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Dear Reader, 
here's your latest newsletter on Platforms – brought to you by the awesome Platform Design Toolkit Team.

Demystifying Network Effects
Navigating ten years of NFX theory

Dear community,

As pointed out by James Currier in the NFX Bible, network effects are responsible for 70% of the value created in technology since 1994.

In the past 10 years, a lot has been written around them and as often happens with information overload, things get fuzzy and a good practical systematization can be of great help to cut the clutter and get the essentials. In this week's issue, our colleague Esme González Pillado intends to bring some clarity around network effects and their implications in platform thinking.

This recap has been inspired and is heavily based on several important pieces of work that the reader should look up to go more in deep with the topic. Our intention is to start sharing with you a basic framework to help strategize and activate the mechanisms to achieve better network effects.

Figuring out how to identify, distinguish and activate NFXs has become an important topic for investors and is one of the reasons entrepreneurs keep awake at night. Entrepreneurs concerned with social impact, or even platform-cooperatives cannot afford to ignore how NFXs work: for better or worse, achieving NFXs is vital for any platform-organization. In other words, if you have any stake in creating or running a platform you should be trying to understand the NFXs that you’re subject to. You should also be looking to distinguish network effects from counterfeits and how to activate them and make them more robust.

👉Read this week's issue

SAVE THE DATE 📅 : Nov 13th, 2PM CET
On November 13th at 2PM, join us here for our second Adopters Community webinar. Simone Cicero will interview Remco Westerbroek (Platform Designer at Webcircles), Nabil Abdullah (Platform Strategist at Elm Company Digital) and Mark Craddock (UN Global Platform). An Open Q&A follows. There'll be space for questions and answers and we'll go through the recently released example!

Webinar link 🎙
Remind me of the webinar 📅
Our curated list of the best reads, videos, and podcasts to inform and transform your understanding of Platforms & Ecosystems
🗞️ .Reads
Next Gen Unbundling: Fragmenting Horizontals↴
As major horizontal platforms grow, their submarkets grow too. As this piece by a16z points out looking out for potential verticals within the broad horizontal platforms that are near their breaking point might open up juicy yet risky opportunities.
China 2025: Unbundling Factories Nation Wide  ↴
In the distinctive Chinese landscape, a controversial and ambitious industrial policy set to roll out in 2025 can push the entire country to unbundle factories and their data into shared resources to optimize production efficiency and bringing flexibility to the sector.
The Unintended Consequences of Platform Economies ↴
This article explores what can be a way out for platforms to drift out their current evolutionary trend to eat larger portions of capital while externalizing fragility is to broader ecosystems. A nice take on an important conversation.
Management-less Organizing 
In this unmissable article, Joost Minnaar observes a set of emerging patterns across a few dimensions of organizing, that are existing and shaping the nature of companies that departed radically from traditional management structures.
Introducing the Decentralized Flexible Organization ↴
This note explores how leveraging a microservice approach to smart contracts and derivatives can pave the way to more composable and flexible conceptualizations for the automatization of (some) organizational features.
 Learn with us 🤓
Whether you're aiming to get a full and deep understanding of our framework to facilitate platform design experience over the world or you just want to learn the PDT and applying it to your project(s) we got you covered!

Join the growing family of certified Platform Design Toolkit facilitators, check out our available training programs and download our open source tools.
🎙️  Podcast(s)
Simone Cicero: How Do We Organize When Systems Collapse? ↴
In this podcast, Simone Cicero got interviewed by David Goldsmith on the nature of the socio-ecological collapse and how this is asking to everyone fundamentally different kinds of questions on our relationships with the world, a renewed approach to responsibility and to organizing in ways that are deeply connected with landscape and community.
Where to Meet us
On November 22nd meet Simone in Vienna at the 11th Global Drucker Forum where he'll speak about Ecosystems dynamics with management innovation legend Bill Fischer.
Want to join our Community of Practice?
Tell us more how you're using the Platform Design Toolkit
Wanna play the Platform game?
A few weeks ago we released the new Platform Design Toolkit 2.2, grown on two years of experience with startups, corporations, and institutions of all kinds. 
Highlights on this release:
  • an updated Transaction Board canvas, now more explicitly helping you to work on reducing transaction costs in interactions;
  • an updated User Guide (2.2);
  • the possibility to instantiate a virtual board for online collaboration, thanks to our partnership with Miro, a leading online collaboration software worldwide.
Download the Platform Design Toolkit Now!

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