A Business Model Construction Kit for Platform Business Models - Research Preview

Abstract

Abstract[Context and motivation] In recent years, the Internet has led to new ways of doing business and has spawned new, platform-based business models. For example, Uber and Airbnb offer platforms that enable broker/mediation services between parties organized in two-sided markets. [Question/problem] To be financially sustainable, platform-specific revenue models are needed to generate cash flows from these intermediation services. Moreover, these revenue models should be revisited over and over again, due to continuous changes in a competitive environment. To a large extent, it is unknown how to continuously (re)design revenue models for platforms efficiently. [Principal ideas/results] We propose three research streams with outcomes that should support continuous and efficient platform design: (1) formalization of known platform revenue models, (2) the organization of known platform revenue models into design patterns such that existing knowledge can be reused efficiently, and (3) support for the dynamics of these models, e.g., how they evolve over time. [Contribution] In the long term, we propose a novel and tractable approach called the Business Model Construction Kit for the continuous and efficient design of platform business models, including the selection of appropriate revenue model(s). The kit will provide a variety of methodologically well-integrated design-oriented tools and accepted knowledge to quickly (re)design a platform business model with a focus on revenue models. The result is a method aimed at helping practitioners design platform business models.KeywordsPlatform business modelsRevenue modelConstruction kitDigital platform