Driving business through my website A brand-new .com/.xx, designed from the ground up to boost business and create opportunities. The content should align with our interest in web development and open source technology. Individual skill is always valued but team efforts bring different perspectives and combined brainstorming.
This paper is organized to build a qualitative case study answering the questions of How and Why a company implementing a digital platform strategy is a form of strategic differentiation. The paper begins with a Literature Review of platform company constructs and business tools used for global strategic management. The next section is the discussion and analysis of digital platform strategies Nike has implemented in the framework of a strategic differentiation model. Nike continues to evolve its digital platform strategy to keep customer engaged.
In terms of platform companies, Nike and Under Armour are specifically engaged in digital platform strategies, Reebok is actively engaging in communities as its connecting with customers strategy , so they are not considered a platform company. New Balance is somewhat of a hybrid strategy where they do direct digital marketing and rely on retail stores for the human connection with the brand . The best approach is an “experiences” approach, focusing on the people who will use the digital platform – the end users, whether they are customers, employees, or ecosystem partners.
Baloise can extend the platform, making changes and tailoring it as it builds out the company’s broker engagement functionality without disrupting the underlying core capability. The APIs are focused on interaction and give the company the ability to engage with brokers and deliver an efficient, userfriendly experience across all channels and via all devices. Collectively, all four questions must be addressed and provide a competitive advantage for the strategy to have value. If the VRIO framework supports a value potential, then to make it real requires management.
What Is The Best Digital Platform For Your Organisation?
The DXC Assure Digital Platform is available in the cloud as Software as a Service and exposes the API to be used by a third-party insurance application fully integrated with Baloise back-end systems of record, such as policy administration and claims processing. This platform could also be integrated with customer relationship management , analytics and a broad range of services from DXC’s partner ecosystem. As a company, Nike benefits from this strategy through a couple of methods. One is that Nike collects an enormous amount of data from their users who participate in the platform. This data is like “insider” data as it allows Nike to listen and watch customers talk about and use their products.
- Provide a description of any differentiated treatment which the platform gives in relation to goods or services offered to consumers by itself, on the one hand, and by other vendors, on the other hand.
- Integrating the use of a digital platform provides the enabling environment that digital technologies require for delivering the benefits of Industrie 4.0.
- Moreover, you will reduce business risk when having a single point of failure.
- While VRIO is an effective method to approach a business strategy analysis, it does have some weaknesses that have been identified through its use in practice.
- Prior to MAP, Harold worked on the Freedom of Information Act, the Privacy Act, and accountability issues at the Department of Energy, to name a few.
While the organizations grow in size and complexity, yet systems are developed to serve specific business functions such as product development or inventory management. It is also seen that the businesses depend on technology to such an extent that they get completely tangled with each other. As, because systems are mostly developed in functional silos, areas of friction start to materialize and the procedures might be repeated throughout the organization, or even become more complex than necessary. Many companies take a technology-first approach when building/assembling their digital platform, acquiring technology they hope will accomplish their objectives of better experiences for customers, employees, and partners. The truth is, digital technologies in and of themselves create no value. Their power is in enabling a change in how a company operates; that new operating model creates the value.
Achieve True Digital Transformation With Platform
Based on this analysis, Brand Image and Product Innovation are all sustained and above normal. These two items specifically support the ability to differentiate from competitors in a digital platform ecosystem. Brand Image brings and keeps the customer in the ecosystem knowing there will be a content of interest. The product innovation keeps customers in the ecosystem engaged as they are excited for new and innovative products. Both of these areas are extremely important to having a successful digital platform strategy.
Since, depreciation is a basic part of the platform product lifecycle, and inability to consider it might lead to failure in attaining the business benefits as per decided. Dominant digital platforms should be required to offer interconnection to competitors through open APIs to break down network effects that lock in users. In business enterprise terms, a digital platform can be thought of as the sum total of a place for exchanges of information, goods, or services to occur between producers and consumers as well as the community that interacts with said platform. It’s imperative to understand that the community itself is an essential piece of the digital platform—without that community, the digital platform has very little inherent value. The most important aspect of digital transformation isn’t really the technology itself, but the transformation of culture and practices of the organization itself. Undergoing digital transformation requires your organization to change its approach to virtually everything you do.
The SWOT analysis is an environment analysis (David, Creek & David, 2019) to scan the environment and make assessments of how the firm fits. Resource Based View analysis focuses in contrast to the SWOT on the internal tangible and intangible resource strengths and weaknesses . In reviewing the RBV, there is an analysis of the value chain which helps determine whether to outsource or not.
This new version of the web was revolutionary as users could create content and interact via web sites. This user generated content opened a new form of digital marketing strategy for businesses. Many different forms of digital advertising channels were created as web usage statistics continued to show the rapidly increasing number of users spending time on the internet. Since 2004, Nick McKenna, BSc, MBCS Biography has been the CEO of McKenna Consultants. McKenna Consultants is a bespoke software development based in North Yorkshire, specialising in Cloud development, mobile App development, progressive web App development, systems integration and the Internet of Things development. Nick also holds a First Class Degree in Computer Science and wrote his first computer program at the age of nine, on a BBC Micro Model B computer.
Researchers generally divide network effects into direct or same side , and indirect or cross-side . Market participants range from users to advertisers to providers of complementary applications and services. Data and application architecture can be seen merging increasingly as we create more real-time, data-enabled business capabilities, also supporting advanced data science-driven analytics. The application developers shall focus on contributing to the company data stream and selectively tapping into it. There is a need to reduce friction by streamlining the utilization, management, and operations of complex data technologies such as Hadoop, Kafka and Spark. It also needs to expose a self-service ecosystem of present data assets, addressing data strategy issues like data ownership, data lake design and authorization issues.
Ensuring digital intermediary service providers are held responsible for content moderation, data sharing and usage, and regulatory oversight. The European Commission has proposed a new piece of legislation, the Digital Services Act , whose aim is to increase the transparency and safety for users in online environments and to allow innovative digital businesses to grow. Because most social media sites are not run by government entities, the freedom of speech requirements of the First Amendment to the U.S. Constitution do not apply – social media sites are free to permit or to deny access to anyone as long as that decision does not violate laws applicable to private entities.
Understanding Digital Product & Platform Strategy Framework
Even if there is any flaw in API usability or a gap in documentation, it can be an obstacle to the successful accomplishment of the term business value of the platform. You will certainly have to prioritize the developer experience, since any product which no one uses is not a successful product, regardless of its technical merits. Therefore, to attain return on investment for your internal platform, your product development teams will have to utilize it well by understanding, appreciating and being aware of its different features. Companies need to design their digital platform around delivering “important moments” experiences for each kind of user and finding the appropriate metrics.
One is differentiating by having a platform versus not having a platform. Another is when both companies have a digital platform but differentiate from competitors in digital campaign strategies. It provided an open doorway and direct communication to the user at the other end. Through the use of smartphone applications and other messaging on the smartphone, companies could be directly connected with users. A company which provides a technology platform for its customers is considered a platform company.
Many countries’ data protection laws provide special protection for children’s personal data, and data protection authorities and other similar regulators often come down particularly hard on organisations that do not comply with the rules. The Metaverse’s true potential lies, however, not in ever more convergence for its own sake, but in the outcome of that. The Metaverse will be the outcome of the convergence of a range of nascent and extant digital and online technologies. It may start off as a focus for gaming, virtual reality, digital meeting spaces, digital assets (such as non-fungible tokens – see our briefing, Anatomy of an NFT), and perhaps even brain-to-machine interactions, but it will not end with that. Its scope and impact may expand when Artificial Intelligence is included, and when data from the physical world is brought in via the Internet of Things (integrating humans as well as businesses in ever more digital / physical co-existence). This is why BigTech and other online platforms are beginning to acquire software businesses to position themselves for the arrival of the Metaverse.
Are You Ready To Get The Most Out Of Your Platform Investment?
It aims to limit the scope of protection offered by section 230 and to enable social media businesses to be held accountable for enabling cyber-stalking, targeted harassment and discrimination on their platforms. As at the date of writing it is not yet clear what will come of the proposal within Congress. To enable interoperability, data collected by one entity in the Metaverse may have to flow seamlessly between different operators and even platforms. This is likely to constitute direct marketing under many countries’ data protection laws, which could require the consent of the Metaverse users.
Companies prefer to pay for their platforms through non-traditional pricing models. You can start executing microservices with distributed data management capabilities of their own by maintaining a firm boundary between the digital platform and traditional production systems in place. You can go through some integration guidelines to consider during this final phase of your digital transformation attempts. It is generally observed that there is a lot of confusion in the market regarding the commonly used term, ‘Platform’.
Coupled with simplified build, elastic infrastructure and related tooling, deployment, and monitoring allows engineers to deliver quickly and securely, with suitable controls and audit support. This pillar straight away addresses delivery friction, lessening your time for the latest products and services. By following the footprint of their businesses, the firms are seen preferring for either organic growth or growth by acquisition. platform as a service Here is an example, Li & Fung has successfully grown into a $20 billion global organization in the supply network business although its sourcing business does not get involved in the actual production itself. Digital platforms enable a data-driven world rather than a process-driven world. The digital platform handles an end-to-end business process necessary to achieve the improved experience for customers, employees, and partners.
This does not mean that all companies should become a platform but should instead have a strategy for the platform economy. This could be that if not a platform, then partner with a platform to be competitive in this global platform market . This means that one would expect the Digital Platform to change over time. Given the pace of change in modern businesses, this change may occur rapidly!
This model helps the company identify what forces are active in the industry that affects their strategy. Building cost – The infrastructure required to build a digital platform from scratch are considerable. These costs include hardware purchases such as storage discs capable of supporting big data sets and supporting computers.
But bringing all your operations onto the cloud won’t magically empower your organization with some sort of digital wizard powers. While moving to the cloud or adopting other new technologies may be a great idea for your organization, you won’t reap the rewards of a digital transformation without enacting actual change within your organization. In February 2021, the Safeguarding Against Fraud, Exploitation, Threats, Extremism and Consumer Harms Act was introduced into the US Senate (S. 299).