platforms

Question 1

what are digital platforms in buisness

Answer 1

• enables value creating interacting between external producers and consumers.
• provides an open infrastructure for these interactions and sets governance conditions for them.
• purpose: get users to connect with each other, facilitate good exchange –> create value for al

Question 2

platform definition

Answer 2

• buisness model that creates

Question 3

power of a platform:

Answer 3

• uses tech to connect with people, organisations, and resources in an interactive way where value can be created and exchanged.

–> examples: apple, google, microosft, amazon, youtube.

Question 4

define piplines or lineal value chain

Answer 4

• traditional system
• step-by step arranegemnt for creating and trasnfer value
• AKA linear value chain

Question 5

How do platforms beat pipelines

Answer 5

• eliminates gatekeepers–> allow platform to scale effciently.
• unlocking new sources of value creation and supply to market: Eg airbnb
• using data-based tools to create community feedback loops:
• create value using resources they dont own/control–> grow faster than traditional buisnesses.
• pipleines use control mechanisms that are costly+ inefficient.
• platforms replace traditional supply chain

Question 6

How do platforms invert the firm

Answer 6

• focus: on functions existing outside the buisness, people and resources.
• manage external assets firms does not control or own
• finance shifts more to focus on stakeholder value and interactions outside firm.

Question 7

define network effects

Answer 7

• impact number of users of a platform has on value-created for each user.

Question 8

Negative and positive network effects

Answer 8

+–> ability of a platform to produce significant value for each user of platform.
- –> possibility that a poor managed platform reduced value produced in each user.

Question 9

Describe the relationship platfroms have on economies of scale

Answer 9

• the larger the buisness–> the cheaper the costss of production

Question 10

describe relationship platforms have on demand economies of scale

Answer 10

• the larger the community the higher success rate of the company
• affected by efficiences in social network, app development, and other that makes bigger networks more valuable.

Question 11

describe the two-sided network effects

Answer 11

• one market attracts another market: eh uber where passengers attract drivers, drivers attarct passengers,

Question 12

how do network effects grow

Answer 12

• ## increasing value among peeople in platform

Question 13

define frictionless entry

Answer 13

• ability for users to quickly and easily join a platform and participate in value creation process.

Question 14

Four kinds of network effects

Answer 14

1. same-side effects: effect of consumers on consumers
2. cross-side effects network effects created by. impact of users from one side to other side of market: eg producers on consumer