VALUE OF DIGITAL PLATFORM

• Main Author: Forsa Juliana, Natasha
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41301
• Institution: Institut Teknologi Bandung

Nowadays, there are plenty of digital platforms available and people are free to choose whether they want to engage with a particular platform of not. Some platforms are growing and widely used, when some other is not popular or being abandoned. One of the focus of digital platforms business is to create value. However, the way platforms create value is different from traditional business. Various definitions of value are spread in scientific publications, this research attempts to classified the value from previous literature and determine which classification is suitable to digital platform. This research also aims to identify and understand what are the values of digital platform for users, and whether the value impacted the platform or not. On this research, author found that most of scientific literature discussed value creation one-sidedly for one dominant actor, ignoring the value for other stakeholders in the process. Therefore, author argues that not all classification of value complies with the nature of digital platform. To adjust with the unique nature of digital platform which considers value creation for all actors, Parker et al. (2017) develop a new perspective regarding value in digital platform. The values are exchanged among users in the form of information, goods or service, or some form of currency. In addition, to support the value creation process among users, the platform also strives to create value to users by giving them benefits through its features, although not all features generate value for users. Furthermore, digital platform also enables users to co-create value in various ways. The co-creation process might occur between platformusers, consumers-consumers, and producers-consumers. Furthermore, it can be concluded that value indeed has impact on digital platform. Therefore, in order to survive and keep growing in the tight competition of digital platform business, platform should be able to create and offers more value for users. Platform developer needs to consider value creation for all stakeholders and may not only focus on one dominant actor. In addition,to identify and understand what are the features that really matter and beneficial for users, thus, support the value creation process among them, platform developer can facilitate tools that encourage users to give feedback or suggestion to the platform, so a co-creation can occur between the platform and users to improve the platform offerings. Making the platform more valuable and attract more users to engage with the platform.