Rubén Mancha, Assistant Professor of Information Systems Babson College

Abstract:
Digital platform business models increasingly mediate socioeconomic activity. They generate substantial revenue growth and benefit from direct and indirect network effects, quick scaling and accelerated innovation. Yet, a small percentage of traditional companies have a digital platform strategy or an active digital platform.

This presentation discusses research-in-progress on the strategies incumbent organizations can follow to create or acquire a multi-sided platform (MSP). First, Mancha will offer a comprehensive characterization of MSP business models, their competitive strengths and externalities. Second, Mancha will review the literature on business model innovation that evaluates approaches and barriers to business model change. Third, Mancha will present a taxonomy of five strategies organizations can apply to transform their business models by creating or acquiring an MSP. The findings are confirmed with the classification of 20 multi-sided platforms adopted by 18 organizations, five short case studies and an interview with an executive who guided McGraw Hill through the launching of an MSP. Mancha concludes the presentation with opportunities for future research.