The extent of research and development in the current age yields a range of innovations. A number of solutions in various industries owe these developments. However, many industrialists fail to find an appropriate solution to the challenges despite the fact that the way out is available. The reason for failure is the void between innovators and industrialists. Platform innovation is the practice of filling this void.
This article reveals various kinds of platforms businesses before uncovering the appropriate way to use them for industrial needs.
What is Platform Innovation?
Industries are flourishing with the incorporation of digital technologies. The cycle of innovation is small enough that the consumers experience revisions in products and services every few months. On the other hand, the research on discovering and inventing new technologies is also pacing up every day. With the availability of knowledge through remote access, researchers find the shortcomings in existing products and introduce the appropriate replacements. Thus, both academic and industrial pieces of research are doing very well in their capacities.
However, there was a substantial gap between the two parties. Although both were performing highly, yet they were unable to supplement each other. Platform innovation ensures that the stakeholders from various fields find a common Launchpad to achieve mutual milestones. Industries reach academicians to cope with industrial challenges. It may not always involve academic individuals; in many cases, platform consists of industrialists alone.
The communication between the various parties is constantly increasing considering the trends of past few decades. This is the cause behind the shrinking innovation cycle. By using platform business model, innovations get the appropriate platform to meet the right set of individuals. Although the classification of platforms involves a range of categories, yet following are the four most productive innovation platforms.
This is arguably the most influential platform considering the number of industries disrupted by it. Another indicator is the number of on-demand service providers which have a billion dollar of net worth. The traditional industries for taxi and delivery services, home chores, and wide range of other services are facing a challenge of survival. On-demand innovation platform benefits enable consumers to perform usual tasks with lesser resources of time and money.
The turn of this century brought the advent of social networking sites. Social platforms enable users to make long-term relationships without meeting in-person. They promote global interaction between people of different races, ethnicities, religions, and socioeconomic statuses. Besides, social platforms are also a source of sharing a spectrum of media including pictures, videos, and audios. The interactions between users may or may not involve platform owners or other stakeholders.
Product and Services Platform
Services platforms enable various businesses to utilize the expertise of each other to reach the individual objectives. Thus, these platforms are significant in the current corporate environment where businesses intend to optimize operations. For instance, food delivery businesses as UberEats fill the void between restaurants and consumers. Similarly, it also includes companies which serve as a platform for recruitment managers and job seekers. Upwork is one of the appropriate examples of platform innovation.
Product innovation platform provides the opportunity to retailers and manufacturers to sell their products without keeping a physical workplace. In the process, consumers can purchase essentially any product while sitting in the comfort of homes. Alibaba and eBay are two of the most obvious examples.
These platforms enable the development of all other platforms. Therefore, they include the environment which facilitates the application developers to code and launch software. Three of the most significant development platforms are the operating systems of Linux, Macintosh, and Windows. Once the developers successfully create application software, they use app stores – another type of development platform – for launching these apps.
Despite fundamental differences between various platforms, every platform innovation requires traversal through some of the most generic steps.
Working for Platform Innovation
Every innovation platform carries multiple stakeholders including consumers, businesses, and innovators. Each of these stakeholders has interests which may or may not vary from others. While innovation platform implementation or raising a company which utilizes one of the existing platforms, it is essential to consider following factors which align the development with stakeholders’ needs.
The industrialists and innovators need to perform a SWOT analysis to determine the strengths, weaknesses, opportunities, and threats to industry. Such an analysis will reveal the stability, competition, demand, and probability of growth in various industries. Furthermore, the evaluation of industries unveils the void between stakeholders. By making these assessments, potential platform owners find the appropriate channel for platform development.
Classifying and Framing the Idea
After industrial assessment, platform developers classify the ideas and place them into relevant groups. The reason behind the framing of ideas is to run a feasibility study. This study predicts the performance of platform in various circumstances. Besides, it also forecasts the fulfillment of needs of each of the stakeholders.
For instance, a decent performance of an existing company does not promise as good performance for aspiring entrepreneurs.
Customization to business needs
If an entrepreneur manages to launch a decent company with the assistance of innovation platform, one needs to ensure that the business complies with the organizational needs. It should also adhere to the demands of other stakeholders to avoid rising threats in the industry. Moreover, customization involves building of a prototype which reflects the performance once the service is up and running.
Launching, Consolidation, and Expansion
The innovation platforms are not confined to launching a startup. After making a vital start, a company needs to consolidate and expand using the same platform. One of the most essential capabilities of innovation platforms is the flexibility to scale up with time. It should allow the stakeholders to adopt it quickly. Finally, it also enables stakeholders to learn from this experience.
Digital platform innovation is catching the attention of industrialists for all the right reasons. They fill the most crucial gap between various stakeholders by staging them all at one platform. Devising a promising idea guarantees half of the success in entrepreneurship. The rest of the halves attain success once your ideas find an appropriate launchpad. Contact us today to work with the best innovation platform.