Talking about Platforms

Wed, 26 Mar 2025 06:30:00 +0000 https://tap.podigee.io/56-geoff-parker 2aa9fbbaaced69fcaf4e8ac898a1f6ea Guest: Geoffrey (Geoff) G. Parker Bio: Geoff Parker is a professor of engineering at the Thayer School at Dartmouth College and the faculty director at the Irving Institute for Energy and Society. He was awarded the Thinkers50 digital thinking award for his work on two-sided markets and the inverted firm. He is the co-author of the influential book Platform Revolution. He received his doctorate from MIT, where he was a doctoral student alongside Marshall Van Alstyne. Summary: In this episode, Geoff, a leading expert in platform research and co-author of Platform Revolution, discusses the origins of his work on platforms, the evolution of platform business models, and the ongoing relevance of platform thinking in today's dynamic technological and regulatory landscape. The conversation traces the journey from early observations of free online services and the formalization of two-sided markets to the strategic implications of platforms and their impact across various industries, including B2B and energy. Geoff reflects on the initial skepticism surrounding platform theory, the significant effect of Platform Revolution, and his current work exploring platform dynamics in specific sectors. The discussion also touches upon the challenges faced by established firms in transitioning to platform models and the influence of emerging technologies and regulations on the platform ecosystem. Key Discussion Points The genesis of platform research: Stemming from observations of ad-sponsored networks and the emergence of free online services during the dot-com boom, leading to the formal study of two-sided markets and network effects. Early challenges in platform theory: The initial uphill battle to get foundational work on platforms published. The evolution of platform thinking: How the understanding of platforms has been shaped by events like the dot-com bust and the rise of tech giants. Strategic implications: The development of concepts like platform envelopment and the broader strategic considerations for businesses adopting platform models. The impact of regulation and new technologies: The influence of regulations like GDPR and CCPA, the increasing power of platforms, and the emergence of AI and blockchain on platform strategies. Challenges and opportunities in B2B platforms: The complexities of network effects, sales cycles, core transactions, and integration challenges in B2B contexts. Publications & Projects Mentioned Parker, G. G., Van Alstyne, M. W., & Choudary, S. P., (2016). Platform revolution: How networked markets are transforming the economy—and how to make them work for you. W. W. Norton & Company. Shapiro, C., & Varian, H. R. (1999). Information rules: A strategic guide to the network economy. Harvard Business Press. Anderson, E. G., Lopez, J., & Parker, G. G. (2022). Leveraging value creation to drive the growth of B2B platforms. Production and Operations Management, 31(8), 1–22. Parker, G. G., & Van Alstyne, M. W. (2005). Two-sided markets. Harvard Business Review, 83(10), 1–12. Eisenmann, T., Parker, G. G., Van Alstyne, M. W., & (2011). Platform envelopment. Strategic Management Journal, 32(12), 1270–1285. Cabral, L., Haucap, J., Parker, G. G., Petropoulos, G., Valletti, T. Alstyne, M. (2021). The EU Digital Markets Act: A Report from a Panel of Economic Experts, European Union Joint Research Centre, Publications Office of the European Union. Links Geoff's website at Dartmouth: https://engineering.dartmouth.edu/community/faculty/geoffrey-parker full no digital platforms,platform revolution Daniel Trabucchi, Tommaso Buganza and Philip Meier

Fri, 21 Mar 2025 06:30:00 +0000 https://tap.podigee.io/55-towards-a-theory-of-ecosystems 25b8979f21b16d828cbe2e0714df4980 by M. G. Jacobides, C. Cennamo, & A. Gawer Paper covered in this episode Jacobides, M. G., Cennamo, C., & Gawer, A. (2018). Towards a theory of ecosystems. Strategic Management Journal, 39(8), 2255–2276. Disclaimer This podcast is generated using artificial intelligence technology, drawing content from published scientific papers. While we strive for accuracy, please note: The episode synthesizes and interprets scientific literature, not original research. AI-generated content may contain errors or misinterpretations. This podcast is for informational purposes only and should not be considered professional or medical advice. Listeners are encouraged to refer to the original scientific papers for comprehensive and authoritative information. The views expressed may not necessarily reflect those of the original authors or their institutions. We welcome feedback and corrections. Please consult with qualified professionals before applying any information presented in this podcast. full by M. G. Jacobides, C. Cennamo, & A. Gawer no digital ecosystems,digital platforms,ecosystem theory Daniel Trabucchi, Tommaso Buganza and Philip Meier

Wed, 19 Mar 2025 06:30:00 +0000 https://tap.podigee.io/54-marin-jovanovic 68189a919872601cd41313f414e788d9 Guest: Marin Jovanovic Bio: Marin Jovanovic is an Associate Professor at the Department of Operations Management at Copenhagen Business School and a Visiting Scholar at Luleå University of Technology. He holds dual Ph.D. degrees in industrial economics and management from the KTH Royal Institute of Technology and in industrial management from the Universidad Politécnica de Madrid (cum laude). His research focuses on the digital transformation of manufacturing, maritime, and healthcare sectors, platform ecosystems in the business-to-business (B2B) context, and artificial intelligence. He has published extensively in journals such as Organization Science, Journal of Product Innovation Management, Technovation, and Industrial Marketing Management. He also serves on the editorial boards of Journal of Product Innovation Management and Journal of Business Research. Summary: In this episode, Marin Jovanovic discusses the evolution and characteristics of B2B platforms, contrasting them with B2C platforms. The conversation covers the peculiarities of B2B platforms, including data governance, network effects, transaction value, and the complexity of governance in multi-firm ecosystems. Marin also highlights the growing importance of data utilization, modular structures, and the emergence of generative ecosystems and meta-organizations in the B2B space. The discussion further explores the potential of AI in conjunction with platforms, particularly in the medical sector. Key Discussion Points: Definition of Platforms in the B2B Context: Marin shares his journey into platform research, transitioning from servitization to industrial platforms. Main Findings and Peculiarities of B2B Platforms: The discussion highlights differences in network effects, the higher value but lower volume of transactions, and the increased awareness and demands of participating companies compared to B2C platforms. Data Governance in B2B Platforms: Key challenges include the complexities of data governance, revenue sharing, and the project-specific nature of agreements. The Role of Humans in Matchmaking: The conversation explores whether highly specific B2B transactions might require more human intervention in matchmaking rather than relying solely on algorithms. Cyber-Physical Integration: The importance of merging information systems and management in the context of autonomous solutions is emphasized. Challenges in Explaining B2B Platform Models: The barriers in conveying the concepts of B2B platforms and ecosystems to managers, using the example of 5G technology, are discussed. Modularity and Generative Ecosystems: The significance of modularity in both architecture and management for fostering flexible and reconfigurable B2B ecosystems is highlighted. Open Innovation and Open Organization: The discussion connects B2B platforms to concepts of open innovation and broader organizational collaboration. Microservices and Ecosystem Envelopment: The relevance of microservices for customization and the increasing convergence of platforms into "platforms of platforms" or meta-organizations is explored. Data Monetization in B2B: The potential for companies to sell and leverage data, drawing parallels between B2B and B2C models with examples like smart cities and business analytics, is discussed. Physical Assets as Pivots for B2B Platforms: The idea that valuable physical assets owned by companies can serve as the core of B2B platforms, using the concept of "solution enabler platforms," is examined. Different types of B2B platforms based on control and decision rights, such as consortium platforms and algorithmic governance, are also introduced. Future Research Focus on AI and Platforms: Marin shares his current research interest in the application of AI in specific sectors like medical technology and how AI solutions interact with existing hospital systems and potentially aggregate on platforms. Publications & Projects Mentioned: Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64–88. Jovanovic, M., Sjödin, D., & Parida, V. (2021). Co-evolution of platform architecture, platform services, and platform governance: Expanding the platform value of industrial digital platforms. Technovation, 102218. doi:10.1016/j.technovation.2020.102218. Sjödin, D., Parida, V., Jovanovic, M., & Visnjic, I. (2020). Value creation and value capture alignment in business model innovation: A process view on outcome-based business models. Journal of Product Innovation Management, 37(2), 158–183. doi:10.1111/jpim.12516. Links: Marin Jovanovic's research blog: Industry Platforms Research. full no b2b platforms,industrial platforms Daniel Trabucchi, Tommaso Buganza and Philip Meier

Fri, 14 Mar 2025 06:30:00 +0000 https://tap.podigee.io/53-organizing-for-innovation-in-the-digitized-world 982e7af38edcfe0358732bbe75baee0a by Y. Yoo, R. J. Boland, K. Lyytinen, and A. Majchrzak Paper covered in this episode Yoo, Y., Boland, R. J., Lyytinen, K., & Majchrzak, A. (2012). Organizing for innovation in the digitized world. Organization Science, 23(5), 1398-1408. Disclaimer This podcast is generated using artificial intelligence technology, drawing content from published scientific papers. While we strive for accuracy, please note: The episode synthesizes and interprets scientific literature, not original research. AI-generated content may contain errors or misinterpretations. This podcast is for informational purposes only and should not be considered professional or medical advice. Listeners are encouraged to refer to the original scientific papers for comprehensive and authoritative information. The views expressed may not necessarily reflect those of the original authors or their institutions. We welcome feedback and corrections. Please consult with qualified professionals before applying any information presented in this podcast. full by Y. Yoo, R. J. Boland, K. Lyytinen, and A. Majchrzak no digital innovation,organizing Daniel Trabucchi, Tommaso Buganza and Philip Meier

Wed, 12 Mar 2025 06:30:00 +0000 https://tap.podigee.io/52-pinar-yildirim 23f2220682754b181205d6d50a068b6b Guest: Pinar Yildirim Bio: Pinar Yildirim is an Associate Professor of Marketing (with tenure) at the Wharton School and an Associate Professor of Economics (secondary) at the University of Pennsylvania's Department of Economics. Her research focuses on media, technology, and information economics, particularly on the economics of online platforms, social and economic networks, political economy, and the impact of technology and AI on organizations and societal dynamics. Her work has been published in top journals such as American Economic Review, Marketing Science, and Journal of Marketing Research. She is also an area editor at International Journal of Research in Marketing (IJRM) and serves on the editorial boards of Marketing Science and *Journal of Marketing Research. Summary: In this episode, Pinar delves into the definition and evolution of platforms, emphasizing their role as matchmakers that reduce search costs and facilitate transactions between different user groups. The conversation also explores recent developments in social media, such as Elon Musk's acquisition of Twitter (now X), content moderation, and the fragmentation of social networks. Key Discussion Points: Defining Platforms: Pinar explains how platforms are defined, including their role as stages for multiple companies to grow and as matchmakers connecting diverse user groups. Platform Evolution: The discussion highlights how platforms have evolved to reduce search costs and enable transactions between user groups. Content Moderation: Pinar discusses the importance of content moderation and its impact on user engagement and advertising revenue, particularly in light of Elon Musk's approach to content moderation on X. Revenue Models and Content Moderation: The podcast explores the interplay between revenue sources (advertising vs. subscriptions) and content moderation policies, and how they influence user behavior. Fragmentation of Social Media: The episode examines the trend of users building echo chambers by joining platforms with varying content moderation policies. Interoperability: The potential of interoperability as a regulatory tool to manage the emergence of diverse social media platforms is considered. Social Evolution of Platforms: The natural social evolution in social media platforms and strategies companies can adopt to manage arising challenges. Algorithms: Platforms create algorithms to ensure users are not necessarily interacting with all of their connections. Publications & Projects Mentioned: Halaburda, H., Piskorski, M. J., & Yildirim, P. (2018). Competing by restricting choice: The case of matching platforms. Management Science, 64(8), 3574-3594. Liu, Y., Yildirim, P., & Zhang, Z. J. (2022). Implications of revenue models and technology for content moderation strategies. Marketing Science, 41(4), 831-847. Petrova, M., Sen, A., & Yildirim, P. (2021). Social media and political contributions: The impact of new technology on political competition. Management Science, 67(5), 2997-3021. Yildirim, P., Gal-Or, E., & Geylani, T. (2013). User-generated content and bias in news media. Management Science, 59(12), 2655-2666. Links: https://pinaryildirim.com/ full no digital platforms,content moderation,social media Daniel Trabucchi, Tommaso Buganza and Philip Meier

Fri, 07 Mar 2025 06:30:00 +0000 https://tap.podigee.io/51-platform-envelopment 837f47429958004d5906666b5c019f7b by Thomas Eisenmann, Geoffrey Parker, and Marshall Van Alstyne Paper covered in this episode Eisenmann, T., Parker, G., & Van Alstyne, M. (2010). Platform envelopment. Strategic Management Journal, 32(12), 1270-1285 Disclaimer This podcast is generated using artificial intelligence technology, drawing content from published scientific papers. While we strive for accuracy, please note: The episode synthesizes and interprets scientific literature, not original research. AI-generated content may contain errors or misinterpretations. This podcast is for informational purposes only and should not be considered professional or medical advice. Listeners are encouraged to refer to the original scientific papers for comprehensive and authoritative information. The views expressed may not necessarily reflect those of the original authors or their institutions. We welcome feedback and corrections. Please consult with qualified professionals before applying any information presented in this podcast. full by Thomas Eisenmann, Geoffrey Parker, and Marshall Van Alstyne no digital platforms Daniel Trabucchi, Tommaso Buganza and Philip Meier

Wed, 05 Mar 2025 06:30:00 +0000 https://tap.podigee.io/50-mariia-petryk 2d276b1508e6095001e0330fc436a8b2 Decentralization, Tokenization, and the Evolution of Digital Incentives Guest: Maria Petryk Bio: Maria Petryk is an Assistant Professor of Information Systems and Operations Management at George Mason University. Her research interests include information systems, finance management, organization science, and the economics of blockchain. She focuses particularly on decentralized platforms and open-source software. Summary: In this episode of Talking About Platforms, Maria discusses the platform business model as one that creates infrastructural opportunities for other agents, companies, individuals, and users to create new value. The platform operator provides the infrastructure and foundational tools for other economic agents to create derivative value and the economy around the platform. Key discussion points include: • Decentralized platforms and blockchain: Maria shares her journey into researching blockchain technology around 2017, initially learning about it from the Bitcoin perspective and then finding a community on campus discussing this technology. She notes the ethos behind it as a movement against centralization, particularly in financial transactional systems, aligning with open-source software concepts. • Research gaps and the evolution of blockchain applications: Early research focused on understanding what blockchain is and what changes it brings to existing business models. The evolution of applications, from Bitcoin to various cryptocurrencies, has been crucial in understanding blockchain's impact. • Traditional firms and blockchain: Some companies use blockchain technology to make processes more efficient, such as stablecoin companies utilizing blockchain for cheaper and more efficient payment rails. Others, like Starbucks and Nike, experiment with Web3 artifacts for community engagement and loyalty enhancement. • Open-source community and value capture: Maria discusses capturing the value of open source in the cryptocurrency space, given that a majority of cryptocurrencies have open-source code on GitHub. • Centralization in decentralized sectors: The discussion touches on the tendency toward centralization in the blockchain space, with larger entities dominating through grant programs. • Tokenization and incentivization: Blockchain introduces the concept of token organizations, digitizing transactions and exchanges, and using tokens as a payment for contributions, potentially shifting the balance between intrinsic and extrinsic motivation. • Algorithmic governance and immutability: The immutability of code in blockchain systems can be a dilemma when the system scales and new market mechanisms require changes. Flexibility is needed, and sometimes centralized entities are required to make decisions. Publications & Projects Mentioned: • von Hippel, E. (2002). Open source software projects as user innovation networks. MIT Sloan School of Management • Petryk, M., Qiu, L., & Pathak, P. (2023). The Impact of Open-Source Community on Cryptocurrency Market Price: An Empirical Investigation. Journal of Management Information Systems, 40(4), 1237-1270. • Nimalendran, M., Pathak, P., Petryk, M., & Qiu, L. (2024). Informational efficiency of cryptocurrency markets. Journal of Financial and Quantitative Analysis, 1-30. Links: • Mariia's website: https://www.mariiapetryk.com/home full Decentralization, Tokenization, and the Evolution of Digital Incentives no crypto economics,decentralised platforms,digital platforms Daniel Trabucchi, Tommaso Buganza and Philip Meier

Fri, 28 Feb 2025 06:30:00 +0000 https://tap.podigee.io/49-platform-classics-seven 59fb3898b4741c60e1eaf0dd6278442b by E. Glen Weyl Paper covered in this episode Weyl, E. G. (2010). A Price Theory of Multi-sided Platforms. American Economic Review, 100(4), 1642-1672 Disclaimer This podcast is generated using artificial intelligence technology, drawing content from published scientific papers. While we strive for accuracy, please note: The episode synthesizes and interprets scientific literature, not original research. AI-generated content may contain errors or misinterpretations. This podcast is for informational purposes only and should not be considered professional or medical advice. Listeners are encouraged to refer to the original scientific papers for comprehensive and authoritative information. The views expressed may not necessarily reflect those of the original authors or their institutions. We welcome feedback and corrections. Please consult with qualified professionals before applying any information presented in this podcast. full by E. Glen Weyl no Daniel Trabucchi, Tommaso Buganza and Philip Meier

Wed, 26 Feb 2025 06:30:00 +0000 https://tap.podigee.io/48-cristina-alaimo b788479886b1433e351b583f213307fa The complexities of privacy in the data economy Guest Cristina Alaimo Bio Cristina Alaimo, who received her Ph.D. from the London School of Economics, is an Associate Professor at ESSEC Business School in France. Her research focuses on data-driven innovation and its impact on organizations and society. Alaimo co-authored the book Data Rules: Reinventing the Market Economy with Jannis Kallinikos, which MIT Press published in 2024. She also serves as a senior editor of the European Journal of Information Systems. Summary In this episode of Talking About Platforms, Cristina Alaimo discusses her work on platforms as new enterprise forms mediating heterogeneous actors' participation, highlighting the central role of data in transforming social and economic relations. She introduces the concept of "de-centering," which distinguishes platform-based organizations from traditional organizations focused on boundaries, resources, and concentrated knowledge. Platforms, unlike traditional organizations, thrive on the dispersed and heterogeneous participation of actors, recentralizing data to produce value. The discussion explores the cognitive revolution in business and the importance of data as a resource of knowledge, not just economic value. Cristina emphasizes that data is not simply found or given by users but is actively made through the engineering of platform participation. She also touches on the impact of regulatory frameworks, like the EU's Digital Markets Act, on digital platforms, noting that their effect may be limited due to the dynamic nature of the environment and developments in AI. We delve into the complexities of privacy in the data economy, question the concept's operationalization, and advocate for a more specific discussion about citizen rights. Cristina calls for academia to avoid ideological battles and instead focus on understanding how data is produced, who benefits, and the various dimensions of data, urging a more nuanced approach to data economy discussions. Additionally, she highlights the need for a cautious yet flexible approach to regulation, considering the broad impact on knowledge access and societal norms. Publications & Projects Mentioned Alaimo, C., & Kallinikos, J. (2024). Data Rules: Reinventing the Market Economy. MIT Press. Links Cristina's Website: https://faculty.essec.edu/en/cv/alaimo-cristina/ Linkedin: https://www.linkedin.com/in/cristinaalaimo/ full The complexities of privacy in the data economy no data governance,digital platforms Daniel Trabucchi, Tommaso Buganza and Philip Meier

Fri, 21 Feb 2025 06:30:00 +0000 https://tap.podigee.io/47-platfom-classics-six a4a83ed7bcfd612587c374c70b3bf1bd How the structure of technological interdependence affects firm performance in new technology generations Paper covered in this episode Adner, R., & Kapoor, R. (2010). Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generations. Strategic Management Journal, 31(3), 306-333 Disclaimer This podcast is generated using artificial intelligence technology, drawing content from published scientific papers. While we strive for accuracy, please note: The episode synthesizes and interprets scientific literature, not original research. AI-generated content may contain errors or misinterpretations. This podcast is for informational purposes only and should not be considered professional or medical advice. Listeners are encouraged to refer to the original scientific papers for comprehensive and authoritative information. The views expressed may not necessarily reflect those of the original authors or their institutions. We welcome feedback and corrections. Please consult with qualified professionals before applying any information presented in this podcast. full How the structure of technological interdependence affects firm performance in new technology generations no innovation ecosystems Daniel Trabucchi, Tommaso Buganza and Philip Meier

Wed, 19 Feb 2025 06:30:00 +0000 https://tap.podigee.io/46-lindsey-cameron 39e8b4526e97215270154c66da566497 Platform Power and the Future of Work Guest Lindsey D. Cameron Bio Lindsey D. Cameron is an Assistant Professor of Management at the University of Pennsylvania's Wharton School of Business and a faculty affiliate at the Berkman Klein Center for Internet and Society at Harvard University. Her research focuses on algorithmic management, artificial intelligence, and platform work. Lindsey became interested in platforms after observing her mother's experiences in the gig economy after a job loss, which sparked her interest in social mobility and labor platforms. Summary In this episode of Talking About Platforms, Lindsey D. Cameron discusses her research on labor platforms, platform power, and the evolving nature of platform economies. She emphasizes that platforms are not neutral entities but are embedded with values that can lead to exploitation. She explores how this exploitation is visible on labor platforms through declining wages and safety violations but is often subtler on digital platforms. Lindsey also addresses the co-option of the sharing economy narrative by early labor platforms and the role of algorithmic management in controlling workers. She distinguishes between open and closed labor markets, highlighting the varying degrees of control exerted by platforms. The discussion further covers the need for platform accountability, the importance of transparent rules, and the potential for on-demand platform work in formalizing economies, especially in the Global South. We touch on the increasing entanglement of platform work within society, shaping decisions, and capital flows. Publications & Projects Mentioned Rahman, H. A., Karunakaran, A., & Cameron, L. D. (2024). Taming platform power: Taking accountability into account in the management of platforms. Academy of Management Annals, 18(1), 251-294 Cameron, L. D. (2024). The Making of the "Good Bad" Job: How Algorithmic Management Manufactures Consent Through Constant and Confined Choices. Administrative Science Quarterly, 69(2), 458-514. Cameron, L. D. (2022). "Making out" while driving: Relational and efficiency games in the gig economy. Organization Science, 33(1), 231-252. Links Lindsey's Website: lindseydcameron.com X (Twitter): @LindseyDCameron6 full Platform Power and the Future of Work no Daniel Trabucchi, Tommaso Buganza and Philip Meier

This paper brings together the recent literature on industry platforms and shows how it relates to managing innovation within and outside the firm as well as to dealing with technological and market disruptions and change over time. First, we identify distinct types of platforms. Our analysis of a wide range of industry examples suggests that there are two predominant types of platforms: internal or company-specific platforms, and external or industry-wide platforms. We define internal (company or product) platforms as a set of assets organized in a common structure from which a company can efficiently develop and produce a stream of derivative products. We define external (industry) platforms as products, services, or technologies that act as a foundation upon which external innovators, organized as an innovative business ecosystem, can develop their own complementary products, technologies, or services. Second, we summarize from the literature general propositions on the design, economics, and strategic management of platforms. Third, we review the case of Intel and other examples to illustrate the range of technological, strategic, and business challenges that platform leaders and their competitors face as markets and technologies evolve. Finally, we identify practices associated with effective platform leadership and avenues for future research to deepen our understanding of this important phenomenon and what firms can do to manage platform-related competition and innovation.

In this episode, Kevin Boudreau discusses his research on platforms, from his early perspectives to his current view of platforms as governed digital spaces. He also delves into the impact of AI and data on platforms, and how business schools can play an active role in helping companies adapt to the rapidly changing landscape.

This influential paper by Caillaud and Jullien from 2003 examines imperfect price competition between intermediation service providers, with a particular focus on aspects relevant to informational intermediation on the Internet. The authors analyze three key elements: indirect network externalities, non-exclusive use of multiple intermediaries, and price discrimination based on user identity and behavior. Using a developed model, they explore how these factors influence market structures and pricing strategies in intermediation markets. Key findings include that both efficient and inefficient market structures can emerge in equilibrium. Additionally, intermediaries have incentives to offer non-exclusive services to moderate competition and exert market power. The study provides a detailed analysis of pricing and business strategies employed by intermediation service providers and has significantly contributed to understanding competition dynamics in digital intermediation services, making it foundational for research on two-sided markets and platform economics.

This podcast episode features Chiara Farronato, a Harvard Business School professor, discussing her research on digital platforms. Farronato defines platforms as information aggregators that connect fragmented users, and she examines the impact of platforms like Airbnb on issues such as over-tourism and housing affordability. The discussion also explores the challenges of regulating large tech companies, contrasting the American approach of breaking them up with the European approach of implementing regulations. A key theme is the need for greater transparency from platform companies to foster trust and ensure beneficial societal impact.

Parker and Van Alstyne's seminal paper explores two-sided network effects in information markets, demonstrating how firms can strategically offer products for free by leveraging distinct markets of content providers and end consumers. Their model reveals that by understanding network externalities, companies can increase consumer welfare and firm profits simultaneously through sophisticated product coupling and pricing strategies. The research provides critical insights into how digital platforms like operating systems and internet browsers create value by balancing the needs of different user groups, effectively explaining the economic logic behind seemingly counterintuitive business models that offer core products at zero cost.

The discussion begins with positive network externalities, which are broken down into three key factors: accumulation, variety, and utility. Accumulation describes how interconnected items on a platform, such as Wikipedia articles, create value. Variety refers to the value generated by diverse complements, exemplified by apps in an app store. Utility represents the immediate value a platform offers, like an Uber ride. We then explore the concept of negative network externalities, which occur when positive effects become excessive. These include rivalry from increased user numbers, choice overload due to excessive variety, fragmentation from over-accumulation, and value degradation resulting from poor utility. The discussion further introduces the concept of amplified network externalities. This includes network connectivity and horizontal complementarity. Horizontal complementarity, a concept the authors note as underexplored, refers to the value created when platform complements are used together, such as calendar and video conference apps on a smartphone. The authors mention writing another paper focused solely on this concept. They also highlight super apps like WeChat and Grab as examples of platforms attempting to internalize horizontal externalities. This comprehensive framework provides a nuanced understanding of how network effects operate in platform markets, offering insights into both the positive and negative aspects of platform growth and diversification.

Baldwin and Clark's "Design Rules, Volume 1" explores how modular design transforms technological innovation. The book reveals how breaking complex systems into independent, interconnected components enables faster, more flexible technological development. By analyzing design architectures, the authors demonstrate how modularity reduces complexity, accelerates innovation, and provides strategic advantages across technological domains.

This podcast episode features Wim Vanhaverbeke, a digital strategy and open innovation expert, discussing digital platforms and their impact on open innovation. Vanhaverbeke explains his perspective on platforms as business models facilitating interactions, highlighting the complexities of multi-sided B2B platforms compared to two-sided models. He details how digitalization and AI enhance open innovation, offering examples of companies using platforms internally and externally for innovation. The conversation further explores the challenges managers face adapting to these evolving platform dynamics and the crucial role of data sharing in overcoming adoption barriers, particularly within regulated sectors like healthcare. Finally, Vanhaverbeke discusses future research directions focusing on open innovation, sustainability, and the democratizing effects of technology.

Join us as we analyze the complex dynamics of markets shaped by network effects. We'll investigate how compatibility decisions and sponsorship influence technology adoption and how the presence of two-sided platforms creates unique challenges and opportunities. To shed light on these critical market forces, we draw from the work of Katz and Shapiro (1985, 1986) and Rochet and Tirole (2003).

This conversation with Andrei Hagiu explores the power dynamics between platforms and participants, highlighting platform traps where dominant platforms can exert control over sellers. The discussion also considers the potential of blockchain technology to decentralize platforms and create more equitable business models.

In The Interaction Field, management expert and professor Erich Joachimsthaler explains that the only way to thrive in this environment is through the Interaction Field model. Companies who embrace this model generate, facilitate, and benefit from data exchanges among multiple people and groups -- from customers and stakeholders, but also from those you wouldn't expect to be in the mix, like suppliers, software developers, regulators, and even competitors.

Platform cooperatives reimagine a world where domestic workers can double their income by establishing their platform. On this internet, platforms such as Twitch, Twitter, and Roblox are owned by their streamers, users, and creators. What if small fishing communities in Mexico or farmers in Kerala had the power to determine what data they collected about their work and how they utilized that data? Platform cooperatives are not a figment of the romantic imagination, but rather a reality transforming industries today. Collectives that leverage technology offer an urgent and practical solution to shift how businesses are owned and controlled, allowing workers to make decisions together. In this book, researcher and activist Trebor Scholz explores how these new forms of business, powered by peer principles, are paving the way for a more equitable economy that benefits everyone.

"Ecosystems represent potentially the best organizational model for the future of organizations." Mark Greeven

Enterprise information systems (EIS) have been important enablers of business cross-functional processes since the 1990s. Often referred to as enterprise resource planning (ERP) systems, they were extended in line with electronic businesses for integration with suppliers and customers. Today, EIS architectures comprise, not only, ERP, supply chain, and customer relationship management systems, but also, business intelligence and analytics. We open the discussion piece by discussing how decentralization dynamics impact EIS and how such dynamics must be controlled but also harnessed to make future EIS more efficient and useful.

The CityScienceLab at the HafenCity University Hamburg investigates the urban challenges in the era of digitalization in cooperation with partners from civil society, politics, economy, and science. It pursues an inter and transdisciplinary perspective by linking technical issues with social and cultural developments.

We explore the intersection of platform governance and media policy and examine the impact of inter-and-intra-organizational behavior on platform governance and content moderation.

We talk about the so-called “Web3” movement that emerges as a reaction against the growing concentration of power to information in the hands of a few and instead proposes an open, trustless, and distributed iteration of the Internet that rests on visions of interoperation, decentralization, democratization, and user-controlled monetization.

A conversation about the legal challenges and opportunities of blockchain technology and platform ecosystems, with a specific focus on governance and trust.

Building identity, payments, and data exchange as infrastructure to scale solutions in agriculture, health, poverty, climate, and other pressing challenges promises to be one of the most compelling public interventions of this decade. But the work, as with the definition of it, is still emergent. We look forward to hearing from you to learn more ways to think about these important issues.

In most platform environments, the exclusive provision of premium content from leading creators (superstars) is used as a strategy to boost user participation and secure a competitive edge vis-à-vis rivals. In this article, we study the impact of superstar exclusive content provision on platform competition and complementors' homing decisions. Two competing platforms facilitate interactions between consumers and suppliers, of which the latter are identified by the superstar and a fringe of complementors (e.g., independent developers, amateurs). When platform competition is intense, more consumers become affiliated with the platform favored by superstar exclusivity. This mechanism is self-reinforcing as it generates an entry cascade of complementors, and some complementors single home on the favored platform.

Wed, 10 Jan 2024 06:30:00 +0000 https://tap.podigee.io/25-panos-constantinides 422936b8b903af0d2b42983089ebff6c The formation and evolution of digital platforms across ecosystems Panos' Bio: Panos Constantinides is a Professor of Digital Innovation and Digital Learning Lead for Executive Education at Alliance Manchester Business School. He holds a PhD from the Judge Business School at the University of Cambridge and he is a Fellow of the Cambridge Digital Innovation Centre. Panos leads the Digital Transformation Research Group at Alliance Manchester Business School. Panos is also one of the co-founders of the European Digital Platforms Research Network (EUDPRN). His research investigates how organizations use digital technologies to co-create and capture value while facilitating strategic transformation. His recent work has shed light on the formation and evolution of digital platforms across ecosystems, including platforms built on generative AI technologies. He advises senior business leaders and policymakers on how to manage the transition to new technologies and new business models in the digital economy. His research has been published in FT50 journals such as Information Systems Research, MIS Quarterly, and the Journal of Business Venturing and Organisation Studies, among others. His research has also appeared in Concurrences, Competition Policy International, PYMNTS, Thinkers50, MIT Sloan Management Review, ZDnet, and other media outlets. Panos' Google Scholar page: https://scholar.google.co.uk/citations?user=Erxikd8AAAAJ&hl=en Panos on Linkedin: https://www.linkedin.com/in/panos-constantinides/?originalSubdomain=uk full The formation and evolution of digital platforms across ecosystems no Daniel Trabucchi, Tommaso Buganza and Philip Meier

The burgeoning digital platforms literature across multiple business disciplines has primarily characterized the platform as a market or network. Although the organizing role of platform owners is well recognized, the literature lacks a coherent approach to understanding organizational governance in the platform context. Drawing on classic organizational governance theories, this paper views digital platforms as a distinct organizational form where the mechanisms of incentive and control routinely take center stage. We systematically review research on digital platforms, categorize specific governance mechanisms related to incentive and control, and map a multitude of idiosyncratic design features studied in prior research onto these mechanisms. We further develop an integrative framework to synthesize the review and to offer novel insights into the interrelations among three building blocks: value, governance, and design. Using this framework as a guide, we discuss specific directions for future research and offer several illustrative questions to help advance our knowledge about digital platforms' governance mechanisms and design features.

Many recent technological advances (e.g. ChatGPT and search engines) are possible only because of massive amounts of user-generated data produced through user interactions with computing systems or scraped from the web (e.g. behavior logs, user-generated content, and artwork). However, data producers have little say in what data is captured, how it is used, or who it benefits. Organizations with the ability to access and process this data, e.g. OpenAI and Google, possess immense power in shaping the technology landscape. By synthesizing related literature that reconceptualizes the production of data for computing as ``data labor'', we outline opportunities for researchers, policymakers, and activists to empower data producers in their relationship with tech companies, e.g advocating for transparency about data reuse, creating feedback channels between data producers and companies, and potentially developing mechanisms to share data's revenue more broadly. In doing so, we characterize data labor with six important dimensions - legibility, end-use awareness, collaboration requirement, openness, replaceability, and livelihood overlap - based on the parallels between data labor and various other types of labor in the computing literature.

Research summary Platform ecosystems have spurred new products and services, sparked innovation, and improved economic efficiency in various industries and technology sectors. A distinctive feature of the platform architecture is its modular and interdependent system of core and complementary components bound together by design rules and an overarching value proposition. Accordingly, we conceptualize platforms as meta-organizations, or “organizations of organizations” that are less formal and less hierarchical structures than firms, and yet more closely coupled than traditional markets. To function successfully, however, platforms require coordination among multiple participants not all of whose interests are aligned. These organizational features of platforms raise many interesting and complex strategic challenges and hold implications for how platforms compete. In this paper, we discuss some of the most salient features of platform ecosystems as meta-organizations, specifically in terms of the sources of authority or power in the ecosystem, the motivation and incentives a platform creates to attract participants, and its governance and coordination structures. We then consider how papers appearing in this special issue inform us about the effects of these features on platform competition along three distinct dimensions: (a) with traditional incumbents as platforms enter and establish themselves in new markets, (b) with other platforms to secure an advantageous market position, and (c) with the different participants on the platform to share the value that has been created jointly. We close by identifying some promising directions for future research.

Enterprise resource planning upgrades can be expensive and complex—and unavoidable. A product and platform approach can manage costs and improve outcomes.

Daniel, Tommaso, and Philip talk about the upcoming season, important changes to the team (welcome, Tommaso!), and Platform Thinking.

We end season two of the Talking about Platforms Podcast by bringing on a true expert on applied network effects. Sameer Singh looks back on a long and successful track record investing in network effects-based startups. In this episode, we discuss how Sameer differentiates between networked products and platforms, how to measure network effects, and why network effects-based businesses must also start with solving a real customer's problem.

Why do we need platform business design? Today's rise of digital platforms is reshaping our economy leaving traditional business models far behind. Google, Airbnb, Facebook, Uber, and Amazon are only a few prominent examples of an unstoppable row of businesses leveraging platform dynamics. A multi-sided platform acts as a digital marketplace, where producers and consumers come together, and value is created for both parties through their interaction. Platforms create and manage external communities rather than produce and ship products or services on their own. Thus, they can leverage network effects and are able to grow at a pace that easily exceeds this of even the best-funded traditional businesses.

Abstract of the paper we discuss We investigate patterns in platform ecosystem emergence. We find that the processes of ecosystem emergence—value discovery (designing and establishing an ecosystem value proposition and individual value offerings), collective governance (regulation of participation), platform resourcing (resource acquisition for set-up and scale-up), and contextual embedding (legitimation of the ecosystem in the wider societal and competitive context)—exhibit characteristic patterns as an ecosystem establishes itself. We also find that collective governance patterns vary considerably across cases and argue that early governance decisions significantly influence subsequent evolution of an ecosystem. Furthermore, we show that although there are similarities in ecosystem emergence at the macro level (during launch, expansion, and establishment), at the micro level these processes coevolve giving rise to idiosyncratic patterns of coevolution.

Abstract Digital platforms are an omnipresent phenomenon that challenges incumbents by changing how we consume and provide digital products and services. Whereas traditional firms create value within the boundaries of a company or a supply chain, digital platforms utilize an ecosystem of autonomous agents to co-create value. Scholars from various disciplines, such as economics, technology management, and information systems have taken different perspectives on digital platform ecosystems. In this Fundamentals article, we first synthesize research on digital platforms and digital platform ecosystems to provide a definition that integrates both concepts. Second, we use this definition to explain how different digital platform ecosystems vary according to three core building blocks: (1) platform ownership, (2) value-creating mechanisms, and (3) complementor autonomy. We conclude by giving an outlook on four overarching research areas that connect the building blocks: (1) technical properties and value creation; (2) complementor interaction with the ecosystem; (3) value capture; and (4) the make-or-join decision in digital platform ecosystems.

Abstract The terms decentralized organization and distributed organization are often used interchangeably, despite describing two distinct phenomena. I propose distinguishing decentralization, as the dispersion of organizational communications, from distribution, as the dispersion of organizational decision-making. Organizations can be distributed without being decentralized (and vice versa), and having multiple management layers directly affects only distribution – not decentralization. This proposed distinction has implications for understanding the growth of digital platforms (e.g. amazon.com), which dominate the global economy in the 21st century. While prominent platforms typically use machine learning as their core technology to transform inputs (e.g. data) into outputs (e.g. matchmaking services), blockchain has emerged as an alternative technological blueprint. I argue that blockchain enables platforms that are both decentralized and distributed (e.g. Bitcoin), whereas machine learning fosters centralized communications and the concentration of decision-making (e.g. Facebook Inc.). This distinction has crucial implications for antitrust policy, which, I contend, should shift both its analysis and its target of action away from the corporate level and focus instead on the data level. Based on this essay's framework, I make several predictions regarding the future of competition between centralized and decentralized platforms, the evolution of government regulation, and broader implications for managers in the digital economy and for the business schools charged with their education. I conclude with reflections on the opportunity to revive cybernetic thinking for preventing a dystopian future dominated by a handful of platform behemoths.

In 2020, the research team around Liz, Sloan, and Deloitte focused on opportunity marketplaces: internal platforms that help organizations develop, engage and retain talent. In 2021, the team published on workforce ecosystems: structures that consist of interdependent actors, from within the organization and beyond, working to pursue both individual and collective goals. In 2022, the team further explores how management practices must evolve to oversee a workforce comprised of a varied set of actors.

Abstract from the paper we discuss during the episode: When platform leaders change the rules guiding who can access and control a platform, the strategies of those who create value from the platform can be upended. Little research examines how platform participants adapt their strategies when a platform leader changes the rules governing access and control. We trace how participation with a development platform evolved under four different governance modes with varied access and control conditions. Participation intensity increased as access opened but decreased when platform leadership became unclear. Distributed platform leadership emerged only once the platform was collectively governed. Rather than assume that all firm participation complements a platform, we show how firms guardedly participate with open and collective platforms in ways that can either extend or subvert a platform's vitality.

Abstract from the paper we discuss with the author during the episode: A major result in the study of two-sided platforms is the strategic interdependence between the two sides of the same platform, leading to the implication that a platform can maximize its total profits by subsidizing one of its sides. We show that this result largely depends on assuming that at least one side of the market single-homes. As technology makes joining multiple platforms easier, we increasingly observe that participants on both sides of two-sided platforms multihome. The case of multihoming on both sides is mostly ignored in the literature on competition between two-sided platforms. We help to fill this gap by developing a model for platform competition in a differentiated setting (a Hotelling line), which is similar to other models in the literature but focuses on the case where at least some agents on each side multihome. We show that when both sides in a platform market multihome, the strategic interdependence between the two sides of the same platform will diminish or even disappear. Our analysis suggests that the common strategic advice to subsidize one side in order to maximize total profits may be limited or even incorrect when both sides multihome, which is an important caveat given the increasing prevalence of multihoming in platform markets.

Abstract from the book we discuss with the author during the episode: The rise of the platform economy into statelike dominance over the lives of entrepreneurs, users, and workers. The early Internet was a lawless place, populated by scam artists who made buying or selling anything online risky business. Then Amazon, eBay, Upwork, and Apple established secure digital platforms for selling physical goods, crowdsourcing labor, and downloading apps. These tech giants have gone on to rule the Internet like autocrats. How did this happen? How did users and workers become the hapless subjects of online economic empires? The Internet was supposed to liberate us from powerful institutions. In Cloud Empires, digital economy expert Vili Lehdonvirta explores the rise of the platform economy into statelike dominance over our lives and proposes a new way forward. Digital platforms create new marketplaces and prosperity on the Internet, Lehdonvirta explains, but they are ruled by Silicon Valley despots with little or no accountability. Neither workers nor users can “vote with their feet” and find another platform because in most cases there isn't one. And yet using antitrust law and decentralization to rein in the big tech companies has proven difficult. Lehdonvirta tells the stories of pioneers who helped create—or resist—the new social order established by digital platform companies. The protagonists include the usual suspects—Amazon founder Jeff Bezos, Travis Kalanick of Uber, and Bitcoin's inventor Satoshi Nakamoto—as well as Kristy Milland, labor organizer of Amazon's Mechanical Turk, and GoFundMe, a crowdfunding platform that has emerged as an ersatz stand-in for the welfare state. Only if we understand digital platforms for what they are—institutions as powerful as the state—can we begin the work of democratizing them.

Closing episode for the first season of the TaP podcast. We cover a broad range of topics, starting at the gap between academic research and the diffusion of knowledge into practice, what skills a platform professional needs, and how this might or might not change when it comes to Web3.

Abstract from the paper we discuss with the author during the episode: As a platform improves trust between the two sides of its market to facilitate matching and transactions, it faces an increased risk of disintermediation: with sufficient trust, the two sides may circumvent the platform to avoid the platform's fees. In this paper, we investigate the relationship between increased trust and disintermediation by leveraging a randomized control trial in an online freelance marketplace. We find that enhanced trust increases the likelihood of high-quality freelancers being hired. However, when the trust level is sufficiently high, it also increases disintermediation, which offsets the revenue gains from the increase in hiring high-quality freelancers. We also identify heterogeneity across clients and freelancers in their tendencies to disintermediate. We discuss strategies that platforms can use to mitigate the tension between trust-building and disintermediation.

Abstract from the paper we discuss with the author during the episode: Digital platforms have disrupted many sectors but have not yet visibly transformed highly regulated industries. This study of Big Tech entry in healthcare and education explores how platforms have begun to enter highly regulated industries systematically and effectively. We present a 4-stage process model of platform entry, which we term as “digital colonization”: (1) provision of data infrastructure services to regulated incumbents; (2) data capture in the highly regulated industry; (3) provision of data-driven insights; (4) design and commercialization of new products and services. We clarify platforms' sources of competitive advantage in highly regulated industries and conclude with managerial and policy recommendations.

Abstract from the paper we discuss with the author during the episode: The importance of platform‐based businesses in the modern economy is growing continuously and becoming increasingly relevant. Specifically, the deployment of digital technologies has enhanced the applicability of two‐sided business models, enabling companies to act not just as builders and owners of assets, but as orchestrators of external resources. Management research has therefore focused increasingly on the unique aspects of this model. At the center of a two‐sided platform there is a platform provider that enables a transaction between the sides, reducing the relative transaction costs. However, in recent years, a new technology emerged that challenges some of the underlying assumptions of this model: the blockchain. Blockchain enables the creation of a peer‐to‐peer network that is able to authenticate transactions, upon which applications and services may be built. It allows users to conduct transactions without the need for a central platform. We explore how blockchain technology re‐shapes two‐sided platforms, focusing in particular on the role of the platform provider. The research is based upon multiple case studies, using an inductive approach to explore this emerging phenomenon. Our findings show there is a significant shift in the role of the central player that links the two sides of a transaction using blockchain. We frame this as a shift from a "platform provider" to a "service provider", leveraging the blockchain as a Platform‐as‐a‐Service. Our work examines the peculiarities of this model, unveiling new dynamics in these businesses. Specifically, we show that different variables must be considered to classify two‐sided platforms using blockchain. Furthermore, the essential characteristics of two‐sided platforms must also be enlarged. For example, traditional platform theories emphasize the importance of cross‐side network externalities in creating value. In blockchain‐enabled platforms however, we show the use of “tokens” play a key role in creating different types of externalities between the two sides.

Abstract from the paper we discuss with the author during the episode: Online platforms are pervasive and powerful in today's economy. We explore the increased centrality of platforms in two ways. First, we measure the extent to which platforms are insinuating themselves into the economy. We accomplish this by analyzing the presence of platforms as intermediating organizations across all US service industries at the six-digit North American Industry Classification System (NAICS) code level. Our results show that 70% of service industries, representing over 5.2 million establishments, are potentially affected by one or more platforms. Second, we undertake a detailed firm-level case study of the mega-platform, Amazon, that demonstrates the ways that the aforementioned macro-level data is expressed by a single platform firm. This case study shows that Amazon's growth trajectory has resulted in it entering and transforming existing industries and sectors. We conclude by reflecting upon the limitations and implications for future research.