Pivoting B2B platform business models: From platform experimentation to multi-platform integration to ecosystem envelopment (2412.19931v1)

Abstract: The landscape of digital servitization in the manufacturing sector is evolving, marked by a strategic shift from traditional product-centric to platform business models (BMs). Manufacturing firms often employ a blend of approaches to develop business-to-business (B2B) platforms, leading to significant reconfigurations in their BMs. However, they frequently encounter failures in their B2B platform development initiatives, leading them to abandon initial efforts and pivot to alternative platform strategies. Therefore, this study, through an in-depth case study of a manufacturer in the energy sector, articulates a three-phase pivoting framework for B2B platform BMs, including platform development and platform strategy. Initially, the manufacturer focused on asset-based product sales supplemented by asset maintenance services and followed an emergent platformization strategy characterized by the rise of multiple, independent B2B platforms catering to diverse functions. Next, focusing on the imposed customer journey strategy, the firm shifted towards a strategic multi-platform integration into an all-encompassing platform supported by AI, signaling a maturation of the platform BM to combine a wide range of services into an energy-performance-based contract. Finally, the last step of the firm's platform BM evolution consisted of a deliberate platform strategy open to external stakeholders and enveloping its data-driven offerings within a broader platform ecosystem. This article advances B2B platform BMs and digital servitization literature, highlighting the efficacy of a progressive approach and strategic pivoting.