How Dr. Oetker's Digital Platform Strategy Evolved to Include Cross-Platform Orchestration
Patrick Rövekamp, Philipp Ollig, Hans Ulrich Buhl, Robert Keller, Albert Christmann, Pascal Remmert, and Tobias Thamm
This study analyzes the evolution of the digital platform strategy at Dr. Oetker, a traditional consumer goods company. It examines how the firm developed its approach from competing for platform ownership to collaborating and orchestrating a complex 'baking ecosystem' across multiple platforms. The paper provides actionable recommendations for other traditional firms navigating digital transformation.
Problem
Traditional incumbent firms, built on linear supply chains and supply-side economies of scale, are increasingly challenged by the rise of digital platforms that leverage network effects. These firms often lack the necessary capabilities and strategies to effectively compete or participate in digital ecosystems. This study addresses the need for a strategic framework that helps such companies develop and manage their digital platform activities.
Outcome
- A successful digital platform strategy for a traditional firm requires two key elements: specific tactics for individual platforms (e.g., building, partnering, complementing) and a broader cross-platform orchestration to manage the interplay between platforms and the core business. - Firms should evolve their strategy in phases, often moving from a competitive mindset of platform ownership to a more cooperative approach of complementing other platforms and building an ecosystem. - It is crucial to establish a dedicated organizational unit (like Dr. Oetker's 'AllAboutCake GmbH') to coordinate digital initiatives, reduce complexity, and align platform activities with the company's overall business goals. - Traditional firms must strategically decide whether to build their own digital resources or partner with others, recognizing that partnering can be more effective for entering niche markets or acquiring necessary technology without high upfront investment.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're looking at a challenge facing countless established companies: how to navigate the world of digital platforms. We'll be diving into a study titled "How Dr. Oetker's Digital Platform Strategy Evolved to Include Cross-Platform Orchestration". Host: With us is our expert analyst, Alex Ian Sutherland. Alex, this study looks at a company many of us know, Dr. Oetker, but in a very new light. What's it all about? Expert: Hi Anna. Exactly. This study analyzes how a very traditional company, known for baking ingredients, transformed its digital strategy. It’s a fascinating story about moving from trying to build and own their own platforms to instead collaborating and orchestrating a whole ‘baking ecosystem’ across many different platforms. Host: So what’s the big problem this research is trying to solve for businesses? Expert: The core problem is that traditional companies, like Dr. Oetker, were built on linear supply chains and making lots of products efficiently. They controlled everything from production to the store shelf. But the digital world doesn't work that way. Host: You mean because of companies like Amazon or Facebook? Expert: Precisely. Digital platforms win through network effects—the more users they have, the more valuable they become. Traditional firms often don't have the DNA to compete with that. They face a huge strategic question: how do we even participate in this new digital world without getting left behind? Host: So how did the researchers approach this question? Expert: They conducted an in-depth case study. They tracked Dr. Oetker's digital journey over several years, from about 2017 to the present, breaking it down into three distinct phases. This allowed them to see the evolution in real-time—what worked, what failed, and most importantly, what the company learned along the way. Host: Let’s get into those learnings. What were the key findings from the study? Expert: The first major finding is that a successful digital strategy has two parts. You need specific tactics for each individual platform you’re on, but you also need a higher-level strategy, what the study calls "cross-platform orchestration." Host: Orchestration? What does that mean in a business context? Expert: It means making sure all your digital efforts play together like instruments in an orchestra. Your social media, your e-commerce partnerships, your own website—they can't operate in isolation. Orchestration ensures they all work together to support the core business and create a seamless customer experience. Host: That makes sense. What was the second key finding? Expert: It’s about a shift in mindset. The study shows that Dr. Oetker started with a competitive mindset, trying to build and own its own platforms. For instance, they launched a marketplace to connect artisan bakers with customers, but it didn't get traction. Host: So, that initial approach failed? Expert: It did, but they learned from it. In the next phase, they shifted to a more cooperative approach. Instead of trying to own everything, they started complementing other platforms, like creating content for Pinterest and TikTok, and partnering with a tech startup to create "BakeNight," a platform for baking workshops. Host: And that leads to another finding, doesn't it? The need for a specific team to manage all this. Expert: Absolutely. This was crucial. As their digital activities grew, they were scattered across different departments, causing confusion. The solution was creating a dedicated organizational unit, a separate company called 'AllAboutCake GmbH'. This central team coordinates all digital initiatives, reduces complexity, and makes sure everything aligns with the overall company goals. Host: So, Alex, this is a great story about one company. But why does this matter for our listeners? What are the key business takeaways? Expert: I think there are three big ones. First, stop trying to own the entire digital world. For most traditional firms, building a dominant platform from scratch is a losing battle. The smarter move is to become a valuable partner or complementor on existing platforms where your customers already are. Host: So it's about playing in someone else's sandbox, but playing really well. Expert: Exactly. The second takeaway is to create a central command for your digital strategy. Transformation can be chaotic. A dedicated team or unit, like Dr. Oetker’s AllAboutCake, is vital to orchestrate your efforts and prevent internal conflicts and wasted resources. Host: And the final takeaway? Expert: Re-evaluate the "build versus partner" decision. The study shows Dr. Oetker learned that partnering was often more effective for acquiring technology and entering new markets quickly without massive upfront investment. They decided to focus their own resources on what they do best—baking expertise and understanding their customers—and collaborate for the rest. Host: A powerful lesson in focus. Let's recap. It's about shifting from owning platforms to orchestrating an ecosystem, creating a central unit to manage the complexity, and being strategic about when to build and when to partner. Host: Alex, this has been incredibly insightful. Thank you for breaking down this research for us. Expert: My pleasure, Anna. Host: And a big thank you to our audience for tuning into A.I.S. Insights. Join us next time as we translate academic knowledge into business intelligence.
Digital Platform Strategy, Cross-Platform Orchestration, Incumbent Firms, Digital Transformation, Business Ecosystems, Case Study, Dr. Oetker
