate matches among users and facilitate the exchange of goods, services, or social currency, thereby enabling value creation for all participants.”

Unlike the traditional linear value chain, platforms scale more efficiently and more quickly by eliminating gatekeepers; unlocking new sources of value creation supply and demand; using data-based tools to create community feedback loops; and centering on people, resources, and functions that exist outside the operations of a platform business such as Uber, “complementing or replacing those that exist inside a traditional business” such as a taxi cab company.

This is a key point because scaling is best viewed as rightsizing. This is what Geoff Moore has in mind in his latest book, Zone to Win: Organizing to Compete in an Age of Disruption. He makes clever use of an extended metaphor from the gridiron, offensive and defensive coordination. As he explains, “making the number on the back of the established lines of defense” is a painfully wasteful response to waves of new opportunity. “This brings us to the heart of the crisis of polarization: At the core you must deliver on two conflicting objectives. On the one hand, you must maintain your established franchises for the life of their respective business models, adjusting to declining revenue growth by optimizing for increasing earnings growth…At the same time, every decade or so you must get your company into one net new line of business that has exceptionally high revenue growth.”

This precisely why platform companies can gain a competitive edge so quickly. They also follow Michael Porter’s advice: "The essence of strategy is choosing what not to do."

These are among the several dozen passages of greatest interest and value to me, also listed to suggest the scope of Parker, Van Alstyne, and Choudary’s coverage:

o Airbnb (Pages 1-12, 21-26, 64-71, 142-143, 192-195, 229-233, and 253-254)
o Google (3-7, 21-25, 30-33, 49-50, 140-141, and 214-217)
o Apple (6-7, 52-53, and 152-153)
o Uber (16-18, 20-26, 30-32, 36-38, 459-51, 211-213, and 249-254)
o Internet/Databases (24-25, 42-44, 60-63, 72-79, 91-92, 107-113, and 283-289)
o Negative network effects (26-32, 112-115, and 229-234)
o Social networks (39-40, 134-135, 223-224, and 252-252)
o Facebook (41-50, 90-91, 98-103, 131-135, and 216-218
o the store (54-56, 69-73, 157-158, 176-178, 204-218, and 242-243)
o Competitive platforms (60-62, 73-77, 87-88, 96-97, 131-134, 152-154, and 207-227)
o Disintermediation (68-69, 71-72, 161-162, and 170-171)
o eBay (83-84, 112-113, 161-162, and 169-171)
o Decision-making in platforms (139-140, 187-188, and 253-256)
o Connectivity platforms (200-201)

Parker, Van Alstyne, and Choudary are to be commended on their skillful use of several reader-friendly devices that include “Takeaways from Chapter…” sections that focus on key points in each chapter, Figures (such as 1.2. “Some of the industry sectors currently being transformed by platform businesses, along with examples of platform companies working in those areas” and 7.3. “Four models for managing and sponsoring platforms.” Also, a “Glossary (295-300), “Notes” (301-323), and Index (325-335). These and other devices will facilitate, indeed expedite frequent review of key material later.

That said, I am dismayed by the fact that Platform Revolution and other business books are still being published without an Index.]

These are among Geoffrey Parker, Marshall Van Alstyne, and Sangeet Paul Choudary’s concluding observations: “The purpose of all these [platform revolution] constructs should be the unlocking of individual potential and the building of a society in which everyone has the opportunity to live a rich, fulfilling, creative, and abundant life. It’s up to all of us – business leaders, professionals, working people, policy-makers, educators, and ordinary citizens – to play our part in marking sure that the platform revolution brings us closer to that objective.”

I agree with them. The healthiest organizations really are those with a workplace environment within which personal growth and professional development are most likely to thrive. Therefore, winning this latest “revolution” – as is true of winning all others in business – involves making necessary adjustments to a platform that is most appropriate to initiating or responding to the challenges of a global marketplace that seems to become more volatile, uncertain, complex, and ambiguous each day.

Bootstrapping companies that increase in value when growing their customer base are notoriously hard to build, but can create network effects that are very hard to replicate. I read an early PDF, and it has been a great introduction in strategies to build marketplaces and other platforms that grow exponentially, as the customers keep accelerating the flying wheel of adding value and attracting new customers to keep adding value. Read if you're building such a platform, or if you think you are (and might be proven wrong!).

I am growing a marketplace business: based on all the good reviews, I decided to buy this book. Honestly? Total waste of your time. If you are looking for actionable tips and ideas for launching and growing your marketplace go and look somewhere else. This book is all theory, no practice. Good for academic purposes.

While platforms appear to be inherently large setups, I would have liked some focus on micro-platforms: how rural, urban hyper-locals can use these ideas to develop new business models without needing deep pockets. Today platforms are typically (not always) one-winner-takes-most-business models like Uber or AirBnB. How can one apply these ideas to a village or a small city?

I think if that some work was done here then the value of platforms, as well articulated by the author in this book and elsewhere, will revolutionize business models across the World.

I read this book because I am interested in technology and found it interesting, but fairly academic in nature. I honestly did not get as much out of this book as I could have because I am not an entrepreneur currently in the process of building a disruptive or novel technology. Rather, I am merely a user of certain platform technologies on the sidelines, which is why many of the lessons in this book were lost on me in that I cannot put them into practice. Were I to begin building a platform of any kind, I would immediately turn back to this book, as there are valuable lessons to be found for platform builders. The book's organization and chapter progression was helpful, but I found chapters 9-12 the most engaging. Overall, I recommend this book for those looking for advice when building platforms rather than more casual readers looking for a narrative or history of current technology platforms.

As someone who has spent a considerable amount of time working on platform business models with clients and as a huge fan of the work done at the MIT Sloan Initiative on the Digital Economy, Platform Revolution is THE book on the topic. Those who are wise enough to really dig into this book will not be disappointed. With actionable information on all the key aspects of winning in the digital economy, this book sits on my bedside table and is an obligatory read for my clients.

This is a fantastic book and deserves its current ranking of #1 in New Releases, New Business Enterprises.

The topic of network effects in the economics literature goes back to the 1970s. Unfortunately, most of it has been written by academic economists who tend to 1) have their own vocabularies and terminology on the subject, 2) like building and discussing obscure and impenetrable mathematical models, 3) have a hard time writing in plain old English.

This book weaves together the topics of platforms, network effects and business strategy. It's highly readable (I even read it twice :) and the authors bring in many helpful examples and stories to make their points.

It is destined to become THE reference book on these increasingly important areas of our economy.

Scaling Business in 21st Century require understanding of ever evolving Business Models. Platforms are dynamic and mobile. They are migratory and hence a need to understand the science and art behind the Platform Framework makes Sangeet a welcome Guide in the vast sand dunes of current Entreprenual exploits that combine the virtual world and it's ever morphing ecosystem.

This books breaks down why some of the Platform Businesses are so successful and why some aren't. It tells you exactly what the core foundations are for building a strong Platform Business. This was a fascinating page turner and I thoroughly enjoyed reading this book. I'd recommend it to anyone looking to start or works in a Platform Business or if you are a company that is looking to create a platform business.

A bunch of academics/economists trying to make sense of the tech boom. Before the first successful platform business, these exact people will tell you how to build a successful pipeline business. Now after examining a handle of successful platform businesses and picked a few patterns, they will tell you how the platform businesses will out compete all pipeline businesses. Take advices from them, you will be always at the wrong side of innovation.

But seriously, if you want advice for starting a new platform business, just read some books directly about them, Uber, Airbnb, the store, etc, and most importantly, think 2 steps ahead of the market, not just replicating what someone else already did.

Platform Revolution is distinctly unique in its approach in that the treatise is presented and thought out comprehensively. So much of our information and business organization is segmented, silo'd, and divided. The opportunity for disruptive business models and aggressive revenue growth requires a comprehensive approach to solving complex business problems. Paul has presented his comprehensive approach succinctly, clearly, and in depth. A great work for building the businesses of the 21st century.

This is a fantastic book and deserves its current ranking of #1 in New Releases, New Business Enterprises.

The topic of network effects in the economics literature goes back to the 1970s. Unfortunately, most of it has been written by academic economists who tend to 1) have their own vocabularies and terminology on the subject, 2) like building and discussing obscure and impenetrable mathematical models, 3) have a hard time writing in plain old English.

This book weaves together the topics of platforms, network effects and business strategy. It's highly readable (I even read it twice :) and the authors bring in many helpful examples and stories to make their points.

It is destined to become THE reference book on these increasingly important areas of our economy.

Scaling Business in 21st Century require understanding of ever evolving Business Models. Platforms are dynamic and mobile. They are migratory and hence a need to understand the science and art behind the Platform Framework makes Sangeet a welcome Guide in the vast sand dunes of current Entreprenual exploits that combine the virtual world and it's ever morphing ecosystem.

This books breaks down why some of the Platform Businesses are so successful and why some aren't. It tells you exactly what the core foundations are for building a strong Platform Business. This was a fascinating page turner and I thoroughly enjoyed reading this book. I'd recommend it to anyone looking to start or works in a Platform Business or if you are a company that is looking to create a platform business.

A bunch of academics/economists trying to make sense of the tech boom. Before the first successful platform business, these exact people will tell you how to build a successful pipeline business. Now after examining a handle of successful platform businesses and picked a few patterns, they will tell you how the platform businesses will out compete all pipeline businesses. Take advices from them, you will be always at the wrong side of innovation.

But seriously, if you want advice for starting a new platform business, just read some books directly about them, Uber, Airbnb, the store, etc, and most importantly, think 2 steps ahead of the market, not just replicating what someone else already did.

Platform Revolution is distinctly unique in its approach in that the treatise is presented and thought out comprehensively. So much of our information and business organization is segmented, silo'd, and divided. The opportunity for disruptive business models and aggressive revenue growth requires a comprehensive approach to solving complex business problems. Paul has presented his comprehensive approach succinctly, clearly, and in depth. A great work for building the businesses of the 21st century.

Leveraging Network Effects, Monetizing Platforms, Defining Core Metrics etc - Book has everything how platform has to built, grown and scaled.

Future of Platforms defined in the book validated our hypothesis and mission. Thanks for gripping Insights....

Pros - Access to ideas, analogies, experiences shared , can easily visualise a framework to run our platform.

Overall - It's Simple, Compelling and Thought Provoking Book for Startup Enthusiasts!

For the founders that are building platform business it is must have and learned book.
It is a set of systematized topics/tools that make platform creator aware of the complex journey he is on,
making him prepared to design complex system that wins on the market.

As others have written in their reviews, this is a must read for anyone wanting to
create a platform, understand how the web works, and get a sense of where the
web is going in the future. It also gives the reader a preview of economic trends and
how the web will impact those trends. A keeper!

Platform Revolution is an absolute must-read for those interested in understanding the impact of Platforms and the critical components that makeup an effective Platform. This information is pertinent to both entrepreneurs and corporate business leaders.

A rather timely and insightful book regarding the New World Order where the most successful companies will be utilizing platform business models or variants.

This is the new economic reality on how to be immune to "faster, cheaper, better" by offering unified end-solutions and making it advantageous for customers to purchase from you rather from another competitor.

Ignore at your own peril.

The platform-driven economic transformation we’re living through is merely just the beginning of what we’ll likely see unfold in the future. Platform Revolution is a timely comprehensive walkthrough of the “Why” platforms (marketplaces) are rapidly emerging as a de-facto business model and the “How” such platforms are systematically architected to facilitate producer-consumer interactions, enable sustainable governance, monetisation, viral growth and scale.

Platform Revolution – co-authored by three experienced business, advisory and academic practitioners, is written for and relevant to those working in startups, incumbent organisations, policy makers, regulators and citizen consumers – as a quick cohesive overview of the wider context, opportunities and implications for how we live, work and play in today’s fast evolving network economy.

In the authors’ words, “The Platform Revolution is here – and the world it is ushering in is here to stay.” The rise of platforms has already transformed many industries with plenty more transformations on their way. Platform Revolution – with its ample company examples and explanations – explains the accelerating growing scope and significance of platform companies, why these have arisen now and how to develop platform strategies.

If you’re actively building/launching a platform (marketplace), consider Platform Revolution co-author Sangeet Choudary’s “Platform Scale: How an emerging business model helps startups build large empires with minimum investment” (2015). With a practitioner's lens, it maps out “a structured approach to designing and growing a platform business model and addresses the key factors leading to the success and failure of these businesses.”

Platform Scale: How an emerging business model helps startups build large empires with minimum investment

Parker, Van Alstyne and Choudary's Platform Revolution is an enthusiastic and engaging book on platforms and how they are transforming many markets. Full of anecdotes and examples, it provides a host of insights and advice for managers and entrepreneurs.

Sangeet, has written a well articulated book, easy to understand, irrespective of the readers base knowledge. What i found, was not just the content, what it did was inspire me to want to become more knowledgable in this exciting area of platforms. Communities are at the core of human society, now learn how new communities can help and assist each other. Glad I came across this book and author.
Enjoy, Stefano

A fine example of why software is eating the world as Mark Andreessen explained in 2011 and how the 4th Industrial Revolution will dramatically change the way business is done - co-petition. The reader is shown step by step how value is created above and beyond those of the products and services offered through the relationships that are sustained on a platform or ecosystem of service providers.

Quite frankly, this is mandatory reading for executives of Fortune 500's and startup founders alike. Skip this book at your own peril, without it you are at a minimum 1000x more likely to fail. Highly recommend this to both startups and mature companies, Thank you to all the authors and especially to Sangeet for taking the time to help me.

Sangeet, has written a fantastic book, very easy to understand, with a new approach to the problem. What i found, was not just the content, but also the new approach in describing platform business . Communities are at the core of human society, now learn how new communities can help and assist each other. Glad I came across this book and author.
Enjoy, Gaetano

I am presently developing a strategic plan for a large brick & mortar wholesale textile trading hub in south India. While it is basically a real-world market, we wanted to enhance business value for our customers by providing them with online platforms for wholesale and retail trade. That is when I came across this unique concept of Platform Revolution of Mr. Sangeet Paul and got fascinated by the way he describes the concept elaborately for even novice to understand the insights on platform business. The strategies he outlines are very much relevant to present day businesses that want to leverage online presence. A new paradigm well articulated in his book 'Platform Revolution'. A must read for businesses wanting to exploit leading-edge technology to grow and create business value for customers. Great value for your time and money! Keep writing Mr. Paul! We are waiting to learn........

A must read for any aspiring and serial entrepreneurs to take advantage of the current trend of business. Platform Revolution will change the way you approach the business model of your startup and continue to achieve success in the world of startups.

Read this book as preparation for launching my own business which served as a platform between two differently incented parties. The theory and strategy I found in this book was very helpful for developing/implementing my own tactics.

Being the first ones studying and understanding current trends in Business they are able to provide the reader with a comprehensive understanding of how almost every business area is transforming into a platform.

Platfrom Revolution is a must-read for anyone in business. The platform theory is easily an important foundation for business thinking that is critical if you are building a new-age company. The authors are immensely successful in answering two main questions from me.
What are the interactions on a two-sided platform and why they must be understood at the business plan stage?
What were some of the factors that made companies like Uber and under what circumstances are their models replicable?

The idea of the platform model vs. the traditional pipeline model of business is truly revolutionary and easily misunderstood. This book does an excellent job of disseminating the blueprint of platforms for a larger audience than Mr. Choudary's previous book, Platform Scale Platform Scale: How an emerging business model helps startups build large empires with minimum investment, which is also top-notch but more techincal.

In order to stay relevant in the digital economy, one must make sense of the frameworks that it runs upon. The world is shifting towards platforms. I consider this book a must-read for entrepreneurs and businesspeople alike to understand the shift.