Web 2.0 Solution Platforms – Part 3

Business Value of Solution Platforms

By shifting from building solutions to building solution platforms, companies will increase revenue, reduce infrastructure costs and improve customer satisfaction.

First, solution platforms increase revenue by making services and products easier to purchase, shorten sales cycles and provide up-sell opportunities. For example, many analysts predict music software and online retailers such as Apple’s iTunes will replace music retailers. Companies such as Apple and Yahoo created platforms where customers can research (play sample music), collaborate (music ratings), self-assemble (purchase one song at a time) and consume (download to multiple formats). All of these features shorten the sales cycle because it is easier for consumers to access and evaluate music.

Second, solution platforms reduce infrastructure costs by moving purchasing to online resources and allow vendors to easily measure and discontinue products that do not generate revenue. Businesses in every sector and market report that online sales increase year over year. For most organizations, web or e-commerce sales are much less expensive than retailer or direct sales. Now, these same companies are using new technologies such as web 2.0 and Ajax to help increase revenue. In addition to moving to the web, companies who use solution platforms get direct and instant feedback on what services and products are important to their customers. This allows companies to make faster and better decisions on what products will help build the bottom line.

Third, customers who purchase products or services through solution platforms are more satisfied. Solution platforms provide an environment where consumers can use or demo products such as the iTunes example, research and compare competing products on eBay, and collaborate with other consumers through Instant Messaging (IM) or product and vendor ratings. This additional information reassures consumers that they made the right purchase decision based on their needs which increases their satisfaction.

Conclusion

Companies that understand and embrace solution platforms will be better positioned for future success and even survival because solution platforms are based on user’s needs and wants. Current users have extremely high expectations and their expectations continue to grow. Companies who embrace solution platforms will recognize the real and tangible benefits such as increased revenue, reduced infrastructure and improved customer service.