Randy Williams

Value for customers is created differently on platforms than by traditional product/service business models. Today we’ll present and discuss the metaphor of how traditional businesses can be thought of as “pipelines” and how these pipes differ from digital platforms. This post is the first in a new series: “The New Rules of Healthcare Platforms.” We’ll be writing about platform thinking, new mental models, and the new economics of platform business models and strategy. We’ll have at least seven posts to explain these new rules. You’ll have some unlearning to do. We’ll illustrate how platform business models are fundamentally different than traditional product/service business models. To understand platforms, we need to change more than just our thinking—we need to learn new rules about how the digital world works and how platforms fit in.

Today in healthcare, platforms are understood mostly as “technology”. That’s not wrong, but it’s limiting. We want to offer you a more expansive view of platforms, and in turn, understand platforms as being more than just technology. This post is the third in our series on The New Rules of Healthcare Platforms. In this essay, we will: Explain why platform business models are NOT new; Share a survey of health plan execs that documents a view of platforms as “technology”; Explain how network effects are the North Star of platform business models and strategy; Expand your view of platforms beyond just “technology.”