It's The Age Of Platforms

Platform businesses operate in the realm of connectedness, creating value not just for themselves, but for stakeholders too.

- Dr Abhishek Narain Singh

According to Accenture’s Digital Economic Value Index, 25 per cent of the world’s economy will be digital by 2020—which was 22 per cent in 2015 and accounted for 15 per cent in 2005. Over the last decade, this avalanche has come as a ‘digital culture shock’ for many, be it organisations (of different nature and sizes), governments, society, or individuals.

Primarily, this is because of the disruptive technologies that have come in many waves post the internet. Smartphones, ecommerce, social media platforms, and apps are few examples of these waves. Thanks to the connectedness— anytime, anywhere—feature of such technologies that power them with the advantage of network effect that it has given birth to the concept of networked economy. And in recent years, the rise and tremendous growth of digital platforms has shifted it towards the platform economy.

As described by John Hagel, a senior leader at Deloitte, “…platforms help to make resources and participants more accessible to each other on an as-needed basis. Properly designed, the platforms can become powerful catalysts for rich ecosystems of resources and participants.” He argues that platforms are supported by global digital technology infrastructures that help to scale participation and collaboration to derive value for all. The key elements of a well-functioning platform include a governance structure—including a set of protocols that determines who can participate, what roles they might play, how they might interact, and how disputes get resolved—along with an additional set of standards to facilitate connection, coordination, and collaboration, which is the core of a platform model.