A lot of discussion has gone in to whether certain companies will survive the ongoing age of the platform economy. But more pertinently, companies need also assess whether there may be something to do with the industry itself. The credit to the likes of Uber, Airbnb, Facebook, You Tube and Amazon may go beyond merely the companies themselves, but also to the respective sectors. Platform transformations are best suited to industries where the expected output is precisely determined, regulations are lower and where spare capacities exist. It also depends whether a company derives value from the information it generates or its physical assets. If it is the former, then data warehousing can be an important source of revenue, beyond the mere services provided. Another matter of divergence is the mode of transaction. Platforms thrive when the payment method is simple and modular, rather than when complex and interdependent. Platforms also rely information asymmetry in the concerned market.

Source:https://mitsloan.mit.edu/ideas-made-to-matter/how-to-tell-if-your-industry-ready-platform-transformation

Uploaded Date:18 October 2019