Title: The creation and capture of value through open platform: the business model utilising two-sided markets by managing standardisation

Authors: Haruo Awano; Masaharu Tsujimoto

Addresses: Department of Innovation Science, Tokyo Institute of Technology, CIC-805S, 3-3-6 Shibaura, Minato-ku, Tokyo 108-0023, Japan ' Department of Innovation Science, Tokyo Institute of Technology, CIC-805S, 3-3-6 Shibaura, Minato-ku, Tokyo 108-0023, Japan

Abstract: The emergence of the internet of things (IoT) requires substantial increases in the storage needed to store IoT data. This storage technology and products are important to realise the IoT. Linear tape open (LTO) format is a key to storage of data transmitted by internet for IoT system. This paper examines a business model involving the LTO and digital linear tape (DLT) storage formats to clarify how value is created and captured by such open platforms as these storage formats. Recent studies have clarified that successful firms must openly disclose the external interfaces necessary to create complements while still protecting their competitive advantage through proprietary architecture. Few studies have examined the difference between open and proprietary architectures in the case of two-sided markets from a standpoint of obtaining profits. This research has found that the proprietary architecture to close the core technology need not necessarily be built for two-sided market.

Keywords: value creation; value capture; platform; business model; two-sided market; linear tape open; digital linear tape; proprietary architecture; open platform; standardisation; royalty; internet of things; IBM; HP; patent.

DOI: 10.1504/IJSTM.2021.10041656

International Journal of Services Technology and Management, 2021 Vol.27 No.4/5/6, pp.280 - 306

Received: 02 Apr 2019
Accepted: 11 Jan 2020

Published online: 14 Oct 2021 *

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