Felista Gor explains digital platforms and how their intelligent use could potentially transform the marketspace.
Technology is ingrained in our lives from our social interactions to education and in day-to-day business. Organizations, new and old, also leverage technology to make new innovations that save them time and money and drive positive business outcomes. Since there are so many options available, it can be challenging for businesses to select the one that best suits their needs. In spite of this dilemma, digital platforms have been found to be the most prevalent, frequently utilized, and a crucial element of every business.
In this article, we will go through what digital platforms are, the different types, and how they can be used to boost businesses.
What is a digital platform?
A digital platform is a collection of hardware and software tools that producers of products, services, and information use to connect with their customers.
The platform economy has grown at an unprecedented rate in recent decades, particularly since the onset of COVID. The digital economy has seen great adoption of digital platforms, with an increased dominance in terms of market value. Some of the most successful digital platforms include Airbnb in the hospitality industry; Uber Eats and Deliveroo in the food delivery sector; Uber and Bolt in the transport industry; Facebook, WhatsApp, and Twitter in the communication industry; and Netflix, YouTube, and Tiktok in the entertainment industry.
Considering these examples, it is evident that digital platforms are playing an increasingly important role in our everyday lives.
How can digital platforms boost your business?
So, how can digital platforms boost your business? Well, there are three major ways.
1. Data collection
The sole purpose of digital platforms is to collect data. Digital platforms allow businesses to access and collect user behavioral data. The raw data gathered can be used by different departments within the business to learn about the behavioral patterns of their customers, that is, how customers think about and use the business’ products and services. With this information, businesses understand their customers better and develop insights that drive the business forward by working towards improving the customer experience.
Microsoft, a tech giant, has taken advantage of user data collected from its digital platforms to develop insights that drive experiences that matter to its customers. They utilize cutting-edge innovations like AI (Artificial Intelligence), machine learning algorithms, and big data together with user data to develop data-driven strategies that are designed to engage customers at every stage and create customer experience tools and strategies to match customer profiles and preferences.
2. Innovation
Businesses often face a key and recurring challenge: new technological trends. It is therefore imperative that businesses stay on top of their game by quickly identifying contemporary trends and technologies in the market and realizing ways to take advantage of them to gain an upper hand against their competition.
RXR Realty, a New York City-based residential estate developer, fully understood the inevitable shift caused by technology and went ahead to invest in digital capabilities that have set them apart from their competitors. Prior to the global health crisis, RXR’s Realty digital lab developed a digital platform called the RXR Realty Tenant App that enables move scheduling, deliveries, dog walking, and rent repayment on the residential side. On the commercial side, the company gains real-time analytics on heating, cooling, and floor space optimization for tenants. The use of a digital platform gave them a chance to pivot quickly once the pandemic hit and gain a strong footing in the industry. Because of the organizations’ use of a digital platform, they became the most sought-after residential service provider in New York.
With digital platforms, businesses can innovate and offer new digital products and services that enhance customer experience and position them above their competition.
3. Data-driven decisions
When a company wants to create or launch a new product or service, the first step is conducting thorough research on the market trends, customer needs, and competition to ensure that they attain the output they predict.
A recent Harvard study indicates that 95% of products and services launched in the market fail. However, conducting research before launching often increases the likelihood of success. In this sense, product or service surveys are one of the best techniques for carrying out research. Technology and the use of digital platforms have made this key activity easy for businesses. Though online surveys are common, digital platforms allow businesses to reach mass audiences and gather information regarding the preferences, demand, and target market for their products and services. With this data, which is backed up by responses from clients, companies can make data-driven decisions such as shaping the prototype, deciding which aspects to add or remove from the product or service, and determining whether the organization’s product or service is a good idea.
In the fall of 2020, Uber carried out a survey using a digital platform across the U.S. and Canada, requesting feedback on what was working and not working on their Uber app. The company reached a mass audience and received 1,00,000 respondents. The survey enabled the company managers to understand what was working well, what was not working, and the app performance, among other data. This allowed them to re-strategize and prioritize their strongholds while improving their weaknesses. Currently, it is the leading digital platform in the transportation industry.
Conclusion
Most businesses are undergoing digital transformations due to technological advancements, and in today’s business environment, digital platforms are playing a key role in fostering growth. As a result, businesses have developed new capabilities using digital platforms that are driving the business value needed to beat competitors.
1 Comment
Such an interesting and insightful piece!