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Catalyst Code: How to Ignite a platform business and rule a platform-centric ecosystem. David S. Evans Founder | Market Platform Dynamics Visiting Professor | University College London Lecturer | University of Chicago. Catalyst Course 2012. 20 April 2012. Catalyst Panorama.
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Catalyst Code:How to Ignite a platform business and rule a platform-centric ecosystem David S. Evans Founder | Market Platform Dynamics Visiting Professor | University College London Lecturer | University of Chicago Catalyst Course 2012 20 April 2012
Catalyst Panorama Platform Businesses Dominate the Economic Landscape
OpenTable: Intermediary between Two Different Kinds of Customers
The OpenTable Business Model Restaurants Pay and Consumers Use it for Free $100 million revenue in 2010 | $1.35 billion markets cap
The Result:Positive Feedback Effects Fuel Open Table Growth • 27 million reservations in 2011Q4 a month up from 19 million in 2010Q4 • 25k restaurants in 2011Q4 up from 20k in 2010Q4 • More than 40% yoy growth in revenue
Many “Multi-Sided Platform” Businesses Operate Like This Positive Feedback Effects Fuel Business Growth
These Multi-Sided Platforms Include Many Massive Global Businesses
Catalysts Create Real ValueProviding a Platform Where Customers Can Meet and Transact Sustaining those profits requires treacherous navigation in an n-dimensional universe of colliding platforms like Google Search (3-sided), Facebook’s Social Network (4-sided) and Microsoft Windows (3-sided)