CXOs must align Platform Investments with Revenue for Impact

The digital economy is evolving at an unprecedented pace, and enterprises can no longer afford to rely on incremental IT modernization. The shift towards platform engineering is not a futuristic concept—it is an immediate necessity as businesses demand more than just digital touchpoints. They seek end-to-end ecosystems that provide seamless, intelligent, and adaptive experiences in the flow of work and life. Traditional IT systems, designed to digitalize and automate processes, struggle to keep up with the demands of agility, scalability, and innovation in a platform-first world.

Beyond Traditional IT: The Rise of Digital Platform Engineering

Digital platform engineering transcends conventional application-centric models, creating a unified ecosystem with a digital core. Gartner emphasizes that "platform engineering enhances IT infrastructure efficiency and scalability by implementing self-service platforms and enforcing architectural and security controls."

However, it is not just about efficiency gains; it is about transforming decision-making, enhancing customer experiences, and discovering fresh avenues for growth. For instance, a multinational financial services company that powers secure, real-time digital payments created a platform to offer crypto services, positioning itself at the forefront of the digital currency revolution while unlocking a new revenue stream.

Modern digital platforms are designed to optimize, scale, and innovate. They integrate cloud computing, AI-driven automation, API-driven architectures, and advanced analytics to drive enterprise scalability while optimizing operational efficiency. Another example is a food and quality assurance solutions provider that transitioned from an on-premises to a cloud-based platform to overcome performance challenges. This migration improved efficiency and scalability, leading to a 20% increase in business growth and a 50% decrease in infrastructure costs.

Competitive Advantage: Beyond Cost Savings

The true competitive advantage of digital platforms extends beyond cost savings—they deliver meaningful impact for businesses. For a leader in the digital insurance platform space, it means providing millions of Americans with affordable healthcare under the ACA. For another leader in the mortgage space, it means making homeownership a reality for many families.

Industries such as finance, hi-tech, healthcare, and manufacturing are already setting new benchmarks for efficiency and innovation through digital platform engineering. From enabling automated trading and hyper-personalized banking experiences to transforming diagnostics, real-time patient monitoring, intelligent supply chains, and automation-led efficiencies, digital platforms are elevating enterprise capabilities like never before.

AI-Native Platforms: Redefining the Future of Human-Centric Technology

As platform-driven transformation continues to permeate newer areas in industry verticals and org functions, there is already a new future taking shape. AI-native platforms are ushering in a new paradigm where human-centric design takes center stage. Leveraging the full power of Artificial Intelligence to bring human-like behaviors and interactions to the forefront, AI-native platforms represent the convergence of technological power and human potential. This isn’t just a technological leap—it’s a philosophical shift where platforms don’t just process input but perceive intent, adapt to emotions, and respond with understanding. The successful platforms of the future will have AI Native as their core and reimagine the businesses with right balance of technology and creativity. The art of possible with AI will bring in totally different perspective to revisit your business models and how you conduct the business. 

Platform-Driven Transformation: A C-Suite Imperative

The responsibility of driving platform-led innovation rests with the C-suite. Switching from products to platforms should not be a tactical move but a core part of long-term business strategy. Boston Consulting Group highlights that transitioning to platform operating models grants early movers a significant organizational advantage especially as technology advances and widespread access to critical capabilities like data and AI becomes essential. 

CXOs must align platform investments with revenue models to ensure measurable business impact. Defining clear KPIs such as revenue growth, cost savings and speed of innovation is critical to assessing a platform’s success. Overcoming resistance to change requires upskilling teams, bring in fresh perspective about everything and fostering strategic partnerships.

The Imperative for AI-Native Platform Revolution

AI-native digital platforms are no longer optional—they are essential for future-proofing enterprises. Those that embrace these next-gen platforms today will be the undisputed leaders of tomorrow. Partnering with expert digital engineering firms can accelerate platform adoption and drive measurable business outcomes. The time to act and engineer the future is now.

- By Ajit Pethkar, Head of Data & AI, Xoriant

(Disclaimer: The views expressed in this article are solely those of the author and do not reflect CyberMedia’s stance.)