Short answer
When launching a new digital platform, focus first on building essential partnerships, then on attracting one key user group (e.g., service providers), and finally on attracting the other user group (e.g., consumers).
- Field
- Innovation & Markets
- Source
- The Sydney eScholarship Repository (The University of Sydney) (2020)
- Method
- Case study analysis of an online peer-to-peer lending platform.
- Evidence
- Moderate effect
Digital platforms can be strategically developed through a three-stage process, prioritizing specific user groups at each phase to ensure successful growth. This innovation & markets research insight is drawn from a 2020 study published in The Sydney eScholarship Repository (The University of Sydney). Using Case study analysis of an online peer-to-peer lending platform., researchers explored how this design variable affects real-world outcomes. The key design takeaway: When launching a new digital platform, focus first on building essential partnerships, then on attracting one key user group (e.g., service providers), and finally on attracting the other user group (e.g., consumers).
Phased Platform Development: A Strategic Approach for Digital Start-ups
Digital platforms can be strategically developed through a three-stage process, prioritizing specific user groups at each phase to ensure successful growth.
The Sydney eScholarship Repository (The University of Sydney) · 2020
Key Findings
- 01Digital platform development can be segmented into three distinct stages.
- 02Each stage requires a specific focus on developing particular sides of the platform (partners, then lenders, then borrowers).
- 03Distinct strategies and platform configurations are associated with each development stage.
Application
Design takeaway
When launching a new digital platform, focus first on building essential partnerships, then on attracting one key user group (e.g., service providers), and finally on attracting the other user group (e.g., consumers).
How to apply
When designing a new marketplace app, prioritize onboarding businesses first, then focus on attracting customers to create initial value.
Project actions
- 01Consider the sequence of user onboarding for your design project.
- 02Map out the different stages of development and the target users for each stage.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a structured model for platform development.
- +Highlights the importance of strategic sequencing in user acquisition.
Limitations
The specific stages and user groups may vary depending on the type of digital platform.
Reliability & validity
The study's validity relies on the accurate interpretation of the case study data. Reliability would be enhanced by replicating the analysis across multiple similar platforms.
Think critically
To what extent does the 'partner-lender-borrower' sequence apply to platforms with different types of user interactions, such as social media or e-commerce?
Design Principles
"Phased user acquisition is critical for the successful launch and growth of networked digital platforms."
Understanding the sequential nature of platform development allows new ventures to allocate resources effectively and build a robust user base. This phased approach is crucial for managing the complex interdependencies inherent in networked economies.
What This Means for Your Design
When creating a new online service that connects different groups of people (like a platform), it's best to build it in stages. First, get the people who will help run it on board, then get one group of users, and finally get the other group of users.
How to use in your project
- 1.Reference this research when discussing the strategic development and launch plan for a digital product or service.
- 2.Use the phased approach as a justification for prioritizing certain features or user groups in your design process.
Add to My Project
Quick Cite
Paragraph starter
The development of digital platforms often benefits from a phased approach, as evidenced by studies on peer-to-peer lending platforms. This research suggests a three-stage model where initial focus is placed on securing partners, followed by attracting lenders, and then borrowers. This sequential strategy allows for the gradual establishment of network effects and mutual dependencies, crucial for platform sustenance.
Source
The Sydney eScholarship Repository (The University of Sydney)
Competing in the Networked Economy: The Development, Sustenance and Strategic Implications of Digital Platforms
journal · 2020
View sourceQuestions About This Research
- What does the research say about phased platform development: a strategic approach for digital start-ups?
- When launching a new digital platform, focus first on building essential partnerships, then on attracting one key user group (e.g., service providers), and finally on attracting the other user group (e.g., consumers). Evidence: The Sydney eScholarship Repository (The University of Sydney) (2020).
- Why does "Phased Platform Development: A Strategic Approach for Digital Start-ups" matter for design?
- Understanding the sequential nature of platform development allows new ventures to allocate resources effectively and build a robust user base. This phased approach is crucial for managing the complex interdependencies inherent in networked economies.
- How can designers apply this research?
- When launching a new digital platform, focus first on building essential partnerships, then on attracting one key user group (e.g., service providers), and finally on attracting the other user group (e.g., consumers).
- What were the main findings?
- Digital platform development can be segmented into three distinct stages.. Each stage requires a specific focus on developing particular sides of the platform (partners, then lenders, then borrowers).. Distinct strategies and platform configurations are associated with each development stage.
- What research method was used?
- Case study analysis of an online peer-to-peer lending platform..
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2020 journal from The Sydney eScholarship Repository (The University of Sydney).
- What should I do differently in my next project?
- When designing a new marketplace app, prioritize onboarding businesses first, then focus on attracting customers to create initial value.
- What are the limitations?
- The findings are based on a single case study of a P2P lending platform, which may not be generalizable to all digital platforms.