In recent years we have seen a great deal of speculation about how the big tech players such as Amazon, Google, Apple and Microsoft would bring their platform business models to healthcare and disrupt business as usual. This has proven to be a more difficult hill to climb than expected, but the platform business model goes well beyond the platform natives in big tech. In a podcast with Vince Kuraitis and Randy Williams, we explored the nature of platform business models, how they differ from traditional business models and how they may impact the future of healthcare.

Traditional business models create products and services through production side integration that are delivered in a linear value creation process. Value capture is through optimization of production and the focus is on owning the supply chain. Gatekeepers are common and consumers experience friction when trying to access services. Rapid Covid tests are a great example in healthcare because they are developed manufactured and distributed by producers while consumers must go through gatekeepers to access.

Platform business models unlock new sources of value both on the creation side of the transaction, but also on the consumption side. Their function is to facilitate matches and consummate exchanges of goods/ services, thereby creating value for all parties. Platforms are usually less constrained by owned inventory. Often by using data and digital tools, platforms improve customer experience by increasing access to products, matching preferences, increasing convenience, and eliminating gatekeepers.