Introducing Platform Interactions Model for Studying Multi-Sided Platforms

Multi-Sided Platforms (MSPs) function as socio-technical entities that facilitate direct interactions between various affiliated to them constituencies through developing and managing IT architecture. In this paper, we aim to explain the nature of the platform interactions as key characteristic of any MSP. To this end, we propose the Platform Interaction Model (PIM), built upon Activity Theory and Business Action Theory. We then test its explanatory capability by applying it to four cases. Based on our analysis, we argue that MSPs enable various types of interactions, which has implications for the initial adoption, competitiveness, and subsequent expansion of particular MSP

Competing Platforms and Third Party Application Developers

Technology firms often decide between being open or closed to third party application development. Building on a two-sided market model with competing platforms, I show that firms might prefer to restrict third party application development despite the fact that allowing it is free and increases the value of the product to consumers. The reason is that restricting third party application development removes network effects and thereby relaxes competition between platforms. From a social welfare perspective, firms sometimes restrict third party application development even though total welfare would be higher if development was possible.iscussion about five propositions that should be on the agenda of research and implementation for Living Lab founders in the coming years.platforms; software; two-sided markets.

The evolution of platform business models: Exploring competitive battles in the world of platforms

In recent decades, multi-sided platform business models have become an important avenue for value creation and capture, but the phenomenon itself remains under-theorized. We address this gap and present new, empirically-driven insights into how platform business models evolve in a context of fierce competition. Through a longitudinal, qualitative study of twelve multi-sided platforms that operate under challenging industry conditions, we discover that success in platform battles can plausibly be explained by a combination of complexity in the business model design, and the simultaneous use of innovation and imitation to create highly intricate systems of activities. We further discuss how our findings open several new avenues for future platform research

Value creation in electric vehicle charging networks

Electric vehicles (EV) are gaining a prominent share of the trillion-dollar automotive market. The growth is fueled by falling battery prices, tightening emission standards, government subsidies and increasing competition. The rise of EV’s creates a need for, and also depends on, charging infrastructure on a large scale. Electric vehicle charging networks are services that are used to manage and enable access to charging points. This study aims to understand how these networks can succeed in the tightening competition by examining what factors contribute to the value of an EV charging network for its participants. To reach this goal an explanatory single case study was conducted. The case examined a public EV charging network in Finland. First, earlier research in platform economics and EV charging were used to understand the context and to synthesize a theoretical framework. Next, empirical data was collected primarily with semi-structured interviews. Finally, pattern matching was used to analyze the data. Based on the results, the EV charging industry is still its infancy. EV charging networks mediate transactions between EV drivers and charging point owners (CPO), enabling exchange of information, control of charging points, and payments. Various signals suggest an expansion towards the energy system, as EV charging networks are likely to start aggregating and mediating vehicle-to-grid (V2G) services between EV drivers and energy market agents. The results suggest two focus areas as key factors creating value for participants. Firstly, the main contributor to the success of an EV charging network is the amount of charging points connected to it. This is mainly due to EV drivers’ strong positive cross-side network effects and to CPOs’ strong positive same-side network effects. Secondly, an EV charging network’s boundary resources should be designed to maximize efficiency for both sides. For EV drivers, charging is a mundane task that needs to be as effortless as possible. For CPO’s, offering charging is not a main business, but a relatively small value-added service. This study serves as a starting point for a new research stream, converging EV charging with platform economics research. In addition, the results help researchers in understanding the state of the industry and network operators in making strategic decisions

Open Versus Closed Platforms

This paper studies an industry in which firms can choose to provide open or closed platforms. Open platforms, as opposed to closed, are extendable so third-party producers can develop extensions for them. Building on a two-sided market model, I show that firms might prefer to commit to keeping their platforms closed despite the fact that opening the platform is costless and open platforms are more valuable to consumers. The reason is that opening the platform may lead to intensified competition for consumers.Platforms; Software; Two-sided Markets

Introducing Reach And Range For Digital Payment Platforms

Numerous digital payment solutions, which rely on new disruptive technologies, have been launched on the payment market in the recent years. But despite the growing number of mobile payment apps, very few solutions turn to be successful as the majority of them fail to gain a critical mass of users. In this paper we investigate two successful digital payment solutions in order to outline some of the factors which contribute to the widespread adoption of a digital payment platform. In order to conduct our analysis we propose the Reach and Range Framework for Multi-Sided Platforms. Our study indicates that the success of digital payment platforms lies with the ability of the platform to balance the reach (number of participants) and the range (features and functionalities) of the platform

The emergence of the mobile internet in Japan and the UK: platforms, exchange models, and innovation 1999‐2011

In 1999 Japanese mobile operator NTT DoCoMo launched arguably the world’s first successful mobile Internet services portal called “i‐mode”. In Europe at the same time a series of failures diminished the opportunities to attract customers to the mobile Internet. Even though similar Internet technologies were available in Japan and the UK, very different markets for services developed during the initial years 1999‐2003. When the West expected Japanese firms to become dominant players in the mobile digitalisation of services during the introduction of 3G networks, it remained instead a national affair. The dominant views of how markets for mobile services operated seemed flawed.   So‐called delivery platforms were used to connect mobile phones with service contents that were often adapted from the PC world. Designing and operating service delivery platforms became a new niche market. It held a pivotal role for the output of services and competition among providers.   This thesis sets out to answer a set of inter‐related questions: How and where did firms innovate in this new and growing part of the service economy and how are new business models mediated by service delivery platforms? It argues that innovation in the digitalised economy is largely influenced by firms achieving platform leadership through coordination of both technological systems and the creation of multi‐sided exchanges. This thesis demonstrates from cases of multi‐sided markets in operator‐controlled portals, of mobile video and TV and of event ticketing in Japan and the UK that defining the scope of the firm on the network level forms the basis for incremental innovation, the dominant form of service innovation. A parallel focus on coordinating platform technology choices forms the basis for firms to trade fees, advertisements, and user data, enabling control over profitable parts of multi‐sided value networks