How to Win at the Platform Game

Many business leaders are overlooking a way to grow their company and capture untapped value. Most of them understand the superior value of business models built around subscription-based software as a service (SaaS) and models built around marketplaces that join together many buyers and sellers. Few, however, understand the exponential growth and value that comes when both of those strategies are combined with data and machine learning models. As well, many leaders simply haven’t considered adding these strategies and models to their own business to create platform economics and growth — whether they’re running a startup, a midsize company, or a legacy organization. But the opportunity to integrate these three strategic elements is becoming a critical business imperative. Companies today compete with one another for human capital (customers, partners, and employees) and financial capital (debt and equity investors). Growth stocks have outperformed value stocks since 2008, a reality that has accelerated during the pandemic. Investors are reallocating more of their capital to growth companies to align with a shift in consumer buying patterns (for example, from Regal Cinemas to Netflix). These facts reinforce the “grow or die” mindset — especially for companies that want to access the best talent, customers, suppliers, and investors