Co-evolution of platform architecture, platform services, and platform governance: Expanding the platform value of industrial digital platforms

Marin Jovanovic,David Sjödin,Vinit Parida

doi:10.1016/j.technovation.2020.102218

Abstract

Industrial manufacturers increasingly develop digital platforms in the business-to-business (B2B) context. This emergent form of digital platforms requires a profound yet little understood holistic perspective that encompasses the co-evolution of platform architecture, platform services, and platform governance. To address this research gap, our study examines multiple platform sponsors from an industrial manufacturing context. The study demarcates three platform archetypes: product platform, supply chain platform, and platform ecosystem. We argue that each platform archetype involves a gradual development of platform architecture, platform services, and platform governance, which mirror each other. We also find that each platform archetype is characterized by a specific innovation mechanism that contributes to the platform service discovery and expands the platform value. Our study extends the co-evolution perspective of platform ecosystem literature and digital servitization literature.

Highlights

Digital transformation profoundly changed the way firms innovate and secure competitiveness (Hanelt et al, 2020; Nambisan et al, 2019; Yoo et al, 2012)
We present our findings in three parts, each corresponding to one of the key dimensions in the industrial digital platform evolution: platform architecture, platform services, and platform governance
The present study aims to propose a framework for the platform evolution in the industrial business-to-business context

Summary

Introduction

Digital transformation profoundly changed the way firms innovate and secure competitiveness (Hanelt et al, 2020; Nambisan et al, 2019; Yoo et al, 2012). Firms approach digital platform development in different ways (Cennamo et al, 2020). While some firms use digital technologies to build multi-sided platforms (e.g., Spotify, Netflix, Uber, Airbnb), others use it to collaboratively expand the platform value with their customers, suppliers, technology providers, and competitors (e.g., Volvo, Komatsu, BMW) (Adner et al, 2019; Cennamo et al, 2020). Industrial firms in the business-to-business (B2B) setting have started embracing so-called digital servitization. Literature defines it as a large-scale transformation in processes, capabilities, and offerings within industrial firms and their associated ecosystems, to progressively create, deliver, and capture increased service value, arising from a broad range of enabling digital technologies (Sjodin et al, 2020b). Smart and connected products, combined with artificial in telligence (AI) capabilities, have enabled manufacturers, such as Volvo and Komatsu, to develop an ecosystem that brings together different vehicle markets, connectivity providers, applications, and customers (Raff et al, 2020)

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Methods

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Conclusion