Digital platforms for business: How platforms can improve business

August 12, 2021

iauro Team

Contributing immensely to the global software solutions ecosystem. DevOps | Microservices | Microfrontend | DesignThinking LinkedIn
Digital platforms have become an absolute must for any business and are no longer a digital natives strategy. According to a popular survey, “platforms are quickly becoming a must for competition and a foundation for creating new value — and companies that fail to embrace them may be left on the sidelines by watching them.” Many digital platforms have become an integral part of the business landscape and are no longer exclusively digital natives’ domains.
Companies including Daimler, Nike, and Unilever are launching their platforms as their business models mature. Effective platforms are based on technological excellence, but cannot exist exclusively in the technological realm. They rely heavily on support and feedback from other parts of the business, which are best coordinated through a cross-functional team that defines success metrics and tracks progress. All of this needs to be managed with a delicate balance of centralized leadership that sets the vision, communicates success, mobilizes the right talent; and “product owners” who are tasked with achieving success in their specific business areas.
 

How do digital platforms work?

Digital platforms are online solutions that allow you to do multiple tasks in one place over the Internet. Developing a digital marketing strategy involves a series of information that must be followed and monitored to grow your online presence. The lack of a digital platform makes everything expensive and difficult to achieve.

Digital platforms: Why do we need them?

The main goal of digital platforms is to improve collaboration between end-users and manufacturers to transact with each other. These platforms allow users to exchange various information, such as new products and services and connect the platform’s ecosystem. This technology also makes it possible to build a reliable network to add value. The development of digital platforms can be facilitated by third-party API (Application Programming Interface) providers that allow participants to exchange data to develop new services.

How does platform strategy work?

The platform’s strategy is to penetrate the online marketplace simply by focusing on allowing one segment of participants to benefit from the presence or interaction of others. Traditionally, it is assumed that customers can independently determine their willingness to pay for a service or product. However, platforms can disprove this assumption, as the participation of the user segment on the platform depends on the user’s choice.
 

What is a platform strategy framework?

The digital platform strategy aims to penetrate the online marketplace, focusing on allowing one segment of participants to benefit from the presence or interaction of others. Traditionally, it is assumed that customers can independently determine their willingness to pay for a service or product. However, platforms can disprove this assumption, as the participation of the user segment on the platform depends on the user’s choice. Developing a business platform strategy requires slightly different products to help entrepreneurs and managers create and capture value.
 

How to create a platform strategy structure?

Following are the three main steps for creating a Digital Platform Strategy:

Step 1:

First, the network effect brings market participants together, which means that more customers attract more suppliers and partners, and vice versa. The business platform strategy varies the cost and burden of risk to create markets from business to network. As the system gains dynamic momentum, the platform owner acts as an intermediary, distributing this burden among the growing number of participants.

Step 2:

Second, the combination of technologies such as cloud management, automation, analytics, artificial intelligence, mobile communications, and the industrial Internet is shaping a new economy as a service. In this area, services are dynamic, targeted, and targeted. This has a huge impact on maintenance costs, investment levels, and market acceleration. By integrating business technologies, software, and infrastructure to make them available on-demand, organizations large and small can benefit from plug-ins, modular scalable services. Entrepreneurs are special beneficiaries here, even without per-financing restrictions for the total costs of the platform business, which have access to new markets and distribution channels.

Step 3:

Finally, open and shared data can be intelligently mined by professionals and related industries to create new forms of existing value. Customer activity can be tracked to scale, and insights can be obtained from field applications or machines. Indeed, a large amount of data is generated today, and it is estimated that it will double every two years by 2020. This flexible and collaborative way of working throws many organizations off balance to create a platform strategy for the business.

What are the benefits of platform strategies?

The platforms are responsible for ensuring effective interaction between members using data about members and their use of the platform. They do this through the following mechanisms:

Some of the best benefits of digital platforms include:

Network Effects

All tech giants like Google, Facebook, and Amazon have achieved this success because they have explored what economists often call network effects. At the primary level, network effects describe how the value of a network or service becomes disproportionately more valuable to its users as more users become.

Tough competition

A two-way platform that brings buyers and sellers together can be a powerful way to keep competitors from entering the market and thwart their success by reducing the need to continually accelerate large volumes of marketing.

Create value

The business platform strategy tries its best to bring value to its customers and get paid in return. Platforms like Facebook can double the pay, grab the attention of users, and invest in advertising for their services.

What are the best practices for platform development?

Thousands of companies are cutting back on their old ad budgets and ramping up digital marketing efforts today, so knowing the platform’s best practices is essential.

Define goals and objectives

Before starting, businesses need to know their purpose or where they want to go. That being said, every company needs to be profitable as it needs to dig deeper to determine its digital marketing goals.

Set key channels

Since omnichannel marketing can be beneficial for some businesses, chances are rare that there are businesses that need to use all digital marketing channels. Thus, it is important to identify the key channels for achieving the goals of the companies, as this is one of the best practices for platform development.

Develop a content strategy

Thousands of brands are increasing their content marketing investments. Whether it’s email, social media posts, blogs, or visual content, this is what the Internet is built on.

Create and keep a calendar

Once you get the content, create a calendar or timeline for content consistency. Then, create a marketing channel with multiple content items to manage and let that calendar serve as the foundation of your digital strategy.

Implementation

The most important best practice in platform development, after the plan is in place, is implementation. Planning and thinking are two things that “work.” Therefore, to implement the Business Platform Strategy, you must consider everything that has been developed with realistic thinking and objectively assess it in terms of business goals.

What are the challenges of digital platforms?

  • Online platforms
  • Connectivity and hardware
  • Limitations
  • Personal communication is lacking
  • Co-operative on platforms

 

Stratification factors for platforms

Five factors that create network effects and critical mass critical to the success of a platform ecosystem:

Offer

Personalization

Partners

Protection

Price

Highlight five key environmental factors that are essential for platforms to thrive.

  • The size and wits of the digital user
  • Digital talent and entrepreneurship
  • Technology and management
  • A culture of open innovation
  • Policy and regulation
Digital platform strategies need to align well with the organization’s work across all channels. If they are not well integrated, businesses will often run into problems in the long run and need to be completely overhauled. In order to develop an effective platform strategy with long-term solutions, it is important to collect as much information as possible. Along with this, define goals and criteria from the very beginning. The use of digital platforms in the workplace has become commonplace. Platform strategies, whether practiced individually or jointly, become a strategic imperative. Companies that have yet to make the transition will find it difficult to keep up.

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