The present-day companies are becoming more tech-forward; they are using platform transformations to drive new value. That is being done to focus on the key aspect: have a holistic understanding of how all their business elements have to work together after linking them to the right business strategy. Participants from a range of industries, including pharmaceuticals, airlines, automobile manufacturing, banking, and retail, are showing keen interest in the potential of platforms.
What fueled the need to go for platformization?
Pandemic. The COVID-19 has inevitably impacted the need, pace, and desire for transformation. It has forced businesses to build ecosystems of products. Because of the pandemic, industries are witnessing a boom in the cloud, communication, and workplace collaboration software. And also, the credit goes to discovering productive software, like Zoom, Slack, Teams, Asana and Trello, letting staff work flexibly. Companies have now utilized the chance to become smart innovators to rethink the way workplaces and industries operate. COVID-19 has opened the eyes and ways to digitally transform the business without affecting it by such emergent situations. During this period, new companies have emerged that could be the country’s next tech success. But was it possible without the right strategy?
Taking Businesses from Traditional Brick and Mortar to a Digital Entity with Boundless Reach
With smart manufacturing, 3D printing, and other technologies, the 4th Industrial Revolution is underway. Technology is driving the fundamental market to create value in novel ways. In this AIoT powered world, B2B services have to rethink how to thrive in such technical environments.
If the platforms are designed correctly, they can become powerful catalysts for ecosystems of resources and participants. Here are the few key takeaways that will facilitate any enterprise’s model for business transformation:
Adopting the right platform
From aggregation, social, mobilization, and learning platforms, the business can transform from the ‘make one, sell one model to ‘many make’ model. Learning platforms facilitate learning, bring participants together to share insights over time, and foster trust-based, deep relationships as participants can realize more potential by working together. More values will be unlocked by companies that use platforms to change the nature of they operate and deliver fundamentally.
The revenue multiplier effect
To transform your business to a revenue multiplier, leaders should consider these questions –
- Does the business align with a platform-based business model?
- Can it occupy major influence points to connect disparate parties on the platform?
- Can it develop a deep, trust-based relationship with other partners?
- Does it have the capability to sustain?
A new business model requires preparation to fundamentally change its existing business model, culture, and mindset. If the business knows where to begin, the work is half done.
The digital industrial transformation framework
The right strategy is carried through redesigning talent models, transforming processes, and retooling technology. Answer these questions:
- What is your winning aspiration?
- Where do you choose to play, and how will you win?
- Which capabilities are new vs existing?
- How should capabilities be configured? Who has the ownership and decision-making rights?
- What technology do the management systems require?
Having a clear vision statement can create a unique and monetized strategy.
Choosing the right business model as a winning move
Choose the right customer type. Create discrete products to provide customers with maximum flexibility. Sell directly to customers. Get a license and subscribed model as it is easier to manage. If these things are done correctly, the upside is limitless. Do not hesitate to partner with other brands. Partnerships can often be an ideal course of action if the need for strategic control over that capability is low. Eliminate uncertainties. Develop an MVP.
Developing the business blueprint – The key point of success is efficient planning.
- Develop a digital platform vision
- Define the MVP business blueprint
- Develop an initial business case
- Define MVP technical blueprint and refine the business case
- Define transactional capabilities and refine the business case
- Build MVP prototype
- Test MVP prototype with users
- Build MVP
- Go live
- Prepare for the next release
Here comes the need for a successful and strong execution team. Even if the strategy fails, it must be strong enough to progress significantly under ‘profitable’ parameters.
Rise of The Platform as a Service With a Strong Technological Backbone
Platformization typically builds on technology platforms, the backbone of business transformation for digital innovation. Every business’s first and foremost thing is to ‘clean’ their architecture to serve as a strong foundation for the change. There has been a sharp increment over the past few years, and as the numbers increase, the scope will continue to broaden. All the decisions around platforms at any company are tech-driven and interconnected, and it will require a comprehensive strategic approach to involve the entire company’s enterprise architecture. Thus, the sooner the digital transformation is inculcated to the business, the faster the enterprise growth will be.