The Rise of the Platforms: Business Model Innovation Perspectives
Keywords:platforms, business model, business model innovation, platform business model, innovation
Platforms are increasingly playing a more important role in companies’ activities. Even if companies are not developing their platforms, they need to cope with the opportunities brought by the companies. Platforms phenome is gaining more and more attention as companies such as Google, Amazon, Apple, Microsoft, and others are successfully utilizing platforms for business development. Platform phenomenon is considered a new one and various researchers outline the need for more deep studies of platform role and impact on companies, industries, value systems, and economies. This paper explores platform and business model innovation concepts to understand how the platform can contribute to companies’ business models innovations. The paper analyses shift from technical to managerial of platform interpretation, characteristics of the platform, business model and business model concepts and platform business model. The platform business models are analysed through business model innovation perspective – what kind of new users are involved in platforms, how platforms can contribute to value proposal development, what benefits platforms brings to companies and how platforms impact companies business model financial aspects. Finally, the reasons why companies fail implement platforms business model are presented as well.