Internet businesses are fundamentally different from offline businesses, and have led to the creation of entirely new business models that never existed in the past. What makes internet businesses so different and how can one leverage this while building an internet business? Building an internet business is not just about building technology; it’s about building technology that enables users to interact and create value for each other. How do you build technology that powers your business model? How do you create incentives for users to participate? How do you leverage data to solve users’ pain points? This talk explores the design of internet business models. It boils them down to four fundamental questions that every internet business needs to ask itself. It also presents a methodical framework to move from an idea to a business, while focusing on what’s most important for your startup. Sangeet Paul Choudary – Founder, Platform Thinking

1. PLATFORM
THINKING
Business Model Design
http://platformed.info
@sanguit

2. He handles
Product
He handles
Business Model
X @sanguithttp://platformed.info

3. Create value
Convert some of it to
$$$
&
@sanguithttp://platformed.info

4. 2types of business models
@sanguithttp://platformed.info

5. PIPES
Image: Creative Commons/Flickr

6. PRODUCER CONSUMER
Value created upstream,
delivered downstream
SOURCE
STUFF
CREATE
STUFF
SHIP
STUFF
SELL
STUFF

7. PLATFORMS

8. DEVELOPERS USERS
Apps

9. HOSTS TRAVELERS
Listings

10. VIDEO
CREATORS
VIDEO
VIEWERS
Videos

11. PROJECT
CREATORS
PROJECT
FUNDERS
Projects

12. TWEET
CREATORS
TWEET
READERS
Tweets

13. PLATFORM
PRODUCERS CONSUMERS
VALUE
@sanguithttp://platformed.info

14. Social Networks
User Generated Content
CrowdSourcing
Marketplaces
AppDevPlatforms
AdNetworks
The Sharing Economy
Collaborative Platforms
THE USUAL
SUSPECTS

15. SHIFT HAPPENS!
@sanguithttp://platformed.info

16. TV Channels
YouTube
VIDEO
CREATORS
VIDEO
VIEWERS
CONTENT
CREATORS
TV
CHANNELS
VIEWERS

17. Encyclopedia
Britannica
Wikipedia
WRITERS READERS
EXPERT
WRITERS
ENCYCLOPEDIA
CREATOR
ENCYCLOPEDIA
READERS

18. Nokia,
BlackBerry, Telcos
iPhone, Android
DEVELOPERS USERS
TELCOS/
HANDSET MFRS
DEVELOPERS CONSUMERS

19. Hotels
AirBnB
HOSTS TRAVELERS
TRAVEL
AGENTS
TRAVELERSHOTELS

20. So how do we design a
platform business?
@sanguithttp://platformed.info

21. PLATFORM
PRODUCERS CONSUMERS
VALUE
@sanguithttp://platformed.info

22. PRODUCERS CONSUMERS
VALUE
What is the unit of value
for your business?
@sanguithttp://platformed.info

24. PRODUCER
Supply
CONSUMER
Demand
VALUE
UNIT
Unit of Value
The Value Unit
powers the interaction
@sanguithttp://platformed.info

25. PRODUCER
Supply
CONSUMER
Demand
VALUE
UNIT
PLATFORM
Enables Interaction
The Platform enables it!
@sanguithttp://platformed.info

26. How does the platform
enable interactions?
@sanguithttp://platformed.info

27. PRODUCER
Supply
CONSUMER
Demand
Get the two sides on board!1
MAGNET
Get both sides in
VALUE
UNIT

28. Provide them tools to interact2
TOOLBOX
Provide tools to interact
MAGNET
Get both sides in
VALUE
UNIT
PRODUCER
Supply
CONSUMER
Demand

29. 3
MATCHMAKER
Match both sides
Use data to match the two sides
TOOLBOX
Provide tools to interact
MAGNET
Get both sides in
VALUE
UNIT
PRODUCER
Supply
CONSUMER
Demand

30. 3 Use data to match the two sides
Provide them tools to interact2
Get the two sides on board1
@sanguithttp://platformed.info

31. 31
MAGNET

32. Not just about
conversion
funnels
TRAFFIC
USERS

33. PRODUCER CONSUMER
Solving the Chicken and Egg problem
How do we get both sides in?
VALUE
UNIT

35. Identify Key Actions
Create tools to enable these actions
PRODUCER CONSUMER
creates value
consumes value
VALUE
UNIT

37. CORRECT MATCHING

38. Vote, Rate, Report
CURATION

39. TRUST

40. MATCHING
CURATION
TRUST
Three conditions for interactions
PRODUCER CONSUMER
VALUE
UNIT
It’s all about data!

41. MATCHMAKER
Match both sides
TOOLBOX
Provide tools to interact
MAGNET
Get both sides in
VALUE
UNIT
PRODUCER
Supply
CONSUMER
Demand
The canvas so far...
@sanguithttp://platformed.info

42. MONETIZATION
MONETIZATION

43. TRANSACTION CUT
PLATFORM
PRODUCER CONSUMER
%CUT
1

44. PAY FOR ACCESS
Producers pay for access
to consumers
PLATFORM
PRODUCER CONSUMER
2
Promoted Posts
Dating Websites
Lead Generation

45. PAY FOR ATTENTION
PLATFORM
PRODUCER CONSUMER
MONETIZER
3
Ads
Jobs

46. PAY FOR TOOLS
Users pay for access
to better tools
PLATFORM
PRODUCER CONSUMER
4

47. MATCHMAKER
Match both sides
TOOLBOX
Provide tools to interact
MAGNET
Get both sides in
VALUE
UNIT
PRODUCER
Supply
CONSUMER
Demand
Bringing in the Monetizer
MONETIZER
Makes us money

48. MATCHMAKER
Match both sides
TOOLBOX
Provide tools to interact
MAGNET
Get both sides in
VALUE
UNIT
PRODUCER
Supply
CONSUMER
Demand
The Platform Thinking
Canvas
MONETIZER
Makes us money
EXTENDER
API and Data Partners

49. We are in the business of
BUILDING SOFTWARE
THE TECH INDUSTRY FALLACY
@sanguithttp://platformed.info

50. We are in the business of
ENABLING INTERACTIONS
INSTEAD...
@sanguithttp://platformed.info

51. THANK YOU!
http://platformed.info
@sanguit