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The impacts of platforms

Concerns in the larger research body of research on platforms often leads to a subset looking into the impacts of the platform economy.  Let’s try some more digests responding to questions.

  • A. Is a shift to platforms considered as disruptive innovation?
  • B. Do network effects lead to a platform economy of “winner take all”?
  • C. With digital platforms based in information systems, what are the opportunities for knowledge effects?
  • D. What is the logic of participation on a platform?
  • E. Should platform capitalism be seen as positive or negative?
  • F. As an alternative to platform capitalism, should platform cooperativism be considered?
  • G. In the larger context of the sharing economy, how might platform initiatives be categorized?

The rise of the platform economy may be described either by the metaphor of “We Don’t Know Who Discovered Water, But We Know It Wasn’t a Fish” or the fable of the “Boiling Frog“.

A. Is a shift to platforms considered as disruptive innovation?

In a clarification about definition of disruptive innovationClayton Christensen doesn’t see Uber as disrupting the taxi business, because (i) the innovation doesn’t original on a low-end or new-market foothold; and (ii) the innovation doesn’t catch up with mainstream customers until quality catches up to their standards.  With disruptive innovation seen as a process, Uber is categorized by Christensen as as an outlier to the taxi business, offering a better quality service in the regulated taxi industry.… Read more (in a new tab)

Concerns in the larger research body of research on platforms often leads to a subset looking into the impacts of the platform economy.  Let’s try some more digests responding to questions.

  • A. Is a shift to platforms considered as disruptive innovation?
  • B. Do network effects lead to a platform economy of “winner take all”?
  • C. With digital platforms based in information systems, what are the opportunities for knowledge effects?
  • D. What is the logic of participation on a platform?
  • E. Should platform capitalism be seen as positive or negative?
  • F. As an alternative to platform capitalism, should platform cooperativism be considered?
  • G. In the larger context of the sharing economy, how might platform initiatives be categorized?

The rise of the platform economy may be described either by the metaphor of “We Don’t Know Who Discovered Water, But We Know It Wasn’t a Fish” or the fable of the “Boiling Frog“.

A. Is a shift to platforms considered as disruptive innovation?

In a clarification about definition of disruptive innovationClayton Christensen doesn’t see Uber as disrupting the taxi business, because (i) the innovation doesn’t original on a low-end or new-market foothold; and (ii) the innovation doesn’t catch up with mainstream customers until quality catches up to their standards.  With disruptive innovation seen as a process, Uber is categorized by Christensen as as an outlier to the taxi business, offering a better quality service in the regulated taxi industry.… Read more (in a new tab)

Platforms, an emerging appreciation

The term “platform” is now popular in a variety of contexts.  What do “platforms” mean, and what research might guide our appreciation?

Let’s outline some questions:

  • A. What came before the rise of platforms?
  • B. What types of platforms are there?
  • C. Why take a platform approach?
  • D. How do platforms manifest?
  • E. Why might a platform not be viable?
  • F. How are digital and non-digital platforms different?
  • G. What don’t researchers know about digital platforms?
  • H. What are the economic consequences of the platform economy?

The articles cited below are not exhaustive, but they may give a sense of the ballpark.

A. What came before the rise of platforms?

The industrial age was typified by descriptions of “supply chains” and “value chains”, which otherwise may be called “pipelines”. Marshall Van Alstyne, Geoffrey G. Parker, and Sangeet Paul Choudary write:

… platforms differ from the conventional “pipeline” businesses that have dominated industry for decades. Pipeline businesses create value by controlling a linear series of activities — the classic value-chain model. Inputs at one end of the chain (say, materials from suppliers) undergo a series of steps that transform them into an output that’s worth more: the finished product. [….]

The move from pipeline to platform involves three key shifts:

1. From resource control to resource orchestration. The resource-based view of competition holds that firms gain advantage by controlling scarce and valuable — ideally, inimitable — assets.

Read more (in a new tab)

The term “platform” is now popular in a variety of contexts.  What do “platforms” mean, and what research might guide our appreciation?

Let’s outline some questions:

  • A. What came before the rise of platforms?
  • B. What types of platforms are there?
  • C. Why take a platform approach?
  • D. How do platforms manifest?
  • E. Why might a platform not be viable?
  • F. How are digital and non-digital platforms different?
  • G. What don’t researchers know about digital platforms?
  • H. What are the economic consequences of the platform economy?

The articles cited below are not exhaustive, but they may give a sense of the ballpark.

A. What came before the rise of platforms?

The industrial age was typified by descriptions of “supply chains” and “value chains”, which otherwise may be called “pipelines”. Marshall Van Alstyne, Geoffrey G. Parker, and Sangeet Paul Choudary write:

… platforms differ from the conventional “pipeline” businesses that have dominated industry for decades. Pipeline businesses create value by controlling a linear series of activities — the classic value-chain model. Inputs at one end of the chain (say, materials from suppliers) undergo a series of steps that transform them into an output that’s worth more: the finished product. [….]

The move from pipeline to platform involves three key shifts:

1. From resource control to resource orchestration. The resource-based view of competition holds that firms gain advantage by controlling scarce and valuable — ideally, inimitable — assets.

Read more (in a new tab)
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