Platform Economics Quiz

The value of a broadcast network increases proportionally to the number of nodes (n), meaning, the more users, the greater the value.

The value of a network without clustering (sub-networks) grows exponentially at the rate of n2, emphasizing the rapid increase in benefits with more users.

The value of networks with clusters (sub-networks) increases exponentially at the rate of 2n, highlighting the extraordinary growth potential with interconnected groups.

The concept that network value surpasses network costs over time with increasing user adoption, emphasizing the need for patience in building a network.

The idea that a critical mass of users is required for a network to gain value and become successful, highlighting the importance of early adoption and network growth.

The process of attracting new customers to your business.

When existing customers choose your product or service over competitors.

The ability to control and manage the customer experience and data. This typically involves having your own platform or ecosystem.

An online environment where users can interact with each other, businesses, and content. Examples include social media platforms, app stores, and e-commerce sites.

The process of using technology to improve customer service and satisfaction throughout the entire customer lifecycle.

Companies invest in services like reviews or content to draw customers to their main product or service. This helps build trust and eventually drives more profitable sales.

The ability to gather, analyze and use customer data to improve business decisions and create better customer experiences.

A strategy where a company provides multiple products and services that work together seamlessly within their own ecosystem, making it difficult for customers to switch to competitors.

The combination of Social, Mobile, Analytics, and Cloud technologies. This shift has transformed companies from using IT at the product level to using it at a broader 'system of systems' level, impacting competition at a new level.

The interconnected network of physical devices, vehicles, buildings, and other objects embedded with sensors, software, and network connectivity. This enables data exchange and automation across various domains.

A company that uses its platform to connect and facilitate interactions between users and businesses, creating a network effect. Platforms typically offer various products and services within their ecosystem, making it difficult for customers to switch to competitors.

Leveraging external resources like data, technology, and expertise from partners, competitors, and even customers to develop innovative products and services. This approach focuses on collaboration and openness.

Open source software is free to use, modify, and distribute by anyone. It's often developed by a community of volunteers and companies, making it a collaborative and innovative force.

Open innovation encourages participation from a wider range of individuals and organizations, leveraging their expertise and insights to drive innovation.

Open innovation encourages collaboration between competitors with overlapping goals, even with common competitors. It fosters a win-win scenario for everyone involved.

Open innovation is transforming industries like Silicon Valley, much like Detroit was once the center of the automobile industry.

The Digital Firm course covers a wide range of topics including the role of IT in strategy, competitive advantage, AI's impact on work, and the definition of IT success.

When adding more users to one side of a platform also positively impacts the other side. For example, adding more sellers to an e-commerce platform attracts more buyers and vice versa.

When adding more users to one side of a platform negatively impacts the other side. For example, adding more sellers to a platform can lead to more competition, potentially decreasing the value for buyers.

The impact of adding more users on the same side of the platform. For example, adding more buyers to an e-commerce platform can increase the value for other buyers.

Organizations or individuals that use a platform's technology to build their own products or services. They often create value for the platform and its users.

The point at which the adoption of a digital good moves from a slow, gradual growth to a rapid, explosive increase, fueled by the network effect and critical mass.

The group of early adopters who embrace new technologies eagerly, often sacrificing convenience or cost for the latest advancements. They are tech enthusiasts and tend to be more comfortable with trial and error.

Individuals who approach new technologies with caution and skepticism. They prefer waiting for proven solutions and reliable, stable products before embracing the latest innovation.

The principle that the value of a product or service increases significantly as more people use it. As more users join, the network becomes more valuable to each participant, creating a positive feedback loop.

A vital strategy for achieving widespread adoption of a new technology. This involves attracting a sufficient number of users to create a self-sustaining network, encouraging further growth through word-of-mouth and social influence.

A marketing strategy aimed at capturing a large segment of the potential market by offering attractive pricing or incentives, often at the expense of initial profitability. It's a tactic to gain wide adoption quickly.

A focused approach to introducing a new technology to a small, specific group of users first, often in a controlled environment. This strategy allows for gradual refinement and testing before wider release, minimizing risks.

The process of establishing a stable, interconnected base of customers who regularly use and rely on a product or service. A large user base creates a strong network, making it more attractive for new users to join.