Rise of digital platform-based business models

Today, digital economy is on the rise to an extent where it is overtaking the traditional business models. There is hardly any industry which is left untouched by technology. A new breed of companies, represented as FAANG (Facebook, Airbnb, Apple, Netflix, and Google) are further pushing the boundaries and accelerating the proliferation of technology.

Something which is common in this new breed of companies is they are creating platforms where ecosystems can evolve, collaborate, thrive and benefit from each other. Business in a silo is a doomed proposition.

Something to note though is that the new breed of platforms are all open platforms. Platformification without digitally open platforms will not help. Open platforms help in the evolution of ecosystems, where business models are heading towards.

 

Platformification is bringing different variants of ecosystems into existence

Evolution of ecosystems and marketspaces

In a traditional economy, business models were largely vertically integrated, manufacturing a defined range of products for a wider customer base. The stakeholders faced multiple barriers to effective collaboration – difficulty in partner discovery, channel access, creating communication, orchestration, delivery and settlement between parties while complying with changing customer requirements and regulatory requirements.

But with increasing digitalisation, businesses have been compelled to transform towards horizontal business models and diversify their product portfolios to ensure customer satisfaction. Platforms help create an opportunity for collaboration and to create new ecosystems and marketspaces. Multiple collaborations can be easily set up on the platform based on the market need and how innovative each player can be.

Ecosystems foster co-innovation

When multiple players come together and collaborate, we see an evolution of ecosystems. The main objective of an ecosystem owner is to enhance the value provided to end customer through highly curated solutions that are personalised to match the customers’ requirements. This it achieves through co-innovation with an exclusive set of partners whose offerings are complementary to the ones that the platform owner already possesses.

To deliver this level of personalised experiences for customers warrants the platform owner to be able to highly responsive and dynamically co-create offers to delight the customers. On the other the platform owner will need to get the crux of every offer and subsequent transactions thereof, in order to implement the revenue agreements with multiple partners.

Marketspaces drive collaboration and transparency

Marketspaces, unlike ecosystems, thrive on a plug-and-play business model, wherein multiple participants are allowed to connect to it via the exposed APIs, and create their own solutions to create and exchange value. The main objective of the platform owner in a marketspace model is to enhance customer value by providing the power of choice from a greater variety of products, but also a wider supply of the same to essentially create a long-tail effect.

A marketspace platform owner should possess a robust platform that can monitor the dynamic onboarding and exit of partners is a large ecosystem. The platform should be able to effectively manage revenue models with various players and monetise the relationships efficiently as a success strategy.

Manage, monitor and monetize your ecosystems and marketspaces

SunTec, with the flagship product Xelerate, enables banks to embrace the platform economy and leverage it to their advantage. With the solution, banks can innovate rapidly on their business models and maximize revenue by aggregating and delivering true value to their customers through collaborative partner ecosystems. This it achieves through end-to-end management, monitoring, and monetization capabilities across the value chain.

The out-of-the-box solution, with preset configurations and definitions, can be easily parameterized to suit various revenue monetization models applied across the ecosystem.

Open Banking

Platformification in the financial services industry

Digitalisation across the world, rising number of fintechs and specific regulations like PSD2 in Europe have led banks to open up their data and move towards platform-based business models.

SunTec’s API Business Value Management solution can enable banks transform into true value aggregators by making it possible to manage, monitor and monetise the ecosystem in their platform-business model. Using the solution, banks will be able to

  1. Leverage customer insights to facilitate quick launch of innovative offers and increase customer wallet share through collaboration and co-innovation with the partner ecosystem
  2. Manage the partner ecosystem end-to-end with options to provide extended offerings with partner products & services , partner revenue share and settlement capabilities
  3. Innovate on revenue monetization models with an inbuilt robust price modelling framework
  4. Monitor partner and product performance to maximize revenue in real-time with intuitive analytics driven dashboards

 

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Platformification in the food industry

Like any ecosystem, the food ecosystem is also complex with multiple stakeholders each having their own set of challenges. Different stakeholders in the food ecosystem, right from farmers, manufacturers, retailers, distributors to consumers today operate in silos. Information which exists at each node is not shared with the rest of the ecosystem thus creating gaps.

Platformication can help address this very challenge; a single platform will create a complete picture of the food ecosystem. An open food platform can connect multiple stakeholders together thereby helping in end-to-end value creation.

Key Benefits for the stakeholders are:

  • Inventory optimization
  • Partnerships and collaborations
  • Enhanced capital availability
  • Multi-player orchestration
  • Increased business velocity
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Xelerate®, our award-winning product, will power the Open Food Platform

The primary functionality of the platform is to drive collaboration amongst multiple stakeholders. The Platform hosts catalogue of products were the ecosystem players can list their inventory information. The catalogue is powered by advanced analytics which can bring in the predictability into the ecosystem. Orchestration and implementation of collaborations become easier and can be further developed an additional layer of microservices. Platform believes in sharing the APIs with the value chain players thus helping it grow organically.

 

Create a platform while working with your legacy systems

Platformification does not always mean revamping your entire system. Good news is you can work with your existing system while transforming digitally. Xelerate helps you work with your existing legacy systems. It integrates with your existing system and works on top of it to help you create the platform and ecosystem and marketspace as your business demands. Get in touch with us to know more

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