Technology has paved the way for future business prospects. If there is something which is influencing the beneficial changes, these are digital products and digital platforms
You might notice entrepreneurs are often doubtful between digital products and digital platforms. These two, although, are complementary but possess distinctive features. If you seek the appropriate knowledge about digital products and platforms, stay with us for a meaningful analysis.
What are Digital Platforms?
In any business, there are two factors involved: Customers and suppliers. The regular marketplace and shopping malls are the platforms between these two primary aspects of offline business. Just like this, digital platforms open the way of communication between customers and suppliers. A system or online interface remains involved that allows such business transactions.
For a better understanding of digital platforms, take a look at some real examples.
Media-sharing platforms like YouTube, Spotify and Vimeo allow media and entertainment service providers to conduct business.
- Knowledge-sharing platforms Reddit and Quora aid the communication between readers and professionals from diverse backgrounds.
- Uber, Airbnb and GrubHub provide travelling or accommodation services to customers through their mobile or web-based solutions.
- Facebook, Instagram and LinkedIn are other popular social media platforms for business transactions.
Rethinking Digital Product!
On digital platforms, suppliers are selling some products/ services. These products come under the group of digital products. But, digital products only cover the items that include software services, better say intangible entities.
Take the example:
- Facebook
- Ebook
- WordPress
- Video game
Well, you can convert some digital products into physical ones. For example, readers can print ebooks for convenience.
Digital products vs Digital Platforms
As you’ve understood the basics of digital products and digital platforms, let's proceed to their distinctive features.
Circular vs linear model
Digital platforms consider a circular mode of business. Here, seamless communication between customers and suppliers is conducted. Based on this, the system adapts to more valuable services. YouTube is a great platform where hundreds of content creators share valuable information. By analysing the viewer's feedback and responses, creators bring changes. So constant communication between viewers and content creators opens more business opportunities.
In contrast, digital products offer a linear model for business. The ultimate intention is the production and selling of products to clients.
Video gaming companies like Sony Group and Microsoft Gaming produce video games and sell them to gamers.
Complexity
How digital products operate a business is simple and follows single revenue opportunities. There are two processes involved- manufacturing of products and selling to clients.
Comparatively, digital platforms operate a business in a more complex manner. Content creators and customers both have followed multiple revenue streams. Besides, B2C, B2B & C2C- all types of business transactions are possible through digital platforms.
Business models
The business model for Digital products incorporates three foundational aspects:
- Creating a consumer base
- Providing the services
- Maintaining business standards with proper T&C
On the other hand, Digital platforms include some other aspects as well.
- Audience base creation
- Connecting consumers with suppliers
- Providing services for excellent user experiences
- Maintaining standards and T&Cs
Networking in digital business….
Lastly, Digital products and Digital platforms vary greatly in terms of networking bandwagon. Uber, a digital platform, adds an indirect network between customers and cab drivers. In contrast, the Uber application, a digital product, offers direct networking between users and the Uber company. Need digital marketing services in Australia? Get in touch with Your Flow Australia today for the best digital marketing assistance.