Not long ago, “doing business” was a fairly straightforward concept, largely revolving around the physical exchange of tangible goods and services for payment, along with pre- and post-purchase services. In today’s digital economy, however, the most successful organizations are tapping into entirely new forms of value creation and monetization that threaten to make traditional approaches to business obsolete.
This new way of doing business is premised on the formation of open and flexible digital ecosystems – or “platforms” – that enable new insights, relationships, partnerships and marketplaces, using the power of data and process digitization. In simple terms, platform-based business models are characterized by the following:
A market-specific, business function-specific or cross-industry ecosystem of producers and consumers, beyond traditional business boundaries.
Business value generated through the digital interactions and transactions of employees, partners and customers, pertaining to either physical assets outside the platform or digital assets created on the platform (data, content, APIs and apps).