From Platform Economy to Value Economy
Today the most successful companies are focusing on creating their “Unfair Competitive Advantage” based on the Platform Economy via Collaboration and Knowledge Integration in close cooperation with their customers and partners.
The next logical step for these forward thinking companies is to start crafting their business strategy and Mode of Operations based on so called Value Economy. So, what does all this mean in practice?
Three key things about Platform Economy
The Finnish Innovation Fund Sitra has listed three key things to understand when talking about Platform Economy.
- “The key understanding is that it is now the customers or network members who create value, not the network owner”.
- “ The most successful firms are market platforms that enable interaction between customers and network partners”
- “You don’t need to be present in a factory any more, or in an office, but you need to be present for other people”.
One of the key features working in a successful ecosystem is to realize the voluntary nature of a partnership model. This requires a deep understanding of the mutual dependency that arises from sharing risks, responsibilities, resources, competencies and benefits.
Route to Customer Experience
The critical success factor in developing business is changing rapidly. Business collaboration is becoming the key competitive advantage.
Business Ecosystem (Value Network) is the key to success and Customer Experience is driving market decision behavior. Companies understanding the big picture of Excellence in Partnerships will be the winners. These winners are now moving fast from products to customer need driven solutions and from being a vendor to become a strategic partner for their customers and partners.
When time evolves Customer Experience will drive the decision making. A genuine Partnership Value Network is the key to success.
Price erosion will never end and products are the easiest to be replaced. Therefore it is vital to put the customer in the center of everything and think thru how the shared competencies and resources could be utilized in the best way to add the value for customer´s business objectives.
Value Economy based business development strategy
Enabling good things to the world, society, business partners, customers and people in general can and will make the difference for a company´s business. Making the big strategic decisions based on for example improving the access to education, enabling better elderly care via utilizing technology and digitalization or minimizing the electronic waste via circular economy will have a significant impact.
These type of business values will become more relevant to company´s customers, partners and employees. When enabling the difference towards better environment or life of the people, it will be recognized by many. Normally the first to notice the value what the company creates to the society are from the above mentioned Platform Economy Network stakeholders.
In the end of the day the genuine value is created by transformation of new type of collaboration between everyone. When corporate strategy, business decisions and Mode of Operations is based on the values improving the life of people it will bring sustainable development and most of all; a long-term value based business to company and its business network.
one of the trainers in Managing Distribution Channels training