Digital Technology Platforms
Digital Technologies have made world so small in its true sense , We have moved from the boring trunk calls to the latest mobile technology which does not only allow us to make instant calls from any place at any time but also we can see each other with video calls .
The social media platforms are another evidence of our progress in the world of digital technology. Did we ever imagine sending, sharing messages, pictures, and videos to our friends and family in no time just by clicking few buttons?
Before giving a definition to what is a Digital Platform, let’s take a few examples:
- Google search engine: “advertising” business model.
- Social platforms: Facebook, Twitter, Instagram, LinkedIn – “advertising” business model.
- Knowledge platforms such as StackOverflow – “advertising” business model.
- Application stores: Apple/Google Play – “digital good” business model.
- E-Commerce business models such as Flipkart, eBay, Amazon etc.
- Media platforms: Spotify, Deezer – “subscription” business model.
- Affiliate platforms: Commision Junction … – “earn as you perform” business model.
- Crowd-sourcing platforms: Uber, BlablaCar, AirBnB – “pay as you go” business model
- Repository platforms: GitHub – “freemium” business model: you pay only if you don’t want to share your code with the community.
- Infrastructure platforms (IaaS): AWS, Azure – “pay as you go” business model
- Classifieds platforms: real estate … – “advertising” business model
So how do we define a Digital Platform?
There are many definitions on the Web; here we have tried to define Digital Platform based on its key attributes.
- Is a technology-enabled business model.
- Facilitates exchanges between multiple groups – for example end users and producers – who don’t necessarily know each other.
- Offers a value that is proportional to the size of the community. A Digital Platform is worth nothing without its community.
- Is a trust enabler: It must generate trust with clear general terms and conditions regarding the intellectual property and data ownership. It also helps consumers and providers to trust each other within the network thanks to scoring mechanisms.
- Has open connectivity; It shares data with 3rd party developers to create new services and extend the ecosystem. This is done with APIs and participates to the API economy.
- Can scale massively to address millions of consumers without performance degradation.
- Offers compelling user experience - easy to use, no training needs self-service.
- Has innovative business models based on the immediate value.
So as to list the benefits there are many, first and foremost being generating revenue, Innovation of new products, gaining speed, reduce costs and so on. The digital technology platforms will give your business the much required wings to expedite the over process of growth.
According to a report from Accenture, 81% of executives say platform-based business models will be core to their growth strategy within three years.
Listing a few platforms which are trending currently –
- Artificial Intelligence
- Machine learning
- Internet of things
- BIG Data and Data Analytics