Question

4)

a) Describe value creation on platforms. How does such value creation differ from value creation in traditional organisations?

b) Use a platform of your own choice to illustrate how value creation occurs on digital platforms.

Answer 1

a) Value creation:

So in any platform be it eCommerce,digital marketing etc it is used to represent a business.On the basis of interaction between consumer-producer, Value creator is created. It should be created by the interactions is as per the guidelines of the business platofrm

The value is usually created by understanding the need and requirement from the business, by keeping customer to product service in tact

It help in building the good will of the company.

Digital vs traditional enterprise:

Value creation is the foundation of the organization in any organization,otherwise it will be very difficult for the business to survive in this competitive environment . We can understand the needs of the through the resources and environment of the organization based on that we can add the value to it. Each communication has helped digital platform to survive in a way better than any era before.Even during the pandemic digital world are able to serve the need of the customer.

b) Example of Paytm,:

In India value creation on this platform started by creating awareness first. As soon as India got hit by demonetization this app got a kick start. Nobody had knowledge of such a platform.Campaign adds marketing at this special moment was all it took to reach the zenith in the market. The awareness and complex situation where Indian currency not got banned that had pitch helped customers try the platform. The core interaction should be attractive enough to entice others to join in.Initially it was free It provided many services when it entered the market but later when people got used to it the app started charging for the service

When the client joins in, the process has to be simple and free of annoyance. Because of Paytm's simplicity even a cobbler or a tea seller is able to use this.app