How do you build a digital platform?

Introduction

Building a digital platform, although a technical process, is closely related to how organizations structure information and value exchange. Most successful platforms originate from a situation in which certain systems or processes are no longer sufficient to support how people interact with each other or with information. 

A platform should therefore not be understood as a standalone product, such as a website or an application. A digital platform should be described as an environment in which different groups, data flows, and processes are connected in a consistent and scalable way. This perspective is reflected in widely studied platform businesses such as Airbnb and Uber, both of which emerged from specific, practical problems rather than abstract ideas about building a technical platform. 

Starting with the problem

In most cases, the development of a platform begins with a form of friction. This may take the form of fragmented information, inefficient processes, or a lack of coordination between different groups. Organisations often attempt to address these issues by adding tools, but over time this tends to increase complexity rather than reduce it.

A more sustainable approach is to first define the underlying problem in detail. This involves identifying who is affected, how they currently interact, and where existing solutions fall short. Research into digital platform design consistently emphasises the importance of this stage, as it determines whether a platform addresses a real need or simply adds another layer of functionality without resolving the core issue. Many platforms rely on structured data as a foundation.

Defining the platform model

Once the problem is clearly understood, the focus lies with the structure of the platform itself. Most platforms are built around the interaction between two or more groups. These may include, for example, service providers and customers, content creators and audiences, or organisations and stakeholders.

What matters most is how these groups interact with each other. A platform must define what value each participant receives, how interactions take place, and how these interactions are sustained over time. This is often referred to as the platform model. 

Validation and early development

Rather than attempting to build a complete system from the beginning, most platforms are developed incrementally. The initial focus lies on creating a first version that allows the core interaction to take place in a controlled environment.

This approach, commonly referred to as developing a minimum viable product (MVP), enables organisations to test whether the platform functions as intended in real-world conditions. Importantly, this stage is not only about technical validation, but also about behavioural validation. It reveals whether users understand the platform, whether they engage with it as expected, and whether the underlying model holds.

In early stages, this version may take different forms. It can be a simple application, a prototype, or even a partially manual process that simulates the intended interaction. What matters is that it provides insight into how the platform operates in practice.

Structuring systems and data

As the platform develops, the importance of its internal structure becomes more apparent. While the user interface determines how the platform is experienced, the underlying system determines how it functions.

This includes the way data is organised, how different components relate to one another, and how interactions are recorded and processed. A well-structured system allows the platform to evolve over time, accommodating new features, users, or data sources without requiring fundamental redesign.

Conversely, insufficient attention to structure often leads to limitations as the platform grows. Research into scalable digital systems shows that early architectural decisions have long-term implications for performance, flexibility, and maintainability. This is also closely related to how organisations use data to guide decisions.

Designing for interaction

The usability of a platform plays a critical role in its adoption. Even when the underlying system is well designed, users must be able to understand and navigate the platform with minimal effort.

This involves careful consideration of how users are introduced to the platform, how they perform key actions, and how interactions are guided. Particular attention is often given to the initial user experience, as this determines whether users continue to engage with the platform.

Creating initial traction

One of the defining challenges of platform development lies in establishing initial usage. Because platforms often depend on interactions between multiple groups, they require a certain level of activity before they become valuable.

To address this, many platforms begin by focusing on a specific segment or by actively facilitating early interactions. This may involve manually onboarding users, curating initial content, or providing incentives to encourage participation. Over time, as interactions increase, the platform becomes more self-sustaining.

Trust, safety, and reliability

As platforms grow, trust becomes a central factor in their continued use. Participants need to have confidence in the system, in the data it provides, and in the interactions it facilitates.

This often leads to the development of mechanisms such as verification systems, feedback loops, and data protection measures. Without these elements, platforms may struggle to maintain engagement, particularly when interactions involve multiple independent parties.

Continuous development and scaling

A platform is not a static product. It evolves over time in response to usage, feedback, and changing requirements. Development therefore becomes an ongoing process rather than a one-time effort.

Only once the core interactions function reliably does it become meaningful to scale the platform. At this stage, attention shifts towards performance, automation, and broader adoption. Importantly, scaling without a stable foundation often leads to inefficiencies or system instability.

FARM Solutions Case Study: ESG Platform

Within FARM Solutions, the development of the ESG Platform reflects many of these principles.

The platform originated from the observation that ESG-related data is often fragmented across different systems, formats, and standards. While organisations are increasingly required to report on ESG metrics, the underlying data is rarely structured in a way that allows it to be used effectively.

Rather than approaching this as a reporting problem, the project focused on structuring ESG data as part of a broader system. This involved defining how data points relate to one another, how they can be standardized, and how they can be accessed and used within different contexts.

Development began with a limited scope, focusing on core data structures and interactions. From there, the platform evolved by connecting additional data sources, refining its structure, and improving how users interact with the system.

This approach illustrates how platforms emerge from practical needs and evolve through continuous refinement rather than being fully defined at the beginning.

At FARM Solutions, platform development is approached as a process of structuring systems rather than delivering isolated products. Many of the platforms we build originate from internal questions or challenges encountered in real projects, which allows us to test and refine systems in practical environments.

By working across both internal projects and client work, patterns begin to emerge in how data, processes, and interactions can be structured effectively. These insights are then applied across different contexts, contributing to a broader ecosystem of platforms and systems.

Final reflection

Building a digital platform requires more than technical implementation. It involves understanding how people interact, how information is structured, and how systems evolve over time.

When these elements are aligned, a platform becomes an environment in which interactions can take place consistently, and in which value can be created and sustained.