In this research we will ask how an enterprise can create and run a successful platform business. We define a platform business as creating a competitive advantage through a world-class digital service and reusing it internally, externally, or both. Platform businesses scale differently from traditional businesses, as the marginal cost of adding a customer is quite small but the upfront platform development costs are quite large. In conversations and observations with many organizations, we hypothesize there are four important business models for enterprise-based platform businesses.
- Double-sided platforms, such as at Amazon, where both customers and service providers use the platform and the owner acts as an intermediary.
- Platform businesses solutions, such as at UNICEF, mBank, and Arkik, where the organization develops an internal world-class capability and then sells the platform to commercial customers who run it themselves. The sale is often made via an intermediary or a technology business subsidiary.
- Platform as a service (PaaS), such as at ANZ, which sells anti-money laundering as a service to corporate clients. After developing a world-class platform for internal use, the enterprise sells the capability as services, typically on a multitenant basis on premises or in the cloud. The revenue generated helps develop the platform further.
- Platform reuse, such as at DBS and Standard Bank, which have each developed a series of platforms for one area/business unit but are reusing them across the enterprise.
This study will include a series of case vignettes and new analysis of data MIT CISR collected from 721 companies globally in October 2023.
We will focus on the following research questions:
- What are the most important business models for an enterprise-based platform business?
- What are the performance impacts for companies that excel on each platform business model?
- What are the critical capabilities for each of the models?
- How does effective governance and participation vary across the models?
SEEKING: We are seeking participation in the research from MIT CISR member organizations to workshop the ideas. Then we will collect data and identify case vignettes.
CONTACT: Stephanie Woerner
