This article studies the business strategy of digital financial platforms and creation of ecosystems. The authors assume the general methodological approach of grounded theory to study four cases of financial technology platforms from Russia; the sample represents companies focusing both on solutions for the front end (consumers) and back end (middle of the value chain). The research finds that the top executives of the companies, which create and operate the digital platforms, have an approach to business strategy that is significantly different from that of the traditional business. They defy the pragmatism of predicting the market development and planning the company's actions in accordance with such predictions. Strategic paradigm of these companies is based on the notions of inclusivity, dynamism, and reliance on independent participants of a business ecosystem. Though a radical departure from the traditional business strategy, such an approach has brought demonstrable business success across the time span of a decade. The idea of "platform-ecosystem" can also be fruitful as a tool of solving important socioeconomic issues such as financial inclusion in the emerging markets.
Subject area
Entrepreneurship, Innovation Management, Bringing Technology to Market, International Growth Strategy from Emerging Markets, Russia, B2B Marketing.
Study level/applicability
MBA and executive education programs, technology management programs and electives.
Case overview
The case investigates the 20-years growth story of ABBYY, one of the most successful Russian technological companies in a global market. It covers the company’s roots, development of unique technology, evolution of products, market development and globalization and discusses a strategic threat from Google Translate to the company’s sustainable position and its business model.
Expected learning outcomes
The expected learning outcome is to discuss the key issues associated with establishing, growing and globalizing technology-driven business in an emerging market: bringing technology to market, defining customer value proposition, entering overseas markets from Russia, building partnerships, developing organizational structure to fit growth, financing rapid growth and solving “Innovator’s Dilemma”.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 3: Entrepreneurship.
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