Chapter 2: The Platform Revolution is here
Moving to the Platform Model
The pipeline model is too linear to be efficient in the digital
world. The dynamic nature and agility of digital business
require a new understanding of business and an evolution of
The platform business model is the one used by the most
successful digital businesses. Just look at Amazon, Apple,
Uber, and Airbnb - these companies connect buyers and
sellers at a global scale and are growing faster than we have
ever seen business grow.
In looking at the platform model, at the heart of it is a
platform operator. For example, Amazon operates a platform
in which third-party sellers can connect with eager buyers.
Becoming a platform operator gives a company a strength
beyond just its brand - it puts that company at the center
of an ecosystem. In doing so, platform operators think
of customers not as someone at the end of an economic
value chain, entities they can interact and engage with.
This creates much more compelling value propositions that
can involve having more products, that can involve having
more services, that can involve creating solutions by putting
together various combinations of products and services.
Companies can become the go-to source for their customers,
building trust and brand value.