Product Strategy

Platform Operating Model

What is a Platform Operating Model?
Definition of Platform Operating Model
A Platform Operating Model is a framework that defines how a platform creates and captures value. It outlines governance structures, operational processes, and mechanisms for managing platform participants.

The Platform Operating Model is a strategic framework that guides how a company manages and operates its product portfolio. It encompasses the processes, systems, and organizational structures that enable product development, delivery, and ongoing management. This article will delve into the intricacies of the Platform Operating Model, specifically focusing on the roles of Product Management and Operations.

Understanding the Platform Operating Model is crucial for product managers as it provides a roadmap for managing products across their lifecycle. It helps product managers to align their strategies with the company's overall business objectives, streamline operations, and optimize resource allocation. In the following sections, we will explore the key components of the Platform Operating Model, their interrelationships, and their impact on product management and operations.

Definition of Platform Operating Model

The Platform Operating Model is a holistic approach to managing a company's product portfolio. It is a strategic framework that defines how a company organizes its resources, processes, and systems to deliver and manage products. The model is designed to ensure that the company's product portfolio aligns with its business strategy and meets the needs of its customers.

The Platform Operating Model is built on the premise that products are not standalone entities but are part of a larger ecosystem. Therefore, it emphasizes the need for a coordinated approach to product management and operations, which includes product development, delivery, and ongoing management. The model also recognizes the importance of cross-functional collaboration and the need for a robust governance structure to ensure effective decision-making.

Components of the Platform Operating Model

The Platform Operating Model comprises several key components, each of which plays a critical role in product management and operations. These components include the product portfolio, the product lifecycle, the product management team, the operations team, and the governance structure.

The product portfolio is the collection of all products that a company offers. It is managed as a whole to ensure that the company's product offerings align with its business strategy and meet the needs of its customers. The product lifecycle is the process through which a product goes from conception to retirement. It includes stages such as ideation, development, launch, growth, maturity, and decline. The product management team is responsible for managing the product portfolio and guiding products through their lifecycle. The operations team supports the product management team by ensuring that the necessary resources, processes, and systems are in place to deliver and manage products. The governance structure is the framework that guides decision-making within the company. It includes the roles, responsibilities, and processes that ensure effective decision-making and accountability.

Importance of the Platform Operating Model

The Platform Operating Model is crucial for product managers as it provides a roadmap for managing products across their lifecycle. It helps product managers to align their strategies with the company's overall business objectives, streamline operations, and optimize resource allocation. By providing a structured approach to product management and operations, the model enables product managers to deliver products that meet customer needs and drive business growth.

Furthermore, the Platform Operating Model fosters cross-functional collaboration and promotes a culture of accountability. It encourages teams to work together towards common goals and ensures that decisions are made in the best interest of the company. By providing a clear governance structure, the model also ensures that decisions are made in a transparent and accountable manner.

Role of Product Management in the Platform Operating Model

Product Management plays a central role in the Platform Operating Model. As the custodians of the product portfolio, product managers are responsible for guiding products through their lifecycle and ensuring that they align with the company's business strategy and meet customer needs.

Product managers are involved in every stage of the product lifecycle, from ideation to retirement. They work closely with other teams, such as development, marketing, sales, and customer service, to ensure that products are developed, launched, and managed effectively. They also monitor market trends and customer feedback to inform product strategy and make data-driven decisions.

Responsibilities of Product Managers

Product managers have a wide range of responsibilities within the Platform Operating Model. They are responsible for defining the product strategy, managing the product portfolio, guiding products through their lifecycle, and working with other teams to deliver and manage products.

Product managers are also responsible for monitoring market trends and customer feedback to inform product strategy. They use data and analytics to make informed decisions and to measure the performance of products. Furthermore, product managers play a key role in fostering cross-functional collaboration and promoting a culture of accountability within the company.

Skills and Competencies of Product Managers

Product managers need a diverse set of skills and competencies to be effective in the Platform Operating Model. They need to have a deep understanding of the market and customer needs, strong analytical skills to make data-driven decisions, and excellent communication skills to collaborate with other teams and stakeholders.

Product managers also need to have strong leadership skills to guide products through their lifecycle and to foster a culture of accountability within the company. They need to be able to manage complexity and uncertainty, and to make decisions in the best interest of the company. Furthermore, product managers need to be adaptable and agile, as they often need to pivot their strategies in response to changing market conditions and customer needs.

Role of Operations in the Platform Operating Model

Operations play a crucial role in the Platform Operating Model. The operations team supports the product management team by ensuring that the necessary resources, processes, and systems are in place to deliver and manage products. They are responsible for managing the day-to-day operations of the company and for ensuring that products are delivered on time and within budget.

The operations team works closely with the product management team to understand their needs and to provide the necessary support. They are involved in every stage of the product lifecycle, from development to delivery, and they play a key role in ensuring that products are delivered to customers in a timely and efficient manner.

Responsibilities of the Operations Team

The operations team has a wide range of responsibilities within the Platform Operating Model. They are responsible for managing the day-to-day operations of the company, including supply chain management, logistics, and customer service. They also work closely with the product management team to provide the necessary resources, processes, and systems to deliver and manage products.

The operations team is also responsible for ensuring that products are delivered on time and within budget. They monitor the performance of the operations and make adjustments as necessary to improve efficiency and effectiveness. Furthermore, the operations team plays a key role in ensuring that the company complies with regulatory requirements and maintains high standards of quality and safety.

Skills and Competencies of the Operations Team

The operations team needs a diverse set of skills and competencies to be effective in the Platform Operating Model. They need to have a deep understanding of the company's operations, strong analytical skills to manage resources and processes, and excellent communication skills to collaborate with other teams and stakeholders.

The operations team also needs to have strong leadership skills to manage the day-to-day operations of the company and to ensure that products are delivered on time and within budget. They need to be able to manage complexity and uncertainty, and to make decisions in the best interest of the company. Furthermore, the operations team needs to be adaptable and agile, as they often need to pivot their strategies in response to changing operational conditions and business needs.

Conclusion

The Platform Operating Model is a strategic framework that guides how a company manages and operates its product portfolio. It encompasses the processes, systems, and organizational structures that enable product development, delivery, and ongoing management. Understanding the Platform Operating Model is crucial for product managers as it provides a roadmap for managing products across their lifecycle and aligning their strategies with the company's overall business objectives.

Product Management and Operations play central roles in the Platform Operating Model. They work together to ensure that products are developed, launched, and managed effectively, and that they align with the company's business strategy and meet customer needs. By fostering cross-functional collaboration and promoting a culture of accountability, the Platform Operating Model enables companies to deliver products that drive business growth and customer satisfaction.