Emergence of Platform Economy Means for Business
Make no mistake about this. People live in a world where platform economy is not just disruptive, but also it is killing successful and long-lasting business models. But, what you should know about platform economy and how it impacts businesses?
The Rise of Platform Economy
A complement or a platform strategy varies from the product strategy in that it needs an external ecosystem to generate complementary service or product innovations and create positive feedback between the platform and complements.
The effect is greater potential for growth and innovation than single product-oriented company can generate alone. A platform business serves as connector between the service or product and interdependent people they’re seeking. It is like saying to be in that business you need to know somebody. And that somebody is the platform.
To get the paper written, you require software on the computer along with the processes and technologies that were created for you to get the white paper published and written. The entire software, processes, tech, and everything else that goes with this is the platform that enables you to do your paper. It’s the medium that facilitates for you to connect together. Due to this, the platforms are linked to the network effects’ concept where more services or products it offers, the more users it’ll attract.
There are 4 major kinds of platforms and these include the following:
- Investment platforms have made a platform portfolio strategy and serve as a holding company.
- Integration platforms are a product, technology or service, which is a transaction platform and innovation platform.
- Transaction platforms help people and institutions to find one another.
- Innovation platforms where the developers provide complementary services and products. Think of the offerings from the companies such as Oracle, Windows, and Salesforce.
No matter what particular platform, they share these common traits:
- Payment passes through the platform.
- The sellers are paid for a task or good at a time.
- Enables people to work if they want.
- Connects the sellers or workers directly to customers.
While platform economy has skyrocketed over the last years, it isn’t a new concept.
How Platform Economy Has Disrupted the Globe?
In spite of the fact that the platforms have been in existence for years, modern platform economy has changed the game completely. According to experts, work is being reformatted and for a lot of people, the traditional employment is providing way to gig and the contract arrangements.
The business strategies shape the job quality. Even in low-price, low-margin businesses, there are some better job strategies, which can give workers benefits and higher wages. Such will contribute to strengthened competitive positive for the company. In aggregate, the character and shifting place of entrepreneurship and the work’s reorganization of work could alter the distribution of income and wealth in the societies.
For you to achieve success in a platform economy, you have to think about your innovation and strategy within your business.