digital platforms Flashcards
What is a gigital platform?
A digital platform is a type of platform that serves as a standardized digital interface and utilizes digital technologies to facilitate interactions between different parties.
What are the key Features of Digital Platforms?
Modular Design:
The use of modular design principles to extend the functionality of digital platforms
Standardized Interfaces:
The use of standardized interfaces and components to enable complementors to create their own complementary products
Digital Means of Coordination:
The use of digital means to coordinate activities within the organizational boundary
Selective Opening of Interfaces:
The selective opening of interfaces to restrict complementors’ use of software tools and resources
Explain the Platform Design Features: Modularity and Openness
Modularity refers to the degree to which the platform’s components can be separated and recombined, while openness refers to the degree to which the platform is open to external contributions and innovation.
What is the definition of a platform?
A platform is a foundation that many companies can use to build products and services, creating an ecosystem that attracts thousands of companies and produces millions of complementary products and services.
What are the Key Elements of Platform Thinking?
Creating a foundation for other companies to build upon
Encouraging multiple sides of the market to come together
Generating positive feedback loops
Focusing on the ecosystem as a whole, rather than just a single product
What are two main types of network effects?
Direct or same-side network effect: The user-to-user attraction, where more users encourage more users.
Indirect or cross-side network effect: One side of the market, such as users, attracts another side of the market, such as sellers or developers of complementary products and services.
What are Innovation Platforms?
Innovation platforms offer technological building blocks that third-party innovators use to develop new complementary products or services. Examples of innovation platforms include Microsoft Windows, Google Android, Apple iOS, and Amazon Web Services.
What are Transaction Platforms?
Transaction platforms are online marketplaces that enable the exchange of goods, services, and information. Examples of transaction platforms include Amazon Marketplace, Google Search, Facebook, Alibaba’s Taobao, Uber, Lyft, and Airbnb.
What are the key characteristics of platform businesses?
Transaction platforms are online marketplaces that enable the exchange of goods, services, and information. Examples of transaction platforms include Amazon Marketplace, Google Search, Facebook, Alibaba’s Taobao, Uber, Lyft, and Airbnb.
What is The chicken-or-egg problem ?
The chicken-or-egg problem is a dilemma that arises when two or more parties are interdependent, and it is unclear which party should take the first step. Strategic choices for launching a platform include:
Creating stand-alone value for one side
Subsidizing one or both sides
Bringing two sides on board simultaneously
