The need for transformation
In Chapter 1, Fundamentals of Platform Business Models, we covered the benefits of the platform business model in detail, such as the variety of choices and lower prices for consumers, increased revenue and profits for producers, and the distribution of responsibilities for all the parties, hence the division of risk between them. These benefits were also applicable to the non-digital platforms that existed until a few years ago and still exist in some cases. For example, real estate agents who connect home buyers and sellers for a commission or a fee have now moved to the digital world, thanks to platforms such as Realtor.com. The platform business model supported by technology has disrupted almost all industries, ranging from retail, travel, and hospitality to entertainment, housing, finance, and so on.
The disruption caused by platform businesses is unavoidable and organizations that do not realize this change find it difficult to compete. While some...