What is the relationship between Platforms and Transactions Costs?
Technology is making interactions possible in ever smaller niches: that's the essence of Platforms, enabling increasing and more precise self-organization.
In the last months of intensive use of Platform Design Toolkit, we've learned that the success of Platforms is a clear sign of a trend: technology is relentlessly reducing transaction costs and this reduction is enabling the increasing affirmation of longtail economics.
Let me make an example, that you also find on the post:
"if your organization is in the business of events production, you’ll need to make it possible for more event organizers to organize smaller events, for smaller audiences. Similarly, if you’re an organization involved in policymaking advisory, and you now advise only for governments, you’ll want your platformization strategy to allow policymaking advisory to happen at city, town or district level. Your mission is to make longer tails sustainable."
The ultimate platform's mission is to make niches sustainable.
Discover how this evolution is unstoppable and what does it mean for the evolution of organization design and development.
We just announced a new Masterclass:
we're coming to Brussels! ...the last three were sold out so grab an Early Ticket!
Our list of Must-Reads on Platforms, curated For You
Note: This week - among other things - we're sharing a few very interesting read on crypto-tokens and distributed platforms: if you follow us since a while, you'll know that we consider this trend a crucial force that will reshape platform thinking soon and widely. You'll find these reads in the upper part below.
If you're not familiar with these concept - especially that of work tokens - and how in general tokens relate to platforms... read our primers here and here.
Understanding the basics of Crypto-Economics enabled Platforms ↴
A very short note on HackerNoon to understand how differently you would plan the growth of a decentralized platform, and how they can be profitable while eliminating the middlemen.
Decentralized Network design is a game of incentives that just begun ↴
A Fascinating read: on how work tokens attempt to solve the issue of free-riding and unhealthy speculations that might hinder platform's success.
The big game on capturing value from Real Identity ↴
In this piece by James Currier @ NFX he explains why real identities are key to the success of network-platforms. We foresee this discussion will only increase importance with the rise of blockchain enabled platforms.
The UK gov is releasing a nice report of three years of Government as a Platform strategy: despite it looks more as a Government as "Infrastructure" (at least in our point of view) it's still a great read, as it samples the digital gov ecosystem of one of the most digital economies in the world.