A successful platform strategy focuses on leverage. It provides building blocks that reduce internal effort to launch new products, while delivering a seamless, integrated experience that creates lock-in for customers. This leverage is the platform's core value proposition.
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Platform value isn't developer efficiency. It's enabling developers to build features that solve end-customer problems and drive business outcomes like retention. The platform PM must connect their work across this two-step chain to secure investment.
A platform's immediate user is the developer. However, to demonstrate true value, you must also understand and solve for the developer's end customer. This "two-hop" thinking is essential for connecting platform work to tangible business outcomes, not just internal technical improvements.
Square's product development is guided by the principle that "a seller should never outgrow Square." This forces them to build a platform that serves businesses from their first sale at a farmer's market all the way to operating in a large stadium, continuously adding capabilities to manage growing complexity.
The 'compound startup' model of building multiple products at once is only viable when integration is more valuable than best-of-breed features. It also requires a shared platform architecture that genuinely accelerates the development of each subsequent product.
Stakeholders will ask "so what?" if you only talk about developer efficiency. This is a weak argument that can get your funding cut. Instead, connect your platform's work directly to downstream business metrics like customer retention or product uptake that your developer-users are targeting.
Large enterprises don't buy point solutions; they invest in a long-term platform vision. To succeed, build an extensible platform from day one, but lead with a specific, high-value use case as the entry point. This foundational architecture cannot be retrofitted later.
Building a true platform requires designing components to be general-purpose, not use-case specific. For instance, creating one Kanban board for sales, support, and engineering. This thoughtful approach imposes a ~20% development 'tax' upfront but creates massive speed and leverage in the future.
To serve its largest customers, Square's open platform is crucial. It allows enterprises to integrate their preferred third-party tools with Square's core services. This flexibility prevents churn by allowing customers to customize their tech stack instead of being locked into a closed ecosystem.
Don't just sell a product; become an indispensable part of your customer's workflow. By offering integrated products and services, you create a value ecosystem that locks out competitors and makes leaving an impractical and undesirable option.
Instead of building a single-purpose application (first-order thinking), successful AI product strategy involves creating platforms that enable users to build their own solutions (second-order thinking). This approach targets a much larger opportunity by empowering users to create custom workflows.
