How to Solve Big Problems: Bespoke Versus Platform Strategies

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.

Keywords: Platforms, megaprojects, major projects, strategy, public policy, space missions, rocket launches, payload, cost overruns, speed-to-market, scalability, scale-up

JEL Classification: G31, H43, H53, L26, L33, L90, M16, O32