Platform Envelopment

Eisenmann, Thomas R.; Parker, Geoffrey G.; Alstyne, Marshall W. Van

doi:10.2139/ssrn.1496336

Cited by 111 publications

(197 citation statements)

References 60 publications

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“…Given the superior customer utility achieved through the demand-side economies of scope explained earlier, it can be argued that the product-service provider has the ability to increase the price of the entire value system (Cottrell and Nault, 2004;Eisenmann et al, 2011;Priem, 2007) and, thereby, attain higher profits. Furthermore, services may promote economies of scale on the provider side; the accumulation of service activities will lead to economies of scale in services, resulting in a more costefficient service delivery.…”

Section: Hypothesis 1b An Increase In Service Sales Will Results In Amentioning

confidence: 99%

Servitization: Disentangling the Impact of Service Business Model Innovation on Manufacturing Firm Performance

Visnjic¹,

Looy

2014

SSRN Journal

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As manufacturing businesses operate in an ever more competitive, global economy where products are easily commoditized, innovating by adding services to the core product offering has become a popular strategy. Contrary to the economic benefits expected, recent findings pinpoint implementation hurdles that lead to a potential performance decline, the so-called 'servitization paradox'. In this paper, we analyze this paradox by disentangling the value creation and value appropriation processes of 44 national subsidiaries of a global manufacturing firm turned product-service provider, in the 2001-07 period. Our findings show that the firm under study is able to successfully transcend the inherent substitution of products by services and to enact complementary sales dynamics between the two activities. Moreover, labor-intensive services such as maintenance, which imply higher levels of customer proximity, further enhance product sales. Empirical results also reveal a positive yet non-linear relationship between the scale of service activities and profitability: while initial levels of servicing result in a steep increase in profitability, a period of relative decline is observed before the positive relationship between the scale of services and profitability re-emerges. These findings suggest the presence of initial short-term gains but also indicate the existence of a 'profitability' hurdle; profitable growth seems feasible only to the extent that investments in service capability are translated into economies of scale. In helping to clarify the performance implications of service innovation, our findings suggest pathways to sustainable growth through servitization for manufacturing firms.

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Section: Hypothesis 1b An Increase In Service Sales Will Results In Amentioning

confidence: 99%

Servitization: Disentangling the Impact of Service Business Model Innovation on Manufacturing Firm Performance

Visnjic¹,

Looy

2014

SSRN Journal

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“…Boudreau (2010) defines platforms as the components used in common across a product family. Platform functionality can be extended by third parties and are subject to network effects (Eisenmann et al 2011;Evans et al 2006;Van Alstyne 2000a, b, 2005). Further, platforms are building blocks serving as a foundation for constructing complementary products and services Cusumano 2002, 2008;Gawer and Henderson 2007), or as systems for matching buyers and suppliers who transact with each other using system resources (Hagiu and Wright 2015) or sales channels (Ceccagnoli et al 2012).…”

Section: Literaturementioning

confidence: 99%

“…A platform can bundle new features into the platform and expose new APIs. Whereas other studies analyze bundling for its ability to capture rents (Salinger 1995, Bakos and Brynjolfsson 1998, McAfee et al 1989 or provide competitive advantage (Nalebuff 2004, Eisenmann et al 2011, our approach focuses on R&D spillovers. Prior literature characterizes R&D spillovers as knowledge externalities that increase the productive capacity of a region (Audretsch and Feldman 1996) or increase the growth of whole economies (Edwards 2001).…”

Section: Private Ordering and Time As Limits Onmentioning

confidence: 99%

Innovation, Openness, and Platform Control

2018

Self Cite

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Abstract. Suppose that a firm in charge of a business ecosystem is a firm in charge of a microeconomy. To achieve the highest growth rate, how open should that economy be? To encourage third-party developers, how long should their intellectual property interests last? We develop a sequential innovation model that addresses the trade-offs inherent in these two decisions: (i) Closing the platform increases the sponsor's ability to charge for access, while opening the platform increases developer ability to build upon it. (ii) The longer third-party developers retain rights to their innovations, the higher the royalties they and the sponsor earn, but the sooner those developers' rights expire, the sooner their innovations become a public good upon which other developers can build. Our model allows us to characterize the optimal levels of openness and of intellectual property (IP) duration in a platform ecosystem. We use standard Cobb-Douglas production technologies to derive our results. These findings can inform innovation strategy, choice of organizational form, IP noncompete decisions, and regulation policy.

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“…A platformokat a versenyképesség szempontjából figyeli, fókuszálva a platformon belüli adottságokra, pél-dául az árazási stratégiákra (Caillaud -Jullien, 2003;Gawer -Cusumano, 2008;White -Weyl, 2012), növe-kedésre, terjeszkedésre (Hidding et al, 2011;Eisenmann et al, 2011;Van Alstyne et al, 2016), és a hagyományos modellről való átváltás lehetőségeire (Gawer -Cusumano, 2008;Zeng, 2015;Edelman, 2015;Zhu -Furr, 2016).…”

Section: Stratégiaimenedzsment-nézőpontunclassified

A versengés új színterei: platformok stratégiaimenedzsment-megközelítésből

Csontos¹,

Szabó²

2018

Veztud

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A platformosodás jelenségének vizsgálata feltörekvő kutatási terület, az olyan cégek sikerei nyomán, mint az Apple, Facebook vagy Google. Jelen cikk a témakörben írt nemzetközi szakirodalmakat gyűjti össze és elemzi, megvizsgálva a platform fogalmát stratégiai menedzsment, piacelmélet (IO) és technológiai menedzsment szempontjából. A stratégiai menedzsment nézőpontjából a platformok sikerességét alapvetően három tényező határozza meg (1) a hálózati hatás ereje, (2) a platform minősége és (3) a résztvevői. Szerzők, a sikertényezőket interakció-alapú, viselkedési, stratégiai és funkcionalista megközelítésekből is vizsgálva, három propozíciót fogalmaznak meg, melyeket empirikus kutatásokkal érdemes a későbbiekben tanulmányozni. Megállapították, hogy a platformok sikere az üzleti modell felépítésétől függ, hiszen a szabályozó mechanizmusokon keresztül a tulajdonos vállalat tudja kontrollálni, kik és hogyan szerepelhetnek, állíthatnak elő szolgáltatást a vevők részére a platformon. Végső soron az alkotók által generált tartalom az, ami közvetlenül befolyá-solja a fogyasztóknak nyújtott minőséget.

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Platform Envelopment

Cited by 111 publications

References 60 publications

Servitization: Disentangling the Impact of Service Business Model Innovation on Manufacturing Firm Performance

Servitization: Disentangling the Impact of Service Business Model Innovation on Manufacturing Firm Performance

Innovation, Openness, and Platform Control

A versengés új színterei: platformok stratégiaimenedzsment-megközelítésből

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