Today, networks, platforms, people, and digital technology are essentially blurring the lines between physical and digital spheres, causing a tremendous societal change in the last decade. The sharing and collaboration practices of the Internet is present in our everyday lives and has disrupted the way that businesses do business. Services that we use every day – Uber (disrupting the taxi industry), Netflix (waging a war with the movie industry), and AirBnb (affecting the hotel market) have taken advantage of this opportunity; none of these companies actually own any physical assets. Instead, they create the means of connection; deeming them a “network-based platform.”
A network-based platform is a piece of technology or software that fosters connections between all platform community members to create mutually beneficial business opportunities. These types of platforms have been around for a while, but this approach is now being embraced in SaaS and other cloud-based solutions to drive value for users.
Almost all industry sectors have experienced digital disruption from the digital age. This new and modern world we live in can be scary to many with business leaders fearing to take the plunge into the age of digital disruption. Major enterprise industries are seeing their profits plummet because they are not adapting fast enough to new technologies. Although Construction is an incredibly stable industry, large enterprise companies are understanding that their dominance will be short-lived if they do not adapt to this change.
Collaborative networks through cloud-based solutions are making an impact in Construction’s heavy work space by allowing companies to leverage network-based intelligence and analytics to optimize processes and gain efficiencies. Trading partners can connect and exchange information from one single source, providing a deeper understanding of what is happening within the supply chain. When more members are added to the network, the value of the network increases. This is a phenomenon known as a “network effect.”
Stay tuned to learn how the network effect is changing the world of Construction!