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Harnessing platform-based business models to power disruptive innovation

Haydn Shaughnessy (University of California at Irvine)

Strategy & Leadership

ISSN: 1087-8572

Article publication date: 19 September 2016




Adopting and implementing a platform-based business model is fraught with problems and complications, many of which are poorly understood even by industry insiders. As they try to sort through the best practices for operating in this new business environment, senior managers need to carefully analyze the strengths of the business model of some of most successful companies before trying to imitate them. .


For a team to execute such a strategy quickly and seamlessly it must first thoroughly understand the components of such a business model and how they interact to produce unique customer value and formidable competitive advantage


The platform is a new way to organize wealth-creating activity.

Practical implications

The author details the components of a successful platform-based business model.


Platform-based business models seek to leverage the assets of third parties and in the process extend the value of economic activity to customers in ways that engage and benefit them. Senior leaders and operations managers alike need to understand that continuous innovation of customer value and policies that attract asset-rich partners and skillful developers is essential to the growth of the network.



Shaughnessy, H. (2016), "Harnessing platform-based business models to power disruptive innovation", Strategy & Leadership, Vol. 44 No. 5, pp. 6-14.



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