Nabeel Hyatt’s article “Building Platform Companies” got me thinking a bit. In general, platforms allow other developers and companies to embrace and extend its value propositions. Having one and its related ecosystem and buzz is a frequent goal of expansive-thinking CEOs and CTOs. (Mr. Hyatt’s article related to Dash Navigation’s purchase by RIM, also a platform.)
Mr. Hyatt implied that many organizations build platforms for egotistical reasons and not for the sake of maximization of shareholder wealth (from a VC point of view, that can be perceived to be the truth.) I am inclined to agree; however, for organizations to be completely opportunistic and forward thinking, they’ll tend to try accommodate or at least embrace satellite or edge opportunities early on in the architecture and design process. They’ll do this by exposing an API or two or test out distribution and/or sell-through partnerships.
In hardware and software, it seems almost commonplace to expose APIs or to create a .org - sometimes just for experimentation. Some excellent examples come to mind where .Orgs and Open Source served as a wonderful launching point for pioneers: Acquia, having their roots in Drupal is a great example. (If you’re a developer looking for ideas, try mining Soureforge.)
What does it take to be a platform? It appears that the same three sided business triangles hold true: Feature /Resources /Time and/or Market Size /Features /Investment, etc. For consumers/embracers, its the same. What is everyone (in this case) getting for their investment in both time, money and resources?
Like almost product or service, platforms appear to have the same adoption lifecycle as anything else. To answer my title’s question, platforms typically start off with some base jumpers or early adopters. They have a few successes and casualties, and with any success, the base jumpers (broken bones, battle scars, and all) help build up the platform by influencing the platform’s host to build a sturdier platform or launching point.
Fundamentally, I believe the roots for success as a platform lie in the organization’s ability to deliver something potential partners perceive as a strong opportunity; one that’s easily embraced strongly coupled with the platform company’s ability to be a good partner. My personal ideal and root of my partnering experience is with IBM’s Lotus Development Partner program in the ‘90s. The partner organization, at the time, led by folks like Don Bulens, Tim Dempsey, and a few others. They embraced the idea of a mutually beneficial ecosystem and made it profitable for everyone.
Lastly, buildings platform are similar to diving boards or springboards. The farther you extend the fulcrum, more variables will come into play – as well as the potential benefits!
