Over the past two years we are beginning to see the early stage realization of IDC’s projection regarding the 3rd wave of computing, the rise of vertical industry platforms built to:
Facilitate the management and exchange of the huge amounts of data generated by industrial systems
Enable increased flexibility and interdependence of the associated value chain processes.
The elements of such vertical industry platforms include:
General Electric’s “Industrial Internet,” initiative, which seeks to create value from the new business model is a great example. Such activities however aren’t unique to manufacturing, we are seeing them in a range of industries, from healthcare to financial services.
Digital Bridge Partners is currently working with a number of our large clients to develop business models tied to transforming business and operating models, leveraging vertical industry platforms and the value they create. Our work is helping those clients build out the necessary economic, organizational, and market facing structures to turn a concept into reality. The changes involved are significant, and require an agile and intelligent approach.
In our work we have assessed a number of select vertical platforms, including a healthcare systems vendor, a financial services market provider, a Fortune 100 manufacturing conglomerate and a large systems controls vendor, and found that these varied widely in the range of capabilities, articulation of value proposition for the ecosystem and partners, and level of success and profitability from the vertical platform. In a number of future posts, we will address the vertical platform space further, including more detailed discussion on the benchmark work that we conducted and select case studies. Please stay tuned.