OIM 210 1nd Edition Lecture 6 Outline of Last Lecture 1. Tophat Tournament Outline of Current Lecture - Platform Leadershipo Outside ReadingCurrent Lecture- A product is a platform if:o It is functionally interdependent with most of the other parts of a technological systemo When end-user demand is for the overall system- Why Build a Platformo Value. Much higher value that typically comes from outside of the company. Brings more value to users by creating room for configuration, expansion (product fit, value)o Lock-in. There are huge switch over costs associated with platforms. Platform users who make costly investments to use them. - Mutually incompatible and Coexistence are two different types of platforms- Platform leaders are firms that lead and drive innovation in their industry, by stimulating complementary innovations performed by other firms- Why do platform win?o Strong network effecto Little differentiationo High cost of multihoming- Four levers of platform leadership:o Scope of activities: in-house vs. ecosystem activities. For example, apple allows its competitors to create apps for its products and this has worked very well for them in helping their producto Technology design and IP: features/functions in platformo External Relationships: Collaborative vs. competitive. o Internal Organization. Coping with internal and external conflictsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- How to Dethrone Platformso Find a distinctive and underserved segment of userso Leverage your existing platformo Differentiate based on emerging needso Simplify the business model of