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 cornerstones 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.
