Platform Business

Changing the rules in your industry

It used to be that the main form of distribution in ICT was shipping a CD, provisioning a voice or access service and launching a website. With the rise of the internet new distribution models emerged: software could be distributed as a service, telco started offering bundled services in portals and in the online world aggregating sites emerged. In this second stage the emphasis  was still on shipping more of the same, more licenses, more voice & access products, more mobile phones etc.

When you want to stay relevant (in any industry) you need to differentiate away from selling more of the same, you need to redefine the rules in your industry. That’s what Apple, Salesforce.com & Twillio have done and are doing. This new stage is called platformation. Which in essence is redefining the things you deliver to find new ways to solve your customers problem. And it means that must allow others to create value & margin on top of you, i.e. by delivering less you give way to other enhance your core product. Thus making your platform(!) much more the whole product your customers need to solve their business challenges.