Digital Platforms: Reshaping Modern Business Models

Industrial Platforms: Driving Production Efficiency

Industrial platforms enable seamless communication between components in the production process, from manufacturing equipment to packaging machines, without direct human intervention. The Industrial Internet promises to significantly enhance production efficiency, reduce operational costs, and minimize downtime.

Rather than developing proprietary software for internal network management, companies can license the necessary tools from these platforms. Furthermore, these platforms often supply the essential hardware required to operate an Industrial Internet system. A prominent example of such a platform is Siemens.

Product Platforms: The Rise of On-Demand Asset Rental

Building upon advancements in the Internet of Things (IoT) and Cloud Computing, a new category of on-demand platforms has emerged. These platforms are designed for consumers seeking to rent assets for a temporary period. Crucially, the platforms themselves typically own the assets they rent out.

Product platforms represent a significant strategy for companies aiming to counter the trend of diminishing returns or zero marginal costs in certain product categories. Their recent proliferation has been partly fueled by factors such as wage stagnation and declining savings, making asset rental an attractive alternative to ownership for consumers.

As with other platform types, data remains a crucial raw material for the operation and optimization of product platforms. An example of a company utilizing this model is Rolls-Royce, particularly in its "power-by-the-hour" services.

Lean Platforms: The Asset-Light, Hyper-Outsourced Model

Lean platforms represent a return to earlier stages of the Internet-based economy, often prioritizing rapid growth over immediate profits. Unlike product platforms, these platforms typically do not own the physical assets they facilitate the rental or use of. Their primary and most valuable assets are the underlying software platform and advanced data analytics capabilities.

Operating on a hyper-outsourcing model, lean platforms extensively subcontract various operational components, including:

• Workers: Engaged as independent contractors rather than employees.
• Fixed Capital: Assets like vehicles or properties are owned by third parties.
• Maintenance Costs: Responsibility often lies with the asset owners or service providers.
• Training: Often decentralized or provided by third-party entities.

Uber serves as a quintessential example of a lean platform, demonstrating this highly decentralized and asset-light operational strategy.

Conclusion: The Evolving Landscape of Capitalist Enterprise

While lean platforms might appear to be a short-lived phenomenon, the emergence and growth of industrial and product platforms signal a profound shift in the operational paradigms of capitalist companies. Driven by advancements in digital technology, these platforms are increasingly becoming the primary means to lead and control entire industries.

Platforms have facilitated a significant transition from product-centric to service-oriented models across a diverse range of new industries. This transformation has led some observers to declare that the era of traditional ownership is over. However, it is not merely the end of ownership, but rather a fundamental shift towards the concentration of ownership and control within these powerful digital platforms.