A Multidimensional Platform Ecosystem Framework
A Multidimensional Platform Ecosystem Framework
https://www.emerald.com/insight/0368-492X.htm
Platform
A multidimensional platform ecosystem
ecosystem framework framework
Sergey Yablonsky
Graduate School of Management, St. Petersburg State University,
St. Petersburg, Russian Federation 2003
Received 1 July 2019
Revised 25 December 2019
16 February 2020
Abstract Accepted 18 February 2020
Purpose – Ecosystems that support digital businesses maximize the economic value of network
connections. This forces a shift toward platforms and ecosystems that are collaborative by nature by
applying business models with multiple actors playing multiple roles. The purpose of this study is to
show how the main concepts emerging from research on digital platform ecosystems (DPEs) could be
organized in a taxonomy-based framework with different levels or dimensions of analysis. This study
discusses some of the contingencies at these different levels and argues that future research needs to
study DPEs across multiple levels of analysis. While this integrative framework allows the comparison,
contrast and integration of various perspectives at different levels of analysis, further theorizing will be
needed to advance the DPE research. The multidimensional framework proposed here involves the use
of a multimethodological approach that incorporates a synergy of businesses, technological innovations
and management methods to provide support for research in interrelationships across platform
ecosystems (PEs) on a regular basis.
Design/methodology/approach – This paper proposes a new PE framework by constructing a formal
taxonomy model that explains a vast group of phenomena produced by the PEs.
Findings – In addition to illustrating the PE taxonomy framework, this study also proposes a clear and
precise description and structuring of the information in the ecosystem domain. The PE framework assists in
identification, creation, assessment and disclosure research of platform business ecosystems.
Research limitations/implications – Because of the large number of taxonomy concepts (over 200),
only main taxonomy fragments are shown in the paper.
Practical implications – The outcomes of this research could be used for planning, oversight and control
over ecosystem management and the use of ecosystem’s knowledge-related resources for research purposes.
Originality/value – The PE framework is original and represents an effective tool for observing PEs.
Keywords Multisided platform, Business platform ecosystem, Taxonomy framework,
Technological platform
Paper type Research paper
1. Introduction
The systems approach to studies of complex phenomena has a long tradition in a wide range
of disciplines (Granstranda and Holgerssonb, 2019). In the past two decades, the concept of
innovation and business ecosystem (BE) has become popular (Gomes et al., 2018; Gupta
et al., 2019). This is not just a metaphor but also a powerful definition that calls for
conceptual research analysis. Industry sources are similarly demonstrating interest in BEs
and digital technologies (Gartner, 2017; Desmet et al., 2017; DeBeasi and Knoernschild, 2019;
Blosch and Burton, 2016, 2019). Organizations are seeking opportunities to innovate
business models (BMs), turning their attention outward into the BE of customers, partners, Kybernetes
suppliers and other actors – including “things” – to create new services, products and Vol. 49 No. 7, 2020
pp. 2003-2035
experiences. To take advantage of the BE, scholars recognize that it represents far more © Emerald Publishing Limited
0368-492X
than just a network of relationships; it is a dynamic, self-organizing, resilient system DOI 10.1108/K-07-2019-0447
K (Blosch and Burton, 2016, 2019). The size of digital ecosystems (DEs) ranges from millions of
49,7 actors to billions of actors (Amazon, Facebook, Alibaba).
As indicated by a global survey (Evans and Gawer, 2016), digital platforms and
ecosystems have now become an important economic force, with a total market value of
more than $4.3tn and an employment base of at least 1.3 million direct employees, with
millions of others indirectly employed. As Evans and Gawer (2016) point out, platform
2004 businesses can be found in a growing number of industries, including social networking
(Facebook, LinkedIn), internet auctions and retail (Amazon, eBay, Angie’s List), online
financial and human resource functions (Workday, Elance-oDesk, Freelancer, WorkFusion),
urban transportation (Uber, Lyft, Sidecar), mobile payment (Mahala, Square) and clean
energy (Sungevity, SolarCity, EnerNOC). Among the largest IPOs of the past few years,
many are multisided platforms (MSPs):
Alibaba had the biggest IPO ever, at $25bn;
Visa at $19.7bn;
Facebook at $16bn;
Twitter at $2.1bn;
Google at $1.67bn;
LinkedIn at $1.2bn; and
Groupon at $700m.
Platforms like Airbnb and Uber threaten to disrupt well-established industries, such as taxi
and hospitality services, using a platform-driven BM. Regional surveys (Evans and Gawer,
2016, Olayinka, Evans and Gawer, 2016) have identified 62 major platform companies
operating across Asia with a market capitalization of $800m or more, and 42 platform
companies operating in 33 African countries. The market value of the 62 Asian platform
companies now exceeds $1.1tn and has a powerful growing influence on shaping markets
throughout the region and worldwide.
In the digital age, traditional ways of doing business have transformed. Digital business
now refers to the creation of new business designs by blurring the digital and physical worlds.
It promises an unprecedented convergence of people, businesses and artificial agents (things,
smart things and smart machines) that changes existing BMs and creates new revenue
opportunities and platform designs (Cearley et al., 2017; Yablonsky, 2019). Despite the fact that
digital business and technology are inextricable, a lot more than only technology is required –
for example, leadership, talent, skills and new BMs (Schallmo et al., 2017). Business ecosystems
have become extremely complex as firms consider dynamic interactions of a multilayered BE
(Teece, 2012). New digital customers use digital channels – Web, mobile, social, etc. – to
consume content, engage with brands and complete a transaction. The internet and related
technologies are thus more than just new digital channels: they are a completely different
approach to providing business services and creating new digital BEs.
This paper investigates platform ecosystems (PEs). It contributes to the research into the
domains of system design, strategic management and information systems by presenting a
multidimensional framework that identifies how platform BEs can improve management within
organizations. Strategy is needed to guide platform BM portfolios and related BE trajectories.
We chose a design science research approach for our study; our intended artifact was a
framework for an ecosystem-driven platform stack (Turber et al., 2014; Yablonsky, 2018a,
2018b). Our approach was also inspired by methodologies for the conceptual analysis of
social systems. More specifically, we place certain demands on our conceptualizations
(Granstranda and Holgerssonb, 2019):
They must fill the empirical and theoretical need for concepts.
They should be capable of being operationalized, qualified, typologized and used as
concepts for taxonomies.
They must be syntactically and semantically compatible with common
conceptualizations of related concepts – here, the concepts of system, innovation
and BE.
The qualitative research in this paper aims to collect and analyze quality data regarding the
status and prospective evolution of BE research. The research methodology includes
extracting knowledge from these domains, classifying and organizing domain concepts,
validating issues and developing ontology. An ontological framework enables researchers to
access a knowledge base, appraise its content, determine if the resources are relevant and
integrate and aggregate the data with in-house resources and data. Methodological insight
into complex business ontology development has been demonstrated by several researchers
(Osterwalder, 2004; Bullinger, 2009; Poli et al., 2010). An ontology formally represents
knowledge as a hierarchy of concepts within a domain, using a shared vocabulary to denote
the types, properties and interrelationships of those concepts. For example, the creation of
domain ontologies is fundamental to the definition and use of an enterprise architecture
framework (Bullinger, 2009), e-commerce (Osterwalder, 2004; Osterwalder and Pigneur,
2010; Yablonsky, 2016), financial services (Yablonsky, 2016), Internet-of-Things (IoT) (De
et al., 2017) and other domains.
A clear and precise description and structuring of the information in the ecosystem
domain are prerequisites for a common understanding of the strategic information
exchanged among different partners of ecosystems. It also fosters semantic interoperability
in the context of global data exchange among public administrations, facilitates electronic
interoperability among ecosystem businesses and improves ecosystem metrics. Ontologies,
taxonomies and other types of controlled vocabularies are the preferred means for achieving
such a common understanding, by specifying the terms of the domains, disambiguating
them from each other, controlling synonyms and structuring the domain via term
relationships. Taxonomy (lightweight ontology) consists of a hierarchy of concepts linked
by a transitive subsumption relation (often called isA or subClassOf), whereby each instance
K of a class can be inferred to be an instance of all parent classes (Poli et al., 2010).
49,7 Heavyweight ontologies add classes (concepts), instances (objects) of classes or concepts,
attributes (aspects, properties, features, characteristics or parameters that objects and
classes can have), relations and more (Poli et al., 2010). By modeling concepts and their
relationships, ontologies and taxonomies make possible descriptions of complex ecosystem
domains in a machine-processable manner. They offer a common vocabulary for the
2006 integration of the hundreds of different knowledge bases, metadata formats and database
schemas that are used in the various domains. Taxonomies provide a promising, though
largely unexplored, approach to significantly improve corporate processes and research. We
consider the domain of ecosystems with exactly this view in mind. We emphasize the digital
PE viewpoint, which represents an integrated model of the existing literature and practical
perspectives.
The research seeks to answer the following research questions:
RQ1. What concepts and characteristics distinguish ecosystems through their types?
RQ2. What frameworks could be adopted and used to facilitate understanding,
analyzing and structuring platform ecosystems and their relationship with
technology platforms?
RQ3. What are the technology building blocks that an enterprise or industry needs to
support digital ecosystem business?
RQ4. What are the necessary business and technology platforms components required
to support the capabilities of a platform ecosystem?
RQ5. How can these be organized in a conceptual multidimensional multilayered
platform ecosystem framework for management and decision-making?
To answer the RQs, we first follow the recommendation of De Reuver et al. (2018) to provide
clear definitions for key concepts in the digital PE context. Subsequently, we follow
Nickerson and Muntermann (2013) who offered a well-structured, step-by-step method for
developing a taxonomy. Leaning on Moyer (2016), an industry vision of digital
transformation into a scalable digital platform consists of four parts: concept, capabilities,
assets and research. We initiated our process through a conceptual-to-empirical approach by
defining the primary ecosystem components involved in pattern conceptualization of the
established platform BM (Yablonsky, 2018a, 2018b). The purpose was to analyze and clarify
the place of the ecosystem layer in the platform BM and digital platform stack (Yablonsky,
2018a, 2018b). Using this framework, we collected additional qualitative data through
semistructured expert interviews, keeping in mind foresight methodology (Thom, 2010).
Our interview partners were some members of the technology groups, founders and Chief
Technology Officers of the data-driven ventures for NTI markets run by the Russian
National Technology Initiative (NTI; www.nti2035.ru/; https://asi.ru/eng/nti/). After the
framework was applied to relevant ventures, the results enabled an evaluation of the
appropriateness of the data-driven ecosystem framework. To further improve the data
reliability and internal validity, we triangulated the interview outcomes with a range of
secondary data, consisting especially of publicly available documents, such as the venture’s
white papers and annual reports. To identify the subdimensions and instantiations, we
screened the ventures for differences and commonalities, leading us to a preliminary version
of the multilayered PE vision. Required modifications were identified and a refined
framework was proposed. Based on theoretical conceptualization, combined with empirical
evidence, we then proposed a PE taxonomy framework to facilitate the understanding, Platform
analyzing and structuring of PEs. ecosystem
This paper further analyzes definitions of the ecosystem and the concept of a PE. In
response to the above RQs, the rest of the paper is organized as follows: Section 3 reviews
framework
recent literature regarding PEs and the key determinants for promoting the framework for
systematic PE management. This will form the basis for our framework analysis in Section
4. Platform ecosystem design and management are present in Section 5. Conclusions and
suggestions are given in Section 6.
2007
3. Conceptualizations of ecosystems
In this section, we conceptualize nondigital (offline) and digital (online) BEs. Scholars
identify three broad groups of papers on ecosystems: an “innovation ecosystem” (IE) stream,
focused around a particular innovation or new value proposition and the constellation of
actors that support it; a “business ecosystem” stream, which centers on a firm and its
environment; and a “platform ecosystem” stream, which considers how actors organize
around a platform (Jacobides et al., 2018).
First, we introduce core concepts from the literature on systems and nondigital BEs
(Section 3.1). We next explain how DEs differ from nondigital ecosystems, with specific
focus on governance arrangements (Section 3.2).
The collective evolution of the ecosystem typically relies on the technological and business
leadership of one or two platform-based firms – the platform leaders (Teece, 2018). A PE
exists when there are common standards and interfaces that permit the elements of the
ecosystem to innovate independently while advancing collectively (Robertson and Ulrich,
1998). Business ecosystems represent a substitute for the large vertically integrated firms of
previous decades that have become too clumsy to produce competitive product families that
draw on multiple areas of expertise (e.g. computing and communications) (Teece, 2018).
Ecosystem-as-affiliation offers an appealing metaphor and a helpful description of
interactions on the macro level. However, it is often hard to extricate its characterizations
K and recommendations from those of other approaches to interdependence (such as networks,
49,7 platforms and multisided markets). Additionally, because of its tendency to look at
aggregates, the strategy guidance offered by this perspective tends to focus on general
governance and community enhancements, giving limited insight into the specifics of value
creation (Adner, 2017).
An alternative ecosystems-as-structure perspective offers a complementary approach to
2010 considering interdependent value creation (Adner and Feiler, 2016). This begins with a value
proposition and seeks to identify the set of actors that need to interact for the proposition to
come about; it is based on a definition of the ecosystem that is better specified for the given
perspective.
3.1.3.3 Ecosystems-as-structure. The ecosystem is defined by the alignment structure of
the multilateral set of partners that need to interact for a focal value proposition to
materialize (Adner, 2017).
Hein et al. (2019a) state that the latest conceptual work on ecosystems (Kapoor, 2018;
Adner, 2017; Jacobides et al., 2018) points to the rise of a paradigm shift that integrates the
intraorganizational technical perspectives on digital platforms and the interorganizational
economic, business and social perspectives on ecosystems. In this paradigm, digital
platforms depend heavily on autonomous agents that contribute to the digital platform’s
value proposition (Teece, 2017b). The interdependencies between the platform and the
agents in an ecosystem can have both economic and structural components (Kapoor, 2018;
Adner, 2017).
Scholars have extracted three repeated entities from the set of existing innovation and
BE definitions, namely, actors, artifacts and institutions (Jacobides et al., 2018). They have
identified relations, such as collaborative/complementary and competitive/substitute
(Jacobides et al., 2018). Complementarities generate significant sources of value throughout
the ecosystem. The basic notion is that the whole, in the form of two or more complements in
combination, is greater than the sum of its parts (Teece, 2016). Complementarities are
important for the “innovation ecosystem” stream, because most technologies require
complementary technologies if their full value is to be realized.
3.1.3.4 Definition. Complementarities occur when two or more items are more valuable in
combination than in isolation. The items can be vertical or horizontal, and they may involve
user utility, prices, or technology. Complementarities are significant sources of value
throughout the economic system (Teece, 2016).
The most commonly studied types of complementarities involve factor prices or value
from use (Carlaw and Lipsey, 2002). Innovation studies, such as that of Rosenberg and
Frischtak (1983), instead look at the impact of new combinations of existing technologies. In
the absence of rules for participation in an ecosystem, delicate complementarities can be
disturbed and opportunities lost (Teece, 2016). Because of the interdependence of
organizational roles, there are simply too many potential conflicts to allow a completely self-
organizing approach. In economic terms, ecosystems are rife with externalities (Teece, 2016).
Defined as “the collaborative arrangements through which firms combine their
individual offerings into a coherent, customer-facing solution” (Adner, 2006, p. 98), one often
finds a technology platform at the core of an IE: a set of shared assets, standards and
interfaces that underpins the activity system surrounding it (Gawer, 2014).
3.1.4 Platform ecosystem. The PE stream focuses on the platform focal firm and
considers how ecosystem actors (economic agents) are organized around a platform. Shared
standards and interfaces are inherent features of platform-based ecosystems. They permit
the members of the ecosystem to innovate independently while competing collectively
against other firms and ecosystems in the relevant market.
Platforms can last for years; for example, offline malls link consumers and merchants Platform
and print newspapers connect subscribers and advertisers. For several decades, scholars ecosystem
have discussed platform concepts from a nondigital worldview. A broad class of businesses
of this sort that have economic features not well explained in standard textbooks has been
framework
presented by Rochet and Tirole (2003, 2004, 2006). Gawer and Cusumano investigated how
companies could compete through platforms (Gawer and Cusumano, 2008). Moore (1996)
proposed a strategic shift from competition toward coopetition around a shared niche.
Recent books by Tiwana (2014), Evans and Schmalensee (2016) and Parker et al. (2016)
2011
specify how platforms are shaping business and BMs and are in fact transforming entire
economies. Platform research is generally formalized both within the industrial innovation
management literature (Gawer, 2014; Thomas et al., 2014) and the economics literature
(Parker and Van Alstyne, 2005). The literature on MSPs is now regularly cited by
competition authorities and courts (Evans and Schmalensee, 2018). These are businesses
that pose novel problems for competition policy (Evans, 2003; Evans and Schmalensee,
2015). Platforms enable new products and services by reusing platform components. They
have lower fixed costs and enable service providers to market in a shorter period of time.
Market platform intermediaries usually reduce search and transaction costs for interactions
between two or more distinct groups of customers (e.g. suppliers and consumers in the case
of 7-Eleven, or sellers and buyers in that of eBay).
A successful MSP usually creates a network of relationships between economic entities
(producers, stakeholders, distributors, consumers, government agencies, etc.) which, by
competition or cooperation, facilitate the creation and distribution of a platform product or
service. The PE metaphor could be used to describe such a platform network characterized
by open, flexible, demand-driven, interactive networked architecture and collaborative
environments (Gawer and Cusumano, 2014). The ecosystem concept is of increasing
significance in the field of the enterprise management, system design and business
architecture. Starting from Moore (1996), the ecosystem concept has been actively discussed
in management studies.
Gupta et al. (2019, p. 1) state that the BE:
[. . .] has been defined in multiple ways and has been used interchangeably, jointly and
overlapping with innovation ecosystems and digital ecosystems, making it difficult to
differentiate, consolidate, utilize and grow the body of knowledge, both in academia and
industry.
Teece (2017a) mentions that the concept of “industry” as a group of firms performing similar
activities and competing or cooperating with each other is now increasingly less aligned
with the way firms think about themselves. In the digital economy, continues Teece (2017a),
firms see their roles as being less in industries and more in BEs.
In the above analysis, we have described the enterprise BE as an interorganizational
value-creating and value-capturing system built by a focal firm or focal firms, in which
heterogeneous members in different business ecological niches can efficiently exchange
resource and values.
We have created a general typology of different overlapping types of ecosystems,
including the following ecosystems (Figure 1):
(1) innovation ecosystems (IEs);
(2) business ecosystems (BEs);
(3) platform ecosystems (PEs); and
(4) digital ecosystems (DEs), including:
K digital IEs (DIEs);
49,7 digital BEs (DBEs); and
digital PEs (DPEs).
Figure 1.
Overlapping types of
ecosystems
Platform
ecosystem
framework
2013
Figure 2.
Platform building
blocks
3.2.1 Technology platform. A technology platform is defined as a set of building blocks that
act as a foundation upon which an array of firms (a BE) may develop complementary
products, technologies or services (Gawer, 2009). The requirements for the platform are that:
it should perform a critical function for the overall system or should solve a crucial
technological issue in an industry; and
it should be easy to connect to, build upon and provide space for new and unplanned
usage.
2014
Figure 3.
A PE structure with
its capabilities
industry platforms, where a platform leader pools external capabilities from Platform
complementors (Gawer, 2014). ecosystem
In the latter two types, platforms not only provide a stable core but also mediate between framework
different groups of users – a so-called MSP.
Platform design facilitates matches among providers and consumers – that is, the
creation or exchange of goods, services, and social currency – so that all participants can
capture value. Platforms offer unique opportunities to engage members of a BE in the 2015
exchange of value (Blosch and Burton, 2016). However, they require an entirely new
approach to strategy, management and IS architecture. The answers to these question are
not limited to digital business platform technology decisions, but also include businesses,
markets, economics, partners, customers, human capital, processes, information and
technologies.
Digital platforms and ecosystems could be categorized based on the structure of platform
and control. As shown by Parker and Van Alstyne (2014), and by Parker et al. (2016),
platforms with ecosystems have following four types of actors or economic agents roles:
(1) The owners of platforms, platform sponsors, or platform leaders control the
intellectual property and governance of their platforms. The owner sets the
direction, controls the underlying platform technology and provides the overall
organizing structure for the platform via rules, governance and ecosystem support.
It can assist the ecosystem’s work by helping participants see how they are better
off being part of the system than being outside of it. This role can be performed by
one or many firms.
(2) Platform providers operate as a platforms’ interface with users. The platform
provider is the point of contact for common components, rules and architecture for
the users of the platform. This role can be fulfilled by one or many firms.
(3) Users (supply side) or producers create their offerings. These are content and
application developers. Producers provide specific items that attract users to the
platform, such as music, games, information, services and others.
(4) Users (demand side), the target consumers of the platform’s solutions and services,
make use of producers’ offerings. These can be individuals, businesses or
organizations.
2016
Figure 4.
Typology of platform
enterprise
ecosystems
Product or Product or
Service A Service B
(one or (one or
Type of complementarity group) Relation group) Direction
applications increases the value of the store (Jacobides et al., 2018). The direction offered will
enrich both research into ecosystems and research into mainstream strategy, as firms
become increasingly engaged in and respond to ecosystem growth.
The business platform ecosystem needs to accommodate new technologies easily as
dynamic business capabilities arise (Teece, 2017a). Digital technologies have shifted the
organization’s perspective outwards and created an opportunity to develop innovative new
PE-based BMs. Designing and assessing an ecosystem BM is now an essential activity for
organizations. It requires creativity to imagine these new BMs and analytical skill to assess
their opportunity and viability.
To meet the needs of the target consumers, the platform can adopt four major types of IE
governance model (Kaganer et al., 2013):
a facilitator, connecting suppliers and buyers directly through a bidding process Platform
(examples: Freelancer, Elance-oDesk); ecosystem
an arbitrator, engaging multiple suppliers through competitions (examples: framework
Crowdspring, 99designs, MediaPiston, InnoCentive and Witmart);
an aggregator, aggregating hundreds or thousands of microtasks performed by
multiple suppliers (examples: Amazon Mechanical Turk, MobileWorks,
CrowdFlower and CloudFactory); and 2017
A governor, providing project governance and certifying supplier quality
(examples: Topcoder, TRADA and uTest).
These ecosystem types have resulted in different types of BMs. In the value chain, the BE
opened up the reach and range of value. Today, PEs provide access to a wider range of
partners with complementary capabilities, and to the ability to create and coordinate these
highly complex, demand-driven supply networks. Each of these ecosystem types has
created its own BM opportunities, which require a change in perspective away from the
traditional, input–output process to a dynamic ecosystem perspective.
Osterwalder (2004) has provided an ontology of BMs, which is a conceptualization and
formalization of the elements, relationships, vocabulary and semantics of e-BMs. The
ontology is structured into several levels of decomposition with increasing depth and
complexity. Osterwalder (2004) defined a business model (or BM) as:
[. . .] a conceptual tool that contains a set of elements and their relationships and allows
expressing the business logic of a specific firm. It is a description of the value a company offers to
one or several segments of customers and the architecture of the firm and its network of partners
for creating, marketing and delivering this value and relationship capital, to generate profitable
and sustainable revenue stream.
The interpretation of BMs as formal conceptual representations or descriptions
predominates at present (Osterwalder, 2004; Gassmann et al., 2014). Osterwalder and
Pigneur (2010) have developed a popular business model canvas (BMC), which is a
taxonomy of the nine main BM building blocks (Figure 5).
BM building blocks have been generalized using metacomponents (Günzel and Holm,
2013; Gassmann et al., 2014) (Figure 6). This concept helps us to understand the value being
captured from technological innovations and platforms (Chesbrough and Rosenbloom, 2002;
Osterwalder and Pigneur, 2010; Osterwalder et al., 2014), as well as the boundaries of a firm
K (Zott et al., 2010), and it allows the creation of a direct connection between business strategy
49,7 and business processes (Al-Debei and Avison, 2010).
Research on BMs extends across a variety of fields, including information systems,
strategic management and technology and innovation management (Abdelkafi et al., 2013;
Schneider and Spieth, 2013; Zott et al., 2010). It should thus contribute to a better
understanding by providing firms with specific means, such as tools and methods, which
2018 can be used for BM innovation (Remane et al., 2017).
BM patterns describe proven solutions to problems that recur during BM design
(Abdelkafi et al., 2013; Remane et al., 2017; Gassmann et al., 2014). Alexander et al. (1977)
describe them as follows:
Each pattern describes a problem which occurs over and over again in our environment, and then
describes the core of the solution to that problem, in such a way that you can use this solution a
million times over, without ever doing it the same way twice.
Patterns thus describe a “solution” to a recurring “problem” that needs to be solved, which
also accounts for BM patterns (Abdelkafi et al., 2013). The complete BMs of companies are
often a combination of several patterns (Osterwalder and Pigneur, 2010). A BM pattern
should be usable “a million times over” and therefore requires a certain level of
generalization (Amshoff et al., 2015).
However, many companies have difficulties in capturing and tapping into the
unprecedented ecosystem complexity around products and services in a structured way.
Burkhart et al. (2011) identifies the “absence of formalized means of representations [. . .] to
allow a structured visualization of business model” as a major research gap. In the next
section, we made use of existing methods of BM patterning to build PE businesses.
Figure 5.
Business model
building blocks
Figure 6.
Business model
building blocks with
metacomponents
of components (hardware, software, services), rules (technical standards, protocols for Platform
information exchange, policies and contracts that govern transactions) and or strategy/BMs’ ecosystem
building blocks employed by users in most transactions. Hunter and Coleman (2016) state that:
framework
[. . .] in the context of digital business, a platform is an architecturally innovative means of
sharing assets such as algorithms, data and functions with ecosystems of people, businesses and
things. A platform typically includes tools, functions and support for multiple customer segments
(e.g., buyers and sellers; students, faculty and administrators). 2019
With new digital BMs, resources may be added or combined in new and different ways to
support the digital platform strategy; an organization may also begin with a set of resources
applied across the entire business or else apply specific assets to a few areas.
Yablonsky (2018a, 2018b) proposed the following integration of business and
technological platform counterparts in the multilayered digital platform stack (Figure 7):
(1) Business platforms stack:
1.1. BM and leadership platform.
1.2. Talent platform.
1.3. Delivery platform.
1.4. Promotion platform.
1.5. Other.
Figure 7.
Digital platform stack
K The digital business platform stack is described through the lens of business and technology
49,7 platform layers and platform capabilities (Teece, 2017a). It is intended to provide a higher-
level overview of the key capabilities needed to assemble a digital business platform stack.
With digital platform BMs organized in the BM portfolio, platform assets may be added or
combined in new and different ways to support the digital platform strategy. Delivering a
digital platform demands new capabilities to enable, support and evolve digital business,
2020 including enterprises and ecosystems (Burton and Basiliere, 2016). We use this framework
to identify and specify digital PE substacks (Figure 7).
Drawing on existing knowledge in the field of PEs (Osterwalder and Pigneur, 2010;
Osterwalder et al., 2014; Blosch and Burton, 2016; Blaschke et al., 2017a, 2017b; Yablonsky,
2018a, 2018b) and platform research (Evans, and Gawer, 2016), we argue that a
metastructuring perspective throughout the platform landscape represents an important
contribution that has, to date, been lacking. The objective of this research was to create such
a metastructuring perspective for PE research. We make use of a taxonomy-enabled
methodology to create a consistent structure for the PE framework.
2021
Figure 8.
Platform BE BMP
K Marketplace/community/network connections: Number of partners and customers in
49,7 ecosystem, number of type of connections, etc.
Algorithms: Forecasting, algorithmic trading (algotrading).
Represented/stored value: Cryptocurrencies, block chain trust, crowdfunding,
loyalty points.
Technology infrastructure and apps.
2022
Ecosystem products/services: Physical, apps, financial, human, intellectual, property,
hybrid.
Business policies/rules/regulations/APIs (implementing business policies in the DE):
Customer application programming interfaces (APIs), partner and supplier APIs,
APIs for management.
Ecosystem decision-making and sharing.
A platform provides business with a foundation where resources can come together in
different combinations to create value. Some resources may be inside, permanently owned
by the company; some may be shared; and some can come from an outside ecosystem. The
value arises largely from the dynamic connection of these resources and actors, and from the
network effects between them. The generativity of digital platforms produces exponential
growth of PEs, thereby creating research objects that are several orders of magnitude larger
than any traditional IS system (De Reuver et al., 2018).
Platform ecosystem increases Value to such an extent that it attracts even more users. A
PE’s value to a user depends on the number of other PE users and defines the willingness-to-
pay (WTP) for platform ecosystem participation. WTP for platform ecosystem affiliation is a
cap on platform fees. The key to PE management is to understand the network effects that
occur when the value of a product, service or piece of data depends on the number of other
users (Shapiro and Varian, 1999). A network effect (also called network externality) is the
effect that one user of a platform, good or service has on the value of that product to other
people. When a network effect is present, the value of a product, service or piece of data is
dependent on the number of others using it. Network effect may be negative (e.g. due to
congestion) or positive.
The PE BMP has two or more Platform Customer Segments, each of which has its own
value preposition and associated revenue stream. Furthermore, in some BMs, one customer
segment cannot exist without another. Sometimes one or more customer segments may
enjoy free offers or reduced prices subsidized by revenue from other customer segments.
Choosing which segment to subsidize can be a crucial strategic pricing decision that
determines the success of platform BM. Platforms are of value to one group of customers
only if the other groups of customers are also present.
The main Platform Costs incurred under Platform BMP relate to maintaining and
developing the platform. Platform costs can be divided into:
homing costs, related to the adoption, operation or other costs encountered due to Platform
platform affiliation (Armstrong, 2006); and ecosystem
switching costs, paid by consumers for switching from one platform to another framework
(Shapiro and Varian, 1999).
All capabilities in the technology platform stack can be sourced from any combination of
internal resources or external partners (insourcing, outsourcing, as-a-service and cloud
sourcing).
Ecosystem platforms are the main technology platforms that support business platform
ecosystems. The purpose of such platforms is to empower an enterprise to create value from
external BEs – the whole business network of company, customers, partners and global
competition. This requires the ability to make assets such as data, algorithms, transactions
and business processes available to external BEs through APIs; to construct ecosystems
that an enterprise can host to connect new partners and developers; and to connect to
industry ecosystems, such as marketplaces, supply chain hubs and financial networks. It
also requires organizations to consider the relationship between internal, private and public
APIs to unlock new revenue opportunities from existing services and information. We
provide a generalization of the modern structures of ecosystems (Blosch and Burton, 2016;
Oswald and Kleinemeier, 2017) that create a PE structure (see Figure 9).
(1) The ecosystem platform (T5:EP) contains:
Application programming interface (API) management software (T5.1) that
provides proper management, security and governance for the enterprise’s sets
of ecosystem APIs, to interconnect employees, customers and partners. Banks,
retailers, governments and any kind of enterprise can expand their capabilities
into the digital world via APIs. API management software can make APIs
available to BEs and be integrated with APIs outside of the enterprise. This
serves both incoming (from external providers) and outgoing (from the
enterprise’s public-facing) APIs, and it provides a mechanism to inspire the
development of new services and to manage the usage of APIs.
Customer-facing (or external-facing) public APIs and partner-facing public (or
outgoing) APIs (T5.2). These APIs are not applications or apps; instead, they
are key functionalities to be used in external applications, apps and websites.
Enterprise-run ecosystems (T5.3) could be built by enterprises as commercial or
community-based PEs. For example, a platform enterprise may wish to create a
buyer/seller/third-party platform marketplace for products or services (such as
eBay, Amazon, Uber and Airbnb). The ability to create social graphs, feeds,
monetization engines and algorithms that link supply with demand (e.g.
recommendation engines) is one of the main capabilities of such platforms.
Industry and vendor-run ecosystems (T5.4) are provided in some industries as
different hubs, communities and networks that bring together players in the
value chain. For example, retail marketplaces, B2B marketplaces, credit card
K
49,7
2026
Figure 9.
Overlapping of
technological
platforms
The proposed process could be run through several iterations until all PE BMs from the PE
BM portfolio are be classified, and all matrix cells filled. This approach would keep the focus
on the transformation of the digital platform throughout the PE BM design process, while
providing leeway to explore opportunities beyond digitalization. Another example is to do a
“checklist” exercise to determine what platform parts are missing in the enterprise, or in
need of improvement or updating. The results of such a checklist can be foundational.
6. Conclusion
As has been mentioned by Blaschke et al. (2017), what is needed in the digital age of
business is “a methodology for systematic digital business modelling based on a language
both business and technology experts equally understand”. We have thus proposed such a
theoretically and practically improved multimethodology for PE strategy, BMP and IS
research. This paper contributes to research in the system design, strategic management
and information systems domains by presenting a multidimensional taxonomy framework
that identifies how platform BEs improve management within organizations. Enterprise
architecture (or EA) is most commonly associated with IT. In this paper, we describe a
simplified, top-down approach to making decisions on enterprise architecture (EA) in the
context of business PE architecture, focusing on information technology with the objective
of providing a better alignment between BE design and IT. Our research has focused on the
digital PE stack – the necessary platform components such as technology, leadership, talent
and skills, delivery, trust marketing, ecosystem and BMs, required to support the
capabilities of digital business innovations. The structured approach we have presented
here might serve as a step in this direction. The multidimensional framework was discussed
Business platforms ecosystem dimension Technology platforms ecosystem dimensions
T5: Ecosystem platform Other platforms
BM business platform T5.1 T5.2 T5.3 T5.4 T5.5 T1 T2 T3 T4 T6 T7
Overarching
D1: Hierarchical impact AD1T5.1 AD1T5.2 AD1T5.3 AD1T5.1 AD1T5.1 AD1T1 AD1T2 AD1T3 AD1T4 AD1T6 AD1T7
D1.1: Prototypical pattern AD1.1T5.1 AD1.1T5.2 AD1.1T5.3 AD1.1T5.1 AD1.1T5.1 AD1.1T1 AD1.1T2 AD1.1T3 AD1.1T4 AD1.1T6 AD1.1T7
D1.2: Solution pattern AD1.2T5.1 AD1.2T5.2 AD1.2T5.3 AD1.2T5.1 AD1.2T5.1 AD1.2T1 AD1.2T2 AD1.2T3 AD1.2T4 AD1.2T6 AD1.2T7
D2: Degree of digitization AD2T5.1 AD2T5.2 AD2T5.3 AD2T5.1 AD2T5.1 AD2T1 AD2T2 AD2T3 AD2T4 AD2T6 AD2T7
D2.1: Purely digital AD2.1T5.1 AD2.1T5.2 AD2.1T5.3 AD2.1T5.1 AD2.1T5.1 AD2.1T1 AD2.1T2 AD2.1T3 AD2.1T4 AD2.1T6 AD2.1T7
D2.2: Digitally enabled AD2.2T5.1 AD2.2T5.2 AD2.2T5.3 AD2.2T5.1 AD2.2T5.1 AD2.2T1 AD2.2T2 AD2.2T3 AD2.2T4 AD2.2T6 AD2.2T7
D2.3: Not necessarily digital AD2.3T5.1 AD2.3T5.2 AD2.3T5.3 AD2.3T5.1 AD2.3T5.1 AD2.3T1 AD2.3T2 AD2.3T3 AD2.3T4 AD2.3T6 AD2.3T7
Value proposition
D3: Product type AD3T5.1 AD3T5.2 AD3T5.3 AD3T5.1 AD3T5.1 AD3T1 AD3T2 AD3T3 AD3T4 AD3T6 AD3T7
D4: Ecosystem Actors AD4T5.1 AD4T5.2 A D4T5.3 A D4T5.1 A D4T5.1 A D4T1 A D4T2 A D4T3 A D4T4 A D4T6 A D4T7
D4.1: Producer AD4.1T5.1 A D4.1T5.2 A D4.1T5.3 A D4.1T5.1 A D4.1T5.1 A D4.1T1 A D4.1T2 A D4.1T3 A D4.1T4 A D4.1T6 A D4.1T7
D4.2: Consumers AD4.2T5.1 A D4.2T5.2 A D4.2T5.3 A D4.2T5.1 A D4.2T5.1 A D4.2T1 A D4.2T2 A D4.2T3 A D4.2T4 A D4.2T6 A D4.2T7
D4.3: Partners AD 4.3T5.1 A D 4.3T5.2 A D 4.3T5.3 A D 4.3T5.1 A D 4.3T5.1 A D 4.3T1 A D 4.3T2 A D 4.3T3 A D 4.3T4 A D 4.3T6 A D 4.3T7
D4.4: Employees AD 4.4T5.1 A D 4.4T5.2 A D 4.4T5.3 A D 4.4T5.1 A D 4.4T5.1 A D 4.4T1 A D 4.4T2 A D 4.4T3 A D 4.4T4 A D 4.4T6 A D 4.4T7
D5: Value delivery process AD5T5.1 A D5T5.2 A D5T5.3 A D5T5.1 A D5T5.1 A D5T1 A D5T2 A D5T3 A D5T4 A D5T6 A D5T7
D6: Differentiation AD6T5.1 A D6T5.2 A D6T5.3 A D6T5.1 A D6T5.1 A D6T1 A D6T2 A D6T3 A D6T4 A D6T6 A D6T7
Value creation
D7: Sourcing AD7T5.1 A D7T5.2 A D7T5.3 A D7T5.1 A D7T5.1 A D7T1 A D7T2 A D7T3 A D7T4 A D7T6 A D7T7
D8: Ecosystem partners AD8T5.1 A D8T5.2 A D8T5.3 A D8T5.1 A D8T5.1 A D8T1 A D8T2 A D8T3 A D8T4 A D8T6 A D8T7
D9: Key activities AD9T5.1 A D9T5.2 A D9T5.3 A D9T5.1 A D9T5.1 A D9T1 A D9T2 A D9T3 A D9T4 A D9T6 A D9T7
D10: Key resources AD10T5.1 A D10T5.2 A D10T5.3 A D10T5.1 A D10T5.1 A D10T1 A D10T2 A D10T3 A D10T4 A D10T6 A D10T7
Value capture
D11: Revenue model(s) AD11T5.1 A D11T5.2 A D11T5.3 A D11T5.1 A D11T5.1 A D11T1 A D11T2 A D11T3 A D11T4 A D11T6 A D11T7
D12: Pricing strategy AD12T5.1 A D12T5.2 A D12T5.3 A D12T5.1 A D12T5.1 A D12T1 A D12T2 A D12T3 A D12T4 A D12T6 A D12T7
relationship between
platforms, Aj, j
and the technology
substack (BE BMP)
2029
the business PE
Matrix forms
framework
ecosystem
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Software Ecosystems: Analyzing and Managing Business Networks in the Software Industry,
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Kim, H., Lee, J.-N. and Han, J. (2010), “The role of IT in business ecosystems”, Communications of the
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Corresponding author
Sergey Yablonsky can be contacted at: [email protected]
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