Ebay has successfully demonstrated 15 years ago,how it works, yet some companies start showing growing interest in the concept of a multi-sided platform only now. What is it actually? And how can I use such an MSP for my company? It is not only thanks to Ebay, but also thanks to the analysts, that we owe such thoughts.
Many analysts have noted that today companies organized as platforms dominate the list of companies having the greatest market capitalization, pointing out that these, unlike others, continue to grow in an important and exponential way.
So the question is: Can a “normal” company jump aboard? And the answer is yes! Most people can find a way to turn significant parts of their business into platforms. This might sound highly complicated for all those who do not want to know anything about MSP, as they are unaware that their products and services can also be offered as platforms.
An example is the real estate market. These days, a new platform has emerged, called “Homepal”, which is the first website on which real estate can be sold, bought, leased or rented – strictly between private parties, without intermediary agencies and at fair prices. If you have not heard about “Homepal” so far, you will do so soon, because this platform is a success model. To unterstand this,you only need to take a look at the Homepal commissions: 90 euros for a successful leasing, 290 euros for a sale. If one considers that agencies demand three to four percent of the rental or sales price, it becomes clear that the new MPS model is hard to keep up with.
Sure: some are up in arms against MPS solutions, which they consider unfair competition.However they can not stop this trend either. Now, it is clear that not every company can be Uber, Airbnb or Alibaba. However, many companies could gain benefits by adopting elements based on MPS solutions. It is about opening your doors to others, linking customers, linking products in order to link customers, and creating a multi-sided platform.
To take the decision whether to transform an offer into an MSP or not, one must know exactly his customers, know what are their interactions with the company and among each other. It is also fundamental to know that the decision for an MSP means giving up part of the control over the offer. In return, you can do nothing else but to influence the added value you create for your customers: through third-party offers or the interactions between customers.
Prerequisites for this are consolidated brands, a broad customer base and a large number of web-based interactions and transactions. And also a great deal of courage, because an MSP solution might deter traditional customers, initiate a self-destruction of the original offer of a company, and trigger organizational and structural problems within the company. These are high risks,no doubt, but on the other hand, somewhere out there a new start-up is already waiting, which might send a whole sector into the grave with a revolutionary MSP solution. For many, allow me this drastic conclusion, the choices are to adapt or to disappear.