Original article in French: https://pulse-hesge.ch/news_pulse/le-grand-article-avec-stefany-barker-tech-leader-entrepreneuse/
Translated below–
The world is ever evolving so your business model should be too. If you aren't already working on a digital platform business model aka ecosystem model, you’re losing out. Here’s why–
Digital Platform Model: explained
A business model that creates value by facilitating exchanges online between two or more interdependent groups, usually consumers and producers. Our familiar digital platform businesses include Uber or Ricardo; these businesses don’t directly create and control inventory via a supply chain the way linear businesses do. Platform businesses don’t own the means of production— instead, they create the means of connection.
Benefit 1: Win-Win-Win
The consumer wins because she has more transparency into all the providers available and their track record through reviews or a ledger of previous work (think of Fiverr or Upwork). The producer wins exposure to more potential clients and the platform provider receives a commission or other form of revenue from connecting the two.
Norsia illustrated this win-win effect: consumers today make socially conscious purchases. Norsia allows investors to meet that need by creating a platform to connect investment opportunities with a positive impact to investors with clients who demand it as an investment criteria. Meanwhile, Norsia can charge for access to the platform or a commission on any purchases made.
Benefit: Network Effects
Starting a platform is hard because of network effects– a platform gains additional value as more people use it. So when you start, you have fewer users and therefore less value to offer. However, every new user adds more than 1 user of value. Lawka will benefit from network effects since the more professionals are on their platform, the more valuable it will be for clients to find their service-provider via Lawka. At some volume, it’ll be impossible for professionals not to be signed up to Lawka– much like it’s almost impossible for businesses to avoid using Meta (formerly Facebook) advertising today.
Benefit 3: Crisis Resistant
The ‘digital’ part of digital platforms is what makes digital platform business models more resistant to crises. In 2020, during a world financial crisis, the world’s Big Tech companies saw their stock price more than double. TechFace is an event-based tech recruitment company for women, adding an AI-powered digital platform matching candidates to companies has added a revenue stream and made them sanity-crisis proof. What’s more, a platform business holds no inventory
How can your business benefit? Choose your role
For your business to benefit from this innovative revenue model, you can choose to be the platform provider for your sector, a first adopter (which comes with certain privileges such as influencing the direction of the platform) or a participant (which is low risk). So, which will it be?
Stefany Barker, Founder of Girls in Tech - Switzerland and TechFace.ch, ecosystem project lead for Palantir Technologies in pharma and aviation
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