Product Platforms
Products that have a very similar architecture, but changing certain aspects to cater to different market segments.
Example: Volkswagen have a modular assembly kit
Innovation Platforms
Products, services, or technologies that allow external innovators (complementors) to develop their own offerings. Example: The collaboration between Microsoft, Intel, and IBM in creating the personal computer, which opened the platform for external software development.
Transactional Platforms
Two-sided markets connect two distinct groups of customers, such as credit card holders (first side) and merchants (second side)
It connects different customer groups, enabling them to interact and transact with each other. For example, a ride-sharing app connects drivers and passengers.
Orthogonal Platforms (Client as a target)
The concept of orthogonal platforms refers to a specific type of platform that does not enable direct transactions between its two sides. Here are the key points:
- Two-Sided Mechanism: Orthogonal platforms have two distinct user groups (e.g., readers and advertisers) but do not facilitate transactions between them.
- Client-As-a-Target Strategy: The platform uses one side (e.g., readers) as a target for the other side (e.g., advertisers), selling the attention of the first side to the second.
- Unidirectional Cross-Side Network Externality: The value for advertisers increases with the number of users on the first side, but the reverse is not true; readers do not gain value from the advertisers directly.
- Examples: Traditional newspapers and advertising-based services like television or Google search engines exemplify orthogonal platforms, where the primary service is provided to one group while the other group subsidizes the model.
Orthogonal Platforms (Client as a source)
The “Client-As-a-Source” strategy means that instead of just using users to sell ads (like traditional advertising), platforms like Twitter collect valuable information from what users share. This information, or data, can be used to understand trends and opinions about various topics. For example, when people tweet about a political event, Twitter can analyze those tweets to see how people feel about the candidates. This data can then be sold to companies or researchers who want to know what the public thinks, making it a win-win situation!