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Building Blocks for the Future

Оглавление

• Traditional structures restrict the application of new possibilities.

• New applications of technology not only lead to collaboration within a network but also create different competitive relationships.

• Organisations as independent entities have to join a partnership within a network.

• In addition to the technological changes, it is the acceptance of users, customers and companies that form the basis for disruption.

• The playing field is no longer limited to a traditional target group or protected market. Competition is now global. Purchases are demanddriven. The demand economy is replacing the supply model.

• Competition takes place on the basis of algorithms that often lack transparency.

The traditional platform development is disrupting traditional competitive relationships in a number of ways as follows:

• It reduces barriers to access.

• Everyone can start a new platform. Alternatively, a company can become a member of a platform.

• There is a change in the logic of value creation and value determination.

• The platforms provide a new series of economic relationships, which are dependent upon the Internet (networks). This leads to an ecosystem that is the basis of value creation. The ecosystem determines the conditions users need to meet in order to participate.

• Value is determined by a variety of mechanisms, each of which has different implications for the distribution of profits. Platforms transform the work and the relationships or create new categories of work and relationships.

• It regulates the relationships and provides arbitration in the event of disputes.

• This means that the platform can be used for arbitration without breaking the law.

• Small group of businesses and investors work for the platform; it is they who take the risk. They earn very well from this and, if the business is successful, will profit from the value that is activated on the (stock) market.

• Then there are also (small) companies that deliver goods for the platform. They are in fact mini-operators or consignees. Most of these will not be successful or profitable, though some will be very successful.

• There will be a number of employment relationships that involve long hours at the office and benefits such as healthcare, but most such relationships will be defined anew, resulting in the creation of jobs with very flexible hours but fewer of the traditional benefits. In the food delivery sector, there will be a large increase in the demand for food deliverers, boys and girls, to deliver these meals. In addition, possibly even a greater demand for cooks to prepare these meals. The deliverers are usually able to choose their own hours, and therefore work very flexible hours, but are hired mainly as freelancers and so do not enjoy many of the traditional employment conditions. We see this not only within food delivery companies but also clearly within transport companies (Uber) and parcel delivery services (post.nl).

• Repositioning of power in the economic system will happen.

• The manager or owner of a platform varies per platform. The differences are important as the distribution of the benefits varies per owner of the platform. Platforms such as Foodora and Deliveroo are a third party, but there are also restaurants that have started their own platforms for delivering meals. In such cases where a third party owns a platform, the restaurant benefits from more business. If the restaurant has its own platform, then the restaurant enjoys more commercial benefits as well as the advantage of customers loyal to the platform (Zysman and Kenney, 2016).

End Of Competition, The: The Impact Of The Network Economy

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