Platforms in a Digital Economy

Question 1

examples of digital platforms:

Answer 1

-google
-youtube
-amazon
-uber
-facebook

Question 2

what is a digital platform?

Answer 2

the digital infrastructure, rules, and processes that enable resources exchange between external producers and consumer

Question 3

what are platforms?

Answer 3

technology-enabled business models that create value by facilitating exchanges and interactions

Question 4

what are platforms built on?

Answer 4

a shared and interoperable infrastructure, fuelled by data and characterised by multi stakeholder interactions

Question 5

what do platforms bring together?

Answer 5

people, processes, policies and networked technology to enable value exchanges throughout an ecosystem

Question 6

what are the key characteristics of platforms?

Answer 6

-a plug-and-play business model (multiple participants connect, interact- create and exchange value)
-connecting producers to consumers
-trustful environment

Question 7

AI Matchmaking Capabilities in Platform Models:

Answer 7

1. personalised recommendations e.g netflix
2. enhanced search efficiency e.g Airbnb matching based on location preferences
3. predictive user needs matching e.g Amazon preloading inventory in warehouses
4. scalable user connection e.g Linkedin suggesting connections and job opportunities without degradation in user experience
5. trust and safety enforcement

Question 8

what are the 5 P’s for Platform?

Answer 8

1. price (differentiation-presenting opportunities for greater flexibility and reward)
2. protection
3. partners
   4.personalisation (targeting through tailored experiences)
4. proposition (users creating value for other users)

Question 9

what is the role of platforms in digital transformation?

Answer 9

-Central Hubs for Connectivity
* Function: Serve as integration points connecting diverse stakeholders across
various sectors.
* Impact: Facilitate network effects, enhancing value as platform participation
increases.
-Data Collection and Utilization
* Data Aggregation: Essential for deriving insights into consumer behaviours
and preferences.
* AI and Analytics: Drive personalization and predictive capabilities, shaping
user experiences and operational decisions.
Innovation in Business Models
* New Models: Platforms enable the creation of -Innovative business models,
such as peer-to-peer marketplaces and on-demand services, which disrupt
traditional industries.
* Leveraging AI: Utilizes AI to optimize these models, improve service delivery,
and enhance decision-making processes.
-Strategic Decision Making
* Data-Driven Strategies: Insights from data guide the development and
adjustment of platform services.
* Adaptive Responses: Platforms use real-time analytics to swiftly respond to market and consumer dynamics.

Question 10

how do platforms create value in unique ways?

Answer 10

1. By creating as-a-service models around existing assets: Leveraging a large,
   embedded asset base is one of the most natural ways for incumbent
   players to participate in new, platform-enabled growth models.
2. By delinking assets from ownership to increase value creation opportunities: To increase efficiency and value, assets can be independently traded and applied to their best use.
3. By leveraging non-linear growth: The accelerated velocity of change within
   platforms is a fundamental shift away from traditional business models that
   relied on incremental growth.

Question 11

how do you build a trustworthy platform ecosystem?

Answer 11

-security
-accountability (must function as promised)
-transparency
-auditability (verify and monitor transactions)
-fairness (price discrimination, collusion and
anti-competitive tactics to ensure fairness)
-ethics

Question 12

what are the challenges in the platform economy?

Answer 12

-Discrimination: poorly implemented pricing algorithms can interact in unexpected
ways; they can also be deliberately programmed to support collusive practices
harming consumers. Big data and algorithms run the risk of reflecting discrimination in
society as well as the commercial and institutional biases of their providers
-Cross-border regulation: challenge of balancing global-local tensions in regulations.
Differences in digital policies and initiatives affect how platforms can operate across borders. Local regulations will also address in different ways the fundamental shift in
employee relationships prompted by digital platforms that connect flexible workers
with employment opportunities.
-Market dominance: Significant scale brings concerns about anti-competitive behaviour and abuse of power. For example, platform orchestrators leveraging the
predictive power of advanced analytics raise concerns that one commercial actor can
systematically generate insights that other participants cannot.

Question 13

what are the regulatory issues across digital platforms?

Answer 13

-Pacing problem: highly dynamic sector with new
businesses being created every single day.
-Challenge to the design of fit for purpose regulatory
frameworks: ‘grow first and ask compliance-related
questions later’ and price formation rules.
-Challenge to regulatory enforcement: questioning the traditional notion of liability.
-Institutional and trans-boundary challenge: national or jurisdictional boundaries creating the potential for
confusion and risks.
- Unfair trading practices (UTPs)

Question 14

what is the gig economy?

Answer 14

uses digital platforms to connect freelancers with customers to provide short-
term services or asset sharing e.g deliveroo