Online Business

Models and
Platform
Businesses
Digital Technology for Business
BUS 2401
Ajarn Haha
Learning
Objectives Define the common themes of a
business model and platform
businesses

Enumerate the business models and

platforms applicable in digital and
online
Business The nature of the customer value proposition.

Model The way the value proposition is created and delivered,

through the configuration of resources and processes.

How the customer value proposition is translated into

revenue streams and profit streams.

Taking above all points in responsibility, sustainability, and

shared value.
Components
of Business
Model
Business Model Canvas
Online business models

Fee-for-service Access fees

Customer pays for an agreed Variation of fee-for-service for
service and consumption the use of provider’s asset
Pay-as-you-go and pay-per-usage Advertisers on media platform
Cloud-based services are charged per PR metrics
Online business –Subscription
– Variant of fee-for-service
models where the producer gives
right of use and access at a
predetermined specifications,
period, and price
– Software-as-a-Service
(SAAS), Online hosting
Online business – Freemium models
– Basic services are free but
models charge for premium services
(through subscription basis)
– Either pay-for-service or pay-
for-access
Freemium
models
Freemium
models
Freemium
models
Some specific business
models of 4IR technology
– Social media
– pay for access to the platform,
advertising-based revenue model
– pay-for-use-of an informational
asset, namely their customer data
for use by third parties.
Some specific business
models of 4IR technology
– Internet of Things
– Subscription model (24/7 connection to assets)
– Outcome based model
– Asset sharing model
– Razor-blade model (consumable parts of IOT)
– Monetize data (gathered data to be sold)
– Pay-per-use
– Offer a service
Platform
– Platforms are
environments, computing
or otherwise, that connect
different groups and
derive benefits from
others participating in the
platform (Church, 2017).
 – The product or service needs to
Platform perform at least one essential
function within a system of use or
solve an essential technological
problem within an industry.
– should make it easy to connect to
or build upon, to expand the system
of use as well as to allow new and
even unintended end users.
 Platforms are mostly multi-sided markets

– Multi-sided platforms
are software,
application or service
creating value by
facilitating direct
interactions between
affiliates on multiple
sides.
Platforms are
mostly multi-
sided markets
Industry/
Technology have very little value to consumers without the
complementary products developed by the broader
platforms ecosystem (Android but no apps)

The company that makes an industry/technology

platform does not have most of the resources to make
all of the complementary products or services
(PSP/Sony and game providers)
Industry/
Technology
platforms
To allow their technology to become truly
ubiquitous, and a true industry-wide platform.
Industry/ Technology platforms

– To allow their technology to become truly ubiquitous, and a

true industry-wide platform
Platforms eliminate these costs
Platforms have
network effects
– the more providers there
are, the more value there
is for consumers, and the
more consumers there
are, the more value there
is for providers.
Platforms have –Tipping
– once a platform gains
network effects market leadership it attracts
ever more and more
participants.
– Reached critical mass and
gained contagious growth
Network the number of products or users connected to the network
directly increases the usefulness or the utility of the network to
all the products or users of the network.
effects can
arise from availability of complementary products and services

participation in the platform or network reduces the need of

customers to switch

Platform standards become the norm

Platform Ecosystem