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Platform Business Software: What Everyone Needs To Know About Platform

A platform is a business model that builds value by facilitating interactions among consumers and producers. Platforms make these interactions successful by providing a vast and scalable network of users and functionalities that can be accessed quickly, and Tesames can help you out. It's worth noting that a platform is a holistic business model and not just a part of technology. Platforms aren't anything new because they have existed since ancient times during human civilization.

Unlike traditional platforms, digital platforms are more efficient and undertake exchanges at an unprecedented scale. We have the four most successful and popular platforms: Amazon, Facebook, Google, and Apple. However, the rate at which platforms are rising is exceptionally high, and these four can be out at any time.  

What Are the Types of Platforms?

Consider the case of a platform business like Uber and Microsoft, and it's clear that their core values differ. Uber aims to minimize transaction costs, while Microsoft provides the underlying infrastructure that assists consumers in creating. We have numerous platforms, and more are still being developed due to technological advancements. Let's look at the two major types of media:

Exchange Platforms 

These types of platforms focus on the buying and selling of stocks, bonds, cryptocurrencies, etc. These platforms provide an environment for consumers and producers to transact from. Exchange platforms generate revenue from the commissions after users make transactions. They are managed by either of these entities: governments, private companies, or non-profit organizations. Below are examples of Exchange platforms:

Maker Platforms

This type of platform helps consumers to design, create or modify something. They also foster the creativity and innovation of users through content creation. Maker Platforms have a lot of users and have created celebrities on their own. For instance, Youtube's PewDiePie and Instagrams's Dan Bilzerian are some individuals who gained popularity from their respective platforms. We have two types of platforms that fall under this category:

• Content platforms- These are platforms that enable individuals to create and showcase different types of content like photos, videos, texts, and audio. Users are making money from these platforms; you only need to reach a certain degree of followers, subscribers, watch time, etc., to get monetized. Examples are Medium, Tiktok, and Youtube.
• Development platforms- Developing software is much easier with these platforms due to the availability of various tools and resources. Platforms like Wix, GitHub, Firebase, and GitLab are examples of development platforms. 

What Are the Key Characteristics of Platforms?

There are many platforms available in the market. However, the following three key characteristics will help determine the right platform for your company:

• Openness- A good platform must be open to supporting compatibility with other applications. In other terms, they must avail of Application Programming Interfaces (APIs) and Software Development Kits (SDKs) to allow developers to create value on the platform.
• Scalability- Remember to choose a scalable platform to accommodate numerous users and facilitate transactions effectively. Most modern platforms are built to manage vast data and traffic without affecting their performance.
• Modularity- Modular designs of platforms create a more comprehensive portfolio of offerings for users. Platforms have modular systems making them easy to upgrade and modify to the consumer's demands. 

What Is the Importance of a Platform Strategy?

Any great platform strategy must answer these two questions: What is the best way to attract and increase your audience? And how will you turn your technology into the core of an ecosystem? You only have the right platform strategy if your approach seeks to attract the first consumers. Don't just go for any platform because it has excellent features; ensure it is aligned with your users' needs. 

What Is a Platform Strategy?

A platform strategy is a plan to join a market that allows other users to benefit from the presence of others through interactions. Formulating a platform strategy is crucial for businesses and needs special tools to be approached successfully. Come to think of it, your platform strategy contributes to more tremendous success than the concept of the platform itself. Creating a platform and seeing it succeed is hard.

Why Is a Platform Strategy Important?

Creating a platform strategy is among the most effective ways to grow your business because it involves exchanges between different parties. Having a platform strategy is crucial in the following ways:

Building networking effects 

Even the most successful platform relies on network effects, which result from increasing its values by gaining a larger audience. Before pricing your products, you should consider the readiness of your consumers to pay for the value that your product or services offer. If your platform strategy can attract many users, the greater the network effect and value created by the offering. 

Reducing transaction costs 

Platform strategies have played a significant role in continuously reducing transaction costs. With platforms, there are frictions because of the eradication of intermediaries and blockchains. When you integrate an efficient interface into your business model, your platform creates value for consumers. For small-scale businesses, this is a significant chance to maximize growth because they can self-organize around potentials and flourish a minor relationship.

Platform strategies support ecosystem creation

Ecosystems are built around data platforms and provide data for the company and other stakeholders. Organizations have to collaborate and work towards achieving a similar goal while satisfying their consumers. When ecosystems are created, there are excellent interactions among various parties, leading to innovative new products and services. 

Conclusion

Platforms are the talk of the town in most businesses today. With the right platform, you can create value and boost the growth of your business. We are ready to serve you by providing and guiding you in all you need about platforms and platform strategies to network effectively. Reach out for effective platform services.