Let’s jump forward into the future – it’s christmas time of the year 2020. It’s the first time since thousands of years that Christmas is not stress for Santa Clause. The opposite is the case: Santa is sitting in front of it’s new multiscreen X-Mas Control Center and he enjoys the numbers scrolling down the screens. He disrupted it’s own business, hyper scaled the number of delivered gifts and remained the “magic” of Christmas for millions of kids.
Over the last 100 years the number of people on earth exploded to about 2.1 billion children in 2016. Meaning 842 million stops for Santa on one single night. Way too much for an old man. It caused so much stress form him, that also the delivery quality went down (e.g. lost gifts, wrong adresses, wrong gifts).
But Santa is old, not stupid. He realized that something needs to be changed – he needed to disrupt it’s own business model.
Coming from a linear business – where he collected the wish lists, bought the raw materials, created and delivered the gifts together with his staff – he wanted to transform into a platform business. He heared from UBER, AirBnB and other hyperscaling businesses and wanted to change into that direction. He surfed the internet and found the “Platform Innovation Kit” (PIK)
In a strategy workshop together with it’s executive team, he used the PIK to design his future business model in five steps.
First: Using the Environment Canvas he realized what’s realy happing around him. Especially the chances of digitalization and the Internet of Things are important change drivers for platforms and leveraging global access.
Second: He and his team went straight into an ideation session where they brainstormed over 20 platform ideas, prioritized them and picked the most promising one – “Northpole” – the X-Mas gift platform.
Third: Now it’s time to look at the core value propositions and the new mission – “happiness for every child”. But who are the peers of the platform?
|Owner||Santa Clause||Stress relief||Support||Brand
|Consumers||Children all over the world||The right gift at the right place at the right time||Gift(s)||Wishlist|
|Partners||Reindeer logistics||Less stress, because they now have multiple riders (gnome)||Freedom||Logistics / Rides|
The table above shows the different stakeholders of the new platform and the value proposition form them.
The main new idea is, that kids will directly use the platform to upload and transmit their wishlists to the gnomes. The gnomes also will access the platform and see the wishes from around the world and can produce the right gift directly – based on their preferences, skills and available resources. No middle man (Santa Clause) needed anymore. Santas new role is the role of the platform owner. He provides the brand, IT infrastructure and the community management. Last but not least: also for Rudolph the red nose reindeer the platform provides an upgrade. In the past, he and the other reindeers where in front of the Santa Clause sleight – now they can pull their own sleights. They can use their worldwide logistic network making the delivery faster and more nature friendly.
All those changes together help to relief the stress from Santa to be the single source of gifts for all kids around the world.
Fourth: When the value propositions of the platform are defined, it’s time to think about the main services of the platform to enable matchmaking, lower the friction for transactions and keep the peers engaged over the course of the year. But this was the easiest part for Santa and team, because they know perfectly the “customer journey”.
Last step: It’s time to think about the implementation strategy. Who are important influencers? What is the unfair advantage? What are the key go-to-market strategies?
After 3 hard days of workshop, Santa felt very good. He looked at all the canvases and the thoughts behind and he realized that the future started now.
In the following months he went to work, picked the right implementation partner and prototyped the platform. After a friendly user test and some bug fixing, the platform went online in autumn 2016, just in time for the 2016 christmas season.
Is the new platform based business model working? Let’s see in the upcoming days after the real world test.
For Santa the result looks pretty much promising and he stated: “The Platform Innovation Kit saved my life and brought back happiness to all the kids worldwide“.
Happy Christmas and a peaceful New Year,
Matthias & Matthias from the Digital-Ahead Team
The story of how Santa Claus transformed into a platform based business model appeared first on www.digital-ahead.de – source of the free Platform Innovation Kit, a set of Canvases helping you to design platform based business models, used by startups and corporates worldwide.