Necessary Choice

 

Nike created a wearable platform “Nike+” with Apple based on the fact that almost everyone has an iPod and more than half of them listen to music while running. Nike+ checks real-time exercise activities such as running time, distance, and calories consumed through a censor put inside running shoes. This censor is synchronized with an iPod. Nike also recently introduced “Fuel Band,” a wrist band that could measure all kinds of everyday exercise activities, not just to running.

Thanks to these products, Nike sales increased more than 30 percent. A typical manufacturing company famous for its sports shoes once faced difficulties, but is trying to lead the market again with its healthcare service platform.

According to the industry on July 14, the global business paradigm is rapidly changing as platforms become a huge influence on all kinds of industries. In the recent global business world, companies are rising in the market through a platform ecosystem which connects devices, content, and networks, surpassing traditional companies that simply manufacture things.

The more important fact is that almost all business sectors from IT to the manufacturing industry are attempting to transform themselves into platform companies, as platform providers have competitive advantages to control the market.

Choi Byung-sam, chief researcher at Samsung Economic Research Institute, said, “In the current digital era, companies that create an industrial ecosystem and preoccupy leading platforms win the market, not the companies simply with advanced technology. Transforming into platform companies is not an option any more. Companies without a strong platform will be left behind.”

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