Multi-sided businesses and the platform paradox

The term platform has always been hyped and overwhelmed hopelessly. A plan can be describing as a perspective to which we would be looking at for an opinion – product suits amalgamated together creating a “platform” for moving onto next stage of business. We can take example of a product like Smartphone, which has provided a platform for applications, which may or may not interact with the physical environment, which can further make that as a platform. One of the most innovative services is the cloud which also serves as a plat form, enabling for fast and secure data transmission anywhere.

The establishment of these various platforms has also made business to go into multiple sides such as Apple which develops both hardware and software but also provides support for the issues as per the norms.

The eco-system of multi-sided businesses

We all know about Nokia and how it dominated more than 50% of global cell-phone market in 2007, It had a strong hold of customers as well the suppliers. But a when the apple was launched, it provided a new segment am open platform into the world of technology for innovation. They developed hardware but later too used the help from outside for building the apps and various other technological features. This led to the downfall of the Nokia and by 2013 Nokia dropped down to 3% in market accusation.
Multi-sided business is basically the era of the on-demand business range which provided diverse services on one or multiple platforms and utilizing either in-house or outsourced resources.

Platforms – The network disruption era.

All business models would be ineffectual without unfolding the enabling technologies. Earlier before this era of much competitive technologies, your presence on the web was good enough. But now the technology can be seen creating new business technologies. Here we can take example of Amazon where, AWS is considered as a enriched service sets which allows a developer to scale the offerings which is built using the same technology which, the whole industry book was disrupted.

Similarly Apple provides a platform IOS on which various developers and other business can gather and mutually work upon and interact, this creates them as an exceptionally valued asset.

The Paradox

The “one” mistake that a business organization can make is treating the economy opportunities provided by network as another channel. Here the paradox arises when we say that a business only needs to understand the customer’s requirements but, this is a chestnut. If a product finds a multiple platform to grow then some real tedious opportunities come in place for a business to grow. A multi-sided platform will provide a single interconnection between the business and the customers where each business can be made in a single transaction.

Here the paradox arises that, one may be visionary enough insightful enough to know a market niche and have a executable technology strategy which have the potential to create an ecosystem. For doing this one either have to own an entire space, so that the clients may directly interact or trade, or one must be heavily associated with the creation. There always remains a change even after investing in marketing, branding etc. that all the business might not get through or up to the mark as expected.