monetization in value networks - wur · monetization in value networks ... in economic, social, or...
TRANSCRIPT
Business Models for Digital Platforms
Monetization in value networks
29 March 2017, Lan Ge
Outline
Platform economy & digital platforms
Business model
Key elements of platform business
Monetization
Econ
omie
s of
sco
pe
Economies of scale
Platform economy
Basic utility Applications & Services
Digital
not digital
Digital platforms are diverse and evolving
What is a business model?
‘The way in which an organisation creates, delivers and captures value in economic, social, or other contexts’
What is a business model?
Firm-centric Network centric
‘The way in which an organisation creates, delivers and captures value in economic, social, or other contexts’
Platform Business
Governance
Ownership
Launch
Growth
Monetization
Architecture
Platform business: Key aspects
Designing a Successful Platform
Producers Consumers
‘Prosumers’ Core
Interactions
Fun
Fame
Fortune
...
Platform
Designing a Successful Platform
Stakeholder analysis (Roles & Requirements)
Business logic (Incentive design
Governance & monetization)
Technical design (Enabling interactions)
Why Governance? --Data
Obligations
Liabilities
Valuation
Rights
Who owns data
How to ensure privacy?
How to balance stakes and interests?
Who is responsible
for data security?
Who ensures data quality?
Who has access to
data
Who reaps benefits from
data
Who bears costs of data?
Governance
Why Governance? - platform
Obligations
Liabilities
Valuation
Rights
Who owns the platform
How to balance stakes and interests?
Who is responsible for
platform performance?
Who has access to the
platform
Who reaps benefits from network
effects?
Governance
Who bears the costs of platform development?
Openness of the platform
Platform management
One firm Many firms
Ow
ners
(s
pons
or)
Monopoly Proprietary model
Licensing model
Dispersed Joint Venture model
Shared model
Adapted from: Eisenmann, T., Parker, G., and van Alstyne, M. “Opening Platforms: How,
When and Why” Chapter 6 in Platforms, Markets and Innovation, edited by Gawer A.
(Cheltenham, UK, and Northampton, MA: Edward Elgar, 2009)
Ownership structure of a platform
Openness of the platform
Platform management
One firm
Ow
ners
(s
pons
or)
Monopoly Proprietary model e.g. MyJohnDeere, Farmlogs, Unitip
Adapted from: Eisenmann, T., Parker, G., and van Alstyne, M. “Opening Platforms: How,
When and Why” Chapter 6 in Platforms, Markets and Innovation, edited by Gawer A.
(Cheltenham, UK, and Northampton, MA: Edward Elgar, 2009)
Ownership structure of a platform
Openness of the platform
Platform management
One firm
Ow
ners
(s
pons
or)
Joint Venture model e.g. FBN, Farmforce, Farmers Edge
Dispersed
Adapted from: Eisenmann, T., Parker, G., and van Alstyne, M. “Opening Platforms: How,
When and Why” Chapter 6 in Platforms, Markets and Innovation, edited by Gawer A.
(Cheltenham, UK, and Northampton, MA: Edward Elgar, 2009)
Ownership structure of a platform
Launching a platform
Facilitate
Pull
Match
Producers Consumers
Core Interactions
Platform Chicken-or-egg
dillema?
Platform development
Launch • Core
interactions
Growth • Expansion
of core interactions and services
Maturity • Full-blown
platform
Time
User base
Business models on the web
Brokerage Advertising Infomediary
Merchant Manufacturer Affiliate
Community Subscription Utility
Adapted from: Rappa, M. (2010). Business models on the web: Managing the digital enterprise. Retrieved July. 15, 2015, from http://digitalenterprise.org/models/models.html
Adapted from: Rappa, M. (2010). Business models on the web: Managing the digital enterprise. Retrieved July. 15, 2015, from http://digitalenterprise.org/models/models.html
Business models on the web
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The value of farm (compliance) data
...
Recording (paper-based)
Analysing (paper-based)
Digitalisation
Automation
Decision-support (network)
Governance (network, AI)
20
...
Recording (paper-based)
Analysing (paper-based)
Digitalisation
Automation
Decision-support (network)
Governance (network, AI)
Data as:
Records
Utility
Intelligence
Commodity
Governance
Currency
The value of farm (compliance) data
Value co-creation: value networks
Monetization: revenue of a platform
Charging a transaction fee (avoid/prevent
direct contact)
Charging for access
Charging for enhanced access
Charging for enhanced curation
Charging for other services
Monetization: revenue of a platform
Charging a transaction fee
(avoid/prevent direct contact)
Charging for access
Charging for enhanced access
Charging for enhanced curation
“Users first, monetization later”
Who pays?
Platform
Who pays?
Platform
Platform
Who pays?
Platform
Who benefits?
Platform
Pricing: cross subsidization
Take-home messages
A platform business model must be network-centric Enabling core-interactions
is the key to platform success Users first, monetization
later ● Value networks ● Cross subsidization
29
Key references
Thank you for your attention
More information:
www.wur.nl/economic-research
www.farmdigital.nl
Poll
For using compliance platforms farmers should • Pay • Be rewarded