15. Digital Platforms

Digital platforms coordinate users, partners, data, complements, and rules at scale. This chapter introduces platform architecture, ecosystems, and governance as central ideas in modern IS.

Video

What Is Software as a Service (SaaS) and How Does It Work? by IBM Technology

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Learning Objectives

By the end of this chapter, you will be able to:

1. Identify platform roles, shared capabilities, interfaces, and cross-border operating needs.

2. Explain how complementors and network effects contribute to an ecosystem offering.

3. Evaluate interdependence, localization, growth, and participant dependence.

4. Analyze platform rules, accountable decisions, and the governance of data flows.

Concept Map

Digital Platforms

Platforms

• Core
• Interfaces
• Scale

Ecosystems

• Users
• Partners
• Complements

Governance

• Rules
• Trust
• Power

Glossary

#	Term	Explanation
1	Digital platform	A technology-enabled foundation that supports interactions, services, data exchange, or complementary innovation.
2	Platform ecosystem	The network of users, developers, partners, suppliers, and complementors around a platform.
3	Complementor	A participant that creates products or services increasing the value of a platform.
4	Network effect	A pattern where platform value increases as participation grows.
5	Multi-sided market	A market where a platform connects two or more interdependent participant groups.
6	API	A defined software interface that allows systems or developers to access platform capabilities.
7	Governance	Rules, roles, controls, and decisions used to manage platform behavior and participation.
8	Platform owner	The organization that controls core platform rules, architecture, and strategic direction.
9	Participation rule	A requirement that defines who can join a platform and what they may do.
10	Data sharing	Allowing data to move among systems, partners, or users under defined permissions.
11	Interoperability	The ability of systems or platforms to work together and exchange useful data.
12	Localization	Adapting a system, product, or process to local languages, norms, laws, or markets.
13	Data sovereignty	The principle that data is subject to the laws and governance of the place where it is collected, stored, or processed.
14	Global system	An information system designed to operate across countries, regions, or regulatory environments.
15	Standardization	Using common processes, data definitions, or technologies across locations.
16	Adaptation	Changing a system or process to fit local requirements or conditions.
17	Ecosystem risk	The possibility that partners, rules, dependencies, or external participants create harm or instability.
18	Platform lock-in	Dependence on a platform that makes switching costly or strategically difficult.
19	Digital service	A service delivered or enabled through software, data, networks, and platforms.
20	Cross-border governance	Managing rules, accountability, and compliance across national or regional boundaries.

Lecture Slides

Chapter 15 Slides

These lecture drafts follow the authored sections and aligned assignments.