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if necessary, activates driving agencies. The startupās developers implement new
features in the product and get ļ¬rsthand feedback from the drivers or carry out
orders themselves. For the acquisition of B2B customers, the offensive communi-
cation of existing customers has proven to be themost successful approach.
3.3 Approaches toDesignMinimumViable Platforms
In the analyzed case studies, we identiļ¬ed three speciļ¬c and one general approach
tominimumviable platformdesign.All named startups startwith the identiļ¬cation
and implementation of a core transaction between actors. With kawaloo, for
example, this is the provision of storage space by a supplier in exchange for a fee
fromthecustomer.Parker et al. (2016)andCusumanoet al. (2019)alreadydescribe
the relevance of early focus on a core transaction in relation to the successful
development of digital platforms. We empirically underline this ļ¬nding in the
examined case studies. Basically, the concept of the minimum viable product is
applied to themore complex context of amulti-sidedmarket. The core transaction
is, therefore, to be understood as the simplest way of representing the value
proposition of the platform for the addressed actors. All further services, offers, or
additional transactions are to be understood as complementary features to the core.
The special approaches can be explained on the basis of procedures for each of
the studied startups. Theļ¬rst approach, called immersion, describes ahighmanual
effort of a platform sponsor, in our caseAnyyogi, to deepen the understanding of
the supply and demand side. The platform sponsor takes on the role of a market
participantandengageson theplatformtocreateahigh levelof learning in theearly
daysof theventuredevelopment.YCombinator founderPaulGrahamdescribes this
procedure in a blog article published in 2013with the title āDoThings that Donāt
Scaleāusing theexampleof theplatformstartupsAirbnb.Anyyogiprovides further
evidence of the added value in prioritizing early-stage learning and improving the
valuepropositionover automation.Themain advantageof the immersion approach
is that startups can reduce their early effort of building, e.g., supply-side relations
when testing the experiences of the demand side. Although the immersion into a
demand-side/supply-side actor enables the startup to test the covered role, the
generated insights are biased.
LogCorp is initially buildingon the supply side of its delivery services platform
itself by keeping drivers available, independent of demand, and in order to be able
to immediately serve any requests thatmayarise.This approachof servingoneside
of the platform as a sponsor is called anticipation. Thus, the startup initially
concentrates on testing the assumptionsmadeon the demand side and focusing the
knowledge gained on this side.At the same time, demand can be built up through
theself-createdoffer,making theplatformmoreattractive for independentproviders
in a second step. This approach comes at high risk, without an early problemā
solution ļ¬t test of the customer demand,
kawaloo leverages other platforms to create the necessary reach to test its
minimumviable platformassumptions.Calledpiggybacking, this could alreadybe
Development and Validation of Platform⦠99
Digital Entrepreneurship
Impact on Business and Society
- Title
- Digital Entrepreneurship
- Subtitle
- Impact on Business and Society
- Authors
- Mariusz Soltanifar
- Mathew Hughes
- Lutz Gƶcke
- Publisher
- Springer Verlag
- Location
- Cham
- Date
- 2021
- Language
- English
- License
- CC BY 4.0
- ISBN
- 978-3-030-53914-6
- Size
- 16.0 x 24.0 cm
- Pages
- 340
- Keywords
- Entrepreneurship, IT in Business, Innovation/Technology Management, Business and Management, Open Access, Digital transformation and entrepreneurship, ICT based business models
- Category
- International