TITAN - TREADING THE PATH FROM EARLY DISRUPTOR TO PLATFORM COMPANIES: Accenture
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PLATFORM COMPANIES:
TREADING THE
PATH FROM EARLY
DISRUPTOR TO
PLATFORM
TITAN
PART 1: THE INDUSTRY
WE CAN’T LIVE WITHOUT
1 A Diverse and Influential Sector
Affecting All Areas of Life
Social networks, search engines, cloud software providers and ride-sharing
companies form an influential and fast-growing group of Platform companies
which are reaping huge rewards by disrupting existing industries. Despite
varied offerings and widely differing sector focus, these companies have
much in common.
They need to grow fast or risk being left behind, and the pace of technological
change offers little time for reflection, analysis and decision making. If they
are to join the “Platform Titans” that dominate the sector they will face similar
challenges as they scale their businesses and expand globally.
In this three-part series, we look at the hurdles that all Platform companies
must overcome to expand and mature in a fast-moving and unforgiving
environment. In part one we look at the types of companies that make up
the Platform sector and the impact they currently have on virtually every
facet of work and life.
Two of the most widely recognized platform
companies in the world are Uber and Airbnb.
Digitally driven, they have come from nowhere
to disrupt long-established sectors, taking
incumbents by surprise.
But the disruption that Uber and Airbnb have
brought to the taxi and lodging industries
respectively is not new. They follow a long
line of digital-centric companies— Amazon,
Alibaba, Google, Facebook, Salesforce,
Tencent and others—that have rewritten the
rules of competition in their industries and
left incumbents struggling to catch up. Their
ability to disrupt established industries such as
media, communications and retail has helped
them become some of the most valuable
companies in the world: “Platform Titans”.
2These companies are reshaping the global economy and transforming how we work
nd live. They have entered a variety of sectors ranging from traditional software and
consumer devices to media:
eCommerce & payments companies Search and information companies
are disrupting and transforming retail use content to drive advertising
and other forms of commerce. revenue based on numbers of users
and levels of engagement.
Devices such as smartphones
and fitness trackers are blurring Social networks enable users to
the lines between entertainment create and share content but are
and information, creating new mainly driven by advertising revenue.
competitive arenas in video, gaming,
Over-the-top (OTT) media
and virtual/augmented reality.
companies companies using the
SaaS and cloud now include not internet as their delivery mechanism
just pure-play SaaS companies but are rapidly capturing audience share
established software companies from traditional communications
moving their businesses to become providers.
SaaS- and cloud-enabled.
On-demand companies such as
Uber and Airbnb represent the
fastest-growing, yet smallest, sub-
segment of the group. Exclusively
platform-driven, they use
e-commerce to satisfy a wide
range of consumer needs.
3Platform Titans now represent a significant portion of the global economy. Per a recent
Accenture analysis of nearly 250 leading Platform companies, Titans generate more
than $1 trillion in annual revenue and are valued at more than $4.7 trillion.
By far the largest portion of this revenue comes from eCommerce and Payments.
But the industry is highly diverse, with no single segment accounting for more than
one-third of the total.
PRODUCT CATEGORY 2016 REVENUE 2020 REVENUE CAGR
($B) ($B) 2016-2020
eCommerce & Payments $308 $597 18%
Devices $246 $297 5%
SaaS & Cloud $223 $314 10%
Search and Info $128 $217 14%
Social Networks $89 $181 19%
OTT Media $20 $34 14%
On Demand $13 $39 32%
TOTAL $1,027 $1,679 13%
Source: Capital IQ, CB Insights, company websites, Accenture analysis
All seven categories will grow rapidly in
the next several years: Accenture predicts
growth revenue of 13 percent from 2016-
2020, three to four times the growth rate of
most other industries. On Demand services,
though currently the industry’s smallest
segment, is expected to experience the
biggest increase in revenue over this period.
4The next generation of Platform companies is now
emerging to challenge both incumbent industries
and today’s largest Titans. While it is hard to predict
who will write the next success story, these industry
players face the same growth challenges and follow
the same path to success as those who have come
before. We will examine what that path looks like
in the next installment of this series.
5ABOUT ACCENTURE
Accenture is a leading global professional services
company, providing a broad range of services and
solutions in strategy, consulting, digital, technology
and operations. Combining unmatched experience
and specialized skills across more than 40 industries
and all business functions—underpinned by the
world’s largest delivery network—Accenture works
at the intersection of business and technology to
help clients improve their performance and create
sustainable value for their stakeholders. With more
than 411,000 people serving clients in more than
120 countries, Accenture drives innovation to
improve the way the world works and lives.
Visit us at www.accenture.com.
This document makes descriptive reference to trademarks that
may be owned by others.
The use of such trademarks herein is not an assertion of
ownership of such trademarks by Accenture and is not intended
to represent or imply the existence of an association between
Accenture and the lawful owners of such trademarks.
Copyright © 2017 Accenture
All rights reserved.
Accenture, its logo, and
High Performance Delivered
are trademarks of Accenture.
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