Redesigning the business model: from one-sided to multi-sided

Abstract

Purpose

This study aims to examine the way to develop a multi-sided logic for existing business models. More precisely, the objective is to find rules for designing a multi-sided business model from a one-sided business model.

Design/methodology/approach

Given that business model (BM) literature and multi-sided literature do not address the complex issue of multi-sided business model design, the authors propose here a set of six redesign operations. These operations are built from a comprehension of the development and evolution of multi-sided platforms and their consequences for business model architecture. Several empirical cases illustrate each operation.

Findings

A process of business model redesign is proposed with three phases: setting-up a technological digital platform to support the multi-sided architecture, identifying and engaging several customer groups on the platform and linking the customer groups and structuring the revenue model. This process details the chronological order in which the redesign operations can be implemented to build a multi-sided BM.

Practical implications

The importance of the stage of semi-finished development of the platform, the openness of digital content, reaching the critical threshold and the combination of a dual economic model (free/paid) is highlighted. For managers, this provides better practices to successfully manage the business model redesign process.

Originality/value

This paper helps managers in companies, especially small and medium-sized enterprises, to profit from a multi-sided business model by proposing a way to achieve it.

Citation

Parmentier, G. and Gandia, R. (2017), "Redesigning the business model: from one-sided to multi-sided", Journal of Business Strategy, Vol. 38 No. 2, pp. 52-61. https://doi.org/10.1108/JBS-09-2016-0097