Ville Tolvanen // November 16 2017

On Platform Economy

We need new words to develop ideas and phenomena. The old ones might do, but for example the word ‘Nokia’ alone is not enough to describe the upheaval the company went through from conglomerate into a global industrial doer. Through development familiar things get new forms. First there was ADP, then ICT and now digital. I see digital as something that makes ADP true.

 

It seems that many see platform economy as something to be fussed over and, more importantly, separate from the business. The situation is actually the other way around. The word ‘platform economy’ describes the changes, which are happening because of value chain digitalisation.  Health, finance and construction industry, for example, have always operated in a network-like way. The function of platform economy is to take the operation further.

 

Platform economy aims at creating more with less

 

What benefits does moving to platform economy have? The simple answer is more and better business with less. It is not the question of the old not working right, but rather of the possibility of creating more, better and more efficiently. A business that invests in itself creates the best possible life insurance in the process.

 

Knowledge is the magic word of platform economy

 

The heroes of platform economy move their value creation processes online. The operations can be 1) developed together with customers 2) improved and made more efficient with real time information and interaction 3) finding new customers and markets 4) growing business and collaboration with better interaction  and 5) better and more efficient than analogic processes in everything.

 

Unwillingness to digitalise is a sign of underachieving management

 

Many only wish to fix what is broken in business. What we should do is to change things now, while the situation is still good, and constantly seek better results. Growth, success and higher customer satisfaction go hand in hand when change is set as the corporate culture’s shared value. Instead of transformation or change management what you should communicate is shared learning.

 

Header photo by Aaron Burden

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