New world of platforms requires abandoning traditional management principles and embracing new ones

We are witnessing a significant change in management. Emergence of business models based on digital platforms has shaked-up some of the traditional management principles, such as: growth through investments, lowering fixed costs through economy of scale, creating customer awareness through marketing push strategy, etc. New world of platforms, dominated by multisided networks, requires abandoning these principles and embracing new ones: fast growth based on business model scalability, tailoring products and services to the preferences of each individual customer, and marketing pull strategies based on the value provided by the platform. Therefore, large incumbent companies are no longer in a position to hold the high ground. The rules of this competitive game have shifted toward digital capabilities based on platforms.