Platform evangelism (also called developer relations , [1] developer and platform evangelism, [2] developer advocacy, [3] or API evangelism [4] ) is the application of technology evangelism to a multi-sided platform. It seeks to accelerate the growth of a platform's commercial ecosystem of complementary goods, created by independent (third-party) developers, as a means to the end of maximizing the platform's market share. This initiative focuses on providing developers the resources to innovate, participate, and provide feedback to grow the platform. [5]
A multi-sided platform creates value by bringing together two or more different groups who can create more value together than apart. [6] Examples include buyers and sellers at an auction; readers and advertisers of a newspaper; and people at an online dating service. The platform vendor can profit by capturing a portion of the money that changes hands. [7] Platform vendors can serve as de facto regulators of their markets. [8]
An example of platform evangelism is the Developer and Platform Evangelism Division at Microsoft, which coordinates the personal computer (PC) and server's programming model. [9] It also provides tools for the Microsoft.NET platform, facilitating synergies between this system's Enterprise Server products and the Windows platform. [9] According to Jim Allchin, the former Platforms Group Vice President, the division also provides support to millions of software developers focused on high-performance and affordable technologies. [10]
Many platforms have only two sides: one of consumers and the other of independent (third-party) developers. Independent developers produce and sell complementary goods, also called "platform applications," directly to the platform's consumers. These applications rely on the platform's services to function. Generally speaking, consumers prefer a platform with more and higher-value applications, while developers prefer a platform with more and higher-paying consumers. [11]
Recent examples of two-sided platforms that successfully attracted both consumers and developers include Apple iPhone, [12] [13] Nintendo Wii, [14] Adobe Flash, [15] and Microsoft Windows. [16]
Other examples include household electricity (for appliances), the farm tractor's three-point hitch (for farming implements), camera lens mounts (for interchangeable lenses), the Picatinny rail (for gun-mounted accessories), and media players such as record players, CD players, and DVD players (for media content).
Platform evangelism establishes and nurtures a platform ecosystem, [17] which requires five simultaneous activities: 1) sales, 2) enablement, 3) feedback, 4) intelligence, and 5) regulation.
Ecosystem sales is the attempt to convince third parties to develop complementary goods for the platform's commercial ecosystem. The characteristics of successful platform evangelists [18] and salespersons [19] are essentially identical, including deep product knowledge, empathy, humor, integrity, communication skills, positive attitude, infectious enthusiasm, a sincere desire to help others, etc. The primary difference is in "hunger for money" among salespersons. [19] This is unlikely to be satisfied by technology evangelism, which is more likely to be a cost center than a profit center, and hence incapable of paying sales-like commissions.
This aspect of platform evangelism can be seen as vendor-sponsored change agency in the diffusion of an innovation (the platform). As such, platform evangelism is responsible for creating the resources that enable developers to progress swiftly through the innovation adoption process ("developer enablement resources").
Each different phase of the platform adoption process requires different developer enablement resources. It is the responsibility of the platform evangelist to ensure that each developer enablement resource comes into existence in a timely manner.
Because developers will often choose an inferior platform if its rate of improvement suggests that it will soon become the superior platform, [20] even the superior platform must improve rapidly. To facilitate this rapid improvement, platform evangelism organizes and champions the feedback of ecosystem developers within the platform vendor.
Ecosystem intelligence gathers information about the activities and intentions of other platform vendors from sources in and around the developer ecosystem.
To avoid the market failure of multi-sided platforms, [21] platform evangelism will often engage in de facto regulation of the commercial ecosystem that surrounds its platform. [8] Such regulation combines legal, technological, informational, and other instruments (along with price setting) to minimize the costs of externalities, complexity, uncertainty, information asymmetry, and coordination problems.
Often, many competing two-sided platforms―each offering roughly the same benefits on the developer side―start diffusing through a market at approximately the same time. [22] Each platform's vendor competes [23] with the other vendors, via platform evangelism, to gain market share among the market's potential developers. [24]
If it is expensive to re-develop an application to target a second (or third) platform, then developers will tend to adopt, first, the platform which they believe has the highest lifetime profit opportunity. This tends to become a self-fulfilling prophecy, in which the platform which is initially perceived to have the highest lifetime profit opportunity tends to accumulate the most applications, which then makes it more attractive to consumers, which makes it more attractive to developers, etc., in a virtuous cycle, until a critical mass (also known as a tipping point) is reached, such that it out-competes the other platforms…and eventually does indeed come to offer the highest lifetime profit potential, as prophesied. This makes it very important for a platform vendor to convince developers from the outset, even before the platform becomes commercially available to consumers, [22] that its platform will have the highest lifetime profit potential. This contributes to the high-tech industry's hype cycle.
If the market has strong network effects, then those platforms which gain the fewest early adopters may cease to exist, making them unavailable to later potential adopters. This is path dependence. [25] If the number of reasonable platform choices in a market falls to 1, then that "only reasonable choice" becomes the market's de facto standard (also known as its Dominant Design) by definition.
If the cost of switching away from a de facto standard to a new alternative exceeds the benefit gained by the earliest market participants who make that switch, then the market will tend to become locked into the de facto standard, with its market share approaching 100%. [25] Markets that are highly interconnected are more resistant to change than less interconnected markets. [26] Lock-in tends to make a de facto standard impervious to incremental competition, such that only a disruptive innovation can displace it. [27] Owning a locked-in de facto standard can be a license to print money for a very long time. [28]
Not all markets become locked into a de facto standard, and indeed, many factors act against such an outcome. [29] However, owning the first platform to establish a critical mass of complementary goods, with high switch-out costs, can create first-mover advantages that can go a long way towards ensuring that one gets a viable share of the mature market. [30]
Therefore, with regard to a two-sided platform's developer side, it is platform evangelism's responsibility to:
In short, it is platform evangelism's responsibility to design, develop, maintain, and extend the size and health of the platform's ecosystem, such that potential developers will choose to participate first, best, or only in that ecosystem.
Ultimately, these are all means to the end of gaining the highest possible share of the developer side of the targeted market. Whether this is, in turn, a means to the end of maximizing share on the market's consumer side, or vice versa, depends on the platform vendor's pricing strategy.
The economics of multi-sided markets have only recently been subject to academic scrutiny, [31] [32] [33] [34] so the theory underpinning platform evangelism's regulatory function is likely to be poorly understood by its practitioners—a situation that has contributed to many disastrous market failures. [21]
More generally, evangelizing the developer side of a multi-sided platform can be seen as using social influence to accelerate the diffusion of an innovation, within a dynamic system, in the presence of network effects, for economic gain (to the platform vendor or to society as a whole). Therefore, a solid understanding of the theory and practice of social influence, diffusion of innovations, system dynamics, innovation dynamics, network effects, innovation economics, and the economics of multi-sided platforms is essential to the design and management of efficient and effective platform evangelism campaigns.
Most of the theory and practice of platform evangelism, as influenced by these theoretical underpinnings, has yet to be comprehensively documented, and is therefore not available to novice evangelists or their managers. Because the development of expertise in any domain takes considerable time and practice, [35] [36] vendors of new platforms cannot reasonably be expected to have in-house expertise in designing and managing effective platform evangelism campaigns.
Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the economy as a whole, which is studied in macroeconomics.
A monopoly is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic competition to produce a particular thing, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices, which is associated with unfair price raises. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry.
In economics, a network effect is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products. Network effects are typically positive feedback systems, resulting in users deriving more and more value from a product as more users join the same network. The adoption of a product by an additional user can be broken into two effects: an increase in the value to all other users and also the enhancement of other non-users' motivation for using the product.
In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's activity. Externalities can be considered as unpriced components that are involved in either consumer or producer market transactions. Air pollution from motor vehicles is one example. The cost of air pollution to society is not paid by either the producers or users of motorized transport to the rest of society. Water pollution from mills and factories is another example. All (water) consumers are made worse off by pollution but are not compensated by the market for this damage. A positive externality is when an individual's consumption in a market increases the well-being of others, but the individual does not charge the third party for the benefit. The third party is essentially getting a free product or service. An example of this might be the apartment above a bakery receiving some free heat in winter. The people who live in the apartment do not compensate the bakery for this benefit.
A business model describes how a business organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The model describes the specific way in which the business conducts itself, spends, and earns money in a way that generates profit. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.
This aims to be a complete article list of economics topics:
In economics, vendor lock-in, also known as proprietary lock-in or customer lock-in, makes a customer dependent on a vendor for products, unable to use another vendor without substantial switching costs.
Information goods are commodities that provide value to consumers as a result of the information it contains and refers to any good or service that can be digitalized. Examples of information goods includes books, journals, computer software, music and videos. Information goods can be copied, shared, resold or rented. Information goods are durable and thus, will not be destroyed through consumption. As information goods have distinct characteristics as they are experience goods, have returns to scale and are non-rivalrous, the laws of supply and demand that depend on the scarcity of products do not frequently apply to information goods. As a result, the buying and selling of information goods differs from ordinary goods. Information goods are goods whose unit production costs are negligible compared to their amortized development costs. Well-informed companies have development costs that increase with product quality, but their unit cost is zero. Once an information commodity has been developed, other units can be produced and distributed at almost zero cost. For example, allow downloads over the Internet. Conversely, for industrial goods, the unit cost of production and distribution usually dominates. Firms with an industrial advantage do not incur any development costs, but unit costs increase as product quality improves.
A technology evangelist is someone who builds a critical mass of support for a specific technology, and then establishes it as a technical standard in a market that is subject to network effects. The word evangelism is borrowed from the context of religious evangelism due to the similarity of sharing information about a particular concept with the intention of having others adopt that concept. This is typically accomplished by showcasing the potential uses and benefits of a technology to help others understand how they can use it for themselves.
Open innovation is a term used to promote an Information Age mindset toward innovation that runs counter to the secrecy and silo mentality of traditional corporate research labs. The benefits and driving forces behind increased openness have been noted and discussed as far back as the 1960s, especially as it pertains to interfirm cooperation in R&D. Use of the term 'open innovation' in reference to the increasing embrace of external cooperation in a complex world has been promoted in particular by Henry Chesbrough, adjunct professor and faculty director of the Center for Open Innovation of the Haas School of Business at the University of California, and Maire Tecnimont Chair of Open Innovation at Luiss.
Aftermarket in economic literature refers to a secondary market for the goods and services that are complementary or related to the primary market goods, also known as original equipment). In many industries, the primary market consists of durable goods, whereas the aftermarket consists of consumable or non-durable products or services.
A two-sided market, also called a two-sided network, is an intermediary economic platform having two distinct user groups that provide each other with network benefits. The organization that creates value primarily by enabling direct interactions between two distinct types of affiliated customers is called a multi-sided platform. This concept of two-sided markets has been mainly theorised by the French economists Jean Tirole and Jean-Charles Rochet and Americans Geoffrey G Parker and Marshall Van Alstyne.
Evangelism marketing is an advanced form of word-of-mouth marketing in which companies develop customers who believe so strongly in a particular product or service that they freely try to convince others to buy and use it. The customers become voluntary advocates, actively spreading the word on behalf of the company.
The digital economy is a portmanteau of digital computing and economy, and is an umbrella term that describes how traditional brick-and-mortar economic activities are being transformed by the Internet and World Wide Web technologies.
In economics, profit is the difference between revenue that an economic entity has received from its outputs and total costs of its inputs, also known as surplus value. It is equal to total revenue minus total cost, including both explicit and implicit costs.
The razor and blades business model is a business model in which one item is sold at a low price in order to increase sales of a complementary good, such as consumable supplies. It is different from loss leader marketing and product sample marketing, which do not depend on complementary products or services. Common examples of the razor and blades model include inkjet printers whose ink cartridges are significantly marked up in price, coffee machines that use single-use coffee pods, electric toothbrushes, and video game consoles which require additional purchases to obtain accessories and software not included in the original package.
Creating shared value (CSV) is a business concept first introduced in a 2006 Harvard Business Review article, Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility. The concept was further expanded in the January 2011 follow-up piece entitled Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society. Written by Michael E. Porter, a leading authority on competitive strategy and head of the Institute for Strategy and Competitiveness at Harvard Business School, and Mark R. Kramer, of the Kennedy School at Harvard University and co-founder of FSG, the article provides insights and relevant examples of companies that have developed deep links between their business strategies and corporate social responsibility (CSR). Porter and Kramer define shared value as "the policies and practices that enhance the competitiveness of a company while simultaneously advancing social and economic conditions in the communities in which it operates", while a review published in 2021 defines the concept as "a strategic process through which corporations can turn social problems into business opportunities".
The sharing economy is a socio-economic system whereby consumers share in the creation, production, distribution, trade and consumption of goods, and services. These systems take a variety of forms, often leveraging information technology and the Internet, particularly digital platforms, to facilitate the distribution, sharing and reuse of excess capacity in goods and services.
The economics of digitization is the field of economics that studies how digitization, digitalisation and digital transformation affects markets and how digital data can be used to study economics. Digitization is the process by which technology lowers the costs of storing, sharing, and analyzing data. This has changed how consumers behave, how industrial activity is organized, and how governments operate. The economics of digitization exists as a distinct field of economics for three reasons: it studies a world that is digital, exponential and combinatorial. First, new economic models are needed because digital goods have very low or even zero marginal costs unlike most traditional goods, thus many traditional assumptions no longer hold in a digitized world. Second, the rate of improvement of computers, networks and other engines of digitization, is exponential, as reflected by Moore's Law. Third, digital goods can easily be combined and recombined, increasing their value not only via networks and platforms, but also novel combinations. Each of these effects is important individually, but together they have synergies and constitute a distinct economic landscape.
Many markets are structured as platform ecosystems, they can be open or closed platforms, where a stable core mediates the relationship between a wide range of complements and prospective end-users.
{{cite journal}}
: External link in |journal=
(help){{cite journal}}
: External link in |journal=
(help){{cite journal}}
: External link in |journal=
(help){{cite journal}}
: External link in |journal=
(help){{cite journal}}
: External link in |journal=
(help){{cite journal}}
: External link in |journal=
(help)