Platform thinking: the latest insights from valantic

From content brokerage and freight brokerage to smart home applications: Digital platforms have become modern marketplaces, reshaping the distribution of goods, services, and value-added features. At valantic, we know how to leverage digital ecosystems to help you achieve your business goals. 

Digital platforms: uniting multiple players for success

Upstream & Downstream

A powerful platform is defined by its robust and high-quality upstream and downstream ecosystems, which ensure a diverse representation of both supply and demand. The larger these two ecosystems, the higher the likelihood of alignment and successful transactions.  

Digital marketplaces simplify transactions by offering the necessary infrastructure – not by generating direct value themselves, but by providing an optimal environment. Web-based platform operators typically generate revenue through membership fees or transaction charges. 

Tailored infrastructure: the focal point of platform thinking

At the heart of platform infrastructure lies the matching algorithm – a predefined set of parameters designed to optimize transaction matches between upstream and downstream stakeholders. This core function is supported by a range of interconnected components that form the technological backbone of a platform as a “connected business”. These essential elements include standardized interfaces, user and role management, device management, as well as product models and catalogues.

Efficient platform ecosystems management

Targeted management strategies enhance the appeal of digital platforms by lowering entry barriers and ensuring mutually beneficial transactions for all participants. Key steps to increase relevance include implementing a seamless technical integration, standardized onboarding, efficient matching and billing processes, and prominently positioning key players. In addition, ongoing curation is essential to ensure that primary players are present on both ends of the platform.

The perks of the platform economy at a glance

• Prioritizing algorithms and technical infrastructure over capital investments: Unlike traditional businesses, platform operators require significantly less capital investment. Their primary role is to provide the infrastructure that enables the efficient utilization of external resources (e.g., vehicle seating capacity). 
• Disrupting established supply chains: Platforms enhance marketplace transparency through advanced search and matching algorithms, allowing companies to reduce resource procurement costs. This disrupts existing intermediaries, whose operations may be inefficient. 
• Increased efficiency via the platform effect: Successful digital marketplaces can experience exponential growth by harnessing network effects, all while operating with minimal assets. Their value lies in intangible assets like software, algorithms, and data.