Idle Asset Hunters—The Secret of Multi-sided Platforms

Abstract

Overview:

Since the dot-com revolution in the early 2000s, traditional, vertically integrated firms have attempted to innovate using multi-sided digital platforms, matching customer and supplier groups to resolve the needs of both. These firms’ underlying logic has disrupted traditional business models, enabling them to introduce new and counterintuitive value creation, delivery, and capture configurations. Using Uber and Airbnb, two prominent cases of multi-sided platforms, we present an overview of the dynamics governing value mechanisms within a platform through the theoretical lens of the business model. Multi-sided business models undergo three evolutionary phases: they solve the market friction; they exploit the critical mass they develop; and they unveil and capture new value derived from cocreation based on data. Our study reveals how successful platform providers act as idle asset hunters that can identify and leverage untapped assets. We propose a framework that helps companies move from a two-sided to a multi-sided platform.

Keywords::

• Two-sided platforms
• Multi-sided platforms
• Business model
• Digital platforms
• Network externalities

Additional information

Notes on contributors

Daniel Trabucchi

Daniel Trabucchi is an assistant professor at Politecnico di Milano's School of Management, where he serves as a researcher of LEADIN’Lab, the Laboratory for Leadership, Design and Innovation. He researches innovation management with particular focus on how digital two-sided platforms can create and capture value and their related data-driven business models. He has published his research in peer-reviewed journals such as Technological Forecasting and Social Change, Internet Research, Research-Technology Management, Creativity and Innovation Management, Technology Analysis and Strategic Management, and European Journal of Innovation Management. He has a PhD in management engineering. [email protected]

Silvia Sanasi

Silvia Sanasi is a PhD candidate in strategic management, innovation, and entrepreneurship at Politecnico di Milano’s School of Management, where she also collaborates as a researcher in the Hi-Tech Startups and Startup Intelligence Observatories. Her main research interest lies in the use of experimentation for business model design, innovation, validation, and scaling in both startups and established companies. She also researches the strategic management and business models of digital startups, with particular focus on multi-sided platforms. She has published articles in peer-reviewed journals such as Technology Analysis and Strategic Management and Competitiveness Review, as well as in conference proceedings. [email protected]

Antonio Ghezzi

Antonio Ghezzi is an associate professor of strategy and entrepreneurship in Politecnico di Milano’s Department of Management, Economics, and Industrial Engineering. His main research field is strategy, entrepreneurship, and digital transformation, with a focus on startups’ business model design, innovation, and validation. He has published more than 100 articles in journals such as International Journal of Management Reviews, Technological Forecasting and Social Change, Journal of Business Research, and R&D Management. He has also written books, book chapters, and conference proceedings. He has a PhD in management engineering. [email protected]

Tommaso Buganza

Tommaso Buganza is an associate professor of leadership and innovation at Politecnico di Milano’s School of Management, where he also is cofounder of LEADIN'Lab. He is a member of the scientific committee of the International Product Development Management Conference EIASM-IPDMC. His research focuses on the intersection between technological innovation and leadership. He has published articles in Journal of Product Innovation Management, International Journal of Innovation Management, European Journal of Innovation Management, and Creativity and Innovation Management. He is also a reviewer for many of these journals. He has a PhD in management engineering. [email protected]