Designing business models for cloud platforms

Giessmann, Andrea; Legner, Christine

doi:10.1111/isj.12107

Cited by 51 publications

(38 citation statements)

References 41 publications

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“…However, complementors (ie, those who develop and deliver complementary content) will only be willing to commit to a platform if it provides sufficient incentives to do so, such as a reasonable commission on profit (Rochet & Tirole, ). This begs the question of how a platform should be designed in order to create value by matching demand and supply (cf., Giessmann & Legner, ). In this respect, platform governance, which is generally defined as “who makes what decisions about a platform” (Tiwana et al, , p. 679), plays a particularly important role for platform providers, requiring them to make deliberate choices about decision rights, ownership, and control in order to appropriately involve and engage complementors.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Network effects on crowdfunding platforms: Exploring the implications of relaxing input control

Thies

Wessel

Benlian

2018

Information Systems Journal

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Crowdfunding has emerged as a viable alternative to venture capital or angel investments in order to raise funds for entrepreneurial initiatives. Despite its growing importance, we still know little about the underlying network effects that drive the evolution and growth of crowdfunding platforms. Specifically, is the evolution and growth primarily driven by a growing number of entrepreneurial projects attracting funders, or do funders primarily attract entrepreneurs, or does a reciprocal relationship exist between the two market sides? We also explore whether and how input control, a common gatekeeping mechanism on platforms, has an impact on the formation of network effects. By analyzing eight years of data on the evolution of Kickstarter, one of the leading reward-based crowdfunding platforms, we find that network effects are asymmetric. An increasing number of entrepreneurial projects has a strong and significant effect on the installed base of funders (cross-side network effects) and also attracts other entrepreneurs to the platform (same-side network effects). However, an increased installed base of funders does not have an effect on the growth of either side of the market.We also find that, under weaker input control, cross-side network effects and same-side network effects are weaker and less sustainable. Taken together, our exploratory evidence suggests that the relationship between the market sides on crowdfunding platforms might be less reciprocal than expected, having profound implications for entrepreneurs and providers of crowdfunding platforms.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Network effects on crowdfunding platforms: Exploring the implications of relaxing input control

Thies

Wessel

Benlian

2018

Information Systems Journal

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“…Figure 1 summarizes the connection between a cloud provider, his occupied ecosystem roles, their instantiated business models, their components and their multiple design options for component-specific business model characteristics: Overall, the research on cloud business models is nascent: Giessmann and Stanoevska-Slabeva [41] proposed a classification model for PaaS providers' business models and hypotheses regarding future developments. Giessmann and Legner [42] published a set of possible design principles guiding software providers to define PaaS business models (without reference to success).…”

Section: Introductionmentioning

confidence: 99%

Success-Driving Business Model Characteristics of Iaas and Paas Providers

Floerecke

Lehner²

2018

IJCCSA

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Market analyses show that some cloud providers are significantly more successful than others. The research on the success-driving business model characteristics of cloud providers and thus, the reasons for this performance discrepancy is, however, still limited. Whereas cloud business models have mostly been examined comprehensively, independently from the distinctly different cloud ecosystem roles, this paper takes a perspective shift from an overall towards a selective, role-specific and thereby ecosystemic perspective on cloud business models. The goal of this paper is specifically to identify the success-driving business model characteristics of the so far widely neglected cloud ecosystem's core roles, IaaS and PaaS provider, by conducting an exploratory multiple-case study. 21 expert interviews with representatives from 17 cloud providers serve as central data collection instrument. The result is a catalogue of generic as well as cloud-specific, subdivided into role-overarching and role-specific, business model characteristics. This catalogue supports cloud providers in the initial design, comparison and revision of their business models. Researchers obtain a promising starting and reference point for future analysis of business models of various cloud ecosystem roles. KEYWORDSInfrastructure as a Service (IaaS), Platform as a Service (PaaS), Success-Driving Business Model Characteristics, Cloud Computing Ecosystem, Exploratory Multiple-Case Study.The rest of this paper is organized as follows: Section two contains the related work regarding cloud computing, business models, business ecosystems and success factors. In the third section, the conducted case study research approach is depicted in detail. The identified success-driving business model characteristics are listed and described separately according to the various business model components in section four. In section five, the results are discussed and several unexpected aspects concerning the current situation and possible future developments within the cloud ecosystem are presented. Section six provides a summary, limitations, contributions for theory and practice and a prospect on future research. RELATED WORKCloud computing is a relatively new IT operations model, which has radically transformed the way IT resources are produced, provided and used [21]. This is the reason why numerous scholars (e.g., [10,22]) consider cloud computing as a co-evolution of computing technology and business models. The main characteristics of cloud services, including on-demand self-service, broad network access, resource pooling, rapid elasticity and measured service, distinguish it from its traditional counterpart, the on-premise IT [23]. Cloud services can be delivered via four different deployment models: public, private, hybrid and community. These deployment models particularly differ in their degree of operational isolation, the access control to a specific cloud service and the physical location of the underlying hardware servers [24].

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“…Peters et al [21] also propose a morphological box for the analysis, description, and classification of IT-enabled service BMs. Regarding BM management process, IS research is particularly interested in frameworks for BM management [13], IT support for BM design and management [22], and the design of IT platform BMs [23].…”

Section: State-of-the-art: the Business Model Conceptmentioning

confidence: 99%

Design Principles for Business-Model-based Management Methods—A Service-Dominant Logic Perspective

Blaschke

Haki

Riss

et al. 2017

Lecture Notes in Computer Science

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Extant research gives rise to the notion of business-model-based management that stresses the pivotal role of the business model concept in organizational management. This role entails a shift in research from predominantly examining business model representation to the use of the business model concept in the design of management methods. In designing respective management methods, managers need to not only account for the business model concept, but also consider the characteristics of the emerging business environments in which business models are devised. To this, our study guides the design of business-model-based management methods through exploiting service-dominant logic, a theoretical lens that conceptualizes the emerging business environment. By means of design science research, this study develops four design principles for business-model-based management methods namely, ecosystem-, technology-, mobilization-, and co-creation-oriented management. This study also articulates the principles' rationale and implications and discusses their contribution in achieving business-model-based management.

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Designing business models for cloud platforms

Cited by 51 publications

References 41 publications

Network effects on crowdfunding platforms: Exploring the implications of relaxing input control

Network effects on crowdfunding platforms: Exploring the implications of relaxing input control

Success-Driving Business Model Characteristics of Iaas and Paas Providers

Design Principles for Business-Model-based Management Methods—A Service-Dominant Logic Perspective

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