Srinivas Reddy’s Weblog

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Marketplaces–Trends and Design

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I would like to share my thoughts related to need, trends & design issues related to Digital Marketplaces in this blog. Marketplaces maybe as old as human history and Digital marketplaces have been also around for some time, may be with Stock markets being the most sophisticated forms of it. While EBay and Amazon made Digital Marketplaces more common, from the Dotcom era, its possibly Apple, with its Appstore model success, that has attracted the most attention for Digital Marketplaces for the mass markets. 

Why are Digital Marketplaces suddenly a craze again? The ease of content consumption and creation by the new Mobile devices has a lot to do with it. In this context its interesting to reflect over statements, “Content is King”, “Aggregation is King”, “Distribution is King maker”, “Contributor is King”. A related interesting article can be found here http://m.theatlantic.com/magazine/archive/2011/07/why-content-isn-8217-t-king/8551/2/  While the business models of different industries are being redefined I find the Big Idea from Strategy Guru Michael E Porter on “Creating Shared Value”  particularly important. The value creation in Network (be it Personal Social Networks or Professional Business Networks) driven growth is the new reality.  While all aspects of Value Chain are important and modern ERP systems have done a good job of automating business process, its how we can harness the Social networks (Employee and Ecosystem) to create Shared value in Digital Marketplaces, the new challenge.

While Apple has shown what is needed to build such Digital Marketplace others are busy trying to replicate it and improve it in different domains. Having products that can delight consumers, are simple to use, offer instant value, consumers can trust the provider and social controls exist on content are some of the key requirements for a successful Digital Marketplace. Building such Marketplaces would have two fold challenge. One hand creating technology/products to run such a marketplace (nice youtube video related to this) and on the other hand having management practices that enable open/transparent collaboration with ecosystem. The current emphasis on “Lean/Agile” processes and “Design Thinking” approaches are important to achieve this. I find the debate on “People vs Process” at the heart of this problem, this article (and comments!) throws some interesting light on this.

In conclusion I can only say there is huge efficiency gain possible in all businesses processes using Digital marketplace approach (and not just @Apple Winking smile). Business network can contribute to making the processes efficient, economical and consumption driven.  The challenge really is building such a Digital Marketplace to support “Shared Value Creation”.

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Written by srinivasreddy

July 30, 2011 at 7:01 am

Posted in Uncategorized

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