The rise of the platform economy: “Are you in or out?”

Online platform trends and relevance for your business 

These days we see a strong shift towards a growing number of digital interactions between users and companies. Organisations are making considerable investments in digitalising their working processes, expanding e-commerce activity and improving their service through digital products. That development is not only a response to technological progress, but also a strategic adjustment to the expectations of modern consumers. The modern consumer is increasingly used to working faster and more easily in digital form.

But: “What's in it for you?” Although consumers go along with organisations digitalising, we notice that their user experience actually declines. If every organisation invests separately in its own portal, the end user has to keep switching between different portals to carry out daily tasks. In some situations that leads to a deterioration in the overall user experience. In specific cases the rise of the platform economy offers a great solution to this problem: companies join forces to create new digital platforms together. That means no more separate customer portals and interaction systems, but one digital platform focused on your specific niche, with usability for customers as its main focus.

Take note! As already indicated, we see joining forces work in some situations only. In other cases it is actually better to develop your own digital strategy and digital environment. Developing online platforms works well in markets with a high degree of adoption around digitalisation. And in markets where a customer often has to carry out the same actions with many different suppliers. Think of wholesalers, aftermarket trade, and manufacturers supplying components for a larger product such as factory lines or ships.

So this potentially sets an important movement in motion that is also relevant for niche or B2B companies. More and more often we see B2B online platforms emerging that focus on a specific audience or part of a sector. What we have to realise is that more and more companies and organisations are only too willing to invest in claiming a central place in the digital domain around the customer. As an organisation you must seize every chance now to respond to this future trend. How can you set up your digital infrastructure now so that you are still relevant later?

Our view on online platform strategyAs an organisation it is important to ask yourself whether you can fulfil a core role as an online platform, or whether it might be wiser to prepare for integration with an existing online platform. As an intermediate solution you can choose to find partnerships with peer companies. That critical consideration allows you to assess your position in the market accurately with the end user in mind. By striving for a more integrated approach, you can avoid burdening end users with a patchwork of separate systems.

It is not only about building separate digital portals, but about offering coherent and user-friendly solutions for end users. By asking yourself whether you can strengthen an existing online platform or would be better off joining a peer platform, you can critically evaluate where your added value is greatest for the end user. That requires a deep understanding of market developments, competition and the needs of your customers.

Our approach focuses on preventing fragmentation and complexity in digital ecosystems. We believe organisations should strive for integration and collaboration within online platforms, with the aim of offering a seamless and valuable user experience. Through that approach we can help organisations develop digital strategies that are not only efficient, but also aimed at meeting the needs and expectations of the end user.

Advantages of developing an online platform

Data collection

Can your organisation fulfil the core role? That certainly has one major advantage: you can act as gatekeeper for all data flows, including those of other participating parties, and you have a unique chance to gain valuable insight. By using an online platform together, you can combine and analyse different data sources. That leads to deep insight into market trends, user behaviour and conversion optimisation, which is essential for strategic decision-making and innovation.

Improving usability together

This development within B2B companies, especially in niches such as shipping and manufacturing, is the growing need for better digital service for customers. These business customers want to purchase efficiently and receive information from companies, preferably in one central location. That is why a clear trend towards B2B online platforms is visible. This shift towards digital platforms in fact serves as an integral part of the vision of companies in these sectors. By offering an all-encompassing digital platform, B2B companies can give their customers a seamless and optimised experience, bringing purchasing, information provision and interaction together in one place. That strategic use of technology allows companies to position themselves for growth and competitive advantage in an increasingly digitalised business environment.

Creating new revenue models

Collaboration within an online platform offers opportunities for developing new revenue models. By offering complementary services or products, partners on the platform can exploit synergies and generate new income streams. That opens the door to innovative business models which would otherwise be hard to realise. Think of revenue models such as:

• Subscription: A subscription model offers you, as a company that may want to set up a B2B digital platform, an attractive way to generate a stable and predictable income stream. By offering subscriptions to business customers, you as a company can count on recurring income in the long term, which strengthens the platform's financial stability. This model encourages investment by providing a solid basis for a sustainable return on investment, where the investment value is increased by the predictability of income.
  
  
• Transaction fees:For companies that want to set up a B2B digital platform, the transaction fee model offers an attractive way to generate income tied to activity on the platform. By paying only on the basis of successful transactions, the financial burden is brought into line with use of the platform. This model encourages investment by showing that the platform is growing and benefiting from increased transaction activity, which gives investors confidence in the platform's growth potential and value creation.
• Brokerage or commission model: The commission model on a B2B digital platform creates a win-win situation for you as an investor and for users. For companies that want to set up the platform, this model means costs are in line with results achieved, which limits the risk. Investors are attracted by the potential of this model because they only pay on successful transactions, which creates an incentive to actively grow the platform and engage users. This model can make investment attractive because of the direct relationship between platform performance and financial return.
  
  
• Advertising model: The advertising model offers an additional source of income without direct involvement from users. By offering advertising space on the platform, investors can benefit from extra income streams. This model can make investment attractive through the possibility of offering extra value to advertisers and increasing the diversification of income.
  
  
• Software licence model: For companies that want to set up a B2B digital platform, the software licence model offers a chance to provide high-quality software functionality at a reasonable price. This model can make investment attractive because it creates direct value for users, which can improve their productivity and efficiency. Investors can benefit from a growing customer base using the software, which increases licence income and raises the investment value.

Take note! A catch to watch for

A crucial aspect when fulfilling a core role as an online platform is being able and willing to separate it from your existing business. That is essential for maintaining credibility, especially in relation to competitors. By keeping the online platform strictly separate from your primary business activities, you avoid conflicts of interest and preserve transparency and integrity within the platform's ecosystem. That strengthens your credibility not only with users and partners, but also with competitors, which is vital for building trust and encouraging collaboration within the sector.