Much like paper beats rock, platforms beat applications hands down. Every time. It may be helpful to clarify the difference between the two and then talk about this truism.
According to Geoffrey Moore in “Crossing the Chasm”
Applications are what an end user sees. They can readily gauge the benefits of them .And if the application fixes a broken, mission-critical business process, they can insist on its deployment in spite of an IT department’s reluctance.
Platforms, by contrast, are multi-purpose by definition. They are infrastructure and as such are the domain of the IT community. Charged with maintaining the security, reliability, and performance of the current infrastructure, this group is not quick to adopt distruptive technologies which require widespread reengineering of systems.
Moore says that to accelerate the adoption of platforms companies must clothe platforms in applications clothing. “That is, they must tie them directly to an application in order to gain the end-user sponsorship necessary to secure a beachhead.”
Here’s the issue, however. To become a platform utilized by many in an industry a company usually has a huge barrier of incumbency to cross. This can be the most difficult issue for a company looking to get their platform out as the “norm.” This is why niche platforms are so critical. Not only do they allow for market penetration, but they also allow for chasm crossing in that area. So, the best way to get a platform to the market is develop one for a particular niche, milk the niche, and move on to other niches, until market dominance takes over.
When markets go mass, platforms have the advantage.
This is almost always true. So, when building a platform, do it for a niche that will benefit greatly. Then move forward to market dominance.
Tags: Crossing the Chasm, Geoffrey Moore, Market, Niche market, Positioning, Security, Shaving cream, Vertical market
Leave a Reply