08-Sep-2021 11:47:51 am
In basic term, Digital platforms are the online solutions that enable the execution of multiple tasks in the same place through the internet. The main aim of Digital Platforms is to enhance the collaboration between end-users and producers to have a transaction with each other.
A Digital Platform strategy aims to penetrate the online market by focusing on allowing one segment of participants to benefit from the presence or interaction of others. Traditionally it is supposed that clients can determine their willingness to pay for a service or product independently. However, Platforms can break this assumption as the participation of a user segment on the platform is interdependent on user choices. Formulating a Platform Strategy for business requires somewhat different products to help entrepreneurs and managers create and capture values. Let’s explore few digital platforms like uber, facebook and airbnb in detail.
The success of Uber is often seen as a synonym of digital transformation. Uber is founded in 2009 and developed a new matching platform for travelers. Since 2012, it is changing the taxi industry in a disruptive manner. But most industries are not disrupted in such a drastic way. Established companies still have time to change with advantages such as extensive customer bases, known brands and industry knowledge. For them it can be a valid strategy not to be first into a new market. How quickly they reduce investments in their traditional, profitable – yet shrinking – operations and invest in the digital future depends on the impact of digital initiatives on each step in their business model. Regulations also provide an opportunity for advantage for it. Uber watches and listens as the public and regulators discuss issues around the ride sharing industry and tries to be the earliest adopters of regulations.
The impact of digital transformation varies per industry but it is vital to have a clear understanding of how far it is from your current business model, and how to go there; better than finding the world has moved on without you. And it is been incredibly successful at aim, almost eliminating the transaction costs of doing business in everything from shuttling people around town to delivering food. The future for Uber also includes playing a role in cities’ adoption of smart digital strategies.
Social media platforms such as Facebook change constantly on the level of their platform architectures, interfaces, governance frameworks, and control mechanisms, all while responding to their larger environments.
Facebook taught us many lessons during its journey of digital transformation. Let’s discuss in detail about its evolution.
In stage one, Facebook started attracting third-party developers by offering boundary resources and financial and technical support to accelerate “good” app development, thereby embedding itself into the developer community. The Preferred Developer Consultant programme helped brands and businesses to grow a Facebook presence, build apps, and accommodate the enrolment of high-profile partner organisations.
In stage two, the accompanying partner programme enrolled partners capable of implementing Facebook’s marketing products into their own software platforms, thereby further expanding Facebook’s platform boundaries, its capabilities, and the reach of its technical and business operations.
In stage three, as media and content partners gained visibility, Facebook further grew from a user-generated content site into a site for professional content producers and media publishers.
In stage four, Finally, the new Facebook Marketing Consultants programme introduces individual consultants who can establish Facebook marketing technologies for smaller advertisers and businesses not addressed by the partner ecosystem.
These period’s summaries Facebook’s long-term evolutionary trajectory as shaped by the complex interplay between its platform architecture and the dynamics of its technical and organisational environment.
Airbnb is a company that operates an online marketplace for lodging, primarily home stays for vacation rentals, and tourism activities. Airbnb has inspired us in digital transformation in hotels. Key features which make this site more accessible are;
1) They offer users to perform a quick internet search and browse rooms in different tabs.
2) Users have an access to upgrade the room tech with personalize choice.
3) Users can make their feedback.
4) Users have a direct access to renters through this app.
Airbnb upgrade it frequently as Digital transformation requires constant change to be happened.
“Everything has its own pros and cons”, Digital transformation is also not against this saying, and it has its own risks and opportunities.