Platform Economy:

Platforms act as a foundation that promotes value-added interactions between external producers and consumers.

Platforms provide a participatory infrastructure for the exchange and regulate the process.

The prime focus for the evolution of a Platform is on creating added value for all participants based on information being consumed and interaction.

Platform Economy can be regarded as the counterpart of the Pipeline Economy. In the Platform, the generation and the provision of added value classically carry out individual, linear work steps, where-in the producer works step by step on the product or service until the final result is made available to the customer at the end of the value chain, thus facilitating added value within the platform or across platforms.

Platforms have existed for decades now and are not an entirely new phenomenon. Various Shopping centers that connect merchants and customers in the form of end-users that enable their advertisers and subscribers to exchange information are a form of a classic platform.

The diversity of platforms are based on an identical ecosystem comprising of four actors:

• The Owners: are the owners of the intellectual property and the platform and control it.
• The Providers: are the primary interface and access to the users. Producers create the content, while consumers create this benefit so as to maximize the content exploration/experimentation
• The Roles of the participants are and shall remain flexible, and
• The Consumers: today’s consumers may be the producer of tomorrow.

The same can be explained as Platform Participants in the pictorial format as:

Network Effects:

Network Effects are the engine of any platform and drive technological progress as these point to the number of platform users’ impact on the value-addition.

20th Century witnessed Supply-based Economies while in the 21st Century Demand-based Economies of scale have emerged and are evolving via taking advantage of technological progress on the demand side of the value chain and are vigorously promoted through marketing campaigns in social networks or advances in app development to increase the value of the network in the context of its end users.

In the platform economy, these network-based effects give rise to difficult advantages for competitors to overcome which form the foundation for economic success and one of today’s most relevant competitive advantages and form the basis for positive network effects.

Positive Network Effects describe the ability of a large, well-managed community of a platform to generate significant added value for each user distinctively.

The Adverse Network Effects (counterpart), explains that a poorly managed platform community can reduce the added value for the individual user. Adverse network effects happens when:

• growth is fast and uncontrolled or
• when the correct matches of suppliers and demanders are missing or poor quality partner matches.

Whatever may be the case, Network Effects ensure the development of the platform and its added value.

Based on these effects, it may be worthwhile for platform operators to make a significant investment on one side of the market to attract a new user base to the platform, as long as the profit from the other side of users justifies and exceeds this investment and creates a profit sell side choices.

The Challenge:

Phenomena such as digital transformation, platform economy, and associated disruption constantly change companies’ internal and external environments, as the intermediate processes are under flux.

Existing business models within the pipeline economy are falling a prey as victim to the platform economy and the accompanying new competitors, while network effects on platforms are accelerating this process to expedite in adding more value addition. The organization faces the challenge of managing this disruption and transformation with the help of its employees.

Conclusion:

In theory, intrapreneurship is a central building block that ensures the future viability of organizations.

Intrapreneurship is an essential factor for organizational growth as it ensures that a company regularly adapts to new market conditions and thus stands out from the competition. Intrapreneurship significantly impacts an organization’s profitability and ability to survive.

As a part of digital transformation and being technology innovators making use of learning experience platforms at mPowerO, we are well versed on understanding traditional business models across industries and that can be reshaped into platform business models to facilitate accelerated growth, in order to adapt with digital innovation.

Our aim is to facilitate in co-developing the business platform concept together with our clients while we help structure the technology framework that will enable the digital platform to go live in the shortest possible time, hence providing an end-to-end solution that encompasses business and technology, making mPowerO a pioneer and a one-stop shop for our clients’ platform transformation journey.

The digital revolution has brought new network-based value chains and “coopetitive” business models. Traditional, linear value chains with their competitive business models – otherwise known as product-based business models – are striving to/have been replaced by platform-based business models as platform-based businesses are winning & hence thriving with more enhanced visibility and profits.

As the transformation to digitalization continues to evolve, now are exciting times for businesses who want the opportunity to get us there collectively through the implementation of SDGs and allowing us to guide platform privacy, security, and ethical standards.

The platform revolution has opened up myriad new opportunities/challenges in meeting global sustainability goals.

An LXP such as mPowerO, can help you in an end-to-end training development solution, from identifying the right skills to building them while providing an impactful learning experience, across various verticals & industry sectors, for organizations, in order to achieve sustainable growth.

For instance, as the distributed workforce do not have time to learn, they need an OJT platform that is mobile-friendly as they are always on-the-go, to remain on par with the competition and technological evolution.

Upskilling Frontline workforce with Learning Experiential Platforms (LXP) driven by the latest advanced technologies is crucial to get the most out of this valuable resource. By creating a culture of continuous, interactive learning/training through on-the-job training for the frontline staff via m-Learning with LXP tool from mPowerO, a frontline workforce enablement solution, can help train the frontline and take them to the desired next level, to achieve desired goals.

mPowerO platform can assist in managing the complete lifecycle of a frontline, from onboarding to moving them up the career ladder by empowering them with the right skills and knowledge, with an improved performance.

OJT with the right mix of the latest technology via an automated skilling platform creates uninterrupted learning/training and seamlessness in a hybrid work model/environment, thus promoting impactful learning experiences.

An LXP can be a definitive helping hand in providing impactful personalized learning/training experiences in order for the employees to be successful and also the organization.

An LXP powered by the latest AI could further keep up the Frontline workforce up-to-date through micro-learning content merged with AI content recommendations along with an advanced data analytics platform to showcase the outcomes for better learning/training outcomes and learning/training experiences.

For upskilling Your Frontline workforce, mPowerO provides continuous support and is an end-to-end offering to Online Learning Platforms/Solutions, Digital Publishing Solutions, Upskilling/ReSkilling and Skilling training opportunities for medium to large companies.

mPowerO has evolved from being an Online Learning Solution (LMS) to serving as LXP in order to accommodate larger targeted audiences for educational/publishing and skilling requirements of various medium to large organizations/enterprises.

Talk to our expert team members for a deeper understanding and more related information.

Reach out via email at info@mpowero.com or visit us at https://www.mpowero.com/ for more information.

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