Figayou pursues a platform strategy: a case study of digital platform entrepreneurship

ABSTRACT

Startups building the next generation of digital technologies have to make an important strategic decision to position their innovations: should they sell their technology as a product or a service, or package it as a platform? This decision will influence the startups’ strategies for value creation and value capture and, ultimately, their survival. Moreover, if the startup decides to pursue the platform model, how should it balance the building of its core technologies, designing incentives and rules, and capturing value? We explore the case of Figayou, a startup with unique mobile technologies, and the decisions its core team has to make to launch a digital platform and design a strategy to create a sustained competitive position. In this research case, we apply two complementary approaches to analyze Figayou’s business model and strategic position, one focused on internal competencies and another on the building of a platform and the creation of value.

Additional information

Notes on contributors

Ruben Mancha

Ruben Mancha is an assistant professor of Information Systems at Babson College in Wellesley, Massachusetts, and faculty director of Babson’s Digital Experience Initiative. Dr. Mancha research interests include digital innovation and how digital technologies impact society and the environment. His research has been published in journals such as Decision Support Systems, Journal of Environmental Psychology, International Journal of Technology Transfer and Commercialisation, and Journal of Intelligent Systems in Accounting, Finance, and Management. He holds a Ph.D. in information technology from The University of Texas at San Antonio.

Steven Gordon

Steven Gordon is professor of information technology management at Babson College. Dr. Gordon’s current research interests relate to the role of information systems in supporting corporate innovation and in fostering social movements. He has been published widely in the academic press and is the editor of three text books and two research anthologies. He serves on the Advisory Boards of the International Journal of e-Politics and the Journal of Information Technology Case and Application Research, where he was previously editor-in-chief. Before arriving at Babson, Dr. Gordon founded and served as president of Beta Principles, Inc., a developer and marketer of accounting software and reseller of computer hardware. He has also consulted to the airline industry at Simat, Helliesen & Eichner, Inc. (now SH&E). He holds a Ph.D. in transportation systems from the Massachusetts Institute of Technology.

Bala Iyer

Bala Iyer is a professor and Dean of Faculty at Babson College in Wellesley, Massachusetts. He received his Ph.D. in information systems from New York University with a minor in computer science. His research interests include studying how digitization impacts competitive dynamics, business ecosystems, and the role of APIs in providing strategic advantage. He has published articles in Harvard Business Review, Communications of the ACM, California Management Review, Decision Support Systems, and others.