PLATFORM-BASED BUSINESS MODEL

Module Overview

  • Module Title: Strategic Network and Business Ecosystem Management

Module Framework

  • Components:

    • Introduction to Strategic Network & Business Ecosystems Management

    • Systems Thinking I: Network Analysis & Visualization

    • Platform-based Business Models

    • Sharing Economy Business Models

    • Business Ecosystem Design

    • Sustainability—Shared Value Creation

    • Exam with Use Case Workshop (Own Business Case)

    • Game Theory & Coopetition

    • Systems Thinking II: Decision Making & Negotiation

Historical Context

Background: Industrial Revolutions

  • Industry 1.0 (1784): Mechanization, steam power, weaving loom

  • Industry 2.0 (1870): Mass production, assembly line, electrical energy

  • Industry 3.0 (1969): Automation, computers, and electronics

  • Industry 4.0 (Today): Cyber-physical systems, Internet of Things (IoT), digitalization

Conceptual Definitions and Context

Aggregate Energy Efficiency

  • Definition: Aggregate energy efficiency is the “ratio of useful to potential physical work that can be extracted from materials.”

  • Contextual Relevance: Related to thermodynamic rules in energy use and sustainability.

Communications and Transport Networks

  • Elements:

    • Communication Internet

    • Global Energy Internet

    • Multi-mode transport connections (Road, Rail, Water, Air)

    • Dark Net and Bright Net distinctions

  • Benefits:

    • Higher aggregate efficiency

    • Increased productivity

    • Reduction in ecological footprints

    • Marginal costs of production approaching zero

Transitional Shifts in Industry and Consumption

Shift from Ownership to Access

  • Trend: Transition from vehicle ownership to access-based services (e.g., car-sharing).

  • Statistic: 78% of millennials prefer to spend money on experiences rather than material goods (Harris/Eventbrite survey).

Capitalism Evolution

  • Shift Pattern:

    • Pure Capitalism -> Consumerism -> Platform Capitalism -> Responsible Consumption

Personal Perspectives and Market Features

Agenda Items for Learning on the Sharing Economy

  • Understanding resource sharing and its prevalence

  • Exploring user perspectives and willingness to share

  • Market features, capabilities, and positioning of the sharing economy

  • Introducing the Sharing Business Model Compass as a support tool

Definitions of Key Terms in the Sharing Economy

Core Concepts

  • Sharing Economy (Weiber & Lichter, 2019):

    • An economy based on making resources available for sharing through online platforms

  • Collaborative Consumption:

    • Peer-to-peer-based activity of sharing access to goods/services, organized through community services

  • Access-Based Consumption (Bhardi and Eckhardt 2012):

    • Transactions mediated by the market without ownership transfer

Additional Attributes of the Sharing Economy

  • Focus on sharing underutilized assets for improved efficiency and sustainability

  • Emphasis on community and collaborative consumption forms

  • Distinctions between different types of economies, including the gig economy and the peer economy

Prominent Sectors in the Sharing Economy

  • Growth Projections: US Only

    • On-demand staffing

    • Media streaming

    • Shared mobility

    • Hospitality

    • Peer-to-peer & crowd-based financing

  • 2013 Revenue: $255 billion (all sectors)

  • 2025 Revenue Projection: $670 billion (all sectors), with sharing economy sectors growing from $15 billion to $335 billion (Rinne 2019).

Societal Relevance of the Sharing Economy

Impacts

  • Ecological Sustainability:

    • Reduces traffic and emissions

    • Mitigates resource depletion

  • Economic and Social Sustainability:

    • Generates new forms of income

    • Innovates business models, albeit with risks to existing models

    • Enables social exchanges and possibly closes social gaps

Product as a Service (PaaS) and Circular Economy

Core Concept

  • PaaS Definition: An economic model where products are returned to producers for recycling rather than following traditional disposal processes.

Objectives

  • Convert product selling to service systems

  • Redistribute products that have not been fully utilized

  • Facilitate collaborative lifestyles through sharing

  • Types of Resources Shared:

    • Usage rights (e.g., through Airbnb)

    • Combining physical assets and human services (e.g., Uber)

    • Human services (e.g., TaskRabbit)

Distinguishing Characteristics of Sharing vs. Exchange

Pure Concepts

  • Characteristics of Sharing:

    • Nonreciprocal

    • Establishes social links

    • Money is irrelevant, and focus on joint ownership

    • Sacrifices calculation for social and emotional connections

  • Characteristics of Exchange:

    • Reciprocal relationships expected

    • Monetary considerations dominate

    • Calculations are essential in transactions

Key Criteria (Habibi et al. 2017)

  • Contrast in Nature: Sharing is based on social bonds, while exchange emphasizes transactional relationships

  • Ownership Dynamics: Joint responsibility in sharing vs. no such dynamic in exchange

Group Reflection Activities

  • Understand real-world sharing economy examples across various countries

  • Analyze successes and failures within the sharing economy model

Empirical Study Insights

Results Overview

  • Factors influencing sharing participation: social norms, trust, functional benefits, hedonic benefits, etc.

  • Functional, ecological, hedonistic, and social benefits were assessed across sharing options: eCargo Bike Sharing, Home Sharing, and Garden Sharing

Results Analysis

  • Perceived Benefits across the sharing options

    • eCargo Bike: 3.9 functional benefit, highest ecological benefit

    • Home Sharing: 4.0 social benefit

    • Garden Sharing: Highest hedonic benefit

  • Influences on the intention to use: correlation established with social norms and trust

Implications for Business Model Design in the Sharing Economy

  • For Entrepreneurs and Investors:

    • Start with peer-to-peer (P2P) for community trust

    • Assess how scale affects business models in sharing contexts

  • For Established Companies:

    • Explore partnerships in sharing initiatives to capture younger consumer demographics

  • For Policy Makers:

    • Consider complex regulations around sharing economy participants while supporting innovation

B2B Sharing Economy Insights and Future Projections

  • Current Landscape: Most sharing is P2P/C2C; B2B potential exists mainly for SMEs in asset-intensive sectors

  • Examples of B2B sharing: machinery in agriculture, logistics space sharing, and code-sharing between airlines.

Case Study: GetMyBoat

Launch Considerations

  1. Explore reasons for and against the platform's launch.

  2. Develop concepts for implementing a sharing rental service through:

    • Positioning along the sharing-exchange continuum

    • Identifying user benefits

    • Using the business model compass framework