Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/vrs/gfkmir/v9y2017i1p24-29n4.html
   My bibliography  Save this article

Platform Business: From Resources to Relationships

Author

Listed:
  • Van Alstyne Marshall

    (Professor & Department Chair, Information Systems, Boston University, Boston, MA, United States of America)

  • Parker Geoffrey

    (Professor, Thayer School of Engineering, Dartmouth College, Hanover, NH, United States of America)

Abstract
The driving force behind our internet economy is demand-side economies of scale, also known as network effects. These arise when users create value for other users and are enhanced by technologies that create efficiencies in social networking. While resource control and supply side efficiency used to be key success factors in the past, building platforms, orchestrating networks and managing relationships determine success in an increasingly digital world. Successful platforms seek to maximize the overall value of the whole system in a circular, revolving and feedback-driven process. By attracting more platform participants they are able to offer a higher value. The larger the network, the better the matches between supply and demand and the richer the data that can be used to find matches. Successful platforms put companies that use traditional business models at risk. Many companies are still highly competitive, but when platforms enter the same marketplace, the platforms usually win. Companies that fail to create platforms on their own or to integrate their business into existing platforms will be unable to compete for long.

Suggested Citation

  • Van Alstyne Marshall & Parker Geoffrey, 2017. "Platform Business: From Resources to Relationships," NIM Marketing Intelligence Review, Sciendo, vol. 9(1), pages 24-29, May.
    • Handle: RePEc:vrs:gfkmir:v:9:y:2017:i:1:p:24-29:n:4
    DOI: 10.1515/gfkmir-2017-0004
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/gfkmir-2017-0004
    Download Restriction: no
    File URL: https://libkey.io/10.1515/gfkmir-2017-0004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julien Gosse & Charles Hoffreumon & Nicolas van Zeebroeck & Jacques Bughin, 2020. "The Value of Platform Strategy. It's the Ecosystem. Stupid!," iCite Working Papers 2020-033, ULB -- Universite Libre de Bruxelles.
    2. Julien Gosse & Charles Hoffreumon & Nicolas van Zeebroeck & Jacques Bughin, 2020. "The Value of Platform Strategy It's the Ecosystem, Stupid!," Working Papers TIMES² 2020-039, ULB -- Universite Libre de Bruxelles.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:gfkmir:v:9:y:2017:i:1:p:24-29:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.