Platform data strategy
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Platform data strategy Hemant K. Bhargava 1 & Olivier Rubel 1 & Elizabeth J. Altman 2 & Ramnik Arora 3 & Jörn Boehnke 1 & Kaitlin Daniels 4 & Timothy Derdenger 5 & Bryan Kirschner 6 & Darin LaFramboise 7 & Pantelis Loupos 1 & Geoffrey Parker 8 & Adithya Pattabhiramaiah 9
# Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract Platforms create value by enabling interactions between consumers and external producers through infrastructures and rules. We define platform data strategy to encompass all data-related rules undertaken by platforms to foster competitive advantage over the long term. Platform firms face growing pressure to increase accountability for how they use data; yet, an explicit treatment of platforms’ data strategies and a systematic discussion of forces influencing such data-related choices are absent in the academic literature. We articulate how a platform’s data strategy varies based on platform type and business circumstances. Given the interdependencies within a platform’s ecosystem, its data strategy must balance incentives of all stakeholders. Besides discussing these topics, the paper identifies promising research opportunities in platform data strategy to better inform future academic research, strategic decision-making, and regulatory analysis. Keywords Platform . Data . Strategy . Consumers . Choice
* Olivier Rubel [email protected]
1
Graduate School of Management, University of California Davis, Davis, CA, USA
2
Manning School of Business, University of Massachusetts Lowell, Lowell, MA, USA
3
Facebook, Palo Alto, CA, USA
4
Olin Business School, Washington University in Saint Louis, St. Louis, MO, USA
5
Tepper School of Business, Carnegie Mellon University, Pittsburgh, PA, USA
6
DataStax, Santa Clara, CA, USA
7
Auth0, Bellevue, WA, USA
8
Thayer School of Engineering, Dartmouth College, Hanover, NH, USA
9
Scheller College of Business, Georgia Tech, Atlanta, GA, USA
Marketing Letters
1 Introduction Platform businesses (e.g., Alibaba, Amazon, Apple, Google, Lyft, Tencent) have shaken up traditional industries worldwide, created new markets, and inspired nonplatform firms to embrace platform thinking (Parker et al. 2016; Hagiu and Wright 2015; Cusumano et al. 2019). Platform-native firms and traditional firms adopting platform strategies (Altman and Tripsas 2015) share two key characteristics: they both rely on network effects (Katz and Shapiro 1985; Parker and Van Alstyne 2005) and data analytics (Van Dijck et al. 2018). Platforms predominantly create value by data-driven coordination of activities across platform participants. Moreover, for many platforms, trading in individual and aggregate data plays a central role in monetization and revenue strategies centered around facilitating transactions (e.g., Uber, Facebook), while other platforms use collected and observed data to foster innovation, not only internally but also through external communities of complementors (e.g., Atlassian, SAP). Given the central role data play in platform business m
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