This week’s podcast is about separating networks (an asset) from platforms (a business model) from network effects (a phenomenon). And the three standard types of network effects.
I put networks into 3 types:
- Physical Networks
- Protocol Networks
- People Networks
I put network effects into 3 types:
- Direct (One-Sided) Network Effects
- Indirect (Two-Sided) Network Effects
- Standardization and Interoperability Network Effects
Questions for network effects:
- Local vs. regional vs. international network effects?
- Fast vs. slow network effects?
- Degree vs. value of connections?
- Minimum viable scale vs. asymptotic scale? What is congestion / saturation / degradation scale?
- Linear vs. exponential growth at different scales?
Here is Ant Financial’s self-description from its IPO filing:
- Ant Financial Is 3 Platform Business Models Combined. (Jeff’s Asia Tech Class – Daily Lesson / Update)
- Ant Financial’s Big Money is in Asset-Light Credit Tech (Jeff’s Asia Tech Class – Daily Lesson / Update)
From the Concept Library, concepts for this article are:
- 3 Networks vs. 5 Platforms vs. 3 Network Effects
- Network Effects: Direct and Indirect
- Network Effects: Standardization and Interoperability
From the Company Library, companies for this article are:
- Ant Financial
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