chapter  9
16 Pages

Platform scaling

Reaching critical mass

Platform fit is a prerequisite for successful scaling. As more users and producers join the platform, the on-boarding process needs to be as smooth as possible for both sides. New producers may need to familiarize themselves with tools to engage and ultimately transact on the platform. As the platform scales and more users and producers join, get matched, connect and transact on the platform, network effects start to kick in and the value proposition becomes richer for all participants. Keeping the platform 'balanced' is critical to successful scaling. While many traditional businesses need to add significant resources in line with their growth, platforms should be able to rely on significant automation of the key platform functions to scale at a minimal incremental cost. New producers may need to familiarize themselves with tools to engage and ultimately transact on the platform.