Platform-driven ecosystems can allow companies to grow at a faster pace through the network multiplier effect. Apple, Google and Amazon have mastered this approach. The rapid adoption of their platforms by broad communities of developers and users has spurred astonishing value creation and very high profit margins.
Other companies are now following suit, seeking ways to leverage these networks to drive sustainable growth in faster and economically smarter ways. As more companies interconnect, more revenue will flow through these ecosystems, providing more opportunities for profitable partnerships.
In short, platform-based ecosystems are the new plane of competition. The tools and techniques are converging today, and the data and sources of data are readily accessible. It is vital to have a widespread shift in mind-set toward platform-based ecosystems, and leaders are finally making that shift now.
An increasingly urgent challenge for other global players is that they must quickly determine which platforms and ecosystems will give their organisations a competitive advantage and cement their roles in the digital economy.
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