Today Gartner put out a story on Nike developing a new AI capability to enable people to get the right shoe size – apparently 3 out of 5 don’t have the right size. (See link below on Nike’s game changer)
Nike, like its competitor Under Amour, have invested heavily in technology to try to create a platform – get customers/users to connect and provide and receive data that enables them to offer services that go beyond shoes and apparel.
The sports companies are no different to every other major brand organization – the top 30 organizations by brand are, or are trying to be, platform organizations.
The likes of Apple, Google, Amazon, Facebook are obvious and all started out as platform organizations. And all are nearing the $1Trillion market capitalization due to their massive reach and flywheel model.
Others that may not be so obvious are the likes of:
- BMW, Mercedes Benz, Toyota and Honda – using the car as a platform, both receiving and transmitting data
- GE – with IoT technology and sensors, connecting up the huge base of installed engines and machinery
- Walmart – have invested heavily in technology to become a ‘smart technology enabled retailer’ to effectively fight the threat of Amazon on retail sales
- Disney- creating a digital linkage to customers on all their offerings
Platform businesses can create a leverage effect and spawn the ‘flywheel’ models that are all the latest rage (and the subject of a future post).