Added Value from user perspective

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Digital platforms will be successful if they provide a clear value proposition to the user groups  involved. In general, digital platforms offer added-value basd upon three main mechanisms:

  • Reduction of transaction costs
  • Network effects
  • Use of data integration for new services (mainly optimisation) and business models

Based upon these mechanisms, added-value can be created in a variety of perspectives, such as the process perspective (what process or activity is optimised?) or the KPI perspective (what KPI is the focus of the optimisation).  This added value enables the financing of the digital processes through e.g.increased price margins, market shares or reduced costs.