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On Publishing vs Platforms part two

When I linked to the Harvard Business Review article about hybrid Publisher-Platform strategies a few days ago, I didn’t actually say that I find the strategy a little outdated in this day and age. We have established platforms with huge audiences and we have publisher with huge qualitative content capabilities. Yes, everything changes, and yes, once upon a time we said great things about MySpace (arguably a hybrid strategy that failed) as well, but the trend is really towards platforms becoming (stable) utilities and publishers to embrace those now established mediums. Facebook’s and Twitter’s (and Google’s) ‘connect with’ buttons are everywhere, eliminating much of the friction of integrating services with those platforms (I forgot LinkedIN in this, also a big one).

Publishers are rising to the challenge, (hopefully slowly abandoning old media and) embracing publishing where people read stuff: not in glossies or old tree canvasses, but in a feed.

The missing part is targeting. Of the big three, Facebook, Twitter, and LinkedIn, only the last one is pursuing a clear value proposition: for professionals. Facebook asks me to add my CV on a regular basis (not going to happen) and Twitter is a little bit of everything and nothing. So now I have Harvard Business Review in my Facebook and on LinkedIN, one of those two is going to lose. This represents a dual effort that can only come out of a continuing uncertainty of where content will be read (Arguably, tablet and mobile platform-interfaces are adding to this developmental overhead).

The Publisher as a Platform strategy may seem outdated, but it’s clearly a desire to control both content and audience, something that may not be as frictionless using other platforms. It’s public knowledge, for instance, that Apple does not share much user data with app developers (thank you Apple), but I don’t know whether this communication break is common practice with other platforms. I assume that due to the business model (it’s free, but someone is paying for it, usually with our user data), it isn’t.

So why does a publication choose to embrace so many platforms if, for instance, Facebook encompasses a good audience already? It may be for a couple of reasons, some more relevant than others.

  • One would be hedging bets on the future of a platform: history has proven that nothing lasts forever
  • Two may be that the overhead isn’t as large as imagined: at least for the web-based-platforms the programming tools will be similar. Platforms also have an incentive to make building apps easier.
  • Three could be differing audiences: LinkedIN and Facebook clearly aren’t the same, there is some overlap, but there are also people that only use one of the two. Same with Twitter and Facebook.
  • Four could be relevance: There’s a reason why old media is called Old…
  • Five could be learning: about platforms, audiences, differing business models, etc.

The list is probably endless and my bet is that at least half were mentioned in strategic discussions about publishing on platforms.

With all these challenges, however, it makes less and less sense to reinvent the wheel, unless your content or your platform vision is truly unique. Medium was an example mentioned in the article I previously linked to, but even that is risking much by some of the changes it is making, namely opening up the gates to the masses (I assume it did this because the masses were not reading enough). I hate end these thoughts on Publishing vs Platforms with time will tell, but it always does.

The complexity in innovation

As someone with an unbridled curiosity about how (any kind of) organisations innovate, combined with a passion and ongoing interest for all new technological developments on the market, I have had the luck to have some incredibly in-depth and specific conversations with innovators about what they are trying to accomplish.

Every organisation is trying to accomplish something, because every one of them feels the pressure of being left behind. Some governments offer some limited protection in the forms of subsidies, tax-breaks, and protective measures against foreign competition, but every company has to stand on its own two feet by the age of maybe 3-5 years old. When you are alone like this, it matters to both earn a living now and to provide the promise of earning a living in the future. That is where innovation comes in.

We all derive our inspiration from the intelligent developments around us. For many, it’s the market, new technologies being released that make us wonder whether this or that organisation could do the same. For some, it’s also public, but less accessible releases in the forms of scientific breakthroughs that may inspire the expert to build on top of that. For a few, it’s the scientific team in a closed off lab that comes up with an idea that can transform itself into an innovation downstream.

It’s always worthwhile to come back to the essence of what an innovation is supposed to be: an invention that has commercial application. An idea that transforms itself into a product or service that people are willing to pay for. There are very prominent elements within this definition of novelty and applicability, which is a tough balance to manage between getting inspired by existing market innovations and not yet commercial raw scientific ideas.

The truth of the matter is that these are all races of solutions for specific problems. In the end, the problem (market) can only sustain a few of these solutions, which means that speed and completeness of a solution are keys to success. It means that any organisation that seeks to innovate, must do so in the way of a well-oiled machine, while realising that that investment may not pay off now, but will pay off if you see it as a continuous muscle that gets stronger with every problem you are trying to solve.

To make things not at all easier, the rate of innovation is increasing with technological advances. Physical goods are catching up to digital goods, in the sense that anything can now be modelled and prototypes can be produced and tested at a faster speed. This could and will very likely end up in a downward spiral for business returns, because, much like in for instance the software market, the range of utilities makes the market more price-sensitive and less loyal, thus creating less sustainable rewards from single innovations.

The conclusion is therefore two-fold. One, no organisation can afford to not dedicate time and resources to consider their long-term positioning in the market. Two, organisations seeking to be though-leaders in the market, must make the difficult choice of continually innovating with the promise of smaller returns, or of finding alternative models that position them within an innovative ecosystem, without getting sucked down the spiral. A good example of this are the many platforms that continue to arise, though even those risk becoming commodities over time. That … is the complexity in innovation.

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