Power dynamics in software platform ecosystems

In software platform ecosystems, the technological and structural peculiarities vest the platform owner with an extremely powerful position that puts any complementor at the mercy of the platform owner's actions. Paradoxically, it is the self-determination and proactivity of the complementors that determine the ecosystem's success through their surprising outside innovations. This study addresses this power paradox by unpacking the power dynamics between platform owners and complementors. Based on an exploratory multiple-case study of six platform partnerships, we find that power in platform ecosystems unfolds as a reciprocal process of three interlocking cycles, in which both the platform owner and the complementors take an active role. The modus operandi of power in platform ecosystems is a “central power cycle” in which the complementors repeatedly evaluate whether to accept or reject the platform owner's domination power. Thriving partnerships sustain this central power cycle over time, which requires that the platform owner and the complementors dynamically adapt their wielding of power to the changing needs of the partnership (partnership adaptation cycle) or the ecosystem (ecosystem redefinition cycle). For the platform owner, this entails the occasional use of manipulation to favour a particular partnership or redefining the ecosystem's framework and sporadically wielding coercion in favour of the broader ecosystem. For the complementor, this entails over-subjectification to entice the platform owner to wield its power in favour of their partnership. Our findings have important implications for platform ecosystem and power theory, as well as managerial practice

Business Model Configurations for Digital Platform Success - Towards a Typology of Digital Platform Business Models

Competition between digital platforms is harder compared to non-platform businesses. Fierce platform competition reduces digital platforms’ chances of success. Research has identified many aspects of digital platforms and their surrounding ecosystem that influence the success of digital platforms. This research is comprehensive but not integrated. The business model as an activity system provides a lens to orchestrate various dimensions of digital platforms. We conduct a case survey of published case studies on digital platforms and analyze their business models using a multi-value qualitative comparative analysis. The resulting business model configurations reveal how surviving digital platforms combine different value propositions, value capture mechanisms, and value creation strategies. We identify four configurations of digital platform business models (matching, spreading, innovating, and dominating business models) leading to digital platform success (i.e., survival). In our future research, we will identify more detailed business model configurations using a larger case sample

Revisiting the IIoT Platform Graveyard: Key Learnings from Failed IIoT Platform Initiatives

The Industrial Internet of Things (IIoT) has led to a competitive race among digital and incumbent players to establish IIoT platforms. However, despite the undisputed potential of the IIoT, a first wave of IIoT platforms failed around 2018, with GE’s Predix being the most prominent one. Nevertheless, building upon valuable lessons learned, the IIoT platform market continued to grow significantly. We now experience a second wave of IIoT platform failures, with companies like Siemens, Google, and SAP divesting or restructuring significant parts of their IIoT platform. Acknowledging this, we revisited the IIoT platform graveyard to challenge and extend existing lessons learned. Hence, we interviewed major IIoT platforms and customers that were impacted by IIoT platform failures. We identified six key learnings that we integrated into a preliminary model for IIoT platform growth, highlighting evolutionary steps for successful platform growth. These findings provide practitioners strategic orientation for establishing IIoT platforms long-term

Initiating and designing an emerging multi-platform ecosystem for the circular economy in the built environment: An empirical case study

With the increasing importance of platform ecosystems for value creation and capture in the emerging economies, the platform ecosystems have also proliferated across the circular economy in the built environment. Platform ecosystems are a useful medium that connects and enables seemingly geographically dispersed and diverse businesses to exchange products and services. Initiating and designing a new platform ecosystem for the circular economy in the built environment is challenging. Thus, our case study explores the challenges of initiating and designing an emerging platform ecosystem for the recirculation of the construction waste materials and industrial production side streams across the built environment. This study presents the challenges of an initiative by the several platform owners that combined their capabilities and resources in one efficient network to support circular economy growth in the built environment. Specifically, we offer insights into how several platform owners initiative and design multi-platform ecosystems. A specific challenge identified in this study is the design of the multi-platform ecosystem for equal value creation and capture by the platform owners. This study further draws recommendations for the policymakers while contributing to the literature on the platformization for the circular economy in the built environment

Governance Mechanisms in Digital Platform Ecosystems: Addressing the Generativity-Control Tension

Digital platform owners repeatedly face paradoxical design decisions with regard to their platforms’ generativity and control, requiring them to facilitate co-innovation whilst simultaneously retaining control over third-party complementors. To address this challenge, platform owners deploy a variety of governance mechanisms. However, researchers and practitioners currently lack a coherent understanding of what major governance mechanisms platform owners rely on to simultaneously foster generativity and control. Conducting a structured literature review, we connect the fragmented academic discourse on governance mechanisms with each aspect of the generativity-control tension. Next to providing avenues for prospective digital platform research, we elaborate on the double-sidedness of governance mechanisms in fostering both generativity and control

Governance Mechanisms in Digital Platform Ecosystems: Addressing the Generativity-Control Tension

Digital platform owners repeatedly face paradoxical design decisions with regard to their platforms’ generativity and control, requiring them to facilitate co-innovation whilst simultaneously retaining control over third-party complementors. To address this challenge, platform owners deploy a variety of governance mechanisms. However, researchers and practitioners currently lack a coherent understanding of what major governance mechanisms platform owners rely on to simultaneously foster generativity and control. Conducting a structured literature review, we connect the fragmented academic discourse on governance mechanisms with each aspect of the generativity-control tension. Next to providing avenues for prospective digital platform research, we elaborate on the double-sidedness of governance mechanisms in fostering both generativity and control

Governance of Visibility Platform

A real-time transportation visibility platform develops its network by adding successive complementors. The governance mechanism benefits the platform owner the most and creates asymmetries among platform members. These asymmetries trigger coopetition tensions between governance costs and co-created value, autonomy, and control. Resolving tensions between complementors and real-time visibility platform provider is a key for the successful performance of a real-time visibility transportation platform. The fee share and bonus malus scheme should balance the asymmetries of benefits from being part of a real-time visibility transportation platform

Marketing plan: probate for dummies

Mestrado em IPB-ESTG e ASSOCIAÇÃO DE POLITÉCNICOS DO NORTE (APNOR): Instituto Politécnico do Cávado e do Ave, P. Porto, Instituto Politécnico de Viana do CasteloThe aim of this study is to define the most appropriate marketing strategy, as well as develop a marketing plan to increase brand recognition, for a newly created Brazilian company called Probate for Dummies, which operates in the online resale of inherited assets. Primary data that provide the basis for this study were generated through semi-structured interviews, while secondary data were collected from the review of public documents, company’s website, and bibliographical research. The sample of this study was formed by four elements, being the first one the owner of the company, followed by three specialists in different areas of knowledge which may directly influence the business, in this case a lawyer, a psychologist and real estate broker. Thus, it was possible to interpret the way the company’s relationship with its environment, as well as identifying the intention of market positioning and future actions intended. As for the main outcomes, this project unfolds the key factors of both micro and macro environments of the company, in the form of a SWOT and PESTEL analyses, as well as the analysis of the Porter's five competitive forces. In the sequence, a marketing central strategy was delineated through the market segmentation, target selection and positioning definition, which guided the marketing objectives to be pursued. Thereafter, based on those marketing objectives, a marketing mix was composed based on the 7P’s (Product, Price, Placement, Promotions, People, Process, Physical Evidence). Furthermore, an operational plan composed by specific actions addressed to each marketing goal was settled, along with the budget and schedule of implementation. Regarding the conclusions, a market penetration strategy shows to be the most suitable for this business, with development of new services for the costumers of the niche it acts. Yet, the strategy is intensively based in terms of promotion, especially in segmented digital marketing.O objetivo geral deste estudo consiste em definir a estratégia de marketing mais apropriada, bem como elaborar um plano de marketing visando aumentar o reconhecimento de marca, para uma empresa brasileira recém-criada e designada Inventário para Leigos, que atua no setor de revenda online de bens herdados. Os dados primários que servem de base para este estudo foram gerados através de quatro entrevistas semiestruturadas, já os dados secundários foram coletados a partir da revisão de documentos públicos, website da empresa, e pesquisa bibliográfica. A amostra deste estudo foi composta por um elemento, sendo este o proprietário da empresa. Dessa forma, foi possível interpretar a forma como a empresa se relaciona com o ambiente envolvente, assim como identificar a intenção de posicionamento de mercado e ações futuras pretendidas. Quanto aos resultados, este projeto desdobra os fatores-chave que compõem o micro e macro ambientes da empresa, na forma das análises SWOT e PESTEL, acompanhadas da análise das Cinco Forças Competitivas de Porter. A estratégia central de marketing foi delineada por meio da segmentação de mercado, seleção do mercado alvo e definição do posicionamento, que orientaram os objetivos de marketing a serem almejados. Assim, baseado nesses objetivos, o mix de marketing foi composto com base nos 7P's (Produto, Preço, Distribuição, Comunicação, Pessoas, Processo e Evidências Físicas). Além disso, estabeleceu-se um plano operacional, composto por ações direcionadas a cada objetivo de marketing, juntamente com orçamento e o cronograma de implementação. Em relação às conclusões, verifica-se que a estratégia de penetração de mercado é a mais adequada para este negócio, com desenvolvimento de novos serviços para os clientes do nicho em que esta nova atividade se desenrola. Sublinhe-se ainda que a estratégia de divulgação deve ser intensamente alicerçada em ações de marketing digital altamente segmentado

BUSINESS MODELS IN TWO-SIDED MARKETS: AN ASSESSMENT OF STRATEGIES FOR APP PLATFORMS

„App platforms” are electronic software distribution markets for mobile devices like smartphones or tablets. They have gained popularity after Apple launched its AppStore in 2008. Since then, app platforms have transformed the entire mobile communication industry including mobile network operators, device producers, software suppliers, content providers, advertisers, etc. Platforms (like AppStore) that intermediate between two distinct groups of customers connected through indirect network effects can be analyzed effectively using the theory of two-sided markets. The interdependencies of customers, platforms and developers require consideration of strategic issues not present in traditional models. These issues may pertain to all development phases, including platform design, launch and competition and thus, have an effect on existing and new business models in this sector. Economics literature on two-sided markets focuses on theoretical analysis, paying not much attention to managerial implications. Strategic management literature, on the other hand, rather provides practical guidelines. Within this paper, we discuss strategic issues arising in the app platform industry, combining these streams of literature. Based on a thorough analysis of the key stakeholders in the app platform industry (platform owner, developers, and users), we use our findings to provide management recommendations and discuss probable evolutions of the industry