2020 MIT Platform Report

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>MIT</strong> Initiative on the Digital Economy<br />

<strong>Platform</strong> Strategy Summit <strong>2020</strong><br />

Plaforms adapt<br />

to survive

2 / <strong>MIT</strong> IDE <strong>Platform</strong> Strategy Summit <strong>2020</strong><br />

Put to the test<br />

In <strong>2020</strong>, the resolve of platform markets—like every other<br />

business sector—is being tested in real time.<br />

03 Overview<br />

04 Siemens assembles a platform future<br />

05 The super-app economy<br />

06 Telemedicine takes a giant leap ahead<br />

07 Ping An’s evolution from finance to platforms<br />

08 Despite the pandemic, the show must go on<br />

09 Tales from a platform pioneer<br />

10 Action items<br />

Digital platforms:<br />

It’s how business operates<br />

in <strong>2020</strong><br />

From Uber rides to Grubhub food delivery,<br />

Spotify entertainment to online healthcare,<br />

digital marketplaces are increasingly<br />

offering new products, services, and<br />

networking.<br />

Nevertheless, the current economic crisis<br />

is testing the resiliency and mettle of these<br />

innovators like never before. Since the<br />

COVID-19 pandemic—and the resulting<br />

economic nosedive—platform models are<br />

being tested.<br />

The question is: Can disruptors like Airbnb<br />

pivot as quickly as they began? Which<br />

platforms will grow and which may fail?<br />

Is this the time for traditional industries to<br />

<strong>MIT</strong> IDE <strong>Platform</strong> Strategy<br />

Summit <strong>2020</strong>: Where we’re at<br />

and what’s ahead<br />

At the <strong>2020</strong> <strong>MIT</strong> IDE <strong>Platform</strong> Strategy<br />

Summit in July, emerging and incumbent<br />

platform leaders discussed their strategies.<br />

The day-long Summit, with more than 900<br />

virtual attendees, featured experts from<br />

several fields and industries.<br />

“We’re living in a platform economy,” said<br />

Peter Evans, manager partner at the <strong>Platform</strong><br />

Strategy Institute and a conference co-chair.<br />

“But digital markets are also volatile and<br />

tremendous challenges loom.”<br />

Evans noted that an onslaught of new models<br />

are emerging due to the pandemic. “We’re<br />

moving from obvious to more complex<br />

ecosystems, where multiple platforms merge<br />

Key takeaways<br />

1<br />

<strong>Platform</strong>s will become more resilient,<br />

especially compared to incumbent firms,<br />

because of their ecosystem design and<br />

network effects.<br />

2<br />

When production takes place largely<br />

outside of the firm (the “inverted firm”),<br />

the business is adept at working with a<br />

diverse set of changing partners.<br />

3<br />

The agility advantage allows platforms<br />

to more swiftly switch to new partners<br />

and new customers, when the need arises.<br />

View videos of the <strong>2020</strong> <strong>MIT</strong><br />

IDE <strong>Platform</strong> Strategy Summit<br />

As platform business<br />

models—and the technology<br />

stacks needed to run them—<br />

become widely understood<br />

and available, talent has<br />

become the next frontier of<br />

the platform economy.<br />

ramp up their platform capabilities?<br />

into one. It’s exciting, but you must know how<br />

to lean into platforms to create new value to<br />

old products and services.”

3 / Overview<br />

A bird’s-eye view<br />

Summit co-chairs analyzed platform market trends<br />

unfolding in a chaotic environment.<br />

Recalibrating supply and demand<br />

The rise of platform professionals<br />

<strong>Platform</strong> vs federated platform vs<br />

product on a platform<br />

Market<br />

transform?<br />

Resources<br />

to tip<br />

market?<br />

Control<br />

customer<br />

relationship?<br />

Product/service<br />

Coalition<br />

resources<br />

to control market?<br />

Federated platform<br />

Product/<br />

service<br />

on platform<br />

“We’ve seen both precipitous demand drops as well as explosions in<br />

platform markets,” said Geoffrey Parker.<br />

Among those riding the wave are Amazon, which is experiencing<br />

market cap gains in the range of $400 billion and Zoom, which posted<br />

a revenue increase of 355 percent in the second quarter of <strong>2020</strong>.<br />

“We’ve also seen huge disruptions in the finance and energy sectors<br />

where market losses have been up to $130 billion,” he said. In-person<br />

dining at U.S. restaurants has shriveled, and ride-sharing platforms<br />

experienced immediate declines when lockdowns were ordered.<br />

“The pandemic clearly has had different impacts across sectors.”<br />

On the supply side, winning firms made end-to-end digital connections<br />

that allowed them to quickly pivot to meet new customer demands.<br />

“The business model is how you realize revenue, and the operating<br />

model is how you deliver value,” said Parker. “These need to be correctly<br />

matched to one another.”<br />

Geoffrey Parker<br />

Professor, Dartmouth<br />

<strong>MIT</strong> IDE Digital Fellow<br />

<strong>Platform</strong> Strategy Summit Co-Chair<br />

Three common responses to the COVID-driven crisis<br />

Weather the storm<br />

Go into resourceconservation<br />

mode<br />

Rapidly pivot<br />

Take assets into<br />

other markets<br />

Ride the wave<br />

Demand explodes,<br />

hang on for dear life<br />

Peter Evans forecasts high demand for platform talent and the rise<br />

of platform professionals during the pandemic. “A key component to<br />

successfully launching and running platforms is the talent you bring to<br />

execute on those strategies,” he said.<br />

The key roles that firms are seeking to fill include platform strategists,<br />

product management, ecosystem managers, engineers, data managers,<br />

and privacy and compliance experts.<br />

“Applicants need deep technical expertise, but also broad<br />

competencies,” Evans said. “It’s extremely difficult to find one person<br />

that can meet all these capabilities.”<br />

A significant question—especially for larger companies on the hunt for<br />

platform professionals—is whether to groom from within or recruit from<br />

outside. For example, Nike recently hired a seasoned platform executive,<br />

former CEO of eBay, as its new CEO.<br />

Peter Evans<br />

Managing Partner, <strong>Platform</strong> Strategy Institute<br />

<strong>Platform</strong> Strategy Summit Co-Chair<br />

Demand for platform talent during the COVID-19 pandemic<br />

Replenishers<br />

Companies trying<br />

to meet demand or<br />

replace employees<br />

lost through attrition<br />

Builders & startups<br />

Companies hiring<br />

to build their<br />

workforce<br />

Incumbents<br />

Legacy companies<br />

that need talent<br />

to drive platform<br />

strategies<br />

Firms will need to design organizational structures and functions so<br />

that platform capabilities, including strategy, project management, and<br />

ecosystem management, become embedded in the organization.<br />

<strong>Platform</strong><br />

To platform, or not to platform<br />

Marshall Van Alstyne explained when it makes sense to become a<br />

platform and when to be a product on someone else’s platform.<br />

When a market is evolving to a platform, a firm must consider whether<br />

it has the resources to tip the market and whether it can control the<br />

relationship with the customer. If not, it may need to partner to offer a<br />

jointly controlled or federated platform.<br />

Van Alstyne also presented research introducing the notion of “intertemporal”<br />

network effects, or the value that users create for other users<br />

that lasts through time.<br />

This model helps explain the success of firms like the Chinese shopping<br />

platform, Meituan, versus the relative lack of success of Groupon in<br />

the U.S. “Despite having identical business structures and the fact that<br />

Groupon had a two-year head start, Meituan designed network effects<br />

that kept interactions on-platform and created more spillover value,”<br />

Van Alstyne said.<br />

Marshall Van Alstyne<br />

Professor, Boston University and Visiting Scholar,<br />

<strong>MIT</strong> Initiative on the Digital Economy<br />

<strong>Platform</strong> Strategy Summit Co-Chair<br />

Drawing on principles of information economics, van Altsyne presented<br />

new research on how social media platforms can reduce the lies in<br />

political advertising. Read the report.

4 / Keynote: Manufacturing Perspective<br />

Siemens assembles a<br />

platform future<br />

Siemens AG is among a group of industry leaders that<br />

is actively pursuing platform projects.<br />

Dr. Roland Busch<br />

Deputy Chief Executive Officer and CTO, Siemens<br />

Siemen’s Railigent platform uses sensors to monitor trains within its ecosystem.<br />

While most of the splashy headlines<br />

about platform firms involve digital<br />

native players, much is brewing behind<br />

the scenes at traditional firms.<br />

Siemens AG, the German-based<br />

industrial company with a revenue of<br />

$86 billion worldwide and a workforce<br />

of 385,000 employees, is among a<br />

group of industry leaders that is<br />

initiating several platform projects.<br />

Dr. Roland Busch, CTO and deputy CEO<br />

at Siemens, explained how the company<br />

combines the physical and the digital<br />

worlds, and how platform strategies<br />

are being integrated. “We are preparing<br />

software be decoupled, industries<br />

will change from linear to networked<br />

value chains.”<br />

Busch also oversees Siemens‘ venture<br />

capital arm, Next47, which is involved<br />

in artificial intelligence, cybersecurity,<br />

carbon neutrality initiatives, and Internet<br />

of Things (IoT).<br />

The market for IoT is expected to<br />

reach $11 trillion by 2025, according to<br />

forecasts, and Busch said B2B would be<br />

70 percent of that. The potential of B2B<br />

platforms, therefore, could exceed B2C<br />

offerings by then.<br />

is already monitoring and connecting<br />

railroad sensor data to measure their<br />

activity and status. Railigent is a<br />

software-as-a-service platform that will<br />

soon bring competitors and suppliers<br />

into the ecosystem for mutual benefits<br />

and value.<br />

“We can predict as far out as 10 days<br />

which door in a train is going to fail and<br />

why,” said Busch. “This gives us the<br />

opportunity to run our assets with 100<br />

percent availability and to detect failures<br />

before they occur.”<br />

Another example is Mendix, a no-code/<br />

low-code application development<br />

resources than traditional approaches.<br />

The platform has grown to more than<br />

750 customers across 25 industries,<br />

universities, and developers.<br />

<strong>Platform</strong>s are nonlinear, they’re<br />

networked, and the highest value lies<br />

outside the firm, said Busch. “We have<br />

to train people on platform ecosystems.<br />

We all have to relearn business models<br />

and revamp our culture.”<br />

“This is how an inverted company<br />

operates, and we have to learn that<br />

lesson. It’s not in the current DNA of<br />

our managers. If we really want to<br />

The industrial<br />

Internet of Things<br />

will unleash the<br />

next era of growth<br />

and innovation<br />

by combining the<br />

physical and the<br />

digital worlds.<br />

for the disruptive changes of Industry<br />

4.0,” he said. “Not only will hardware and<br />

Railigent, Siemens’ open platform<br />

B2B ecosystem for rail applications,<br />

platform that can build applications up<br />

to 10 times faster with 70 percent fewer<br />

play in the platform game, we have to<br />

understand the mechanisms behind it.”<br />

Dr. Roland Busch<br />

Siemens AG

5 / Developing Markets<br />

As general partner at Andreessen<br />

now provides access to street<br />

event platforms, including Run the<br />

The super-app<br />

Horowitz, Connie Chan studies<br />

developing markets to identify<br />

vendors, food delivery, and news<br />

companies—all from one screen.<br />

World, a venture that Andreessen<br />

Horowitz has a stake in.<br />

economy<br />

Super apps—or apps that combine several mobile<br />

platform investment opportunities.<br />

The venture capitalist predicts that<br />

mobile ‘super apps’ will find their<br />

way to Western markets within<br />

the next five years—and perhaps<br />

become as ubiquitous as in China.<br />

Chan maintains that the rise of<br />

single sign-on, frictionless apps<br />

is inevitable. The goal for<br />

businesses is to use low-margin—<br />

but high frequency or long-term<br />

user experiences—as a way to<br />

“Run the World will bring likeminded<br />

people together online,”<br />

said Chan. “Participants can learn<br />

from experts and connect in a way<br />

that feels natural, safe, and fun,<br />

while maintaining professional<br />

experiences—will soon be the new norm.<br />

Connie Chan<br />

General Partner, Andreessen Horowitz<br />

“China is not only a mobile-first<br />

society, but really a ‘mobile-only’<br />

society,” said Chan. “Apps are<br />

accepted more easily there.” She<br />

expects these apps to spread<br />

widely, especially as mobile-only<br />

users become the norm.<br />

generate leads for new, highmargin<br />

user engagement.<br />

The mobile and online payment<br />

platform Alipay offers services that<br />

may appear unconnected, such<br />

as fund transfer and third-party<br />

services. Yet the app allows users<br />

and personal connections.”<br />

She noted that online<br />

conferences are indispensable<br />

and that it’s critical to emulate<br />

side conversations and build<br />

relationships for those with<br />

common interests.<br />

Connie Chan doesn’t anticipate that<br />

privacy concerns will restrict growth.<br />

Chan noted that the rise of super<br />

apps like WeChat, which combine<br />

several mobile services for a more<br />

streamlined user experience, will<br />

burgeon globally. WeChat started as<br />

a consumer messaging app that<br />

to seamlessly access municipal<br />

services, pay utilities, buy movie<br />

tickets, or book a hotel room. As<br />

a payment platform, it can scan<br />

a barcode instead of requiring<br />

separate order and pay functions.<br />

Chan is also bullish on new<br />

All of these technologies depend<br />

on robust data banks to boost their<br />

impact and to help personalize<br />

user experiences, but Chan doesn’t<br />

anticipate that privacy concerns will<br />

restrict growth. She predicts users<br />

in the U.S. will adopt the apps as<br />

opportunities for online social and<br />

long as they offer significant user<br />

value and convenience.

6 / Healthcare<br />

Telemedicine takes<br />

a giant leap ahead<br />

The COVID-19 pandemic is forcing the healthcare<br />

industry to embrace virtual care.<br />

John Halamka, M.D.<br />

President, Mayo Clinic <strong>Platform</strong><br />

New professional roles may be needed to help patients navigate online technologies.<br />

Healthcare is a prime example of a traditional<br />

that nearly 40 years of halting efforts in<br />

same outcomes at lower costs and with<br />

sector experiencing major platform strides<br />

telemedicine were condensed into 12 weeks.<br />

greater ease of use for patients.”<br />

during the COVID-19 pandemic.<br />

“Once doctors could no longer have on-<br />

Patients who experience barriers to<br />

Most notably, virtual care and in-home patient<br />

monitoring have soared in popularity due to<br />

social distancing measures.<br />

The pandemic has also prompted longstanding<br />

medical regulatory constraints to<br />

loosen, insurance reimbursement formulas<br />

to change, and stubborn restrictions to be<br />

lifted around the country. Developments<br />

like these were not expected to be widely<br />

available for at least another decade<br />

premise visits, everything was possible,” he<br />

said. “From asynchronous consultations,<br />

to acute home care using sensors and AI,<br />

the Mayo Clinic can monitor COPD, kidney<br />

function, and heart failure in homes, as well<br />

as offer nursing and wound care.”<br />

This platform of virtual care is the new<br />

normal as federal agencies and policymakers<br />

have had no other choice than to accept<br />

the changes.<br />

technology, or those who are not tech-savvy<br />

may experience obstacles with virtual care.<br />

Halamka suggests a new occupation—the<br />

equivalent of what he calls a “care traffic<br />

controller”—to help patients navigate the new<br />

healthcare options. These professionals could<br />

help with tasks such as computer access and<br />

monitoring at home or suggest public kiosk<br />

locations where telemedicine is available.<br />

New healthcare models will require new<br />

We experienced nearly<br />

40 years of halting<br />

efforts in telemedicine<br />

condensed into 12 weeks.<br />

John Halamka<br />

Mayo Clinic <strong>Platform</strong><br />

The Mayo Clinic, a 150-year-old national<br />

Consumers will opt for convenience over<br />

human roles and adjustments, and Halamka<br />

nonprofit medical center, is part of the<br />

privacy and high-touch because the gains<br />

admits that there will be stumbling blocks and<br />

telehealth surge. John Halamka, M.D.,<br />

from telemedicine far outweigh any losses<br />

failures along the way. But the long-awaited<br />

president of the Mayo Clinic <strong>Platform</strong>, said<br />

in personal contact. “You will usually get the<br />

transition will be worth it.

7 / Open Ecosystems<br />

Ping An’s evolution<br />

from finance to platforms<br />

Insurance group expands into B2C and B2B<br />

markets—both online and offline.<br />

Jessica Tan<br />

Group Co-CEO, Ping An Group<br />

In some cases, platform leaders entered<br />

“Think of Ping An as a hub and spoke type of<br />

The challenge of being<br />

their market indirectly. Jessica Tan, co-CEO,<br />

model consisting of 10 technology companies<br />

in so many markets lies in<br />

chief operations officer, and chief information<br />

in various markets,” Tan said. In each market,<br />

the complexity, scale, and<br />

officer of the Ping An Insurance Group of<br />

the company has its own B2C flagship, which<br />

diversity of Ping An’s users.<br />

China, explained how her company leveraged<br />

includes Good Doctor and Autohome, the<br />

“Our users come to us for<br />

its financial services expertise to build out<br />

larger ecosystems.<br />

Many Americans might be familiar with<br />

the Chinese platforms, Alibaba and Tencent,<br />

which began as internet providers that grew<br />

their ecosystems around consumers.<br />

By contrast, Ping An was a financial services<br />

firm that used its finance and technology<br />

expertise to foster open ecosystems.<br />

The company serves approximately 564<br />

million users in China across five verticals—<br />

financial services, healthcare, cars, housing,<br />

largest health and car portals in China. “More<br />

importantly, we have a B2B franchise,” she<br />

added. “We believe online and the offline<br />

have to merge.”<br />

Outside of its Good Doctor portal, Ping An<br />

partners with Smart Healthcare to serve 170,000<br />

hospitals and medical institutions and more than<br />

300,000 offline doctors. The bulk of the economy<br />

in all these sectors is still in the offline system.<br />

Even though China is one of the most developed<br />

countries in internet finance, online business<br />

constitutes only between 10 to 15 percent of<br />

healthcare or to buy cars—in fact,<br />

76 percent of the cars sold in China go through<br />

Ping An,” Tan explained. “But we also think of<br />

ourselves as a huge department store where<br />

users come to shop for many services, all from<br />

one app. Users also come to us for wealth<br />

management, loans, and education.”<br />

Personalization will be critical moving forward<br />

for Ping An and other businesses. With data<br />

analytics, the company is able to customize and<br />

improve the user experience. For example, the<br />

analytics of Autohome can determine when an<br />

insurance policy is set to expire, and allow the<br />

Even though China is one<br />

of the most developed<br />

countries in internet<br />

finance, online business<br />

constitutes only between 10<br />

to 15 percent of the entire<br />

financial services market.<br />

and smart cities.<br />

the entire financial services market.<br />

user to renew with a discount in the app.

8 / Experience <strong>Platform</strong>s<br />

<strong>Platform</strong>s are spreading into<br />

Pine spoke with three leaders<br />

When the lockdowns began,<br />

new markets —matching meeting<br />

about how their strategies<br />

Side Door shifted to online<br />

Despite the pandemic,<br />

places with business people, music<br />

events with audiences, and brands<br />

and models have pivoted since<br />

the pandemic.<br />

streaming concerts—and<br />

completed nearly 200 shows from<br />

with marketing opportunities—all<br />

March to September. Simpson is<br />

the show must go on<br />

Streaming concerts, online engagement, and virtual coworking<br />

are here to stay.<br />

Joseph Pine<br />

Co-Founder, Strategic Horizons LLP<br />

while offering users personalized<br />

experiences.<br />

“Consumers, and increasingly,<br />

business people, want experiences<br />

and events that engage each<br />

person in a personal way,” said<br />

Joe Pine, a consultant and author<br />

of The Experience Economy.<br />

Experience platforms can<br />

harness network effects with<br />

the recognition that experiences<br />

serve as the critical link between a<br />

company and its customers in an<br />

increasingly distractable and timestarved<br />

world.<br />

Commodities and goods have<br />

always been sold on platforms,<br />

noted Pine, and service platforms<br />

and experience platforms<br />

followed suit.<br />

First Tube Media<br />

Andrew Beranbom is founder and<br />

CEO of First Tube Media,<br />

a platform that offers brands<br />

a combination of management<br />

services and hosting technology.<br />

He designed a proven model<br />

to use live media for business<br />

results, but now everything<br />

has moved online and new<br />

models were needed quickly.<br />

“Streaming is a new frontier for<br />

branded marketing,” Beranbom<br />

said. “The emphasis is on<br />

experiences that will draw<br />

attention for our brands in an<br />

authentic, scalable way.”<br />

also exploring ways to create<br />

value with online experiences,<br />

such as artist interviews or<br />

building online communities<br />

using recommendation engines<br />

and personalization.<br />

Seats2meet.com<br />

Ronald van den Hoff is co-founder<br />

of Seats2meet.com, an online<br />

platform that matches free agent<br />

workers with work spaces.<br />

Even before the pandemic,<br />

van den Hoff had migrated<br />

his business from an online<br />

reservation system to a fullservice<br />

platform that uses AI<br />

But the COVID-19 pandemic has<br />

to allow users to chat, search<br />

prompted several companies to<br />

for jobs, and share ideas. “We<br />

think differently about how they<br />

realized we could use the data<br />

do business.<br />

and expertise of co-workers to<br />

Take Airbnb, which began as a<br />

service platform that allows users<br />

to rent a couch or spare room<br />

and evolved into a trusted source<br />

of hospitality and meaningful<br />

experiences. Social distancing<br />

mandates around the world forced<br />

the company to pivot to online<br />

experiences—to truly become an<br />

experience platform.<br />

Side Door<br />

Laura Simpson co-founded the<br />

platform Side Door, a virtual<br />

marketplace that offers booking<br />

for performance venues, ticketing,<br />

and finding live audiences.<br />

“We collaborate, vet vendors,<br />

and pull together the people<br />

necessary to make a great online<br />

show,” said Simpson.<br />

enhance the experience of guests<br />

coming to the meeting rooms,”<br />

he said.<br />

What are van den Hoff’s<br />

plans post-pandemic? He<br />

predicts that virtual meeting<br />

spaces will be available even<br />

as physical locations reopen,<br />

creating a hybrid business with<br />

physical and virtual components.

9 / Fireside Chat<br />

Tales from a platform<br />

pioneer<br />

Co-founder and former CEO of Intuit, Scott Cook, shares<br />

his wisdom on taking risks and building platforms.<br />

Scott Cook is no stranger to the turbulence<br />

of platform markets.<br />

As founder and former CEO of Intuit, Cook<br />

was an early advocate and innovator in<br />

platform models. Founded in 1983, the<br />

$7 billion corporation has nearly 10,000<br />

employees and is the maker of popular<br />

financial software, including Mint,<br />

Quicken, TurboTax, and QuickBooks.<br />

Despite Intuit’s success, Cook noted that<br />

the early years were often bumpy—and<br />

he shared advice for companies entering<br />

the market today.<br />

One of the struggles many successful<br />

platforms face is objections. Cook said<br />

that corporations have the equivalent of<br />

Scott Cook<br />

Founder and Chairman of the Executive Committee, Intuit<br />

“The core part of the business says not to<br />

do that silly new thing,” he said. “It’s little, it<br />

won’t work. Instead, give the resources to us<br />

in the core business. Therefore, leaders have<br />

to ring-fence, and either hide or rigorously<br />

defend new things to keep the natural<br />

corporate antibodies from consuming it.”<br />

The gift—or perhaps the madness—of great<br />

entrepreneurs, he added, is the ability to take<br />

what seems like a fool’s mission, transform it<br />

into a fully developed vision, and stay with it.<br />

“For example, we were originally told that<br />

our concept of Quicken was a crazy idea—<br />

that it had been done before and that our<br />

product was inferior because we had very<br />

few features.”<br />

we experienced huge opposition within our<br />

company,” said Cook. “Our payroll group<br />

didn’t want to open QuickBooks to<br />

competitors and we finally had to declare<br />

that we wanted customers to have a<br />

choice—ours or competitors.”<br />

When two Intuit engineers created a<br />

marketplace for tax advice that anyone<br />

could contribute to, tax experts bristled.<br />

“‘Only a tax expert or certified professional<br />

can answer those questions,’ they said.<br />

‘Wrong answers will ruin our reputation, our<br />

brand, and consumer trust in our business.’ ”<br />

The division GM and Cook defended the<br />

right of the team to run the test. “I was pretty<br />

convinced it would fail, but I wanted us to<br />

learn. Then, it actually worked. Customers<br />

started answering about 50 percent of<br />

the questions and we had our own people<br />

a Wikipedia effect.” With that success, the<br />

concept expanded into the rest of TurboTax.<br />

Persistence and perseverance are needed,<br />

said Cook. In the area of small business<br />

lending there were many false starts and<br />

setbacks. “Our lending system now is purely<br />

digital. For example, it takes a business<br />

applying for a PPP loan about six to eight<br />

minutes to apply. Fully 83 percent of the<br />

applications are approved in 10 minutes,<br />

and then we fund it that night.”<br />

Cooks said that without a champion or<br />

a protector, the corporate system will<br />

grind down and eliminate your ability to<br />

do something bold such as becoming a<br />

platform company.<br />

His advice: “Surround yourself with people<br />

who have vision and stick-to-itiveness,<br />

people who have the ability to see a vision<br />

The gift—or<br />

perhaps the<br />

madness—<br />

of great<br />

entrepreneurs<br />

is the ability<br />

to take what<br />

seems like a<br />

fool’s mission,<br />

transform it<br />

into a fully<br />

developed<br />

vision, and<br />

stay with it.<br />

antibodies that show up when they try<br />

to do something radically different.<br />

“Also, QuickBooks is a tremendous product<br />

and we wanted to turn it into a platform, but<br />

answering the other half. If an answer wasn’t<br />

right, it got corrected by other users—kind of<br />

that’s different than what the corporation<br />

has traditionally seen.”<br />

Scott Cook<br />

Co-founder, Intuit

10 / Action items<br />

Action items<br />

Key takeaways and trends to watch from the<br />

<strong>2020</strong> <strong>MIT</strong> IDE <strong>Platform</strong> Strategy Summit.<br />

Five requirements<br />

for platform success<br />

1<br />

Be<br />

2<br />

Take<br />

3<br />

Get<br />

4<br />

5<br />

Consider<br />

willing to test and fail.<br />

B2B partnerships<br />

seriously.<br />

corporate buy-in and<br />

protections from senior<br />

management; get<br />

champions, or go it alone.<br />

Hire and train<br />

entrepreneurial staff to<br />

carry out the vision.<br />

a federated or<br />

collaborative platform to<br />

build out ecosystems.<br />

Use network effects and<br />

partners to create value<br />

for other partners.<br />

Three key trends<br />

Super apps and<br />

experience platforms<br />

are on the rise<br />

Industrial firms are<br />

adapting business<br />

models to become<br />

orchestrators of<br />

platform ecosystems<br />

Policy issues regarding<br />

data and information<br />

ownership will intensify<br />

as platforms become<br />

engines of value creation<br />

Thank you<br />

We are indebted to the <strong>MIT</strong> IDE and to our<br />

generous sponsors, individuals, corporations,<br />

and foundations that support us. Working<br />

together, we are ensuring that everyone reaps<br />

the benefits of the digital economy.<br />

IDE <strong>2020</strong> Supporters<br />

Accenture — Founding Member<br />

Deutsche Bank — Founding Member<br />

BASF<br />

Dell/EMC<br />

Innovation Resource Center for Human Resources<br />

Merck<br />

Schneider Electric<br />

WeChat<br />

BenefitFocus<br />

Deloitte Digital<br />

ISN<br />

Microsoft<br />

Swift Institute<br />

The Boston Globe<br />

Grant Thornton<br />

KPMG<br />

NRI<br />

Capgemini<br />

ING<br />

MassMutual<br />

SAS<br />

3M<br />

IBM Watson<br />

TDF Ventures<br />

Foundations<br />

Ewing Marion Kauffman Foundation<br />

Ford Foundation<br />

Google.org<br />

Joyce Foundation<br />

JP Morgan Chase Foundation<br />

Nasdaq Educational Foundation<br />

Ralph C. Wilson Jr. Foundation<br />

Rockefeller Foundation<br />

Russell Sage Foundation<br />

TDF Foundation<br />

The Center for Global Enterprise<br />

Individual Donors<br />

Wesley Chan<br />

Aaron Cowen<br />

Steven Denning<br />

Joe Eastin<br />

Michael Even<br />

Brad Feld and Amy Batchelor<br />

Ellen and Bruce Herzfelder<br />

Eric and Wendy Schmidt<br />

Gustavo Marini<br />

Tom Pappas<br />

Gustavo Pierini<br />

Jeff Wilke<br />

and other individuals who prefer to remain<br />

anonymous<br />

Be part of the conversation<br />

Learn about upcoming events at ide.mit.edu.<br />

<strong>MIT</strong> Sloan School of Management<br />

245 First Street, Floor 15, Cambridge, MA 02142-1347<br />

Content Paula Klein

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!