GenAI Playbook (Step 3c): Get Ready for GenAI-Powered Platforms and Ecosystems. (11 of 12) (Tech Strategy)

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In Part 10, I wrote about some of the soft advantages that GenAI may be able to build. Mostly via bundling and connected services. And that these can create structural advantages.

However, the big question for GenAI is whether it will enable new types of coordination. And new types of coordinating business models. These are the structural advantages we most often talk about. Think about:

  • Platform business models. Marketplaces, payment platforms, etc.
  • Consumption and production ecosystems.

I have summarized how such connected services and platform business models can create structural advantages in SA3 and SA4.

Look at some of the structural advantages platform business models have:

  • Chicken-and-Egg. It’s hard to get marketplaces launched because you need both user groups at the start.
  • Subsidized Users and Services. You can give things away for free (watching videos) because you are charging the other side of the platform (advertisers and merchants).
  • You can connect lots of types of complementary services. Platforms are effectively really big bundles.

And this raises an important question.

Will GenAI enable new types of coordination and connected business models?

GenAI Playbook (Step 3c): Get Ready for GenAI-Powered Platforms and Ecosystems.

That is the main argument of Sanjeet Choudary in his new book Reshuffle.

That GenAI is not just new tools. It is going to enable new types of coordination. And this will create new ecosystem and business models. I wrote about his book here:

We are already seeing the big platforms building GenAI into them.

  • Marketplace platforms are becoming AI-infused. Alibaba is arguably the most aggressive in terms of marketplaces. They have been adding AI tools for both merchants and consumers into Taobao.
  • Cloud services businesses like AWS (innovation platforms) are adding GenAI services.
  • Audience-builder platforms (TikTok) are adding GenAI tools for content creators.

But will we see entirely new types of platforms? Based on new types of coordination that were not previously possible?

I think almost for sure we will.

So I am closely watching for new types of coordination that enable both new business models and new types of structural advantages.

That’s really all there is to Step 3c. Get ready for GenAI-powered ecosystems and platforms.

Ok. That brings me to the final part in this series (Part 12).

Cheers, Jeff

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Related articles:

From the Concept Library, concepts for this article are:

  • GenAI and Agent Strategy
  • GenAI Playbook

From the Company Library, companies for this article are:

  • n/a

Photo by Johann Walter Bantz on Unsplash

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I am a consultant and keynote speaker on how to supercharge digital growth and build digital moats.

I am a partner at TechMoat Consulting, a consulting firm specialized in how to increase growth with improved customer experiences (CX), personalization and other types of customer value. Get in touch here.

I am also author of the Moats and Marathons book series, a framework for building and measuring competitive advantages in digital businesses.

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