Digital business platforms are basically online businesses that allow for a commercial interaction between a supplier and a consumer. A platform is a combination of resources that you have at your disposal which enables sharing of your ideas.
Digital business platforms which started out as a niche offering are now all pervading. Every business needs a digital business platform to facilitate easier end to end processes by offering increased flexibility and delivering improvised client experiences.
Digital business platforms exist at various levels. They could be high level platforms that enable a platform business model. There could also be low level platforms. Low level business platforms provide either business or technology capabilities that aid other products or services such that they deliver their business capabilities. Platforms that enable platform business models have associated business ecosystems.
With the onset of digital business platform models traditional business strategies and established norms have been challenged while assessing past successes against all new digital criteria. Increasingly, more and more businesses are veering towards a platform business model to reap the rewards offered by the platform business model.
The need to embrace digital platforms
Business to consumer B2C and Business to business B2B context platforms are rapidly emerging in sectors like transport, real estate, education, healthcare, and retail.
The advantage of a platform business model is that even a small business enterprise has the opportunity to participate in global trade.
Advantages of Business platforms:
There are various types of digital platforms. Choosing the right digital platform for your marketing needs is crucial to the success of your business. Platform business models are ideal for young companies, startups as well as established organizations. For startups it presents an opportunity to grab a share of the established markets and grow big at a fast pace.
Digital business platforms are a point of convergence where businesses and people meet. Hence, platforms serve as a connection between buyers and sellers.
Finding a buyer for your product is no longer a challenge. With digital business platforms facilitating the product or service to an end user- business is easier than ever before.
What is an enterprise platform?
An enterprise platform is a set of integrated software systems or applications whose shared data and capability can be combined to form an enterprise platform. An enterprise platform can be found most commonly used by product managers and compliance officers as their role and responsibility within the organization requires them to go through multiple life cycle stages of a product.
Digital business platforms are an essential contributor to smart cities wherein people services and amenities are interconnected for enhanced efficiency.
New age platform business models survive on the power of the internet.
Irrespective of the industry or sector that your business may fall under digital business platforms are the need of the hour. Even if your business promotes handicrafts chances are that you will still be on the lookout for a platform business model that would enable the growth and help your enterprise to capture its market share. Companies from non-tech sectors are also choosing digital business platforms for their business agility.
How do businesses benefit from a digital business platform?
The most common challenge faced by an aging enterprise is how it can function like a newer and more agile business. This is where digital business platforms can help solve the problem.
How are business platforms built?
Essentially business platforms are built keeping in mind three components namely- culture, technology, and strategy. The collaborating of these three components leads to a refinement of ideas and paves the way forward towards identifying the right business platform.
Why are digital platforms important?
The rise of digital platforms has provided new perspectives for business development.
Based on the company’s existing business model digital business platforms can connect organizations with B2B clients Digital business platforms contribute to a richer user experience.
They are easier and quicker to set up, as they are easy to access.
Digital business platforms help businesses to set up new business models, allow for enhanced customer experience, automate processes, and deliver outcomes needed for the transformation of a business. Business platforms allow transaction between different types of establishments and individuals which would have otherwise been seemingly impossible owing to the difficulty in finding each other.
The reason why companies invest in business platforms:
With the rise of IT, digital platforms are easier to put up and there is no longer a need to invest in physical infrastructure.
Any traditional business that operates in the same realm as digital platforms and has competition from platforms is at a peril of losing some of its relevance.
What a platform business model does by easily optimizing supply and demand for a business far outweighs what a traditional approach in strategy can deliver to the same business, which also explains the growing demand for the same.