This thesis analyses the most innovative platforms from China and the United States of America in order to provide the key success factors through internal organisation and external cooperation. The findings are concluded in a role model for digital innovation and an innovation scorecard, that helps to compare the innovation level of a company in electronic markets with its competition. In digital markets, the level of innovation as well as state-of-the art technologies are massively influencing the success of companies.
Here, innovation takes place on two different levels: first, it describes the transformation of incumbent companies towards a digital platform, and second it depicts the innovative pressure within the highly competitive environment of native digital platforms such as Google or Alibaba, that must constantly and fast evolve in order to maintain their leadership position. In the native platform segment, innovation is mostly achieved with business cooperation in order to gain technological knowledge, whereas innovation relating to incumbents mostly deals with an internal reorganisation of existing structures, that is often very individual and varies from company to company.
Table of Contents
1. Introduction
1.1. Problem Statement and Research Question
1.2. Objectives
1.3. Topic Approach and Research Methodology
2. The Platform Business Model, Digital Innovation-Theories and -Strategies
2.1. The Online Platform Segment
2.1.1. Platform Definition and Economy
2.1.2. The 9 Types of Online Platforms and their Interdependencies
2.2. Innovation “within” and “through” the Online Platform Segment: Business Model Innovation vs. Innovative Digital Native Platforms
2.2.1. Definition and Degree of Innovation in Electronic Markets
2.2.2. Transformation: Business Model Innovation towards a Digital Platform
2.2.3. Technological Innovation in Electronic Markets
2.2.4. Service Innovation
2.3. Internal and External Business Strategies in Order to Achieve Digital Innovation
2.3.1. Digital Innovation Management
2.3.2. Organisational Strategies to Foster Business Model Innovation
2.3.3. Cooperation in the Online Platform Segment in Order to Innovate
2.3.4. The Interplay of Organisation and Cooperation
2.4. USA and China as Main Digital Innovators in the Platform Segment
3. Macroenvironmental Impact on the Innovation Capabilities of Platforms in China and USA
3.1. Comparison of China and the United States
3.1.1. Legal, Political and Social Influences on Digital Platforms
3.1.2. The Impact of Economic Regulations, Cross-Border Cooperation, and Technological Development on Platform Innovation
3.2. Intermediate Result: Theoretical Summary of Enablers for Digital Innovation
3.3. Measuring Digital Innovation
3.3.1. The Difficulty of Measuring Innovation in the Platform Segment
3.3.2. Theoretical Approach to Measure Digital Innovation: Evaluation Matrix Proposal
3.4. Evaluation of the Most Innovative Platforms in China and the United States
3.4.1. Scoring System
3.4.2. Evaluation Criterions and -Procedure
3.4.3. Result: The 4 most Innovative Online Platforms in China and USA
4. Microenvironmental- and Business Analysis on the most Innovative Platforms
4.1. E-Commerce Platforms: Comparison of Alibaba and Amazon
4.1.1. Market Environment: E-Commerce
4.1.2. Business Model Analysis of Alibaba and Amazon
4.1.3. Innovation Strategies of Alibaba and Amazon through Cooperation and Organisation
4.2. Social Media Platforms: Comparison of Tencent and Facebook
4.2.1. Market Environment Analysis: Social Media
4.2.2. Business Model Analysis of Tencent and Facebook
4.2.3. Innovation Strategies of Tencent and Facebook through Cooperation and Organisation
5. Summary and Conclusion
5.1. The 5 Most Important Key Success Factors for Innovation through Organisation and Cooperation
5.2. Role Model for Digital Innovation in the Online Platform Segment
Objectives and Topics
This research aims to identify the key success factors for innovation within the digital platform segment, focusing on the interplay between internal organisational structures and external business cooperation. By analyzing leading platforms in China and the United States, the thesis seeks to provide strategic recommendations for fostering digital innovation.
- Analysis of business strategies of the most innovative digital platforms.
- Evaluation of macroenvironmental factors influencing platform innovation in China and the USA.
- Development of a theoretical framework and metrics to measure digital innovation.
- Identification of the 5 most critical key success factors for platform-based innovation.
- Creation of a role model for digital innovation strategies.
Excerpt from the Book
1. Introduction
“Innovation is key; only those who have the agility to change with the market and innovate quickly will survive.” – Robert Toru Kiyosaki
Over the past 60 years our economy experienced a massive technological development process, inter alia enabled by the first exchange of digital data via the ARPANET, originally initialised as a military project of the United States in the 1960s. The invention of personal computers in the 1970s and the upcoming mainstream use of the world wide web in the 1990s enabled businesses, to communicate with customers all over the world. Within this new digital era an unprecedent business model arose: the online platform - and with it the ability for the first movers to scale their businesses tremendously on a global level. Even though digital platforms have only existed for about 25 years, the revenue of the “Big 5” Amazon, Alibaba, Facebook, Google and Microsoft accounted for 0,8% of the global Gross Domestic Product (GDP) in 2019, what shows the size and impact of the biggest online platforms of our time. And the tendency towards digital platform businesses is increasing. According to a survey on 500 C-level executives in 12 countries, 92% of all companies have implemented or started to implement tools to build a digital platform and 88% of all interviewed executives are stating, that their business strategy is already based on a platform concept or enabled by it. This development is fuelled by the current Covid-19 crisis and the increasing pressure for incumbents to evolve and transform their “physical” business models, if they want to keep up with the competition.
Summary of Chapters
1. Introduction: Outlines the significance of digital platforms in the global economy and defines the research question regarding innovation capabilities.
2. The Platform Business Model, Digital Innovation-Theories and -Strategies: Evaluates innovation theories, the role of organisational structures, and the impact of business cooperation in the platform segment.
3. Macroenvironmental Impact on the Innovation Capabilities of Platforms in China and USA: Analyzes legal, political, and social conditions influencing platforms in both nations and presents a scorecard for measuring innovation.
4. Microenvironmental- and Business Analysis on the most Innovative Platforms: Compares specific e-commerce and social media giants (Alibaba/Amazon and Tencent/Facebook) through Porter’s 5-Forces and business model analyses.
5. Summary and Conclusion: Synthesizes the findings into five key success factors and proposes a role model for digital platform innovation.
Keywords
Digital Platforms, Innovation Management, Business Model Innovation, Internal Organisation, External Cooperation, China, USA, E-Commerce, Social Media, Platform Economy, Key Success Factors, Digital Transformation, Technological Innovation, PESTEL Analysis, Porter's 5-Forces.
Frequently Asked Questions
What is the core focus of this Master-Thesis?
The thesis examines how internal organisational strategies and external business cooperations influence the innovation capabilities of leading digital platforms in China and the United States.
Which specific themes are central to the research?
The study centers on business model innovation, the impact of macroenvironmental factors like policy and culture, and the comparative analysis of top-tier platforms in e-commerce and social media.
What is the primary research objective?
The primary goal is to define the five most important key success factors for digital innovation and to develop a practical role model for companies aiming to transform into successful platforms.
Which methodology is applied?
The research uses a mixed-methods approach, primarily evaluating secondary data and conducting qualitative analysis complemented by quantitative scoring systems for platform innovation.
What topics are discussed in the main part?
The main part covers the theoretical foundations of platform business models, comparative analyses of Alibaba/Amazon and Tencent/Facebook, and a detailed examination of innovation drivers.
Which keywords define this work?
Key terms include Digital Platforms, Business Model Innovation, Platform Economy, Organisational Strategy, and Innovation Measurement.
Why were Alibaba and Amazon chosen for comparison?
They were identified as the most innovative platforms in the e-commerce sector based on market capitalisation, patent filings, and innovation survey rankings, making them ideal models for comparison.
How does the thesis explain the differences between Chinese and American platforms?
It highlights cultural differences, such as China’s collectivist approach and government-supported technological focus versus the American emphasis on individualism and private-sector-led innovation.
- Quote paper
- Eileen-Natalie Gerlach (Author), 2021, Key success factors through internal organisation and external cooperation. An analyses of the most innovative platforms from China and the USA, Munich, GRIN Verlag, https://www.grin.com/document/1161441
