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The Catalyst Age Is Upon Us.
Catalysts are today’s new powerbrokers. Some of the world’s most influential businesses reap their profits by unleashing the hidden value that comes from getting different groups of customers who need each other together on the same platform and allowing them to interact.
Think Lloyds of London, Hearst Newspapers, Microsoft - or even the Mall of America – each owe their success to a business model that makes it easy for buyers and sellers, readers and advertisers, developers and users and shoppers and merchants to get together and do business.
Multi-sided or catalyst strategies is an expertise unique to MPD. Our principals and advisors are regarded as the world’s thoughtleaders, innovators and practitioners in this area, having discovered these insights seven years ago as part of our work in the economics of multi-sided markets.
Our 6-step Frameworktm provides a roadmap for devising and executing effective catalyst strategies and is based on our work with and examination of some of the most successful catalysts of all time. We have found it an effective tool in guiding catalysts large and small through the process of cracking the “chicken and egg” problems inherent in catalyst businesses so that they can reach the full potential of their platform.
Our experience also concludes that to be successful, catalysts must defy traditional business wisdom to innovate and profit. For example, relying on “network effects” alone is not enough, as many of the late 90’s dot comers can attest.
We help catalysts engineer business models, design their products and structure pricing and incentive strategies so that the platform is attractive for its customers to join and profitable for all parties. We have the experience and the know-how to help our clients navigate these complex business decisions.
Multi-sided strategies are also the subject of the book, Catalyst Code: The Secrets Behind the World's Most Dynamics Companies (Harvard Business School Press, May 2007), written by MPD Founder David Evans and Chairman Richard Schmalensee. Bill Gates describes Catalyst Code as "an important book for anyone interested in understanding how breakthrough businesses can be built in today’s economy."
As technology makes it easier to bring multiple groups together, we believe the 21st century might well be known as “The Catalyst Age.” MPD has the tools, experience and knowledge to help executives and entrepreneurs be successful in the years ahead.
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JUST PUBLISHED
Catalyst Code: The Strategies Behind the World's Most Dynamic Companies, Harvard Business School Press, Spring 2007
Catalyst Code authors, Evans and Schmalensee, tell the story of an economy in which markets, consumers, and technology are increasingly interdependent, businesses whose mission is to bring distinct customer groups together are reshaping entire industries.
These firms - catalysts - are the new power brokers, taking bold steps to transform their pricing models, incentive plans and organizational structures in the pursuit of profits and customer value.
Of course, catalysts have been around as long as marketplaces – think of the auction house. But now they drive economies worldwide. The trillion dollar credit card industry brings merchants and consumers together and Google creates value for its customers, and makes billions for itself, by matching up searchers and advertisers.
Doing business in this world isn’t for the faint of heart. Catalyst Code maps it out, using a five-step framework that shows exactly where the opportunities – and pitfalls – lie.
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