Karl Popp 11/7/24 Karl Popp 11/7/24

Google business models and revenue sources #ewseco

Google functions under diverse business models and revenue streams. Presented here are five illustrations:

1. The primary source of revenue for Google is the advertising displayed on its search engine and various platforms such as YouTube. In 2020, Google's advertising revenue reached approximately $147 billion, making a substantial contribution to its profits.

2. Cloud Services: Google Cloud provides cloud computing services to enterprises, generating revenue through subscription-based frameworks. The revenue from Google Cloud in 2020 was about $13 billion, displaying an increasing impact on profits.

3. Sales of Hardware: Google markets hardware items like Pixel smartphones, Nest smart home gadgets, and Chromecast. The revenue from hardware sales in 2020 was about $10 billion, with profit margins varying among product categories.

4. Play Store: Google gains revenue from the Play Store by receiving a share of app sales and in-app transactions. The revenue from the Play Store in 2020 was estimated at $10 billion, with substantial profit margins attributed to the digital essence of the platform.

5. Licensing and Other Services: Google also derives revenue through licensing contracts, collaborations, and other services such as Google Workspace (previously known as G Suite). These services collectively contribute to Google's overall revenue and profits.

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Business Models and Strategies for Open Source Projects (Copy)

Karl Popp 11/4/24 Karl Popp 11/4/24

The top 5 global companies with aggregator business models

The European Workshop on Software Ecosystems is an annual event which connects top notch researchers and business professionals in the field of software and platform ecosystems as well as business networks. Here is an example of a topic we will discuss at the event.

The top 5 global companies with aggregator business models, revenue, and growth rate in the last 5 years are:

1. Amazon - Revenue: $386 billion (2020), Growth Rate: 21% (2020-2024).

2. Uber - Revenue: $14.1 billion (2020), Growth Rate: 25% (2020-2024).

3. Airbnb - Revenue: $3.4 billion (2020), Growth Rate: 30% (2020-2024).

4. Booking.com - Revenue: $15.1 billion (2020), Growth Rate: 18% (2020-2024).

5. Expedia - Revenue: $11.7 billion (2020), Growth Rate: 15% (2020-2024).

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More details and background information can be found in these books:

Karl Popp 9/3/24 Karl Popp 9/3/24

How can you foster innovation in software ecosystems - six examples

Innovation is at the heart of every successful software ecosystem. Fostering a culture of innovation not only drives growth and success but also creates a competitive edge. Here are six examples of how you can foster innovation in software ecosystems:

1. Encourage a Collaborative Environment:

Create spaces for open communication and idea-sharing among software development teams. Collaboration fosters creativity and leads to innovative solutions.

2. Invest in Research and Development:

Allocate resources to R&D efforts to explore new technologies, methodologies, and trends. This investment can yield groundbreaking innovations.

3. Embrace Agile Methodologies:

Adopt agile practices to enable quick iterations, adaptability, and continuous improvement. Agile methodologies promote innovation by allowing teams to respond to change and deliver high-quality software.

4. Promote a Culture of Learning:

Encourage continuous learning and skill development among team members. By staying updated on the latest industry trends, individuals can bring fresh perspectives and innovative ideas to the table.

5. Support Hackathons and Innovation Challenges:

Organize events that challenge developers to ideate and create innovative solutions within a limited timeframe. Hackathons drive creativity and often result in pioneering software concepts.

6. Foster Entrepreneurial Mindset:

Encourage developers to think like entrepreneurs and take ownership of their projects. This mindset cultivates a sense of ownership and drive to innovate.

By implementing these strategies, software ecosystems can create an environment that nurtures creativity, experimentation, and advancement, ultimately leading to groundbreaking innovations.

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Why don´t you choose one of the following topics to continue:

Karl Popp 8/6/24 Karl Popp 8/6/24

Plattform-Geschäftsmodelle - die Grundlagen

In einem Buch mit dem Titel Business Model Generation (2010) von Osterwalder und Pigneur geht es um Plattformen, zu deren Beispielen Apple, Visa, Google, eBay und Microsoft Windows gehören. Eines der erfolgreichsten Geschäftsmodelle dieser Ära ist das Plattform-Geschäftsmodell, das ein Ökosystem verwaltet und unterhält, um wirtschaftlichen Wert in Form von Transaktionsgebühren oder auf andere Weise zu erzielen. (Quellen: 11, 16, 17)

In der Regel schafft ein Plattform-Geschäftsmodell Werte, indem es den Austausch zwischen zwei oder mehreren voneinander abhängigen Gruppen erleichtert. Es macht sich ein Ökosystem von Nutzern wie Konsumenten, Produzenten, Verkäufern, Käufern, Fahrern, Gastgebern oder Gästen zunutze, um Transaktionen zwischen ihnen innerhalb eines großen Netzwerks zu erleichtern. (Quellen: 1, 4, 16)

Plattformtypen und Design

Obwohl es eine Reihe verschiedener Plattformtypen und viele verschiedene Klassifizierungen gibt, sind die beiden gängigsten Plattform-Geschäftsmodelle die so genannten Transaktionsplattformen und Innovations-Ökosystem-Plattformen. [Quellen: 8, 14] Transaktionsplattformen ermöglichen Transaktionen zwischen Teilnehmern, die sich in der Regel auf verschiedenen Seiten der Plattform befinden. Innovations-Ökosystem-Plattformen bieten ein Umfeld, in dem die Teilnehmer über das Angebot der Plattform hinaus innovieren können. Ein typisches Beispiel aus der Technologiebranche ist die Schaffung einer Reihe von APIs, die von einer Plattform bereitgestellt werden, um darauf aufbauend Lösungen zu entwickeln. Innovations-Ökosystem-Plattformen mit großen Ökosystemen sind Infrastructure-as-a-Service-Anbieter wie Amazon, Google oder Alibaba.

Bei Transaktionsplattformen liegt der Schwerpunkt nicht auf der Generierung von Einnahmen auf Transaktionsbasis aus der Produktion und dem Verkauf von Waren und Dienstleistungen, sondern das Geschäftsmodell der Plattform ermöglicht wertvolle Verbindungen zwischen den Nutzern. Die Suche nach den richtigen Kerntransaktionen, die zwischen den Nutzern der Plattform ermöglicht werden sollen, ist ein wichtiger Teil des Plattformdesigns, da das Plattformgeschäft darauf angewiesen ist, dass seine Nutzer diese Transaktionen wiederholen, um einen Wertaustausch zu generieren. (Quellen: 1, 5, 14)

Bei der Gestaltung von Plattformen für Innovationsökosysteme geht es vor allem darum, den Teilnehmern eine niedrigschwellige, leicht zu bedienende Umgebung zu bieten, damit sich schnell ein großes Ökosystem von Innovatoren bilden kann. Es müssen aber auch faire Regeln für die Innovatoren aufgestellt werden, um den von ihnen geschaffenen Wert zu erfassen.

Ein Plattform-Ökosystem wird demnach durch die Beschreibung des stattfindenden Wertaustauschs, der Regeln für die Geschäftspraktiken der Plattform und der den Nutzern zur Verfügung stehenden Werkzeuge gestaltet. Das Aufkommen vernetzter Technologien und Ökosysteme ermöglicht es Plattformen, auf eine Weise zu skalieren, wie es traditionelle Unternehmen nicht können. [Quellen: 1, 15]

Plattformen und traditionelle Unternehmen

Wir bezeichnen traditionelle Unternehmen, die keine Plattformen sind, als lineare Unternehmen, weil ihre Tätigkeit als eine typische lineare Lieferkette entlang einer Pipeline von Unternehmen beschrieben werden kann. Plattformunternehmen wandeln das Pipeline-Geschäftsmodell, bei dem die Wertschöpfung einseitig ist und Engpässen in der Lieferkette unterliegt, in ein Plattform-Geschäftsmodell um, bei dem die Wertschöpfung in der Regel mindestens zweiseitig und kontinuierlich ist. [Quellen: 1, 8,11]

Plattformen, die zu einem Teil unseres täglichen Lebens geworden sind, haben ihr Geschäft auf leistungsstarken Plattformtechnologien aufgebaut, die sich mit unseren Werten befassen und eine Verbindung zu ihnen herstellen. Die Unternehmen werden sich irgendwann an dieses neue Modell anpassen müssen, da sie sonst Gefahr laufen, von Plattformen unterbrochen zu werden. (Quellen: 0, 2, 14)

Lineare Unternehmen holen nicht nur auf, sondern schlagen auch zurück und überspringen bekannte Plattformen wie Amazon, Facebook und Google und investieren in die Entwicklung von KI, künstlicher Intelligenz und Blockchain-Technologien, um ihnen bei der Schaffung von Plattform-2.0-Modellen zu helfen. [Quellen: 9, 12, 13]

Diskutieren Sie mit uns auf dem European Workshop on Software Ecosystems 2024

Quellen:

[0]: https://blog.hypeinnovation.com/platform-models-are-the-new-order-of-business-need

[1]: https://www.applicoinc.com/blog/what-is-a-platform-business-model/

[2]: https://www.wired.com/insights/2013/10/why-business-models-fail-pipes-vs-platforms/

[3]: https://bernardmarr.com/the-9-most-successful-business-models-of-today/

[4]: https://www.publicissapient.com/insights/platforms-are-powerful-business-models

[5]: https://blog.hubspot.com/marketing/platform

[6]: https://bstrategyhub.com/50-types-of-business-models-the-best-examples-of-companies-using-it/

[7]: https://www.weforum.org/agenda/2019/12/benefits-of-platform-business-model/

[8]: https://www.cio.com/article/3134028/platform-business-models-a-primer.html

[9]: https://www2.deloitte.com/ch/en/pages/innovation/articles/platform-business-model-explained.html

[10]: https://hbr.org/2019/05/a-study-of-more-than-250-platforms-reveals-why-most-fail

[11]: https://medium.com/euro-freelancers/platform-economy-the-4-key-business-models-1fc0eda7241e

[12]: https://innovator.news/the-platform-economy-3c09439b56

[13]: https://www.sciencedirect.com/science/article/pii/S0024630118306368

[14]: https://www.linkedin.com/pulse/platform-business-models-explained-robert-farrell

[15]: https://platformbusinessmodel.com/platform-business-model-meaning/

[16]: https://fourweekmba.com/platform-business-models/

[17]: https://www.forbes.com/sites/forbestechcouncil/2016/06/22/how-to-succeed-with-a-platform-business-model/

Karl Popp 8/6/24 Karl Popp 8/6/24

Current hot research topics in software ecosystems and platforms #ewseco

In the current landscape of research concerning software ecosystems and platforms, there is a notable surge in interest towards various trending subjects.

A significant focal point revolves around the evolution and dynamics of software ecosystems, investigating the progression of these intricate systems comprising interdependent software elements and entities over time. Scholars are immersing themselves in the underlying mechanisms steering ecosystem development, including platform governance, ecosystem configuration, and the involvement of key stakeholders. Another pivotal subject entails platform ecosystems and their influence on innovation and competitive dynamics. Academics are scrutinizing how the dynamics of platforms impact strategies for innovation, competitive interactions, and the generation of value within ecosystems.

Grasping the interconnectedness among platform governance, ecosystem structure, and innovation is paramount for organizations aiming to excel in digital markets. Moreover, the advent of novel technologies like blockchain, artificial intelligence, and the Internet of Things is reshaping software ecosystems and platforms. Researchers are probing into how these technologies disrupt conventional ecosystems, forge fresh avenues for collaboration, and affect ecosystem governance and sustainability.

Furthermore, the ascent of open-source software and collaborative development models is reshaping the terrain of software ecosystems. Investigations are analyzing the ramifications of open-source communities, decentralized development processes, and the contribution of participants in shaping ecosystem dynamics and platform advancement.

On the whole, the realm of research on software ecosystems and platforms is dynamic and interdisciplinary, encompassing realms such as network theory, innovation management, digital platforms, and software engineering. By tackling these trending subjects, researchers aspire to offer insights that can aid organizations in navigating the intricacies of contemporary software ecosystems and harnessing platforms for sustainable expansion and innovation.

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More details and background information can be found in these books:

Karl Popp 10/14/21 Karl Popp 10/14/21

Platform Business Models – the basics

In a book called Business Model Generation (2010) by Osterwalder and Pigneur about versatile platforms, whose examples include Apple, Visa, Google, eBay, and Microsoft Windows. One of the most successful business models of this era is the Platform Business Model, that manages and maintains an ecosystem in order to earn economic value in the form of transaction fees or by other means. [Sources: 11, 16, 17]

Usually, a platform business model creates value by facilitating the exchange of two or more interdependent groups. It harnesses an ecosystem of users such as consumers, producers, sellers, buyers, drivers, hosts, and guests to facilitate transactions between them within a large network. [Sources: 1, 4, 16]

Platform types and design

Although there are a number of different platform types and many different classifications, the two most common platform business models are what we call transaction platforms and innovation ecosystem platforms. [Sources: 8, 14] Transaction platforms enable transactions between participants which are usually on different sides of the platform. Innovation ecosystem platforms provide an environment for participants to innovate on top of the offering of the platform. A typical example from tech industries is the creation of a set of APIs provided by a platform to build solutions on top. Platforms with large ecosystems are infrastructure-as-a-service providers like Amazon, Google, or Alibaba.

For transaction platforms, instead of focusing on generating revenue on a transactional basis from the production and sale of goods and services, the platform's business model facilitates valuable connections between users. Finding the right core transactions to be enabled between users of the platform is an important part of platform design, as the platform business relies on its users repeating these transactions to generate value exchange. [Sources: 1, 5, 14]

The design of innovation ecosystem platforms is centered around providing a low entry threshold, easy to use environment for participants to allow fast creation of a large ecosystem of innovators. But it also has to establish fair rules for innovators to capture the value they create.

The platform ecosystem is designed by describing the exchange of value that takes place, the rules governing the platform's business practices and the tools at the user´s disposal. The emergence of connected technologies and ecosystems enables platforms to scale in ways that traditional companies cannot. [Sources: 1, 15]

Platforms and traditional companies

We call traditional non-platform companies linear companies because their operations can be described as a typical linear supply chain along a pipeline of companies. Platform businesses are transforming the pipeline business model where value creation is one-sided and is subject to supply chain bottlenecks into a platform business model where value creation is typically at least two-sided and continuous. [Sources: 1, 8,11]

Platforms that have become part of our daily lives have built their businesses on powerful platform technologies that drill into what we value and connect to them. Companies will have to adapt to this new model at some point, otherwise they run the risk of being disrupted by platforms. [Sources: 0, 2, 14]

Linear companies are not only catching up, but they are also fighting back and skipping well-known platforms such as Amazon, Facebook and Google and investing in the development of AI, artificial intelligence and blockchain technologies to help them create platform 2.0 models. [Sources: 9, 12, 13]

Now, continue to

Aggregator business models: Ten aggregator company examples

Revenue Models For Aggregator Companies

Ten steps to create an aggregator company

Aggregator business models: full story and future trends

Platform Business Models – the basics

Building on the shoulders of giants. Shortcuts to Platform Business Success

Sources