Oscar Diaz del Castillo, Economist

GCE GLOBAL:
Good morning, it’s a pleasure to have Oscar Diaz del Castillo with us. An economics expert.

OSCAR DIAZ DEL CASTILLO:
Thank you for the invitation to this weebinar, for me these spaces are important to be able to share a message of solidarity, empathy and help.

​GCE GLOBAL:
What is a business platform?

OSCAR DIAZ DEL CASTILLO:
A business platform is behind the scenes, to put it figuratively, of companies like Apple, Amazon, Google, Instagram, Netflix.
What I will talk about today is an appetizer of my workshop that I dictate with a duration of one week…
This is a new model, which acquires vital importance in certain companies.
We are going to make some comparisons between BMW and UBER, so the first is a company created in 1916 and the second founded in 2009 that employs 12,000 people. The market value of the first is 60,000 million dollars and Uber 62,000 million dollars, that is my question, how can such a new company overcome a renowned company that has been around for so many decades versus one so new?
Well, they are welcome to apply the business platform strategy. (More example in video)

Each one of the new companies that we currently know and hear about on a daily basis, have gained incredible value, surpassing such large companies in such a short time

GCE GLOBAL:
And how does the business model change, so that it becomes give these phenomenal results?

OSCAR DIAZ DEL CASTILLO:
First of all, there was literally a change, the way things are done and how to create value.
There are two business models, the traditional one commonly called “within a tube”, where the production process is like a tube, on the one hand inputs enter, all the raw materials, people, ideas, information and all that is transformed inside of that tube in different stages of production to, on the other hand, have a final product that is the one that is marketed. Everything is done in this model, the process is internal, only consumption is external.

In the Business Platforms Model or outside the tube, on the other hand, third parties are used in every sense, external allies, where there are different degrees of openness.
The key to success is that many processes are open to competition within the same platform.

GCE GLOBAL:
So this also changes the way of doing Marketing?

OSCAR DIAZ DEL CASTILLO:
Of course, the change is radical, in the 19980s there was talk of a single message, then towards the 90’s there was talk of channels segmented by areas. But from 2000 the internet grows and its furor leads to personalize the product, individual tastes. A strategy for each segment. Evolving marketing with technology.
In 2010, virality and social influence brought with it the recommendation, which drives the purchase of a product and its demand grows.

GCE GLOBAL:
Does the management of Human Resources also change?

OSCAR DIAZ DEL CASTILLO:
As for Human Resources, there was a revolution that has made work flexible for people, making them independent, like a contractor figure. There are many opinions, some are in favor because they say that thanks to this the country grows and development also, others think that it is very unfair to the collaborators. The truth is that this form of contracting is coming strong and to stay.
It also went from internal experts to multitudes of external experts in the companies, before the company produced and contributed to its product, now there are thousands of people who make improvements, to have a better product .

GCE GLOBAL:
Changes in operations and logistics?

OSCAR DIAZ DEL CASTILLO:
Before, the Companies had many machines internally, now everything is outsourced.
In the traditional model for the production of a book, there was a printer and at least 100 copies of the owner were made, now with portals like Amazon, everything is done online and until this payment is made, this edition is not printed or printed . by demand.
The creation of value went from being internal to external.

GCE GLOBAL:
In the finance part?

OSCAR DIAZ DEL CASTILLO:
In this area we move from valuing assets to valuing interactions. And the value is no longer seen in the physical, but in the effect it generates on the Internet.

GCE GLOBAL:
In the financial part?

OSCAR DIAZ DEL CASTILLO:
In this area, we go from valuing assets to valuing interactions. And the value is no longer seen in the physical, but in the effect it generates on the Internet.
Because now, as those who do marketing are on the different platforms giving their opinion about the product, these processes are also viral and they are in word of mouth which give a valuable weight to the Company.
product, likewise these viral processes and word of mouth are what give valuable weight to the Company.

​GCE GLOBAL:
Is it a digital evolution?

OSCAR DIAZ DEL CASTILLO:
Yes, evolution occurs digitally, which becomes the protagonist to catapult any of the services, be it medical, transportation, or food consumption. Everything has been given for convenience. Look at the music sector, before we checked CDs, acetates, even memories was a novelty, not now, now it’s streaming, you can listen virtually, compare, pay. Everything in the cloud.
I never believed that even medicine, but at this time there are also applications that offer us telemedicine, they even make diagnoses virtually, from anywhere in the world.
Virtuality for me does not exclude any profession or trade.

GCE GLOBAL:
How is the support of companies given in these models?

OSCAR DIAZ DEL CASTILLO:
The support is better, it has been one of the great advantages, first we have YouTube, where anyone, from anywhere in the world, in an infinite number of languages ​​gives tutorials in the form of support, then if there was no solution out there , there is also the chats of the business pages, finally there is also the telephone.
Before there was talk of a back office, a bank had a huge filing department behind it, many employees. But everything changed and today we see more people in the front office. Even in the future evolution goes to Out Office, because software does everything.
Before everything was distant in the communication part, now there are chat applications where the ordered, subordinated, and infraordinated are in full communication.

GCE GLOBAL:
What are the benefits of this strategy?

OSCAR DIAZ DEL CASTILLO:
In this area we move from valuing assets to valuing interactions. And the value is no longer seen in the physical, but in the effect it generates on the Net.

GCE GLOBAL:
What is the Net effect?

OSCAR DIAZ DEL CASTILLO:
Product , it is likewise these viral processes and they are in word of mouth that give valuable weight to the Company.