Unit 7 platforms in the digital economy Flashcards
(25 cards)
What is a digital platform?
Digital infrastructure, rules, and processes that enable resource exchange between external producers and consumers.
Give an example of a digital platform.
Examples include Amazon, Uber, Airbnb, Netflix.
What is platform economy?
Economic activities enabled by digital platforms, reshaping industries and business models.
List some types of digital platform work.
Online work, crowdwork, gig-work, virtual work, micro work, platform work.
Key characteristics of platforms?
Plug-and-play model, connecting producers and consumers, algorithmic matchmaking, trustful environment.
How does AI enhance digital platforms?
Personalized recommendations, search efficiency, predictive matching, scalable connections, trust enforcement.
What are the Five P’s for platforms?
Price, Protection, Partners, Personalisation, Proposition.
How does Netflix use the Five P’s?
Proposition (original content), Personalisation (recommendations), Pricing (subscription tiers), Protection (data security), Partners (content and tech partnerships).
Role of platforms in digital transformation?
Central hubs for connectivity, data utilization, innovation, and strategic decision-making.
How do platforms create value uniquely?
As-a-service models, delinking ownership, leveraging non-linear growth.
Principles for trustworthy platforms?
Security, Accountability, Transparency, Auditability, Fairness, Ethics.
What are network effects?
Value increases as more users join; includes same-side and cross-side effects.
Challenges in developing platforms?
Discrimination, cross-border regulation, market dominance, algorithm bias.
What is the chicken-and-egg problem in platforms?
Difficulty attracting users when value depends on presence of other users.
Solutions to the chicken-and-egg problem?
Subsidize users, concentrate on niches, envelopment strategy, staging rollout.
What is the pacing problem in platform regulation?
The speed of tech outpaces the creation of suitable regulatory frameworks.
What defines the gig economy?
Use of digital platforms to connect freelancers with customers for short-term services.
Examples of gig economy platforms?
Uber, Deliveroo, Airbnb, TaskRabbit.
Opportunities from the gig economy?
Job opportunities, additional income, flexibility, cost-effective services.
Challenges of the gig economy?
Undefined employment status, lack of benefits, low pay, monotonous tasks.
What is the ‘dark side’ of the gig economy?
Poor pay, lack of rights, algorithmic management, employment status disputes.
How are digital platforms transforming economies?
Creating flexible, networked markets; contributing trillions to global GDP.
How is fairness a concern in digital platforms?
Risk of price discrimination, collusion, and anti-competitive behaviours.
What is envelopment in platform strategy?
Leveraging existing user bases to launch a new platform successfully.
