Platform System Thinking: A Long-Term Strategy for Large Organizations

Platform System Thinking: A Long-Term Strategy for Large Organizations

In today's fast-paced world, large organizations need to be able to adapt quickly to changing conditions, customer needs, and technological innovations. One way to do this is through platform system thinking, a long-term strategy that involves building flexible and scalable systems that can support an organization's growth and evolution over time.

In this article, we'll explore the key principles of platform system thinking, the benefits of this strategy, and the challenges and obstacles that organizations may face when implementing it. We'll also discuss the type of culture required to support platform system thinking and the shortcuts that companies should avoid when implementing this strategy.

What is platform system thinking?

Platform system thinking is a strategic approach that involves building integrated, modular, and scalable solutions that can be adapted and expanded over time. At its core, this approach emphasizes the importance of designing systems that are flexible, open, and extensible, so that they can support an organization's evolving needs and growth.

One key aspect of platform system thinking is the focus on developing an ecosystem of technologies, solutions, and services that work seamlessly together to achieve a common goal. This requires collaboration and communication between cross-functional teams and stakeholders, as well as a shared vision and strategy that guides the development of a technology platform.

 Principles of platform system thinking

To implement platform system thinking effectively, organizations need to embrace a set of principles that guide the development of their platform system. These principles include:

·       Modularity: Building systems that are modular and can be assembled with distinct configurations to achieve different outcomes.

·       Scalability: Designing systems that can scale up and down adjusting to the organization's needs and growth.

·       Extensibility: Developing solutions that are open and extensible, so that they can be easily integrated with other technologies and solutions.

·       Collaboration: Encouraging collaboration and communication across and within the teams and stakeholders involved in the development of the technology platform.

·       Transparency: All stakeholders should have access to the platform's resources, data, and decision-making processes.

·       Co-creation: Encouraging cross-functional collaboration and co-creation among teams and departments to develop new solutions.

·       Customer-centricity: The platform should be designed with the customer at the center, ensuring all features and functionalities address customer needs and pain points.

·       Adaptability: Building systems that can adapt to changing conditions and requirements over time.

·       Continuous improvement: Emphasizing a culture of continuous improvement, where teams are encouraged to iterate, experiment and innovate to optimize the platform's capabilities.

By establishing these principles, organizations can create a foundation for long-term success and ensure that the platform system thinking strategy aligns with the organization's overall mission, vision, and values.

 Benefits of platform system thinking

There are many benefits to adopting platform system thinking as a long-term strategy for large organizations. These benefits include:

·       Increased innovation: By building a platform that supports innovation, organizations can create a culture of experimentation and rapid iteration. This can lead to the development of new products and services that meet evolving customer needs.

·       Improved customer experience: Platform system thinking allows organizations to create a seamless customer experience across all their products and services. By leveraging data and analytics, organizations can gain a deeper understanding of their customers and deliver personalized experiences that drive loyalty and engagement.

·       Greater efficiency: By leveraging shared technology solutions, organizations can reduce duplication and create greater efficiency. This can help organizations streamline their operations and reduce costs.

·       Enhanced agility: Platform system thinking allows organizations to respond quickly to changing market conditions and customer needs. By creating a platform that supports rapid iteration and experimentation, organizations can stay ahead of the competition and drive growth.

·       Scalability: Platform system thinking allows organizations to scale their operations quickly and efficiently. By building a platform that can support multiple products and services, organizations can expand their offerings and enter new markets more easily.

 Challenges of platform system thinking

While platform system thinking can be a powerful strategy for large organizations, there are also challenges and obstacles that organizations may face when implementing this strategy. These challenges include:

·       Platform vs. bespoke solutions: Balancing the need for a common platform with the need for bespoke solutions that meet specific requirements.

·       Lack of collaboration: Overcoming silos and encouraging collaboration between different teams and stakeholders involved in the development of the platform system.

·       Egocentric leaders: Managing opposition from leaders who may be resistant to change or prioritize their own agendas over the needs of the organization.

·       Short-term thinking: Avoiding the impulse to prioritize short-term gains over long-term benefits.

·       Buy vs. build: Organizations must carefully evaluate whether to buy or build components for the platform system to make the most cost-effective decisions.

 Addressing detractors of platform system thinking

Despite its benefits, platform system thinking may face resistance from various stakeholders within an organization. Addressing detractors requires a combination of education and communication. Some common detractors and ways to address them include:

·       Resistance to change: This may arise from employees who are accustomed to traditional ways of working. To overcome resistance to change, organizations should provide adequate training and support to help employees adapt to new ways of working.

·       Fear of losing control: Some stakeholders may feel threatened by the platform's open and collaborative nature. To address this, organizations should clearly communicate the benefits of collaboration and emphasize that the platform's success depends on everyone's contributions.

·       Short-term thinking: Some stakeholders may prioritize short-term goals over long-term benefits. To address this, organizations should emphasize the long-term benefits of platform system thinking, such as increased efficiency, innovation, and customer satisfaction.

·       Budget constraints: Implementing a platform system thinking strategy may require significant investments in technology resources and talent. To address this, organizations should clearly communicate the potential return on investment and prioritize investments that align with the organization's strategic goals.

By addressing detractors, organizations can create a culture that embraces platform system thinking, promoting collaboration, innovation, and long-term success.

 Buy vs. build and technology ecosystem orchestration

When building a technology platform, organizations must decide whether to buy or build the necessary technology. Buying technology can provide faster time-to-market and more predictable costs, while building technology can provide more customization and control. Organizations should carefully evaluate their options and consider factors such as cost, time-to-market, and the strategic importance of the platform system before deciding.

Another important consideration when building a platform system is technology ecosystem orchestration. Organizations should consider the broader technology ecosystem within which the platform system will operate and ensure that it is designed to integrate effectively with other systems and technologies.

 Shortcuts to avoid

While platform system thinking can be a valuable strategy for large organizations, there are some shortcuts that companies and teams should avoid taking when implementing this strategy. These shortcuts can hinder the effectiveness of the strategy and lead to negative outcomes. Some shortcuts to avoid include:

·       Rushing to implement a platform system without proper planning and analysis of the organization's needs and goals.

·       Failing to prioritize collaboration and communication between teams, which can lead to silos and the creation of disparate solutions.

·       Overreliance on technology without considering the importance of talent skills, such as communication and collaboration soft skills, which are crucial for building a strong technology platform.

·       Ignoring the importance of building a culture that supports platform system thinking, which can lead to resistance from employees and leaders.

·       Failing to consider the long-term costs and benefits of a platform system, such as maintenance and updates, which can lead to unexpected costs down the line.

By avoiding these shortcuts, companies and teams can better ensure the success of their platform system thinking strategy and achieve their desired outcomes.

 Aspects not to be missed!

To implement platform system thinking successfully, organizations should not miss the following aspects:

·       Create a shared vision: Platform system thinking requires a shared vision that is understood and embraced by all stakeholders. Organizations should work to create a clear and compelling vision that inspires teams to work together toward a common goal.

·       Invest in people: Building a platform requires a combination of technical expertise and strategic thinking. Organizations should invest in the people and skills needed to design, build, and maintain the platform.

·       Focus on collaboration: Collaboration is key to the success of platform system thinking. Organizations should encourage cross-functional teams to work together to develop and deploy new solutions.

·       Design for flexibility: Platform system thinking requires a flexible approach to technology solutions. Organizations should design their platform with an eye toward future growth and innovation and be prepared to adapt as new technologies emerge.

·       Embrace continuous improvement: Platform system thinking requires a culture of continuous improvement. Organizations should be prepared to experiment, learn, and iterate as they develop and refine their platform.

Conclusion

Platform system thinking is a powerful strategy that can help large organizations build flexible, scalable, and effective systems that can support their growth and evolution over time. By embracing the principles of platform system thinking, companies can develop solutions that are more integrated, efficient, and responsive to changing needs and environments.

Implementing platform system thinking requires careful planning, collaboration, and cultural transformation. Companies must prioritize communication, collaboration, and the development of talent skills, while also managing the complexity of technology ecosystems and avoiding shortcuts that can lead to negative outcomes.

Ultimately, platform system thinking is about creating a culture of innovation and adaptation that can support the long-term success of large organizations. By embracing this strategy and investing in the right people, skills, and technologies, companies can build systems that are not just effective in the short-term, but that can also evolve and grow over time, enabling them to remain competitive in a rapidly changing world.