1. Digital Innovation
Network effects

2. Plan for the day Global virtual guest Review
DI concepts: two-sided markets
“Thursday” prototypes

3. Digital Innovation occurs in many places
DI Concepts
Global Virtual Guests
DI Videos
DI Prototypes
Global Virtual Guest
Digital Innovation occurs in many places

4. Review Network effects Positive NE example Negative NE example
Are they everywhere?

5. Network effects (part II)
DI Concepts
Global Virtual Guests
DI Videos
DI Prototypes
DI Concepts
Network effects (part II)

6. Google as a three-sided platform
Content Providers
+ or - ?
Users
Google Platform
Advertisers
+ or - ?
1) Consumers: 132 mil /day (end 11/2007) – reveal preferences – consume ads – users of new products
2) Developers: internal and external – generate revenue – sustain excitement
3) Advertisers
4) Content interest, delivery mechanisms for ads, community
Also Salesforce as an example

7. LinkedIn as a two-sided platform
Users
Platform
Recruiters
+ or - ?
1) Consumers: 132 mil /day (end 11/2007) – reveal preferences – consume ads – users of new products
2) Developers: internal and external – generate revenue – sustain excitement
3) Advertisers
4) Content interest, delivery mechanisms for ads, community
Also Salesforce as an example

8. We have network effects. So what?
Pricing
money side, subsidy side
Winners-take-all dynamics
multihoming costs
Envelopment

9. why Amazon acts as a reseller for high-demand products but as a multisided platform for long-tail products?
Source: do you really want to be an ebay?

10. Why did Zappos shift from multisided platform to reseller?

11. Why didn't Apple employ the reseller strategy with its App Store?

12. Enough talking. It’s time to do DI.
DI Concepts
Global Virtual Guests
DI Videos
DI Prototypes
DI Prototypes
Enough talking.
It’s time to do DI.

13. “Thursday”

14. 7:37 AM

15. 7:37 AM

16. https://www. visualstudio