• Sat. Sep 24th, 2022

Building a digital platform, key to business success

Bywiret

Aug 8, 2022

The World Economic Forum (WEF) predicted that global digital platform sales will grow to about $ 60 trillion in 2025, with 30% of global corporate sales being achieved through platform business. This is a simple indication of how important it is to build a digital platform for all companies.

Digital platform refers to a virtual space (community) connected to digital devices (smartphones, computers, etc.). The digital platform business is the business that creates value through interaction between producers and consumers in this space, and it is an important factor for companies because it can expand the area to various services based on firm user traffic and lock-in customers.

Digital platforms have grown rapidly, driven by efforts by companies to convert digital since the 2010s, and the non-face-to-face era, especially triggered by a new coronavirus infection (Corona 19) since 2019, has become a catalyst for the “digital transition” of our society.

As evidenced by this, in 2010, only two of the top 10 global market cap companies accounted for seven platform companies by 2021. The important thing is that this trend will continue. Digital platform business in all industries is growing, and it is expected that the growth rate of public and healthcare sectors will be accelerated. The government’s ‘digital platform government‘ plan is also in line with this.

So what is important in the transition to digital platform business? The key technology for digital transition. That is, artificial intelligence, platform, big data, Internet of Things (IoT), 5G, blockchain, and AR/VR. The most important technology in digital transformation is the platform, which means that digital platforms are a basic requirement for business activities in the digital world in the future.

There is no doubt any more about the growth potential of the digital platform business, but recently the business has been lit red. With the arrival of uncertain macro-environmentals such as inflation and interest rate hikes, Corona 19 has entered the Endemics, raising doubts that digital platform business has entered the Red Ocean.

But in experience, it is time for a “reverse-thinking strategy”: this time, we need to use it to strengthen (expand) our digital platform position through acquisitions and mergers (M&A, investment).

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