7th Conference on the Digital Platforms: A Literature ... · Literature Review Area Key Elements...
Transcript of 7th Conference on the Digital Platforms: A Literature ... · Literature Review Area Key Elements...
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Digital Platforms: A Literature Review and Policy Implications for Development
7th Conference on the Regulation of Infrastructures
Florence School of Regulation
Robert Schuman Centre
San Domenico di Fiesole, 21-22 June, 2018
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Literature Review and Assessment
Framework For Developing Countries
Part I
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• Functional/Technical vs. Economic Definition
•Business Models
• Enabling Factors
•Competitive Dynamics
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Digital Platforms: Technical/ Functional vs.
Economic Definition
Functional/Technical definition:
• DP as a set of components used in common across a product family whose functionality can be extended to third parties.
• Little value to users without complementary products / services.
Economic definition:
• Digital platform is part of a production process.
• Related to the supply-chain, or multi-sided industry platform.
• Platform manager teams external resources from complementors.
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Private Sector MSP Business Models
• Commission-based
• Subscription-based
• Advertisement-based (mobile advertisement +600% in China)
• Services-based
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Digital Platforms Enablers (I): Physical and Behavioral
• Evolutionary process mixing physical and behavioral enablers. Physical enablers include digital infrastructure (broadband, fixed and mobile internet networks), consumer appliances, payment tools, geo-localization, cloud services, security, and ancillary enablers (e.g. distribution, logistics, intermediary goods).
• Examples of behavioral enablers include:
• Consumers shift their core attitudes from buying goods to accessing services and “servitized” products (access-based consumption),
• leading to a peer-to-peer economy where platforms increasingly mediate interactions,
• coordinated by peer-based trust relationship.
• Individuals casually participate in economic activities through privately owned resources (assets, labor), which would otherwise remain idle (collaborative consumption).
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Digital Platforms Enablers (II)
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Digital Platforms Enablers (III)
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Alibaba and its ecosystem
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Competitive Dynamics (I)
Network Effects
• In two sided platforms, network effects arise when the attractiveness for one side increases as the number of customers on the opposite side of the platform increases
• Two sided platforms reducetransaction costs (WDR2016)
• Winner takes all – Winner takes some
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Competitive Dynamics (II)
Envelopment
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Competitive Dynamics (III)Partnerships
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A Research Agenda for Development
Part II
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Literature Review Area Key Elements Research Agenda for Emerging Markets
Definition of Digital Platform Economic Definition of MSP • Digital Consumer Behavior
• Taxation policy
Functional/Technical Definition • GaaP
• Government Platforms and Consumer behavior
• Private sector displacement vs private sector crowd in digitalgovernment platforms
Enabling Factors Physical Enablers • Broadband Development
• Consumer Equipment
• Distribution and logistics
• Geo-localisation services
• Digital payments
• Cloud-based services and security
Market Enablers • Peer-to-peer feedback
• Long tail marketing
• Multi-hominess
• Critical mass effects
• Servitized products
• Collaborative consumption
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Literature Review Area Key Elements Research Agenda for Emerging Markets
Business Dynamics Network Effects • Winner-takes-some vs winner-takes all
• Inter-platform competition
• Non-discriminatory access to the platform from thirdparties and in-platform services
• Dominance and use of data as an essential facility
Envelopment • Competition effect on third party services and relatedgoods and services markets
Partnerships • Competition effect on third party services and relatedgoods and services markets, through collusion and anti-competitive behavior
• Cross-platform data transfer/exchange and potentialanticompetitive effect on third party services
Policy Concerns Demand side policies • Cost-benefit analysis of demand stimulation policies andinterventions
Data protection, data privacy anddata portability
• Regulatory, legal and institutional analysis in emergingmarkets