Applico – The Platform Innovation™ Company

How Tech Companies Beat the Competition: Airbnb vs. Hyatt, Uber vs. Taxis, Amazon vs. WalMart

With the rise of mobile and connected technology in the 21st century, a new business model is displacing the old linear one. This new model is the large, horizontally integrated platform business. Rather than delivering products to customers in a linear fashion, a platform business focuses on facilitating interactions between consumers and producers so that they can exchange value.

As the Connected Revolution continues, platform businesses will create more value than linear businesses…

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Network Effects: The 5 C’s to Building a Successful Platform

Building a successful platform business is like tending a greenhouse of rare plants. First, there is a seed of an idea, but without any nurturing, that seed will do nothing but lie dormant. Funding acts like sunlight to provide energy to live another day. Your audience is like water, and user acquisition can be either organic like rain or paid for like irrigation.

Network effects are the soil containing the nutrients that either foster or mitigate viral growth.

There are 5 C’s that…

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Applico CEO Alex Moazed Talks Platforms on Bloomberg Television

Applico CEO Alex Moazed stopped by Bloomberg’s Market Makers yesterday to discuss Samsung’s latest product announcements, but the discussion quickly turned toward platforms. 

Samsung’s recent struggles are a result of not owning the platform, Alex said. Asked about the difference between Apple and Samsung, Alex noted that “Apple is a platform business, while Samsung is a linear business — it’s a component of Google’s ecosystem rather than owning the ecosystem.”

Host Erik…

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HealthKit Will Bring Healthcare into the 21st Century

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With the launch of iOS 8 and Apple’s HealthKit, user-generated health data can be easily shared with other apps.

Because HIPAA does not regulate user-generated data in the same way as data generated by your healthcare provider, Apple is able to turn HealthKit into central repository for your health data in iOS 8. It’s pretty exciting stuff, and it’s primed to change the way we think about healthcare.

What is Apple’s HealthKit? A perfect example of platform…

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How Twitch Can Compete with Broadcast TV

Source: Twitch 2013 Retrospective

Twitch’s acquisition is just the beginning of live streaming as a platform

Amazon made a big splash this week with its $970 million acquisition of Twitch, snatching the live streaming platform from the clutches of would-be acquirer Google.

Twitch, which grew out of the live streaming website Justin.tv, focuses on video games, but its reach goes far beyond the niche audience you would expect.

When Twitch streamed the World Championships of the popular game League of Legends, it…

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Building Products for Platforms: Platform Definition for Exchange-Driven Design

When defining a mobile solution for a traditional one-sided business, it’s typical to only account for one perspective – the end user. Its imperative that you empathize with your end user and identify their wants and needs at each stage of the design process. This multi-stage process is commonplace today when defining a product – its called User-Centered Design.

However, when dealing with platform businesses, we have to think differently about how to approach these issues for a 

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The Zero Marginal Cost Company

One of the most powerful aspects of platform business models is their ability to scale without increasing costs.

Wikipedia is a perfect example. It’s a nonprofit and it’s free to use, but it still serves hundreds of millions of users every month. How did Wikipedia pull this off? By creating a platform business.

A successful platform has close to zero marginal cost, while thanks to network effects, the value it delivers continues to grow as more users join its…

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How to Raise Your Series A: What Investors Look for in an Early-Stage Platform

Want to make it to your Series A?

Version One Ventures is an early-stage fund investing in outstanding consumer internet, SaaS and mobile entrepreneurs. Its portfolio includes successful platform companies like AngelListClarityIndieGoGo, and Figure1, as well as many others. I recently talked with Version One’s Boris Wertz and Angela Kingyens about what they look for when investing in platform businesses. Read below for five key factors for early-stage platforms and what…

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Platform Innovation Weekly Round Up – August 3

Here’s what we’ve been reading this week.

1. The Internet of Things: A Developer’s Mandate goo.gl/oPKtjc

A paper from the App Developers Alliance, coauthored by Applico CTO Matt Powers, on what to expect from the Internet of Things

2. How the world’s biggest brands came to love the sharing economy goo.gl/8TjXaq

Platforms are here to stay, and some of the world’s biggest brands are starting to see the value of working with them.

3. The sharing economy’s long-term strategy…

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