Industry leaders are unleashing technology’s power by developing new technology platforms. But more than that, it’s the platform-based business models and strategies they enable that are driving the most profound global macroeconomic change since the industrial revolution. In the digital economy, platform ecosystems are nothing less than the foundation for new value creation.
Tech companies and digital-born organizations (DBOs) like Amazon, Google, and Alibaba have long understood the power of digital technologies. But look a little closer. Many of their most ground-breaking products and services are based on platforms. DBOs’ success rests on two key elements: the technology platforms they’ve built to support their businesses, and the business models these platforms enable. These platform-based business models fundamentally change how they operate.
What makes these models special? They create value externally with digital partners and communities of users. In these new configurations, the platform is the business model. It opens entirely new paths to growth. Far from being untested, these new models are already enabling DBOs to dominate.
Platform companies represent $2.6 trillion in market capitalization worldwide. How? Through the value-creating power of their platform ecosystems and digital assets. Within five years, a core component of corporate valuations and capital markets will be based on platform ecosystems and digital assets.
Cloud services -
API strategy and
architecture - the digital glue
reusable software - the accelerator
Mobile development platforms - the digital treasure chest
Internet of Things - the catalyst for real-time business models
Containers - the
portability of software
It’s no longer just about tech and digital-born organizations. Digital leaders across all industries are seizing this new opportunity for growth and capital rewards.
Many are accelerating their uptake of digital technologies and cloud foundations as the crucial first step to break into the platform world.
Medical equipment maker Philips Health is one of them. The company’s placing a big strategic technology bet on a platform business model by launching the Philips Healthsuite platform with three different cloud partners: Salesforce.com, Amazon AWS IoT, and Alibaba Cloud.
Philips has a bold vision: to reinvent healthcare. With its three cloud partners, it will be able to rapidly scale up to hundreds of millions of patients, devices, and sensors – using endless flows of data to tackle the biggest challenges facing the industry, from the hospital to the home.
Philips’ patient management system runs
Philips uses AWS to analyze 15 PB
And AWS IoT (beta) platform to
AWS supports over 7 million connected
To support its healthcare and smart-home
Platform ecosystems play a strategic role in all types of businesses. Asset-heavy like GE and Philips. Asset-light like Google and Uber.
Or powerful platform ecosystems combined with asset-driven businesses, like Apple and Amazon. Whether a company ‘owns’ a platform ecosystem or is plugging into another’s, what matters is having a platform strategy and the business know-how to exploit it.
We’re at the start of a major macroeconomic shift. It will disrupt competitive strategies and business models for everyone– from large incumbents to nimble startups. They’ll all need a platform strategy, even if it’s just finding the right partnership opportunities in platform ecosystems driven by other companies.
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