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Report - McKinsey Global Institute
Digital globalization: The new era
of global flows
Book
Machine, Platform, Crowd: Harnessing Our Digital Future,
by Andrew McAfee and Erik Brynjolfsson
Article - McKinsey Quarterly
New evidence for the power of
digital platforms
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Article - McKinsey Quarterly
New evidence for the power of digital platforms
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Rethink and rebuild legacy IT systems and cultural and strategic constraints
Overhaul
Enrich products and services with information, social content, and connectivity
Reshape
demand
Use a wider lens to assess would-be competitors or partners
Reframe
Overinvest in digital technology relative to competition
Digitize
Put revenue streams at risk with
new digital offerings that reshuffle activities and business models
Get
offensive
Overhaul
Reshape
demand
Reframe
Digitize
Get
offensive
As platforms shift the economy from industries to ecosystems, how should incumbent companies make their own platform play?
The play’s the thing
Article - McKinsey Quarterly
New evidence for the power of digital platforms
Dive deeper
Dive deeper
–1.44
4.84
EBIT
–1.92
5.52
Revenue
Change in growth, percentage points
Nonplatform strategy
Platform strategy vs
The payoff:
Despite strong payoffs in revenue and profit growth, less than 2 percent of incumbent companies have adopted
a winning platform strategy—one that puts existing revenues at risk for the sake of future gains.
Sidelined
Book
Machine, Platform, Crowd: Harnessing Our Digital Future,
by Andrew McAfee and Erik Brynjolfsson
Dive deeper
Dive deeper
Foundations for combinatorial innovation
Harnessers of network effects
Reducers of marginal costs to
near zero
Orchestrators of ecosystems extending across sectors without borders
Matchmakers linking people, organizations, and resources
Software-based digital environments with open infrastructures
Definitions vary, but in general platforms are:
What’s a platform?
Report - McKinsey Global Institute
Digital globalization: The new era of global flows
Dive deeper
Dive deeper
0
US
Twitter
Alibaba
Instagram
WeChat
WhatsApp
India
China
YouTube
Facebook
2.5
2.0
1.5
1.0
0.5
Country population
Active online-platform users vs
Billions of people, 2017
Besides huge market caps, Alibaba, Alphabet (Google), Amazon, Apple, Facebook, Microsoft, and Tencent all have another thing in common: heavily populated platform business models.
It’s the platform, duh
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Platforms are the favored operating model for
7 of the world’s 12 largest corporations. So why have so few old-line companies followed suit?
Platform plays
In this edition:
