Extra Credit Learning Assignment

Summary:
The Pipelines, Platforms and the New Rules of Strategy brings the reader’s attention to the top platforms that have dominates the scene for years and how they are reshaping the business ecosystem. For years, there have been five major players in the business landscape that demonstrate cores differences between platform versus the conventional or the traditional pipelines and how game changers like Apple, Alibaba, Airbnb and Google disrupted the scene. According the article, for over a decade, five major mobile companies (Nokia, Samsung, Motorola, Sonny and LG) controlled 90% of the industry global profit. However, in the year 2007, Apple launched the iPhone and gained control of 95% of the industry profits by the year 2015. There are other platforms companies like Uber that focus more on the external and bring consumers and producers together as supposed to internal control like Apple.

The benefit of this is that the strategy creates a network of people and increases value for all consumers. The writers of the articles bring a light on the options businesses must choose when developing platforms. Furthermore, the article shed the light on the different actions required to manage those platforms. The takeaway is that companies that don’t adhere to the new rules may face challenges. It has been shown throughout the article that companies that embrace a pipeline platform win. And such was the case for Apple when the company introduces iPhone in 2007.

Which are the three most CRITICAL ISSUESof THISarticle? Please explain why? and analyze, and discuss in great detail …
One of the issues is for organizations to identify what option or platform best describe their business model. Often time, a bad selection of a platform can ruin or can help expand an organization.

Secondly, to be competitive, organization need to gather, exchange and analyze a huge amount of data. The aim is to increase the platform data. This can represent some advantages for some platforms like Facebook, but not for others. The third issue is the challenge that some companies face due to digital changes as relate to customers relationship

Which are the three most relevant LESSONS LEARNEDof THISarticle? Please explain why? and analyze, and discuss in great detail …
The three most relevant lessons learned from article are around the Platform strategy that ranges from resource control to resource orchestration. In a resource control environment, companies gain advantages by having full control over their valuable assets. In the pipeline environment these assets are not tangible and can range from real estates to intellectual properties.

Secondly, from internal optimization to external relations: Pipeline companies rely on its people and resources to create value. Whereas platforms organizations rely in the dynamics that they create externally with their producers and consumers

Third: From customer value to ecosystem value where pipelines organizations drive success from long term value placed on consumers and products. Whereas in the other hand, organizations focus more on the whole ecosystem by expanding.

Which are the three most important BEST PRACTICESof THISarticle? Please explain why? and analyze, and discuss in great detail …
While there are few recommendations in the article, when building a platform, an organization must create scenarios where one option attract the other. Meaning the more of something can equal to lesser of something else or more. Secondly the organization must continuously learn from user experience and third this learning experience can be generated from the consumers views of products and services.

How can you relate THISarticle with the TOPICS COVEREDin class? Please explain, analyze, and discuss in great detail …
This article relates to the topic covered in class in term of the strategy building capability and effectiveness when done properly.

6. Do you see any alignment of the concepts described in THISarticle with the class concepts reviewed in class? Which are those alignments and misalignments? Why? Please explain, analyze, and discuss in great detail …

The article aligns with concepts in class in many ways. In one hand the article compared different platforms and the benefits thereof. The development of strong strategy leads to a better product positioning and an increase in customer value proposition. The effectiveness of any strategy depends on a company’s vision and mission statement which in part help a company decide what platform to adopt.

Reference:

Pipelines, platforms, and the new rules of strategy. (2016, April 1). Harvard Business Review. https://hbr.org/2016/04/pipelines-platforms-and-the-new-rules-of-strategy