Giving your platform wings - profitability and efficiency in the platform industry

In our latest whitepaper, Giving your platform wings, we revisit the theme of platform profitability. In the six years since we wrote our original paper on the subject, the number of platforms has continued to grow, with some of them moving into profit. In this accompanying infographic, we illustrate some of our key findings on platform profitability and operational inefficiencies.

In summary:

  1. The platform industry has taken off over the last 6 years, but significant profits still remain out of range.
  2. Margins have fallen while regulatory scrutiny has risen.
  3. Automation is essential, but it can be expensive to implement.
  4. Platforms need to understand where costs are high and where they are likely to get higher.
  5. Outsourcing can get you off the ground faster but can quickly get expensive.
  6. Don’t forget about costs outside of operations.

As demonstrated by a number of firms, there is undoubtedly profit to be made in the platform sector; the question remains as to whether the rest of the pack can keep up.

To download the full white paper, please click here.