#11COVER STORY

THE RISE OF PLATFORM BUSINESSHow digital networks are changing competition

Whether we have purchased a book through Amazon or watched videos on YouTube, most of us have used a digital platform – an online framework for social and marketplace interactions. From Alibaba to eBay to Google, platform dealings have become part of everyday life for consumers. Now businesses are creating these high-value exchange environments to facilitate interaction with one another and, in the process, a pivotal change in the way businesses compete.

#11COVER STORY

BIG PROFITS FROM BIG DATAPlatforms create another potential revenue stream with platform-generated data

Platforms collect data from many sources, with multiple benefits for the platform provider and member companies. The data they generate can enable the platform company to make smart business decisions, while opening new markets to its members. Whether a platform operator chooses to analyze the data itself or sell it to others for analysis, the data represents money to be earned.

#11COVER STORY

COMPLEMENTARY GROWTHOffering related products and services can help platforms keep expanding

A typical product line has linear growth – a direct result of a product or service sold to increasing numbers of consumers. A multisided business platform that connects customers or groups with multiple products or services, however, allows for complementary growth. By first creating a healthy ecosystem, multisided platforms are benefiting from additional revenues by expanding into unexpected areas.

#11COVER STORY

EXPERT OPINION Businesses are moving to platform-powered ecosystems

B2B platforms are very different to launch and to scale from B2C platforms. Ironically, 15 years ago, many people felt that B2B platforms would be more successful than B2C platforms. The opposite happened, partly due to the fact that many large firms were not prepared to relinquish control of their business relationships to a platform, or could not agree to governance principles. Small firms were rarely connected to the Internet at the time and, therefore, could not participate.

#11BERNARD CHARLÈS

BERNARD CHARLÈS

Vice Chairman,

Chief Executive Officer

Dassault Systèmes


Major trading powers of the past built upon trading routes and posts. Today, platforms are the way to make your business indispensable. They are the value creation environment, operating system and business model of the Experience Economy. Today, content, products and services are not enough. Being experts, manufacturers or engineers aren’t enough. The companies that succeed will be those that reduce to zero the distance between places, people, ideas and solutions.