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IN 5430 Platform ignition, launch,bootstrapping, evolution

IN 5430 Platform ignition, launch,bootstrapping, evolution. Network effects – self-reinforcing processes. ). Multi-sided markets. Same side & cross-side effects Positive & negative effects Ex: Uber. Platform ignition. Critical mass -> explosion

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IN 5430 Platform ignition, launch,bootstrapping, evolution

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  1. IN 5430Platform ignition, launch,bootstrapping, evolution

  2. Network effects – self-reinforcing processes ).

  3. Multi-sided markets • Same side & cross-side effects • Positive & negative effects • Ex: Uber

  4. Platform ignition • Critical mass -> explosion • Mobile payment platforms in developing countries • Ignition, slow ignition, no ignition • Tactics • Zig-zag • Two-step • ..

  5. Launch tactics • Follow-the-rabbit (closed applic – open platf) • Piggyback (PayPal on eBay) • Seeding (value for one set of users) • Marquee • Single-side • Producer evangelism • Big-bang • Micromarket (Facebook)

  6. ’Multidimensional’ critical mass • Granovetter’s pedestrians: distribution of individual preferences. • Diversity of users (resources, location, motivation, knowledge, style, …) • Diversity of services • Which user first, second, .. • Which service first, second, .. • Arranging users and services

  7. ’Bootstrapping’ • Enclocypedia: ’She bootstrapped herself to the top’ – to manage on one’s own • Lifting yourselves by your hair • Booting a computer • Implementing a programming language • Language learning • Making a tool/network by means of the tool/network • ”Deliver a better today, rather than promise a better tomorrow”. • Late adopters adopt because the others have already • First adopters must adopt for another reason

  8. Identifying and arranging users and services • Multi-dimensional • Personal, individual • Use areas and situations • Technological aspects • Coordination/governance structures • Arranging preferences and dimensions (dynamically)

  9. Bootstrapping Network Technologies • Select motivated and knowledgeable users • Simple, non-critical, non-complicated use areas where no large organisational changes are required. • Select simple, relatively cheap and well supported technical solutions. • Users first, then functionality/technology

  10. Individual/personal preferences • Motivation, attitudes towards technology • Knowledge about technology

  11. Aspects of use areas and situations • Resources • Benefits of communication within a small network • Critical/non-critical activities • Complexity of tasks and work practices • Organizational changes needed

  12. Aspects of technology • “Distance” between users and designers/vendors • complexity • costs • flexibility • “allied with the future”

  13. Coordination and governance • Structures and institutions have to be established (bootstrapped) • “Standardization bodies” • Technology (protocols) • Work practices/procedures (protocols) • (The Internet is an example to learn from in this respect as well)

  14. Design strategy • Start with • simple, cheap, flexible solution • small network of users that may benefit significantly from improved com. with each other only • simple practices • non-critical practices • motivated users • knowledgeable users

  15. Bootstrapping design principles • Design initially for usefulness • Draw upon existing installed base • Expand installed base by persuasive tactics

  16. Boostrapping algorithm • Repeat as long as possible: enrol more users • Find and implement more innovative use, go to 1 • Use solution in more critical cases, go to 1 • Use solution in more complex cases, go to 1 • Improve the solution so new tasks can be supported

  17. Innovation and platform evolution • Combination • Cross-appropriation • Reconfiguration • Exaptive bootstrapping • Digital tech: “exaptiveness” • Norwegian Bank • Apple (Mac -> iPod/iTunes -> iPhone/Appstore -> ApplePay) • Amazon, Google, Facebook, ..

  18. Alibaba • 1999-2004: B2B platform for SMEs • Websites for customers • AliPay • Trustpass • Wangwang (IMS for haggling) • Taobao (C2C platform) • 2005: Yahoo China, “closing” Alibaba • 2006: Koubei.com (Lifestyle portal) • 2007: Alisoft, Aliloan, Alimama, …

  19. Facebook • Messaging system for students in Zukerberg’s class at Harvard– extremely simple • Adding features (groups, likes, ..), diffusing • Integration with • ad platforms • publishing platforms • Shopping platforms, corporate solutions, .. • Payment platform • ..

  20. Easypaisa • Telenor Pakistan (2017: 41 M subscribers) • 30 sales offices, 278 franchises, 300 K agents • Illiteracy (30-40%), 85% ( of 197 M) unbanked • Government & World Bank: Financial inclusion, “banking the unbanked” • Brachless banking regualtion • Bank led model • 4 levels of KYC requirements • 2015: re-verification of SIM cards

  21. Launch • 2008: 51% of Tameer Microfinance Bank (the rest in 2016, Telenor Microfinance Bank) • Oct 2009: Over-the-Counter (OTC) service • Agents (2.500) and franchises, utilities • All citizens • Utility bill payment, money transfer • End 2012: 8.000 agents, 100 M transactions • 2016: 75.000 agents in > 800 cities

  22. OTC • Low threshold for users • For all citizens • Attractive for agents • KYC requirements set limitations • Expensive • Manual operations by agents • Cash management

  23. M-wallet (account) • Launched 2010: bill payment and money transfer • No transaction fee (until 2016) • 25% discount on certain products • 2011: 1.200 agents could sign up users • “no” growth until 2015

  24. New services • Bulk disbursement: BISP (15% of population), salary, pension, .. • International remittances • Credit and savings • Air-time top-up • On-line shopping • Payment service (QR codes) • Insurance • B2B solution

  25. Technology • Mobile payment solution • Integration with mobil telecom tech • Integration with banking systems • Developing apps • Agents • individuals • Corporate portal • mWallet • POS terminals • Merchants • ..

  26. Relations between users and services • Many sides .. • Agents (and franchises) • Individuals • Shops • Corporations and governance agencies • International remittances organizations

  27. Variations within groups • Wealth, size • Location • Knowledge • Age • Long-term – short-term priorities

  28. Launch • OTC: low threshold, • Bringing onboard big organizations: BISP, utility providers

  29. Issues: OTC - mWallet • OTC • low threshold, all citizens • Attractive for agents • mWallet • Low added value for most users, illiteracy • Threatening agents’ business – partly depended on agents for opening account • Re-verification of SIM cards!

  30. Managing dependencies • Introducing more corporate organizations (BD) • New services • Shopping • University districts • --- • Slowly making mWallet more attractive for all • FINE GRAINED, CONTEXT SPECIFIC STRATEGY

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