Digital platforms are technologically-enabled business models that create value by facilitating exchanges between two or more interdependent groups.
Platform business models are powerful because of positive network effects from its ecosystem of connected services, over others building single services.
All platforms constitute three key elements:
- A mechanism to pull producers and consumers;
- An Infrastructure and governance model that facilitates their interactions; and
- A matchmaking facility and learning capability that matches producers and consumers in value-creating interactions and learns from their activity on the platform.
Digital Platforms in a Digital Economy (Launched Oct 2019)
Platform business models are emerging across industries and their relevance is not restricted to startups or big technology companies. Successful platform play by incumbent companies can yield significant performance gains. However, incumbents are only about half as likely as digital natives to embrace platform business models.
As we move towards a world of platforms, every company will need to have a strategy for the digital economy. Not every company may choose to be a platform, but every firm will have to evaluate its participation in other platforms' ecosystems and its relationship with other platforms.
The launch of the Digital Platforms in a Digital Economy white paper aims to generate awareness amongst business leaders on digital platforms by providing examples on the opportunity areas in each of these positions in various sectors, e.g., Information intensive, services-intensive/ B2C, asset-intensive/ B2B sectors. Businesses can play the role of a platform player, capabilities providers or suppliers in these sectors. The paper also covers how companies such as SMEs can leverage on such platforms and the challenges when embarking on a platform business.
The Digital Platforms In a Digital Economy white paper is jointly developd by IMDA and Mr. Sangeet Paul Choudary (Platformation Labs), a best-selling author of Platform Revolution and Platform Scale, who has advised leadership of 25 of the Fortune 500 firms and has also been selected a Young Global Leader by the World Economic Forum. Harvard Business Review has selected Sangeet’s work on platforms as a top 10 business ideas globally for 2017. He is also a frequent keynote speaker at leading global forums including the G20 Summit, the World50 Summit, the United Nations, and the World Economic Forum.
For more information, please contact DEPlatform@imda.gov.sg.