Performance Evaluation of Digital Platform Business Models

Abstract

The motivation of this study stems from the need to evaluate the platform business model design criteria to maximize benefits to all stakeholders. The authors develop an evaluation framework for platform business models incorporating sustainability as one of the dimensions of ontology. This design criteria evaluation framework is based on the analytical hierarchy process. The authors consider five main criteria and 12 sub criteria. A case study was performed by taking responses from nine experts attached to different digital business platforms. Product innovation receives a weight of 31.8%. This follows customer relationship and financials with weights of 26.4% and 23.8% respectively. The lowest weight is assigned to sustainability. The effect would be somewhat consistent with the existing literature, only over a shorter time scale within which the above results may be acceptable. While only preliminary, this ranking suggests that developments along these lines may be important in creating a pre-evaluated criterion that is acceptable to informed decision making process of a firm.