Digitalization is emerging – from marketing online, selling online, and even working online; we
have created a whole world on the internet. We also have a name for this online world –
platform economy. Even though the platform economy is a widely known concept now,
especially when we have people like Jeff Bezoff and platforms like Amazon, it has become an
integral part of how we do business.
Keep reading to find more about the platform economy.
What is Platform Economy?
Networks for economic and social interaction drive the platform economy. These sites are
usually online mediators or application systems. By now, the most popular category is
"transaction networks," also known as "digital matchmakers." Examples of trading platforms
include Amazon, Airbnb, Uber, and Baidu. The next most popular category is the "Innovation
Framework," which offers a specific technology framework that others can develop on, such as
the several individual developers operating on Microsoft's network.
The Rise of the Platform Economy
The growth of these platforms was greeted with a mixed reaction from many. While a lot of
people were enthralled to suggest that platforms can increase efficiency, decrease prices,
minimize inefficiencies in established industries. They also stated that these platforms could
help build completely new businesses, offer stability and transparency for staff, and, in
particular, benefit less developed countries.
Statements in opposition of the platforms typically involve that they may deteriorate
technological unemployment, and may contribute to replacing traditional jobs with uncertain
areas of employment that have far fewer labor protections. They also claim that the platforms
can worsen shrinking tax revenues and that the increased use of platforms may be
psychologically harmful and destructive to societies.
Now that we have understood the platform economy, the question arises: Which technologies
and marketing actions do we need to scale?
The answer is much simple than it appears to be. Here are the strategies that can help you scale
up the platform economy.
1. Cyber Security is the Heart of Platform Economy
Cybersecurity is important to clients who like to be certain that all the best protections are in
operation. Authentication of community members and their actions is the main responsibility of
the owners and collaborators of the platform, even more than in an offline company where
physical validation is necessary.
The security of the platform is essential for both protection and recovery. Properly managed,
platform owners may distinguish themselves through their contribution to security. For starters,
China's DHgate.com, the B2B eCommerce website, declared 2016 as the "Year of Trust and
Safety." The company's collaboration with Authenticateit on inventory monitoring,
anti-counterfeit security, improvements to the retailer ranking system and an escrow program
seeks to create trust among customers.
DHgate.com's insurance programs include a protection scheme, refund of inconveniences for
purchasers, and penalties for false delivery amounts. Not just this, but the Mobilitybooker
platform is also a great platform based on the idea of the platform economy and is very
considerate about the security of the users. If you book a car Park at Dusseldorf Airport, you will
be content that you are safe to type in your details and avail your space conveniently.
2. Collaboration with Make Being Scalable Easier
The critical position of digital stakeholders–such as products or services complements, payment
services, or device creators–can not be overlooked in contributing to complete the network
portfolio and collectively fulfill consumer needs. It compares with a conventional corporation
where vendors are not always connected with the market results. And collaborators will help
owners of networks to scale rapidly. The transparent creativity demonstrates it behind many of
the latest solutions of FinTech firms.
For starters, the modular design of U.S. based Quicken ensures that vast portions of the
production chain are handled by other suppliers, providing advanced services, like automated
and comprehensive fraud detection, and not just basic back-office operations. The collaboration
will, in its simplest form, be a popular approach to the business, as the UK's NoviCap
collaboration with TransferWise and Kantox on foreign exchange services for small and
medium-sized businesses and Sage on accounting software.
3. Data Monetization is the Quintessential Competency
The data produced by the platforms proliferate — whether from an overview of the user
interface, actions, service usage, or efficiency steps, in effect, produces a multiplier effect. Here,
the importance of the data is added in the number of consumers and collaborators in the
ecosystem. Platforms allow data collection and the creation of real-time insights into
consumers, industry dynamics, and operations. However, the rich volume of data and the speed
of smart service enhancement that one can achieve on platforms might be beyond the reach of
the typical business model.
The biggest data-driven advantage is the potential of the network to collect interest by
developing innovative goods and services, optimizing customer engagement, risk assessment,
and growing profitability. These are areas of internal monetization where data-driven
improvements can be of great use within the company. The impact is difficult to measure, and
opportunities are often not significantly increased. One can also accomplish Data monetization
by delivering data-based applications for third parties— which can be a high-margin sector for
platform players.
Alibaba's asset-light model ensures that China's largest online eCommerce firm will invest in
next-generation technology and infrastructure, like cloud storage and big data, to sustain its
competitive advantage. Data — and deeper knowledge of it — is an integral part of the
company's activities. More than 37% of Alibaba's workforce is a science, technology,
engineering, and mathematics (STEM) expertise, primarily working in database administration,
machine learning, and artificial intelligence.
4. Personalization is the Key to User Journey
From the customer's point of view, the guiding factor behind platforms is the personalization of
service that is less product-oriented, than in the conventional corporate environment, and all
about performance. Trying to target people and organizations by personalized interaction
through all platforms on a scale depends on mass personalization.
The goal is to consider the purpose of the consumer and then seamlessly and uniquely
customize each customer's experience and meaning cohesively through channels. Of starters,
Amazon utilizes "value and purposeful inventory control techniques" to promote "stickiness"
with customers. The capacity of the platform to use user data and personalize transactions
would differ by nation and even area depending on data protection laws.
5. Engage Participants Through Sophisticated and Dynamic Pricing
While conventional market pricing practices are directed to collecting consumer costs, price
approaches may distinguish services by providing incentives for greater efficiency and
compensation. A freemium model ensures that consumers have simple, essentially free,
exposure to the site before determining whether they want to be customers or not.
Additionally, pay-as-you-go will have a set monthly income. Growing rates come in use to
control high production, as opposed to reduced pricing in times of low production. For example,
Airbnb has introduced a smart pricing program for all guests on its platform that updates room
rates based on shifts in real-time.
While one may think that the platform economy is complex, once you understand the
techniques mentioned above, you are bound to be successful.
Visit Mobilitybooker to get more information.