The role of digital platforms in retail
Digital platform as a business model
The platform business model has completely changed the perception of trading. Such well-known companies as Airbnb, Amazon, Alibaba, Uber have completely changed the traditional chain - "producer - wholesaler - retailer - buyer". Online shopping platforms allow you to purchase products and services directly, using simplified functionality for interaction.
Intelligent search tools and recommendation algorithms allow consumers to access a virtually unlimited range of products and services to find the products and services they need. All this has been made possible by artificial intelligence technologies, big data, automation and cloud technologies.
The essence of the digital platform as a business model is to create spaces accessible to third-party suppliers that benefit from independent resources. For example, Amazon started out as a bookstore, but today about 59% of the company's revenue comes from other vendors. Also, companies Microsoft and Apple, in parallel with the traditional production of hardware, own platform business models, Microsoft - Windows, Apple - App Store and iTunes.
Bernand Marie, an international consultant in the field of business and technology strategic issues, believes that today every company should develop a platform strategy individually. However, he notes that it is not at all easy. Researchers from the University of Cologne in their work The rise of digital retail platforms concluded that this strategy requires a strong brand, great opportunities for intense competition, as well as the development of a high-level digital infrastructure, which requires expensive equipment, advanced IT solutions and highly qualified personnel. Digital platforms are great opportunities, but at the same time they are associated with risks.
Digital platform as a unified information space
Digital platform - this definition refers to technologies that are introduced in companies to collect data about business in order to draw objective conclusions. Artificial intelligence, machine learning, large volumes of data aim to create a unified platform. It integrates mobile applications, online stores and offline retail.
Based on information collected from all possible sources, companies are informed about everything they need to know about customers, employees and business. They can make predictions, run ads, optimize work, determine profitable pricing, offer the desired assortment to customers, and more.
Digital platform as a part of everyday life
The transition to digital platforms implies digitization of reality. Online and offline boundaries are blurring, customer demands are increasing, and high-tech services are fast becoming routine. That's why retail companies are changing their approach to information technology. They are not looking for services, but they are building partnerships with IT companies and are serious about building internal teams. And each company already individually decides in accordance with the development strategy of the company, which innovative products to introduce and whether to switch to a platform business model or not.
