Businesses that have been able to create digital platforms are among the most successful companies of our times. Here we explore why that is and how you can develop a successful digital platform strategy for your business.

1. Digital Platform Strategy:
5 Questions Your Company
Must Ask Now

2. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
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Introduction
Introduction
Businesses that have been able to create digital platforms are among the
most successful companies of our times. Here we explore why that is and
how you can develop a successful digital platform strategy for your business.
Digital Platform Strategy: 5 Questions Your
Company Must Ask Now

3. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
A digital platform is any network that facilitates connections and exchanges
between people (exchanging goods, services, or simply just communications).
Facebook, Uber, and Airbnb are all examples of digital platforms, giving you an
idea of the magnitude of this trend. In fact, digital platforms are turning
established business models on their head – just think of the impact Airbnb is
having on the travel sector-leading many traditional, non-tech businesses to
consider transitioning to or incorporating a platform-based model.
But why are digital platforms so significant right now, and what can your
business do to prepare for this transformative trend? Read on to find out.

4. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Why Are Platforms Such A Key Trend Now?
This notion of facilitating connections between one party and another is hardly
new. If you think about it, a newspaper is a platform that connects advertisers to
readers. Or a shopping mall is a platform that brings consumers and different
brands together under one roof.
What’s new about today’s most powerful platform businesses is that the
connections they facilitate take place online. In other words, digital platforms
draw upon related technology trends, such as mobile devices, artificial
intelligence, big data, cloud computing, and automation. All these tech trends
have combined to create a perfect storm, giving rise to a new wave of highly
successful digital platform businesses. That’s what makes this trend so
significant right now.

5. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
5 Questions To Help Your Business Leverage The Digital
Platform Model
If you think digital platforms are just for tech companies, think again. Across many
different sectors, organizations are investing in digital platforms – be they platforms of
their own making, or collaborations with existing digital platforms. This revolution is
impacting all kinds of companies, from small businesses and nimble new startups to large
corporations with a more traditional pipeline business model.
That’s why I believe every company should have a platform strategy. However, for many
businesses, transitioning to or incorporating a platform strategy is far from an easy,
overnight transition. Digital platforms often mean a fundamental change to business
models and strategy, which means you'll have to think carefully about how best to
leverage the platform model to drive success.
The following five questions will help you do just that.

6. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
1. Where’s the value?
This concept of creating or capturing value is essential to the success of any platform.
Therefore, a good starting point is to ask how your intended users would benefit, both
from the platform itself and by connecting with others in the platform. At this stage, many
businesses try to position themselves as “Uber for [insert product here],” but I believe it’s
more important to focus on your unique value proposition as a business. To put it another
way, what is it you do best, and how could a platform help you build on that success?
This doesn’t necessarily mean abandoning your existing business model. Rather, there
might be opportunities to create a platform-powered additional revenue stream or
service. As an example, rail transit company Siemens Mobility, part of Siemens AG, has
created the Easy Spares Marketplace – a platform that brings together manufacturers,
dealers, and customers, allowing users to order all the spare parts they need in one place.

7. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
2. Do you have the necessary platform skills?
Many traditional corporations simply don’t have the expertise – or even the
culture – to seamlessly adopt a platform business model. This means you may
need to look outside the company to the world of entrepreneurs and tech
startups and potentially create a joint venture to access the skills you need.
A great example of this comes from Nissan, which has been in talks with Didi
Chuxing (China’s version of Uber) to create a ride-sharing service centered on
Nissan’s electric vehicles.

8. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
3. How will you attract people to your platform?
Without people, platforms fail. Facebook, for example, relies on its community
of users to generate and post the content people want to read and see. Just as
Airbnb relies on attracting people with homes and rooms to rent.
The community is critical to the success of your platform. You, therefore, need
to work out how you'll “seed” users to your platform – and this may involve
offering free services, low prices, reduced commission, or a uniquely specialized
offering. Think of how Amazon cornered the market by offering books cheaper
than any other bookstore.

9. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
4. How will your platform encourage and support user
interactions?
Ideally, your platform would become the core of the community it serves – it
needs to be the place where consumers or users connect with people who can
provide the information, goods, or services they need.
This means your platform needs to encourage and facilitate valuable
interactions between participants. A key part of this value comes from
developing appropriate governance policies on what is and isn’t acceptable
behavior on the site, in order to ensure users continue to have a great
experience.

10. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
5. How will your platform integrate future technologies?
Digital platforms rely on other tech trends, but one tech trend, in particular, could prove a
significant competitive challenge for platforms: blockchain technology. With blockchain, users
can cut out the middleman and transact directly with others in a safe, secure way – potentially
cutting out the need for middlemen platforms like Uber and Airbnb. As an example, the Arcade
City ride-sharing app – which was created in response to one driver’s frustration with Uber’s way
of working – is based on blockchain technology and has been described as an Uber killer.
The good news is, if you’re moving into platforms now, you have the opportunity to leapfrog
existing platforms and harness new technologies like blockchain to your advantage at the
outset. Ask yourself, is there an opportunity to use blockchain to create a new, more
decentralized way of doing business in your industry?
The digital platform model is just one of 25 technology trends that I believe will transform our
society. Read more about these key trends – including plenty of real-world examples – in my
new book, Tech Trends in Practice: The 25 Technologies That Are Driving The 4th Industrial
Revolution.

11. Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website
© 2020 Bernard Marr , Bernard Marr & Co. All rights reserved
© 2017 Bernard Marr , Bernard Marr & Co. All rights reserved
© 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website

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