To build from scratch or leverage other platforms?

• There are directory services that list application programming interfaces (API) that have been made available by various companies that allow for the creation of mashups. These APIs are available on both free and commercial use models as determined by the companies that make then available.
• There have been many success stories of companies that have profitably leveraged other platforms, but the downside to that dependence has started showing.
• The other big threat comes in the form of direct competition from the same providers whose APIs you use. These platform owners, in a bid to monetise their networks, may branch out into verticals where developers innovated on.
• For the techpreneur, startup, or enterprise innovating from within, the strategy should be to create your own community of users in a way that cuts your dependence on the platform provider.
• Using the access to migrate users to an ecosystem that you fully control and manage will go a long way in ensuring business longevity and a fighting chance should the big boys decide to take a liking to your niche of choice.
• Playing in a game where you’re not sure where the goal posts will be on your next turn is a big gamble with long terms odds that any techpreneur would do well to consider.

Competitive advantage in the technology space can be achieved in many ways. With many ventures having limited capital resources, the challenge to roll out services quickly, efficiently, and with minimal capital outlay remains.

This often results in companies plugging into other more established platforms in a bid to drive adoption, numbers, and reduce time to market.

There are directory services that list application programming interfaces (API) that have been made available by various companies that allow for the creation of mashups (web application hybrid). These APIs are available on both free and commercial use models as determined by the companies that make then available.

Some of the more popular APIs used are Twitter, YouTube, Facebook, Google Maps, Flickr and Linked-in. No surprises here as these platforms have gone a long way in creating ecosystems that are powered by a large and active user base, reducing the cost and time it would take others to reach the same numbers or build out the technology and manage the attendant costs.

There have been many success stories of companies that have profitably leveraged other platforms, but the downside to that dependence has started showing.

The argument on who owns the consumer has cropped up with many of the platforms now changing their engagement policy.

Twitter has been the most active in the recent past in this regard, throttling third-party access and tightening the noose on what third-parties are allowed to do, as they try to switch on their monetisation engine whose core collateral are the tweets that you and I put out, which as per their terms of engagement, belong to them.

The other big threat comes in the form of direct competition from the same providers whose APIs you use. These platform owners, in a bid to monetise their networks, may branch out into verticals where developers innovated on.

This can be both a blessing or a curse. A blessing where a buy-out happens giving the startup, innovator, or corporate entity a good exit; and a curse where the platform provider dives right into the niche and within a short time obliterates the service using the given API’s from a business model perspective or simple audience attrition that throws the service into the dead pool.

For the techpreneur, startup, or enterprise innovating from within, the strategy should be to create your own community of users in a way that cuts your dependence on the platform provider.

Using the access to migrate users to an ecosystem that you fully control and manage will go a long way in ensuring business longevity and a fighting chance should the big boys decide to take a liking to your niche of choice.

Playing in a game where you’re not sure where the goal posts will be on your next turn is a big gamble with long terms odds that any techpreneur would do well to consider.

That said, riding on the shoulders of giants will give you much needed advantage to scope the field and adjust appropriately. No hard and fast rules here, just be nimble and adaptable.

Njihia is CEO of Symbiotic. Twitter - @mbuguanjihia