Volume 4, Issue 6, November 2019, Page: 91-107
The Platform Business Model Canvas a Proposition in a Design Science Approach
Davis Eisape, Chair for Innovation Economics, Institute for Technology and Management, Faculty of Economics and Management, Technical University of Berlin (TU Berlin), Berlin, Germany
Received: Nov. 7, 2019;       Accepted: Dec. 16, 2019;       Published: Dec. 24, 2019
DOI: 10.11648/j.ajmse.20190406.12      View  546      Downloads  358
Literature research has shown that there is no proven business model canvas for platforms. Such a canvas would be a vital tool that provides added value to companies and innovators for various purposes: sharing, communication (internal and external), description, analysis, management, planning and partnering. In addition, a platform business model canvas helps follow a systematic but also pragmatic approach with regards to the transformation of a pipeline business to a platform business, the task to design a new platform or to describe an existing platform business model. The goal of this research is therefore to create a platform business model canvas that is easy to use and helps capture platform business models in a comprehensive and effective way following the Design Science Approach. The basic components/building blocks and the necessary perspectives for the platform business model canvas, are derived from literature. The need for three or more perspectives, is furtherly discussed on basis of Osterwalder’s business model canvas by outsourcing dimensions of control. Components and perspectives are subsequently verified through a qualitative analysis of the about-us-pages of 32 platform websites. The components/building blocks and perspectives are then put together to form a platform business model canvas, which is then evaluated through an illustrative case study explaining the platform business model of eBay.
Platform Business Model Canvas, Platform Economy, Business Model Canvas, Design Science Approach, eBay Case Study
To cite this article
Davis Eisape, The Platform Business Model Canvas a Proposition in a Design Science Approach, American Journal of Management Science and Engineering. Vol. 4, No. 6, 2019, pp. 91-107. doi: 10.11648/j.ajmse.20190406.12
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
D. Kindström, ‘Towards a service-based business model—Key aspects for future competitive advantage’, Eur. Manag. J., vol. 28, no. 6, pp. 479–490, 2010.
S. T. March and G. F. Smith, ‘Design and natural science research on information technology’, Decis. Support Syst., vol. 15, no. 4, pp. 251–266, Dec. 1995.
R. Wieringa, ‘Design science as nested problem solving’, presented at the Nuclear Instruments & Methods in Physics Research Section A-accelerators Spectrometers Detectors and Associated Equipment - NUCL INSTRUM METH PHYS RES A, 2009.
M. Stefik, ‘The sciences of the artificial: H. A. Simon, second edition (The MIT Press, Cambridge, Massachusetts, 1981); 247 pages, $4.95’, Artif. Intell., vol. 22, no. 1, pp. 95–97, Jan. 1984.
J. F. N. Jr, M. Chen, and T. D. M. Purdin, ‘Systems Development in Information Systems Research’, J. Manag. Inf. Syst., vol. 7, no. 3, pp. 89–106, Dec. 1990.
P. Palvia and A. F. Salam, ‘Management Information Systems Research: What’s There in a Methodology?’, Commun. Assoc. Inf. Syst., vol. 11, 2003.
P. Palvia, E. Mao, and P. Pinjani, ‘Research Methodologies in MIS: An Update’, Commun. Assoc. Inf. Syst., vol. 14, 2004.
A. Osterwalder, ‘The Business Model Ontology – A Proposition in a Design Science Approach’, Jan. 2004.
R. E. Miles, C. C. Snow, A. D. Meyer, and H. J. Coleman, ‘Organizational Strategy, Structure, and Process’, Acad. Manage. Rev., vol. 3, no. 3, pp. 546–562, Jul. 1978.
G. Q. Huang, T. W. Simpson, and B. J. Pine II, ‘The power of product platforms in mass customisation’, Int. J. Mass Cust., vol. 1, no. 1, pp. 1–13, 2005.
A. Gawer and M. A. Cusumano, Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation. Harvard Business School Press, 2002.
T. Eisenmann, G. Parker, and M. W. Van Alstyne, ‘Strategies for two-sided markets’, Harv. Bus. Rev., vol. 84, no. 10, p. 92, 2006.
A. Gawer and M. A. Cusumano, ‘Platform Leaders’, MIT Sloan Manag. Rev., 2008.
D. Evans, ‘Some Empirical Aspects of Multi-sided Platform Industries’, Rev. Netw. Econ., vol. 2, no. 3, pp. 1–19, 2003.
J.-C. Rochet and J. Tirole, ‘Platform Competition in Two-Sided Markets’, J. Eur. Econ. Assoc., vol. 1, no. 4, pp. 990–1029, Jun. 2003.
A. Gawer and M. A. Cusumano, ‘Industry Platforms and Ecosystem Innovation: Platforms and Innovation’, J. Prod. Innov. Manag., vol. 31, no. 3, pp. 417–433, May 2014.
P. Ritala, V. Agouridas, D. Assimakopoulos, and O. Gies, ‘Value creation and capture mechanisms in innovation ecosystems: a comparative case study’, Int. J. Technol. Manag., vol. 63, no. 3–4, pp. 244–267, 2013.
R. Adner, B. S. Silverman, and J. E. Oxley, Eds., Collaboration and Competition in Business Ecosystems, vol. 30. Emerald Group Publishing Limited, 2013.
P. C. Evans and A. Gawer, ‘The Rise of the Platform Enterprise’, p. 30, Jan. 2016.
S. Karanja and B. Arvesen, ‘Platform Thinking: Considerations for establishing third-party developer-centric ecosystems’, 2018.
S. M. Lee, D. L. Olson, and S. Trimi, ‘Co-innovation: convergenomics, collaboration, and co-creation for organizational values’, pp. 817–831, 2012.
C. Burmeister, F. T. Piller, and D. Lüttgens, ‘Business Model Innovation for Industrie 4.0: Why the Industrial Internet Mandates a New Perspective on Innovation’, GBI-Genios Deutsche Wirtschaftsdatenbank GmbH, RWTH-CONV-208894, 2016.
D. J. Teece, ‘Business Models, Business Strategy and Innovation’, Long Range Plann., vol. 43, no. 2, pp. 172–194, Apr. 2010.
P. Kranich, Geschäftsmodellinnovation in der Antriebstechnik: Erfolgreiche Umsetzung in Zeiten der Digitalisierung und Industrie 4.0. Springer-Verlag, 2018.
O. Gassmann, K. Frankenberger, and M. Csik, Geschäftsmodelle entwickeln: 55 innovative Konzepte mit dem St. Galler Business Model Navigator. Carl Hanser Verlag GmbH Co KG, 2017.
E. Fielt, ‘Conceptualising business models: Definitions, frameworks and classifications’, J. Bus. Models, vol. 1, no. 1, pp. 85–105, 2014.
A. Osterwalder and Y. Pigneur, Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. John Wiley & Sons, 2010.
F. Lüdeke-Freund, ‘Business Models for Sustainability Innovation: Conceptual Foundations and the Case of Solar Energy’, 2013.
S. M. Shafer, H. J. Smith, and J. C. Linder, ‘The power of business models’, Bus. Horiz., vol. 48, no. 3, pp. 199–207, May 2005.
R. Amit and C. Zott, ‘Value creation in E-business’, Strateg. Manag. J., vol. 22, no. 6–7, pp. 493–520, 2001.
K. Storbacka, C. Windahl, S. Nenonen, and A. Salonen, ‘Solution business models: Transformation along four continua’, Ind. Mark. Manag., vol. 42, no. 5, pp. 705–716, 2013.
R. Casadesus-Masanell and J. E. Ricart, ‘From Strategy to Business Models and onto Tactics’, Long Range Plann., vol. 43, no. 2, pp. 195–215, Apr. 2010.
S. Cavalcante, P. Kesting, and J. P. Ulhøi, ‘Business Model Dynamics and Innovation: (Re) establishing the Missing Linkages’, Social Science Research Network, Rochester, NY, SSRN Scholarly Paper ID 1991809, 2011.
C. Zott and R. Amit, ‘Business Model Design and the Performance of Entrepreneurial Firms’, Organ. Sci., vol. 18, no. 2, pp. 181–199, Apr. 2007.
B. Demil and X. Lecocq, ‘Business Model Evolution: In Search of Dynamic Consistency’, Long Range Plann., vol. 43, no. 2, pp. 227–246, Apr. 2010.
G. George and A. J. Bock, ‘The Business Model in Practice and its Implications for Entrepreneurship Research’, Entrep. Theory Pract., vol. 35, no. 1, pp. 83–111, 2011.
T. Palo and J. Tähtinen, ‘Networked business model development for emerging technology-based services’, Ind. Mark. Manag., vol. 42, no. 5, pp. 773–782, 2013.
S. Svejenova, M. Planellas, and L. Vives, ‘An individual business model in the making: A chef’s quest for creative freedom’, Long Range Plann., vol. 43, no. 2–3, pp. 408–430, 2010.
M. M. Al-Debei, R. El-Haddadeh, and D. Avison, ‘Defining the business model in the new world of digital business’, AMCIS 2008 Proc., p. 300, 2008.
C. Zott and R. Amit, ‘Business model design: an activity system perspective’, Long Range Plann., vol. 43, no. 2–3, pp. 216–226, 2010.
M. W. Johnson, C. M. Christensen, and H. Kagermann, ‘Reinventing Your Business Model’, Harvard Business Review, no. December 2008, 01-Dec-2008.
W. K. Smith, A. Binns, and M. L. Tushman, ‘Complex business models: Managing strategic paradoxes simultaneously’, Long Range Plann., vol. 43, no. 2–3, pp. 448–461, 2010.
C.-C. Yu, ‘An integrated framework of business models for guiding electronic commerce applications and case studies’, in International Conference on Electronic Commerce and Web Technologies, 2001, pp. 111–120.
J. Wareham, P. B. Fox, and J. L. Cano Giner, ‘Technology ecosystem governance’, Organ. Sci., vol. 25, no. 4, pp. 1195–1215, 2014.
P. Timmers, ‘Business models for electronic markets’, Electron. Mark., vol. 8, no. 2, pp. 3–8, 1998.
P. Weill and M. Vitale, Place to space: Migrating to eBusiness Models. Harvard Business Press, 2001.
T. Kohler, ‘Crowdsourcing-based business models: how to create and capture value’, Calif. Manage. Rev., vol. 57, no. 4, pp. 63–84, 2015.
A. Osterwalder, Y. Pigneur, G. Bernarda, and A. Smith, Value proposition design: How to create products and services customers want. John Wiley & Sons, 2014.
G. Parker, M. W. van Alstyne, and S. P. Choudary, Platform Revolution: How Networked Markets are Transforming the Economy--and How to Make Them Work for You. New York: Norton & Company, 2016.
J. Sanderse, ‘The business model canvas of NGOs’, Master’s Thesis, Open Universiteit Nederland, 2014.
M. Schreieck, M. Wiesche, and H. Krcmar, ‘Design and Governance of Platform Ecosystems-Key Concepts and Issues for Future Research.’, in ECIS, 2016, p. Research Paper 76.
Dr. S. von Engelhardt, Dr. L. Wangler, and Dr. S. Wischmann, ‘Eigenschaften und Erfolgsfaktoren digitaler Plattformen’. Begleitforschung AUTONOMIK für Industrie 4.0 iit-Institut für Innovation und Technik in der VDI/VDE Innovation + Technik GmbH, Alfons Botthof, Mar-2017.
M. Walter, ‘Endlich ein Canvas für Plattform-Geschäftsmodelle’, deutsche-startups. de, 05-Apr-2016.
N. Walton, ‘Ecosystems Thinking and Modern Platform-Based Ecosystem Theory’, in The Internet as a Technology-Based Ecosystem, Springer, 2017, pp. 85–117.
J. Sydow, Strategische Netzwerke: evolution und organisation. Springer-Verlag, 2013.
L. Feist, An Introduction to Popular Music Publishing in America. National Music Publisher’s Association, 1980.
H. W. Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business Press, 2006.
K. Sornum, Creative Commons. GRIN Verlag, 2010.
K. Crabb, The Movie Business: The Definitive Guide to the Legal and Financial Secrets of Getting Your Movie Made. Simon and Schuster, 2005.
P. Mayring, ‘Qualitative Content Analysis’, Forum Qual. Sozialforschung Forum Qual. Soc. Res., vol. 1, no. 2, Jun. 2000.
Provalis, ‘Qualitative Data Analysis Software, Mixed Methods Research Tool | Provalis’, Provalis Research, 05-May-2019. [Online]. Available: https://provalisresearch.com/products/qualitative-data-analysis-software/. [Accessed: 05-May-2019].
S. B. Letaifa, A. Gratacap, and T. Isckia, Understanding Business Ecosystems: How Firms Succeed in the New World of Convergence? De Boeck Superieur, 2013.
‘Platform Types: What they are and how to design platforms by type’, Applico, 20-Oct-2017. [Online]. Available: https://www.applicoinc.com/blog/what-makes-uber-different-from-android-how-to-make-sense-of-platform-businesses/. [Accessed: 05-May-2019].
C. Linz, A. Zimmermann, and G. Müller-Stewens, Radical Business Model Transformation: Gaining the Competitive Edge in a Disruptive World. Kogan Page Publishers, 2017.
Brand Finance, ‘Brand Finance US 500 2019.pdf’. Brand Finance, Mar-2019.
R. Breeze, Corporate Discourse. A & amp; C Black, 2013.
M. A. S. Nodoushan, International Journal of Language Studies (IJLS) – volume 9 (2). Lulu.com, 2015.
P. de Pelsmacker, M. Geuens, and J. van den Bergh, Foundations of Marketing Communications: A European Perspective. Pearson Education, 2005.
R. Blakeman, Integrated Marketing Communication: Creative Strategy from Idea to Implementation. Rowman & Littlefield, 2014.
D. Jahn, Einführung in die vergleichende Politikwissenschaft. Springer-Verlag, 2011.
A. Gawer, Platforms, Markets and Innovation. Edward Elgar Publishing, 2011.
C. S. eBay, ‘Buying | eBay’, eBay Customer Service/Buying, Jul-2019. [Online]. Available: https://www.ebay.com/help/buying. [Accessed: 07-Jul-2019].
L. H. Lin, A. Tanyavutti, and S. Jindrapacha, ‘Analyzing eBay Platform Strategies: An Application of Meyer’s Product Platform Strategy Model’, in PICMET ’07 - 2007 Portland International Conference on Management of Engineering Technology, 2007, pp. 125–142.
purchase protection eBay, ‘eBay: PayPal: PayPal and purchase protection on eBay’, eBay purchase protection, Jul-2019. [Online]. Available: https://pages.ebay.com/kh/en-us/paypal/buyer/. [Accessed: 07-Jul-2019].
C. S. eBay, ‘How buying works’, eBay - How buying works, Jul-2019. [Online]. Available: https://www.ebay.com/help/buying/buy-now/buying-works?id=4002. [Accessed: 07-Jul-2019].
C. S. eBay, ‘Signing up for an eBay account’, eBay - Signing up for an eBay account, Jul-2019. [Online]. Available: https://www.ebay.com/help/account/account-getting-started/setup-verify?id=4191. [Accessed: 07-Jul-2019].
finding items eBay, ‘Finding items’, eBay findingitems, Jul-2019. [Online]. Available: https://www.ebay.ca/pages/help/search/findingitems.html. [Accessed: 07-Jul-2019].
V. eBay, ‘eBay Verkäuferportal’, eBay Verkäuferprotal, Jul-2019. [Online]. Available: https://verkaeuferportal.ebay.de/. [Accessed: 07-Jul-2019].
C. S. eBay, ‘Selling | eBay’, eBay Customer Service, Jul-2019. [Online]. Available: https://www.ebay.com/help/selling. [Accessed: 07-Jul-2019].
S. C. eBay, ‘Promoted Listings’, eBay Seller Center, Jul-2019. [Online]. Available: http://pages.ebay.com/seller-center/listing-and-marketing/promoted-listings.html. [Accessed: 07-Jul-2019].
W. W. A. eBay, ‘Who We Are - eBay Inc.’, our company - ebay Inc, 07-Jul-2019. [Online]. Available: https://www.ebayinc.com/our-company/who-we-are/. [Accessed: 07-Jul-2019].
S. C. eBay, ‘Sell Around the World’, eBay Seller Center, Jul-2019. [Online]. Available: http://pages.ebay.com/seller-center/shipping/selling-internationally.html. [Accessed: 07-Jul-2019].
C. S. eBay, ‘Prohibited and restricted items’, eBay - Prohibited and restricted items, Jul-2019. [Online]. Available: https://www.ebay.com/help/policies/prohibited-restricted-items/prohibited-restricted-items?id=4207. [Accessed: 07-Jul-2019].
C. S. eBay, ‘Selling fees’, eBay - Selling fees, Jul-2019. [Online]. Available: https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364. [Accessed: 07-Jul-2019].
C. S. eBay, ‘Creating a listing’, eBay - creating a listing, Jul-2019. [Online]. Available: https://www.ebay.com/help/listings/creating-managing-listings/creating-listing?id=4105. [Accessed: 07-Jul-2019].
K. Staykova and J. Damsgaard, ‘Introducing Platform Interactions Model for Studying Multi-Sided Platforms’, 2018.
P. R. eBay, ‘eBay wird die Zahlungsabwicklung auf seiner Marktplatz-Plattform übernehmen - eBay Inc.’, eBay wird die Zahlungsabwicklung auf seiner Marktplatz-Plattform übernehmen, 01-Feb-2018. [Online]. Available: https://www.ebayinc.com/stories/press-room/de/ebay-wird-die-zahlungsabwicklung-auf-seiner-marktplatz-plattform-uebernehmen/. [Accessed: 07-Jul-2019].
S. and S. PayPal, ‘PayPal Purchase Protection for Buyers – PayPal US’, Jul-2019. [Online]. Available: https://www.paypal.com/us/webapps/mpp/paypal-safety-and-security. [Accessed: 07-Jul-2019].
F. PayPal, ‘Credit Card Fees, Send Money Fees & Other Charges - PayPal US’, PayPal fees are always fair, Jul-2019. [Online]. Available: https://www.paypal.com/us/webapps/mpp/paypal-fees. [Accessed: 07-Jul-2019].
C. Curchod and N. Neysen, Disentangling positive and negative externalities on two-sided markets: the Ebay Case. Université catholique de Louvain Working Paper, 2009.
G. J. Browne and N. M. Menon, ‘Network effects and social dilemmas in technology industries’, IEEE Softw., vol. 21, no. 5, pp. 44–50, Sep. 2004.
S. C. eBay, ‘New Business Seller’, eBay Seller Center, Jul-2019. [Online]. Available: http://pages.ebay.com/seller-center/get-started/new-business-seller.html. [Accessed: 07-Jul-2019].
C. Comberg and V. K. Velamuri, ‘The introduction of a competing business model: the case of eBay’, Int. J. Technol. Manag., vol. 73, no. 1–3, pp. 39–64, 2017.
S. P. Choudary, ‘Platform Scale - How an emerging business model helps startups build large empires with minimum investment’, Platf. Think. Labs Pte Ltd, no. First Edition, p. 250, 2015.
Browse journals by subject