ABSTRACT
Platform networks solve real business problems by consolidating basic layered functionality in a manner that provides economies of scale. Factors that contribute to platform network success includes namely: Openness, Extensibility, Modularity (abstraction and encapsulation) and Quality control. A product platform is a set of subsystems and interfaces that form a common structure from which a stream of derivative products can be efficiently developed and produced. Platforms and families are powerful ways for companies to recoup their high initial investments in research and development by deploying the technology across a number of market fields. After introducing the concept of product platforms, this chapter defines platform network enterprises. It addresses core concepts of platform network enterprises, namely, network effects, multisidedness, multihoming, tipping, and lock-in. The chapter ends with an overview of prime examples of platform network enterprises, namely, Uber and Airbnb.
