Platform Strategy A Framework Guide for Businesses Bain & Company

At this stage, the platform owner has critical choices to make about the structure and boundaries of the platform. Should the network be completely open to anyone or have strict standards for who can contribute? The trick is to find the right balance between speed of innovation and growth (generally, a more open platform) and the level of quality control needed to maintain the platform’s reputation (a more closed platform).

  • These companies also try to establish new control points that will be difficult for platforms to replicate.
  • It’s easy to conflate the terms “software” and “platform”, but the two are distinct and have their own functions.
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  • Now, employees with no programming experience at all can come up with solutions on the fly using technology platform examples like Lumavate, Appsheet, or Adalo.
  • These are cross-functional teams that include software architects, cloud experts, data analysts and business application specialists, among others.

In some cases, Grab has turned to dealmaking to execute its vision more quickly, such as acquiring Uber’s Southeast Asia operations and forming a joint venture with Singtel to offer digital banking services across the region. We deliver people-inspired business solutions to our clients. Embracing the powerful combination of technology and agility, our award-winning team delivers platform development that inspires possibility.

Our platform development services

Successful companies design their platforms to continuously improve. They establish key metrics to track their core transaction, such as the number of rides taken in a ride-sharing app, then design feedback loops to test assumptions and quickly adjust. All of this is done with an eye toward creating a “flywheel” of network effects that will help the platform scale up. The ubiquity of internet access has caused a sharp rise in the number of businesses offering platforms that connect users for communication or commerce. Entrepreneurs are particularly drawn to these platforms because they create significant value and have modest operating costs, and network effects protect their position once established—users rarely leave a vibrant platform. Our platform development lifecycle is complemented by the maturity levels from the Capability Maturity Model Integration (CMMI).

Good technology matters, of course, but a more important predictor of success is whether the company can recognize a customer need and imagine a new way for a platform to serve this need better than what currently exists. This gut check is especially important for companies that want to convert an existing product into a platform business. Leading companies invest in detailed research into target customers, look for their unmet needs and expectations, and quantitatively validate how well the proposed platform would stand out from competing offerings.

Our Platform Strategy Insights

The company later opened up the platform to be a hub for third-party applications. These innovations have deepened John Deere’s relationships with customers and strengthened its core equipment business, ultimately helping the company to nearly triple its market capitalization since 2011. A digital platform can standardize business processes—making workflows more efficient and transparent—so a company can better manage internal functions and satisfy its customers.

digital platform development

Relevant technologies will also improve, exposing the need to revise aspects of the original architecture. For those that are establishing a platform, we can help you discover your customers’ raw need as a critical first step in finding new ways to satisfy it. Not every company will own a platform, but platforms will likely affect every business in some way.

What are the benefits of Platforms Strategies?

In turn, the platform-as-a-product mindset will better serve the overall business. For example, a carefully architected platform built with common development patterns in mind can allow a small team of 5 platform engineers to support upgrades, services, and automation for more than 500 internal developers. At its core, platform engineering is designed to eradicate these modernization side effects. These teams are responsible for building, evolving, and managing the internal development platform (IDP) and act as a conduit between developers, operations, and security teams. Not surprisingly, it starts with understanding users’ needs and scouting new ways to serve them. Leading platforms also analyze the strategies of soon-to-be competitors in related sectors and geographies.

digital platform development

Use cloud DevOps practices to bring new software applications into production faster. Launch to a warmed-up community of customers who are already loyal to your brand. With the value proven, the team can build out the platform capabilities defined as critical for fulfilling the organization’s digital ambition. Regularly revisit and redefine the ambition and related capabilities to adapt to changes in the market.

Value co-creation in service logic: A critical analysis

Examples include cloud-native application architecture, Agile/DevOps application development methods, event-driven architecture, and so on. Most DBTPs are built in the cloud, partly to minimize upfront costs and allow the platform to go live quickly with limited budget. We also supported a European post-and-parcel services company that was facing growing competition from e-commerce and logistics platforms.