In order to stay competitive, companies need to evolve traditional business models
To do this requires a mindset shift, from being a product-centric company to becoming a platform-driven one
The multi-sided platform (MSP) model allows all involved parties to both create and extract value
To develop a MSP companies need to undergo this mindset shift, get clear on their true value prop, develop a community/marketplace strategy, then build a roadmap out for how data/infrastructure will support that vision
Just as the Industrial Revolution upended manufacturing 250 years ago, the Digital Revolution continues to evolve business as we know it. But instead of being about developing new means to make existing processes more efficient - like how power-driven machines replaced hand tools - the Age of Data isn’t just about using technology to optimize existing systems, it’s about leveraging technology to create entirely new systems, all together.
In this new age, traditional business models, based on a company’s production and sale of a singular product or suite of products, are becoming increasingly outdated. Forward-thinking companies are aware of this, and seek to shift away from a product-centric mindset, in favor of a more platform-centric one, but often don’t know where to begin. Inspired by Mark Bonchek and Sangeet Paul Choudary’s Harvard Business Review article on the topic, Causeit created this guide. We hope it will give you an understanding of the new expectations of today’s customers, flesh out what becoming a platform-centric company means, and help you develop the first steps to effectively apply this new model to your organization’s offering.