The New Automation Mindset

CHAPTER 14The Platform‐Driven Business

“Innovation comes from the ability to see the world in new ways, to find patterns where others see chaos, and to see opportunity where others see threat.”

—Rosabeth Moss Kanter

The concept of platform businesses became popular in the first few years of the 2020s due to the overwhelming success of several platform businesses in a short period. In 2021, 6 of the 10 most valuable companies in the world were considered platform businesses.¹

The unfortunate truth is that the concept of a “platform business” has become somewhat overused and twisted in definition over time. The original definition of a platform company was a company whose service was to connect producers and consumers of various kinds. A few examples are:

1. Uber, which connects those who want a ride with those who can provide a ride;
2. Google, which connects advertisers with those interested in their products;
3. Facebook, which connects friends and family with one another.
4. Apple, which connects app buyers with app sellers.

Not every company can—or even should—make its primary business a platform business. However, every company can benefit greatly from the ideas behind them. We can all apply the concepts that made these organizations wildly successful.

Becoming a platform‐driven business does not mean becoming another tech company. Instead, it means reimagining how to do business in the digital age. These companies are rethinking how they are operating in a world where their customers, ...