A platform business model connects buyers and suppliers who can then transact with ease. This model is being seen as the latest trend in businesses of today.

1. Essentials of a Platform Business Model

2. Contents
● Introduction
● Key Success Factors
● What is a Two Sided Platform
● Multisided Platform Business
● Steps To Launch A Digital Platform

3. Introduction
● A digital platform business typically connects producers and consumers of products and
services. The platform enables the users to add value on the platform and engage in beneficial
transactions. The key feature of any platform business is its ease of use.
● This enables more and more users to use the platform. The three main technologies that are
driving the development of platforms is social, mobile and cloud. The fourth major technology
that is being seen as important for platforms of the future is the Internet of Things.

4. Key Success Factors
1. Ease of registering and becoming a user
2. The benefits(or the attractiveness) of using the platform
3. Smooth flow of interaction amongst the users.
Every platform must provide benefits to producers and consumers of products and services to use it for their
advantage:
Amazon provides a host of products at the right price point - which attracts buyers. On the other hand, it gives the
opportunity to sellers to sell on its platform.
The ease with which the users can find products is another factor for the success of the platform. For the seller, the
incentive system and the reputation of the platform are really important as well.

5. What is a Two Sided Platform?
● A two sided platform strategy means that there are 2 sides of a market and both the sides
benefit when the other side increases participation. For example, on a single product
eCommerce platform, if the number of buyers increase the number of sellers also increase
because there is more demand.
● Similarly, if the number of sellers increase the number of buyers will also increase because of
increased variety and lower price of goods and services. This sort strategy ensures that the
platform grows exponentially, if the incentives and ease of usage for both the parties is high.

6. Multi-Sided Platform Business
● A multi-sided platform business model is different from two-sided because here the users do not
create direct value in terms of cash. For example in case of Facebook, although more users are
benefitting the platform, these users are not paying for the service. Facebook is still deriving
revenue from more users, but through advertisers.
● So, the more the number of users, the more number of advertisers would want to advertise and
more the revenue. Other examples of Multi-sided platform model include Google and Facebook.

7. Steps To Launch A Digital Platform
Choose a Niche
One could start with say, a community of technology enthusiasts in a particular geographical region, like a
city. Once the business starts to attract loyal users, one can move into other niches and expand the
services.
Creating Groups In The Niche
Identifying the target audience in the niche is the next key step. Once the target audience is defined, their
needs should be understood and they should be provided requisite benefits for being a part of the
community.
A Unique Selling Point
The third and most important aspect of building a platform is to create a USP for the platform. How are
benefits better than those of other platforms. Suppose, you are launching an eCommerce platform for
end consumers and buyers, then a positioning like ‘The best value for money’ Or the ‘ the latest
gadgets’ could help attract more users on the platform.
Cost Management
Hiring remote teams from an expert player like ValueCoders is an essential for developing and launching a
digital platform business. ValueCoders provides Agile teams that provide adaptable and faster delivery
of Agile software projects.

8. Get in Touch
sales@valuecoders.com www.valuecoders.com
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