Connect your resources to unleash network effects.
In this chapter, you’ll see how to network different types of resources—things, people, ideas and connections—to deliver 10x return on investments you’ve already made.
Every organization has different types of resources: things, people, ideas and connections. Let’s see what happens when companies focus on connecting those resources rather than managing them.
Consider the different strategies of Google Maps and Waze. Both are mobile apps designed to help people navigate and avoid traffic. But one does so by networking things and ideas, while the other does it by networking people and connections.
Google Maps uses anonymized data from the GPS of drivers’ mobile devices, relying on APIs and algorithms to generate traffic conditions in real time.
Waze has cultivated a community where people share what they are seeing as they are driving.
Like Google Maps, Waze creates a constantly updating repository of traffic information. But with Waze, people are the nodes that are networked to create the body of knowledge, as they share information about the drives they’re taking in realtime.
Use the exercise from Chapter 4 as a reference. What resources could you connect to unleash network effects?
Things: Equipment, money, products, facilities, real estate
Ideas: Copyright, software, algorithms, brand, content
People: Customers, employees, partners, social network, community
Connections: Data, transactions, behaviors, messages, reputation
Networking different resources leads to different strategies.
“To Build Your Platform, Network Your Capital” by Mark Bonchek
“Strategies for Platform Success” by Mark Bonchek