The Platform as a business model has proven successful for some of the world's largest brands such as; Uber, Airbnb, TradeMe, Facebook and Instagram. But what is a Platform Business Model and why should you care?
We may be used to reaping the benefit of digital platforms in our personal lives as consumers but in the business world we're still lagging behind.
Most businesses today still operate using a Linear Business Model; this is a business that takes in components, creates a finished product or service and sells this to the customer. These businesses utilise the typical linear supply chain; create value in the form of finished goods or services and then sell them to the end customer. Just because these products or services can be sold via the internet, this does not make them Platforms. So what is a Platform business model?
What is a Platform Business Model?
"Platforms don't own the means of production - instead, they create the means of connection." Alex Moazed
A Platform Business Model creates value by facilitating exchanges between two or more interdependent groups, usually consumers and producers.
In order to make these exchanges happen, platforms harness and create large, scalable networks of users and resources that can be accessed on demand. Platforms create communities and markets with network effects that allow users to interact and transact.
What are the benefits of Platform Business Models?
- Platforms scale better than linear businesses - the value grows as the network grows plus it can meet the needs of your business today as well as tomorrow
- Participants on the platform can create value using the tools and functionality provided
- Participants on the platform can build their own community with the ability to; connect, communicate, collaborate and curate.
- Improved engagement - by creating a workplace where several different stakeholders can engage - staff, suppliers and customers.
- Move from individual (or company) focused to network focused.
- Improved accessibility, ability to connect 24/7 from anywhere.
How can you take advantage of this platform business model for your own business?
Whilst you might not have the resources to, or indeed any reason, to create your own digital platform, this doesn't mean that you can't access the benefits of being connected to one.
There are so many software solutions available in the market today. Software designed to help with almost every process, every to do list, every project. On-premise software or SaaS software in the cloud. So many options and yet many do not live up to the hype, or they only meet your requirements for a few years at best before becoming outdated.
DX2 is a digital exchange and collaboration platform. DX2 gives linear companies access to a platform where they can reap all the benefits of the platform business model.
DX2 facilitates the exchange of documents between trading partners. This could be your business receiving invoices from your suppliers, or sales orders from your customers. Or this could also be your business sending invoices to your customers or purchase orders to your suppliers.
Build your own digital network and say goodbye to paper!
The benefits of the DX2 digital exchange platform are many:
- You can send and receive documents in any format to all customers, or from all suppliers no matter what stage of the digital transformation journey these trading partners are on.
- You can collaborate across your team, and with your customers or suppliers right alongside the relevant documents, no lost email threads, no lost history when a staff member leaves.
- You can track where documents are at in the process.
- Gives you the capability to meet increased growth while having more capability and capacity to meet the increased admin requirements without growing the admin function.
- You can say goodbye to paper! Empower your staff to do more meaningful work.
Interested in connecting to our DX2 Digital Business platform?
Here's some more info:
- Webinar: Watch this on-demand webinar to find out how Dairy Holdings met the challenges of lockdown with DX2
- Whitepaper: Read this whitepaper to find out more about how to digitise your sales and purchasing processes
- DX2 Digital Business webpage
If you'd like to have an informal chat about how DX2 may be able to help you digitally transform your business then please: