Amazon started as an online bookstore, and now, it has revolutionized the retail ecosystem completely. Netflix started as a DVD rental store, and now, it is giving giants in the media industry a run for their money. When was the last time you witnessed a new neighbourhood bookstore or movies-for-rent store run so successfully? What makes Amazon continuously evolve, adapt, and grow? Do you think it is the fact that it is a digital platform? Well, a local bookstore can have a website too. Is it the first-mover advantage then? Not entirely, because we were still consuming media content online before the likes of Netflix came into the picture.
What then has been the most predominant factor in the Darwinian upshot of these platforms in the past decade? The answer clearly, is Data. It is the ever-evolving use of data to learn and create differentiating capabilities before everyone else, that has given these platforms their edge. Digital, in-fact, is just an idea. The revolutionary change lies in the continuous and selfsustaining use of analytics to generate new revenue streams, gain insights into consumers, impart the ability to scale, and among other things, make supply chains more efficient.