Platform business models and internet of things as complementary concepts for digital disruption

Abstract

Currently, almost all industries are undergoing a fundamental transformation, based on the approach that everything that can be calculated will be calculated. This more and more leads to a digitalization of the world where software becomes more and more the key success factor also in many brick-and-mortar businesses and change appears more as disruption as evolution. A core concept and business model for the new age is the platform concept. In practice, companies like Airbnb, Facebook, LinkedIn, and Uber are examples of this platform business model. In management theory, the platform model is still in a very early stage of discussion. The chapter will have a deeper look into the concept of platform business models, describing their characteristics and major functional mechanisms. We will also discuss the major differences in comparison to traditional business models and analyze why it is so diffi cult to implement this concept in existing companies. Understanding this gives a good explanation why new players in a market using the platform model have such disruptive effects on the whole industry. Also the paper will explore into the concepts of Internet of Things (IoT) and Industry 4.0 (I4.0). With this understanding, it is possible to have a fi rst glimpse why many traditional industries will be “platformized” in the future and what a suitable lens for a company might be to analyze its position, opportunities, and treats in this new game.