Digital superpowers, unicorns and start-ups are continuously discovering new and more successful ways to win business. These organizations have harnessed the power of digital platforms to reinvent business models, win over new customers and generate revenue by digitally enabling people and partners to swap information, assets, opinions, services, content and ideas.
Other businesses are struggling to understand how digitalization can be leveraged to achieve the growth they seek. So why not take a leaf from digital natives’ virtual book? Why not utilize the advantages of digital platforms to generate innovation and growth in your own business?
In a recent research report by the BearingPoint Institute it was revealed that companies who diversified their business models and adopted an asset light model centered around an ecosystem to include network effects improved their valuation in 2016 by 65% in comparison to those who maintained a mono-business model. Furthermore, between 2011 – 2016 they managed to generate a growth of 8% versus 4%.
Communication service providers (CSPs), backed with a strong foundation encompassing extensive customer networks and the connectivity so critical to the digital world are in an ideal position. Adopting digital platforms as part of their current mix to drive growth and competitive advantage is the logical next step.
Implementing a digital platform solution doesn’t need to be radical or high risk. There are many ways it can be an evolution that increases value and positively changes the relationship with customers. CSPs can follow a number of different pathways to realize the opportunities offered by the digital platform and unlock the synergies with their existing core business. These pathways result in a higher level of innovation and revenue growth. Choosing the right one depends on business ambition and priorities, as well as the nature of the competition faced – both existing and emerging. It also depends on how a CSP wants to build (and protect) new capabilities whilst aligning stakeholders, skills and culture.