Create Multi-Sided Platforms to Balance Demand and Capacity

Abstract

Technology advances continue to create opportunities to streamline business models. GPS, IoT and Cloud computing enable application development that features greater capabilities. By developing Multi-sided platforms, firms can better balance demand and capacity among buyers, suppliers and partners. Nurturing an asset-light ecosystem enables more direct, efficient and real-time commerce. The following study illustrates a path for growth by an incumbent operator. Balancing user requests versus enterprise capacity while bringing on-stream capital expenditures was never easy. Customer’s dissatisfaction and profit setbacks often occur when consumption, production and fulfilment are out-of-balance until a stable equilibrium is determined. The quest to acquire customers and expand market share is prompting firms to innovate with a strategic digital platform to leverage new capabilities, efficiencies and insights. This paper offers a framework to improve business models that face hardships due to shifting customer preferences, popularity fads and mounting infrastructure investments.