What do Google, Facebook, Alibaba, Uber, Airbnb have in common apart from the fact that they are some of the most valuable start-ups of the recent years? They are all platforms businesses! The success of these envied companies has made the platform business model the holy grail of business models.
In the early 90s Apple was struggling. They were working on a personal digital assistant (PDA) called Newton of which many design features have been reused in the iPhone 1G almost 15 years later. During Newton’s development Apple decided to outsource the development of Newton’s microprocessor. But they took a very different approach than most companies would have done. And this has lead to some unpredictable successes …
Microsoft, Qualcomm and many other blue chips generate massive revenues by licensing out their IP (such as patents). In other cases they use their IP to achieve vast strategic objectives. Microsoft has used it (in part) to expanding their installed base onto the Android platform – a major strategic achievement. Learn how you can use the licensing business model to get higher returns on your R&D investment and achieve valuable strategic goals.
Pay-per-use was the default revenue model in a few industries. But it is spreading to software industries and durable goods, such as cars. The economic benefits pay-per-use offers to consumers will make it a successful business model in most industries. Innovators who understand how to apply pay-per-use business models to their industry can be ahead of their competition […]