Every business today needs to evolve into a platform to stay competitive. Platforms, unlike traditional businesses, are not just about selling products or services, but about facilitating connections and creating value. They thrive on network effects – as more people use the platform, the more valuable it becomes. Successful platforms such as Facebook, Uber, and Airbnb have shown how this model can disrupt industries.
To transform into a platform, businesses should focus on three key aspects: design, strategy, and technology. Design is about creating a user experience that encourages interaction and engagement. Strategy involves identifying potential network effects and how to maximise them. Finally, technology is the backbone of the platform, enabling connections and interactions.
However, simply having these three elements is not enough. Businesses must also foster an ecosystem that supports the platform. This includes partners, developers, and users who add value to the platform. Businesses must also adapt their organisational structures to support this new model. This could mean decentralising decision-making or adopting new management practices.
Transitioning to a platform model is not easy and can take years. It requires a shift in mindset and significant investment. But the potential rewards – increased value, competitive advantage, and industry disruption – make it a worthwhile endeavour.
Go to source article: http://www.digitaltonto.com/2016/today-every-business-must-transform-itself-into-a-platform/