Today, platforms dominate the market as businesses increasingly rely on them to enhance efficiency, automate processes and maintain a competitive edge. In fact, they are so prevalent that many businesses will try to customize and connect various platforms to combine key capabilities in one place. This practice has become more common as businesses depend on technology to mold to their unique needs. Before companies can platformize their business, it is crucial to understand what a platform is, how it can benefit your business and what to consider before adopting one.
What is a platform?
A platform can refer to an interface that connects users, resources, and tools through fewer individual touchpoints. But to understand this concept, it’s a lot easier to look at an example.
Airbnb is an application that connects renters, property owners, and vast numbers of listings all in one location. Plus, it handles everything from research to payment using one set of tools.
The purpose of a platform is two-fold. First, it integrates and standardizes data. Second, it locates that data someplace that can scale upward easily. The goal is to create a tool that is useful for a larger number of users completing a variety of workflows.
What is platformization?
Platformization is the event in which a company alters or customizes the structures of a platform to better accommodate its mission. Businesses have proliferated platformization due to increased data production, enhanced computing capabilities that enable individuals to utilize that data and the ability to potentially connect certain platforms.
How is a platform valuable?
Digital platforms can streamline operations, cut costs, lower stress and reduce errors. But where they really have value is in their ability to accelerate growth. Platforms facilitate communication and collaboration, leading directly to innovation and acceleration. By synchronizing the efforts of all, they maximize the efforts of each.
Selecting the right technology for any business is crucial to aid growth by eliminating process challenges and boosting productivity. Companies that adopt platforms are typically more flexible, have the power to automate manual tasks and are empowered to innovate as the platform evolves with the companies’ changing needs.
