How to Solve Big Problems: Bespoke Versus Platform Strategies

TL;DR

This paper demonstrates that using repeatable platform strategies for large projects leads to significantly better outcomes in cost, speed, and risk management compared to bespoke approaches, based on space mission data.

Contribution

It provides empirical evidence that platform strategies outperform bespoke projects in large-scale endeavors, emphasizing strategic learning processes for successful implementation.

Findings

SpaceX's platform strategy was 10X cheaper than NASA's bespoke approach.

Platform projects are twice as fast to market as bespoke projects.

Platform strategies virtually eliminate cost overruns and reduce risk.

Abstract

How should government and business solve big problems? In bold leaps or in many smaller moves? We show that bespoke, one-off projects are prone to poorer outcomes than projects built on a repeatable platform. Repeatable projects are cheaper, faster, and scale at lower risk of failure. We compare evidence from 203 space missions at NASA and SpaceX, on cost, speed-to-market, schedule, and scalability. We find that SpaceX's platform strategy was 10X cheaper and 2X faster than NASA's bespoke strategy. Moreover, SpaceX's platform strategy was financially less risky, virtually eliminating cost overruns. Finally, we show that achieving platform repeatability is a strategically diligent process involving experimental learning sequences. Sectors of the economy where governments find it difficult to control spending or timeframes or to realize planned benefits - e.g., health, education, climate, defence - are ripe for a platform rethink.