What is a Platform Business?
The term "platform" is used in a variety of contexts. Early on, it was often a synonym
for "operating system," but today it's used to describe a variety of scenarios.
Platform businesses create an environment of promiscuous integration as a way to
accelerate operations, get closer to customers and partners, unlock innovation,
and discover efficiencies.
Platform businesses have a number of attributes in common. These include:
- Platforms are open. A "proprietary platform" isn't.
- Platforms can be built upon.
- No one should have to ask you permission
or pay you money to start building on your
platform (although platforms can ultimately be both commercial and non-commercial).
- Platforms attract communities of builders. To thrive, these communities should be managed and
nurtured.
- Building a community around your platform enables you to build your business more
effectively
with the enthusiastic help of customers, suppliers and partners.
- Platforms scale efficiently. Self-service access and low barriers to
entry are a cornerstone of this.
- Platforms do not discriminate between small and large builders. Some platforms enable
small builders to compete on a level playing field and disrupt incumbent businesses.
- A platform is a two-way contract between the platform provider and the builders that
utilize the platform.
- Platforms can be managed in a way that encourages positive outcomes for the Platform
Business as well as customers and builders.
- Platforms can facilitate unexpected outcomes. This is usually a good thing, if it's
managed properly.
At Platform Associates, we're here to help you build your platform business.
Contact us to learn more.