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Defining the Platform to Illustrate Value Creation

Glen Powell

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Published in Business Models And Corporate Reporting: Defining The Platform To Illustrate Value Creation (Routledge Studies In Accounting)

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The Rise of the Platform Economy

In today's interconnected digital world, platforms have emerged as the driving force behind economic growth and innovation. They connect multiple users, facilitate transactions, and create value through network effects. From social media platforms like Facebook to e-commerce marketplaces such as Our Book Library, platforms have transformed the way we live, work, and interact with others.

Business Models and Corporate Reporting: Defining the Platform to Illustrate Value Creation (Routledge Studies in Accounting)

by Lorenzo Simoni

4.6 out of 5

Language	:	English
File size	:	3719 KB
Screen Reader	:	Supported
Print length	:	112 pages

Defining the Platform

A platform is a technology-based intermediary that enables interactions between two or more distinct user groups. It provides a shared infrastructure and set of tools that facilitate the exchange of goods, services, or information. Unlike traditional businesses, platforms focus on creating value through the connections they establish rather than through direct sales or production.

Key attributes of platforms include:

Intermediation: Platforms facilitate interactions between users who would not otherwise connect.
Network Effects: As more users join a platform, its value increases for all participants.
Two-Sided Markets: Platforms connect two distinct user groups, creating value for both sides.
Ecosystem Development: Platforms attract third-party developers and partners who build complementary services, further enhancing the platform's value.

Value Creation in Platform Businesses

Platforms create value through a variety of mechanisms:

Transaction Facilitation: Platforms reduce friction and facilitate transactions between users.
Data and Insights: Platforms collect vast amounts of data, providing valuable insights to users and enabling personalized experiences.
Network Effects: The more users join a platform, the more valuable it becomes for all participants. This creates a virtuous cycle of growth and value.
Innovation Ecosystem: Platforms attract third-party developers who create complementary services and applications, extending the platform's capabilities.

Defining the Platform: Key Takeaways

Platforms have become essential elements of the modern business landscape. They create value by connecting users, facilitating transactions, and generating insights. By understanding the defining attributes of platforms and the mechanisms through which they create value, businesses can leverage this transformative force to achieve success.

For a deeper dive into the fascinating world of platforms, we highly recommend the comprehensive guide "Defining the Platform to Illustrate Value Creation" from Routledge Studies in. This book provides an invaluable resource for business leaders, entrepreneurs, and academics seeking to unlock the potential of platform-based business models.

Embrace the power of platforms today and embark on the path to value creation. Let Routledge Studies in guide you on this exciting journey!

A Diagram Illustrating The Interconnected Elements Of A Platform Ecosystem Business Models And Corporate Reporting: Defining The Platform To Illustrate Value Creation (Routledge Studies In Accounting)