Digital Transformation: The Power of Platforms

In today’s digital age, it’s a common expectation of company leaders to “build a culture of innovation that permeates the organization,” “hire Chief Tech Officers that report directly to the CEO,” and “harness data infrastructure to enable AI.” This may be sage wisdom for some but the roadmap to transformation is hardly one-size-fits-all. For smaller and medium-sized businesses (SMBs) with limited human and financial capital, the necessary steps differ from those of GE, Proctor & Gamble, and other Fortune 500 companies. The good news is digital transformation for SMBs doesn’t have to be complex or expensive. Through the utilization of digital platforms, businesses of any size can take advantage of the power of data to better understand their customer, react to changes in their business more quickly, and utilize partnerships to grow.

According to BLKDG’s strategic accounts lead, Jonathan Georger, “Digital transformation can be elusive, especially for small and medium sized businesses. For organizations that need to make their resource allocation count, investing in platform technology can be the key to unlocking success.”

If you’ve used Uber, Airbnb, Amazon, or the App Store, you’ve experienced the power and benefits of platform technology. Platforms can be used for many different purposes, whether they are connecting a buyer and a seller, connecting a driver and a passenger, or acting as a hub for multiple digital devices. However, you may still have a difficult time defining exactly what a platform is. And, you’re not alone.

Put simply, a platform is the digital infrastructure used to allow technologies, third-party partners, and customers to engage with your business and exchange value. A platform can bethought of as the large, green Lego base on-top of which the smaller yellow, red, white, and blue Lego blocks rest.

An example of this is the Airbnb website and app that connect rental homeowners with travelers. Airbnb’s business is comprised of roughly 57 tools, or Lego blocks, that enable financial transactions, data sharing, and other business operations. Approximately seven of these tools are proprietary and owned by the company itself. However, it’s the Airbnb platform, the green Lego base, that knits these apps together and enables them to deliver value. The platform on which these apps operate ensures that the sum of the parts is greater than the individual parts themselves.

In his 2010 book “Seizing the White Space” Mark Johnson referred to technologies like platforms as, “enabling technologies.”2 The power of the platform is in the way it enables businesses to leverage existing third-party tools to acquire and utilize data, and to quickly and cost-effectively respond to trends and changes. Utilizing platforms allows businesses to engage with customers in a more authentic and personalized manner, and reduces friction between suppliers and operations. The path to digital transformation can be long and circuitous, but platform technology can provide a shortcut to value creation and growth.

Key Questions for Your Consideration

1. What is the desired outcome for digital transformation and what are your benchmarks for success?
2. What skills or capabilities do you want your organization to gain as a result of your digital transformation?
3. How nimble is your current model and where are there opportunities to gain agility and speed when engaging with customers?
4. What innovative product or service offerings can be bundled with existing products and easily delivered via digital channels?
5. Who might you partner with to knit together a digital ecosystem that delivers new and greater value to customers?

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Topics: Shopify Integration, Digital Transformation Setup, Denver Shopify Agency, Denver Custom Shopify Automation