Digital platforms are everywhere – whether you’re shopping online, streaming your favourite show, or transferring money. We don’t even think about them anymore. Remember ordering from paper catalogues? Renting DVDs at the video store? Filling out forms at the bank? Feels like a different era!
But what’s really behind these digital platforms? How do they work? And why are they so essential for businesses today? Here you’ll find clear answers – plus practical examples – to help you understand digital platform strategy in simple terms.
What is a digital Platform?
Supported by artificial intelligence and solid IT expertise, a digital platform links processes, applications, data, services, and users into a value-creating digital ecosystem.
Digital platforms offer businesses and consumers access to a wide variety of digital services and products, often across multiple markets. This networking happens via a central infrastructure that enables participants to interact, exchange data, and complete transactions.
Digital platforms are at the heart of the digital transformation, helping companies streamline business operations, improve the customer experience, and create new value.
Types of Digital Platforms
Digital platforms come in many forms, often overlapping categories thanks to their interconnected nature. Here’s a look at some common types:
Transaction Platforms.
- E-commerce marketplaces like Amazon, eBay or Alibaba connect buyers and sellers, enabling smooth transactions for goods or services via an api (application programming interface).
- Transport and mobility platforms like Uber or Bolt match drivers with passengers.
- Content and media platforms like Netflix, YouTube, and Spotify distribute digital content, from music and videos to eBooks and podcasts.
- Financial and payment platforms like PayPal and Klarna facilitate online payments and banking transactions.
- Health platforms like DoctoLib enable appointment booking, telemedicine, and fitness programs.
Data-Centric Platforms.
- Social media platforms like Instagram, Reddit, and LinkedIn enable information sharing, social interactions, and community building.
- Collaboration platforms can also unlock real-time group work, video calls, and project management (Microsoft Teams and Jira).
Integration Platforms.
- Smart home and IoT platforms like Ring or Amazon Alexa connect and control devices via a single interface.
- Software and cloud-based platforms deliver services like SaaS, IaaS, or iPaaS (Integration Platform as a Service). Examples include AWS, Microsoft Azure, and Lobster.
How Does a Digital Platform Work?
Industries like retail and logistics gain the most from platform development as part of digital transformation. Successful digital platform strategy depends on key principles:
Separation of Technology and User Levels.
A well-designed digital platform’s technical infrastructure is separate from the user experience. This way, users without IT expertise can access services and interact with the platform, while the platform owner handles development, maintenance, and monetisation.
Stable and High-Performance Infrastructure.
A strong digital platform needs reliable hardware, secure data centres, and robust software that can process countless transactions in parallel. It also needs well-designed interfaces (APIs) to connect systems, applications, services, and users. Plus, a secure, scalable database to store and retrieve data efficiently. A user-friendly, scalable interface, often a web application with a graphical user interface (GUI), is essential for smooth user interactions.
A Practical Example.
Let’s see how an integration platform creates real value in logistics:
If shippers and freight forwarders connect to the same digital platform, any shipper can place an order with any connected carrier. The platform ensures real-time updates on order status, with data flowing directly from one partner’s IT system to another’s.
This kind of platform strategy replaces scattered, manual processes with automated, streamlined business operations.
Bilateral Instead of Networked? 6 Pain Points Without a Platform.
Relying on isolated, point-to-point connections instead of a unified digital platform leads to major problems:
1. Higher Costs.
Without an online platform, sales, marketing, and admin costs skyrocket. Paper invoices, phone bookings, and print advertising are slow, manual, and expensive.
2. Insufficient Scalability.
Without an integration platform, every new partner connection requires manual effort. Scaling your network or adapting to new workflows becomes slow and costly.
3. Lack of Transparency.
Without shared data on a digital platform, companies can’t see stock levels, driver availability, or other key details – leading to supply chain delays and poor service.
4. Less Reach.
Without online platforms, global market access is limited. Businesses miss out on network effects and remain reliant on local customers.
5. Poorer Customer Experience.
Without automation, customers face long phone queues and generic service. Modern users expect fast, personalised customer experiences based on real-time data.
6. Lack of Competitiveness.
Without platforms, companies lack data to respond to market changes. Competitors using platform strategies can quickly gain market share and leave you behind.
Economic Advantages of Digital Platforms.
The flipside? Many digital platforms deliver major advantages over isolated connections:
- Easy scalability and cost savings through shared interfaces and support for unlimited users.
- Better collaboration and global reach, helping companies attract new customers and streamline business.
- Greater value proposition through automation, faster processing, extended platform capabilities and improved customer experience.
- Enhanced transparency and competitiveness thanks to real-time, data-driven insights.
- Faster, more informed responses to market shifts via analytics and big data tools.
Lobster’s Data Platform: Data Integration and Process Automation.
Our in-house digital platform delivers all the advantages you need for your online business model.
Lobster supports all major formats, systems, and applications for maximum connectivity. As an integration platform, our solution connects internal systems (EAI), external systems (EDI), and cloud services seamlessly.
Use ready-made connectors to integrate systems easily. Or build your own self-service portals for data collection, analysis, and monitoring all transactions on the platform – no coding needed.
Develop and manage your own APIs independently, with a Lobster partner, or as a service from our experts.
Our digital platform can run in any modern data centre with options for high availability, load balancing, and 24/7 monitoring. Prefer the cloud? Use our platform fully hosted and maintained by Lobster for hassle-free cloud-baseddeployment.
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