“Platform Revolution” and “The Cold Start Problem” — Two Books, One Masterclass

Several years back I read “Platform Revolution” by Geoffrey Parker, Marshall W. Van Alstyne, and Sangeet Paul Choudary. It presented the problems that platform businesses face: one sided networks, chicken and egg problems, as well as covering basic expectations and vocabulary to understand how a platform functions. Fast forward to just a few weeks ago, I completed “The Cold Start Problem” by Andrew Chen formerly of Uber, now a General Partner at Andreessen Horowitz. It feels very much like the battle-tested answer and in the trenches exploration/examination of what was covered in “Platform Revolution”.

While Andrew’s book can be read as a standalone (and in my opinion does achieve its goal of being the definitive book on networks), I do feel as if I gained more from having read “Platform Revolution” first. Upon reflection, I found “Platform Revolution” served as a creative spring board: presenting problems with alluded-to-solutions that forced me to consider how I might solve problems with only the context provided by the book, and my own creativity beyond. Having gone through this experience, concepts in “The Cold Start Problem” felt familiar, and also like answers to questions held in my subconscious for quite some time.

By means of analogy, “Platform Revolution” felt like seeing an epic magic trick where the viewer experiences wonder and is perhaps invited to muse on how the feat was pulled off. “The Cold Start Problem” felt much like the magician walking you through the trick, the inspiration for the feat, how it was pulled off, and why. While I imagine I would enjoy a YouTube walkthrough of a top tier magic demo by its creator, I expect it would be all the more fulfilling had I first been awed by the experience.

As a quick aside, if you enjoy the analogy about magic then “Spellbound” by David Kwong is also a great read.

Now to get a bit more specific about “The Cold Start Problem”, my favorite anecdote and examples come from the story of how Slack came to be, LinkedIn and Instagram approaches for building networks, “buying” customers (even before the internet), moats, tipping points, and other concepts you would likely expect. There is also an exploration of Wikipedia that is excellent for how it showcases the idea of super users, and consequently sheds greater light on “Influencers” within an ecosystem. NOTE: this paragraph is not an exhaustive list for what’s in the book, just things that stood out in particular.

The idea that echoed loudest for me though is: the moat. Since technology is significantly advanced in 2023, building new products, networks, or services is not particularly difficult. In the past, development costs could’ve posed a barrier to entry for would-be competitors, but now? No more. With that in mind, the “network” BECOMES the moat that will give you, your company/product/or service an edge.

From a very human perspective, the idea of “network as moat” takes on greater significance in multiple contexts ranging from value provided to clients for long lasting relationships, or even on an individual basis for working with others. In this context, you might consider the moat as giving you a special value proposition whatever the circumstance. Also, perhaps abstractly, you might consider this idea of “network as moat” to be a a diverse set of skills (tangible or intangible) that you are able to make work together to give you a personal (or professional) edge.

Granted the book is focused on networks in a business sense, but with examples wide and far, including those from nature… a great standout feature of this book, for me, is: powerful truths are applicable in contexts much greater than where they are presented. In other words, if someone presents something as truth or wisdom, the fastest way you can determine the veracity and power is by seeing if you can apply it in a different setting or context. While I recognize there are some things that are highly domain specific, a genuine pattern can be mapped analogously to a multitude of settings. Harkening back to the example of magic tricks: the more “setup”, the narrower the frame you need an audience to look through, and perhaps only from one certain angle — the more likely you are to be confronted with a trick, than a truth.

And so, I highly recommend BOTH “Platform Revolution” and “The Cold Start Problem” that you might bring the genuine magic of networks into your life.