Digital And Demand-Side Economies Of Scale: It’s All About Leverage – Forbes
It has likely hit you by now that âdigitalâ isnât a fad.
Across industries, demand for more and better digital experiences is growing. Hot startups are developing new business models and shaking up old industries. And digital platforms like Google, Microsoft, Amazon, Facebook, and Apple are dominating the market.
In response, enterprises around the world are starting digital transformation efforts. Large and small companies alike are rethinking what they sell, how they get to market, and their core brand value proposition. But what is this digital thing, really? How do business and technology work together in the digital age, and how can you capitalize on the new opportunities technology creates?
Iâve spent the past few years working with businesses from around the world, in industries ranging from financial services to healthcare, as a digital transformation strategy lead for a firm that helps others manage their APIs. Some of the companies Iâve worked with are more than 100 years old, while others are early-stage startups. Yet across all industries and regardless of company age or size, I see the same patterns play out.
Here, I’ll provide an insider perspective and some industry examples of companies successfully driving digital transformation for business growth.
Avoiding The Jargon
“Digital” is jargon — what does it actually mean?
As Geoff Parker and Marshall Van Alstyne point out in their book The Platform Revolution, while the Industrial Revolution was about supply-side economies of scale, the Digital Revolution is about demand-side economies of scale. In other words, aggregating massive amounts of demand with a few lines of code.