Developer network strategy for multi sided platforms

Abstract

Platforms which bring together groups of users in either side and create value by bringing in network efforts are becoming an increasing phenomenon. A better understanding of the multi -sided platform and their networking efforts is critical to understand the challenges* in designing the key elements of the platforms, such as the chicken and egg problem of priming the platform, multi-homing, pricing structure, tipping level and threat of envelopment. It is in such platforms developer networks play a huge part as one side of the network. Understanding the developer needs and structuring the program to meet their aspirations while at the same time making the platform attractive for the users on the other side will be crucial to the success of the platform.. The paper utilizes several surveys conducted recently by developers (web and mobile ) to get insights into their needs and provides hints on key elements of developer program. The paper presents a framework for designing a developer network program including the important trade offs which need to be negotiated in coming up with a successful program. The key elements in the developer network program are split along two dimensions of Platform s Strategy and Developer needs. By addressing these elements and making sure they bring in synergy enables a platform to offer a sound developer network which will be adopted by the developer community and help in building the positive indirect network effects for the platform and helping the platform to grow through positive feedback loops.* The paper does not delve into theoretical models of the two sided network effects.