Assignment task:
Platforms beat pipelines by using data-based tools to create community feedback loops. We've seen how the Kindle platform relies on reactions from the community of readers to determine which books will be widely read and which will not. Platforms of all kinds rely on similar feedback loops. Platforms like Airbnb and YouTube use such feedback loops to compete with traditional hotels and television channels. As these platforms gather community signals about the quality of content (in the case of YouTube) or the reputation of service providers (on Airbnb), subsequent market interactions become increasingly efficient. Feedback from other consumers makes it easy to find videos or rental properties that are likely to suit your needs. Products that receive overwhelmingly negative feedback usually disappear from the platform completely.
By contrast, traditional pipeline firms rely on mechanisms of control editors, managers, supervisors to ensure quality and shape market interactions. These control mechanisms are costly and inefficient to grow to scale.
Wikipedia's success demonstrates that platforms can leverage community feedback to replace a traditional supply chain. Reference works like the venerable Encyclopaedia Britannica were once created through costly, complex, difficult-to-manage centralized supply chains of academic experts, writers, and editors. Using the platform model, Wikipedia has built an information source comparable to Britannica in quality and scope by leveraging a community of external contributors to grow and police the content.
Can you explain, what the paypal or platform did to beat traditional banking in term of Platforms beat pipelines by using data-based tools to create community feedback loops