Data Platforms and Network Effects

Industry platforms are foundations that bring people and organizations together for a common purpose, which usually includes making money. They function at the level of a market or ecosystem, rather than only within a specific firm. They often start with products such as operating systems and microprocessors, services such as social media and messaging systems, or marketplaces for e-commerce and financial transactions. They can link thousands, millions, or even billions of users and other market actors. But another type of industry platform has recently received attention from consultants such as The Boston Consulting Group as well as investors, entrepreneurs, and policymakers.