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The Rise of the Platform and SaaS

Submitted by daniel on

The digital landscape has changed much since the early inception of the web. Since the dot com boom in the early 90's we have seen organisations online strategies evolve as well.

In the early days of the web we saw everyone clambering to claim their online presence. They were then often dependent on the search engines to effectively crawl and rank their sites and of course every company wanted to appear at the top of the pile when people were searching for certain keywords or phrases. Companies would pay a premium to optimise thier site in an attempt to get listed above their competitors. 

However once at the site, it was then a question of engaging the customer. So the importance of a good user experience became paramount to try and engage that hard won visitor. This included the speed of which the page loaded, even if accessing it on a slow internet connection or mobile device. From the organisations perspective, the ability to be able to handle simultaneous requests from a large number of users presented its own challenges. 

A mention of usability would be remiss without mentioning accessibility. Since the inception of the web organisations such as the W3C and WCAG have strongly advocated that the web should be accessible to all, including those with visual impairments or hearing difficulties. Sometimes this may be at odds with usability but in most cases a working compromise can be made. This has led to the formation of various pattern libraries that help developers implement solutions that are both usable and accessible.

For many existing businesses or organisations setting up an online presence can involve a lot of effort, and in the large part offers little reward, at least in the short to medium term. They also have to maintain this and keep it up to date and also deal with the complexities of web hosting, search engine optimisation, Social Media integration not to mention Web Designers, Developers, UX Specialists, Testers, SEO Specialist, Scrum Masters etc etc. However, they might feel more comfortable in subscribing to a platform that provides them with most of the functionality they need, along with many others without having to deal with the costs and issues that are otherwise. As mentioned in 'the rise of the platform economy', these costs can be appropriated  'as an operating expense rather than a capital expense'. 

Even larger companies, who have a portfolio of sites that make up their business, may have several sites across different platforms. Here they may look to consolidate their sites to use a single platform. This enables them to benefit from economies of scale, but may place some challenges, as updating a single site often means updating across the entire platform.

We have also seen the rise of the platform in many disruptive technologies. From the likes of Uber who provide a platform to connect Minicab drivers with prospective clients. Now there are platforms springing up all over the place, from companies wanting to offer Plumbers, Electricians, HandyMen/Women, Car Mechanics, Builders, Dentists etc etc 

At this moment in time, the world of platforms seems to have a bright future. Certainly it makes sense to benefit from the economies of scale offered by this one for many approach. However, as we have seen with the likes of Uber, the platform provider is often the real winner with the many being squeezed or having to adhere to the terms and conditions of the platform. It may also restrict innovation at a grass roots level, as the platform may place certain restrictions that differentiate one user or organisation from another. From an end users point of view, the incentives to use these platforms are often driven by cost. Fom a SME's perspective it may offer a viable route into an area that is otherwise fraught with difficulties. Certainly the platform seems to be a key part of the Disruptive Technology wave we are seeing today.

 

Further Reading

Kenney, Martin, and John Zysman. “The Rise of the Platform Economy.” Issues in Science and Technology 32, no. 3 (Spring 2016).

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