Just over half of companies (50.4%) expect to reduce costs over the next three years due to their platform model. Several of the key value propositions driving platform experimentation are aligned with stated, industry-wide objectives to cut costs, bolster efficiency and optimize productivity strategies in response to macroeconomic headwinds.
While companies are working toward worthy goals and sensible KPIs, there is an opportunity to set loftier ambitions for their platform strategies. A platform business model can enable business transformation and innovation beyond operational efficiency improvements and new touch points with customers. Reimagined profit and loss strategies and new approaches for identifying and responding to shifting needs and expectations from customers and suppliers are just two of the ways platforms could add value in addition to the important yet conservative focus areas currently driving platform experimentation. The platform approach can also be complementary with other emerging strategies, such as subscription- or consumption-based as-a-service solutions.
2. Take a whole-of-business approach
Given cross-business objectives, companies could benefit from establishing a control center comprising decision-makers from across the C-suite to steer their platform strategies. Companies that approach their platform strategy as a whole-of-business concern, not just a tech solution, will likely be better positioned to meet their objectives and maximize the value of their platform investments.
Most companies are seeking to boost profits, improve customer acquisition and scale their offerings with their platform models. At the same time, platform leaders are working toward fundamental business transformation. Yet 71.5% of respondents indicated that the CTO is the primary decision-maker driving the platform strategy at their company. Companies currently planning to switch to a platform model are even more likely to position the CTO as the primary decision-maker for their platform transition (77.8%).