Start Date
12-18-2013
Description
The provisioning of software has shifted towards a service model, where applications are hosted, metered, and billed through service platforms rather than being sold as on-premise software. These services can exhibit network effects, which are self-enforcing effects of value generation. They describe the interdependency of service or platform value, service consumption, and third party service provisioning. Service platforms need to be designed to incite these network effects. We propose a design theory which is based on the operator’s platform authority as the key factor for controlling and influencing stakeholders in and around the service platform in different control modes. As a design method, we propose a conceptual modeling language which supports service platform design with staged areas of authority, process flows as well as control methods. We present the rationale behind the language, discuss its application, and propose testable hypotheses for an empirical evaluation.
Recommended Citation
Scholten, Ulrich; Janiesch, Christian; and Rosenkranz, Christoph, "Inciting Networks Effects Through Platform Authority: A Design Theory for Service Platforms" (2013). ICIS 2013 Proceedings. 4.
https://aisel.aisnet.org/icis2013/proceedings/ServiceManagement/4
Inciting Networks Effects Through Platform Authority: A Design Theory for Service Platforms
The provisioning of software has shifted towards a service model, where applications are hosted, metered, and billed through service platforms rather than being sold as on-premise software. These services can exhibit network effects, which are self-enforcing effects of value generation. They describe the interdependency of service or platform value, service consumption, and third party service provisioning. Service platforms need to be designed to incite these network effects. We propose a design theory which is based on the operator’s platform authority as the key factor for controlling and influencing stakeholders in and around the service platform in different control modes. As a design method, we propose a conceptual modeling language which supports service platform design with staged areas of authority, process flows as well as control methods. We present the rationale behind the language, discuss its application, and propose testable hypotheses for an empirical evaluation.