By Alan W
In today’s digital age, success depends on more than just adopting technology - it requires embracing the right business model. For many, that means moving from the traditional pipeline model to a platform model. But why make the shift?
The Pipeline Model: Yesterday’s Standard
Traditional businesses operate linearly: supplier to factory, factory to store, store to customer. While effective in the past, this structure limits growth in a world driven by collaboration and interconnectedness. It simply doesn’t unlock the potential of modern digital ecosystems.
The Platform Model: A New Way to Thrive
Platforms enable interactions between buyers, suppliers, and the platform itself, creating and exchanging value at every touchpoint. They leverage network effects, where the platform becomes more valuable as more people join and contribute. Buyers often transform into collaborators, adding value and fostering a self-reinforcing cycle of engagement.
Consider examples like Airbnb, which connects travellers with property owners, enabling trust and collaboration to create shared value, or Amazon, which provides a space where sellers and buyers interact, with additional value added by services like fulfilment and reviews. Similarly, Uber doesn’t just connect drivers and riders but creates a seamless, scalable ecosystem that benefits all participants.
Why the Experience Matters
Great platforms deliver unmatched value and ease of use, creating trust and loyalty. They don’t just focus on transactions—they build relationships. This shift from operational to relational thinking is what separates platforms from pipelines.
Transformation at the Heart of Platforms
Platforms redefine how people connect and interact, creating ecosystems that drive growth and innovation. They’re not just about technology; they’re about people and the value they create together.
Making the Leap - It’s an Art and a Science
Transitioning to a platform model requires a blend of human-centered design and technical expertise. While challenging, the rewards are transformative for those who get it right.
Work with Alan W
Illustrator: Lisa Williams (Instagram: @artist_llw)