scholarly journals Digital platforms and their application in the aviation industry

2020 ◽  
Vol 1 (3) ◽  
pp. 83-98
Author(s):  
Kateryna Molchanova ◽  
Natalia Trushkina ◽  
Olga Katerna
Keyword(s):  
Network Effects ◽  
Market Access ◽  
Developed Countries ◽  
Tourism Industry ◽  
Digital Transformation ◽  
Aviation Industry ◽  
Economic Policies ◽  
Rating Systems ◽  
Digital Platforms ◽  
Consumer Prices

The article considers one of the directions of digital transformation, namely digital platforms. United Nations Conference on Trade and Development says that digital platforms create new opportunities for companies of all sizes to engage in trade. They can lead to efficiency gains through lower transaction costs and reduced information asymmetries supported by rating systems. Other benefits include lower consumer prices, increased market access, more competition, better use of underutilized resources and increased flexibility for the providers of services. However, gains are not automatic, and there are growing concerns over the rising market power of certain platforms and the related implications for competition, data protection and ownership, consumer protection and taxation and employment policies. Economic policies and regulations will need to maximize the benefits while at the same time minimizing the costs of digital platforms. Accordingly to Digital Economy Report 2019 by UNCTAD digital platforms provide the mechanisms for bringing together a set of parties to interact online. A distinction can be made between transaction platforms and innovation platforms. Transaction platforms are two/multi-sided markets with an online infrastructure that supports exchanges between a number of different parties. They have become a core business model for major digital corporations (such as Amazon, Alibaba, Facebook and eBay), as well as for those that are supporting digitally enabled sectors (such as Uber, Didi Chuxing or Airbnb). Innovation platforms create environments for code and content producers to develop applications and software in the form of, for example, operating systems (e.g. Android or Linux) or technology standards (e.g. MPEG video). Several factors help explain the rapid rise to dominance of these digital giants. The first is related to network effects (i.e. the more users on a platform, the more valuable it becomes for everyone). The second is the platforms’ ability to extract, control and analyses data. As with network effects, more users mean more data, and more data mean a stronger ability to outcompete potential rivals and capitalize on first-mover advantages. Thirdly, once a platform begins to gain traction and starts offering different integrated services, the costs to users of switching to an alternative service provider start to increase. The transformative power of data in the sphere of economic and social interactions means that governments, businesses, and people must adapt to use emerging opportunities and avoid traps and risks. The ability of countries and various stakeholders to master digital transformation varies greatly and depends on their level of development and digital readiness. Developed countries are in many ways better equipped to deal with the growing role of digital platforms than countries with limited resources and capabilities. The aviation, travel and tourism industry has been at the forefront of digital innovation, but industry and technology trends suggest that further change lies ahead. The sector has been an early adopter of digital technologies and platforms, but steep demand for travel, driven by a growing middle class in emerging markets and the increasing importance of digital experiences, implies that further digitalization will be vital if the expectations of tomorrow’s consumers are to be met.

scholarly journals WORLD EXPERIENCE AND UKRAINIAN REALITIES OF DIGITAL TRANSFORMATION OF REGIONS IN THE CONTEXT OF THE INFORMATION ECONOMY DEVELOPMENT

2021 ◽  
Vol 3 (38) ◽  
pp. 316-325
Author(s):  
A. Samoilovych ◽  
О. Garafonova ◽  
O. Popelo ◽  
V. Marhasova ◽  
Yu. Lazarenko
Keyword(s):  
Industry 4.0 ◽  
Rapid Development ◽  
Developed Countries ◽  
Digital Economy ◽  
Digital Transformation ◽  
Successful Implementation ◽  
Information Economy ◽  
Digital Platforms ◽  
Current State ◽  
Digital Infrastructure

Аbstract. The current state of the implementation of digital technologies in Ukraine and the world in the context of the information economy development is studied. The key differences are identified, the need for systematic action at both regional and national levels for the effective implementation of digitalization is substantiated. Data on the level of the digital economy development in Ukraine in general, and in the regions in particular, as well as examples of successful implementation of digitalization in some countries, are presented. It is investigated that Ukraine is one of the first places in Europe in terms of population with the Internet access. It is established that the process of digitalization of Ukraine’s economy is qualitatively different from that in developed countries. In the context of rapid development of information economy in order to bridge the existing gap with developed countries in the digitalization process, Ukraine needs to implement a number of measures, including: creating a regulatory framework for digital economy, introducing and promoting digital platforms and services for business and population, establishing education systems in order to effectively train specialists in the digital age, creating an effective digital infrastructure, promoting the implementation of Industry 4.0 technologies in industry, etc.  The implementation of the proposed actions will bring Ukraine closer to the digitalization level of developed countries and increase social and economic development of the state. The article outlines the components of digital transformation of the regions of Ukraine, among which the emphasis is on creating an effective digital infrastructure; the introduction of Industry 4.0 technologies in industry; e-government and training of the workforce according to the requirements of digital economy. It is noted that the digitalization process should be systemic in nature at both national and regional levels. Keywords: digitalization, digital transformation, region, regional economy, information economy. JEL Classіfіcatіon O50; R11 Formulas: 0; fig.: 1; tabl.: 1; bibl.: 25.

scholarly journals FOREWORD

2019 ◽  
Vol 8 (1) ◽  
pp. 4
Author(s):  
Manuela Epure
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Network Effects ◽  
Digital Economy ◽  
Digital Transformation ◽  
Digital Ecosystems ◽  
Digital Platforms ◽  
Economic Trends ◽  
Platforms And Ecosystems ◽  
The Moment

Digital transformation is shaping our lives continuously. The current economic trends confirm the shift to the digital economy and society. Significant changes occurred at micro and macro levels, new financial and commercial models emerged due to the digital platforms and ecosystems.Digital platforms and ecosystems are created, managed and governed to support the private entrepreneurial initiatives. For the private sector, digital platforms come with the promise of exponential economic growth, scale through the network effects and no assets needed. Recent research shows that emerging digital ecosystems will score $60  trillion in revenue by 2025, which represents more than 30% of the global corporate revenue, and for the moment, only 3% of companies have adopted an active platform strategy....

An old friend is better than two new ones? Approaches to market research in the context of digital transformation for the antitrust laws enforcement

2020 ◽  
pp. 37-55 ◽  
Author(s):  
A. E. Shastitko ◽  
O. A. Markova
Keyword(s):  
Business Models ◽  
Rapid Development ◽  
Digital Transformation ◽  
Market Definition ◽  
Type I ◽  
Type Ii ◽  
Digital Platforms ◽  
Advantages And Disadvantages ◽  
Pass Through ◽  
Type Ii Errors

Digital transformation has led to changes in business models of traditional players in the existing markets. What is more, new entrants and new markets appeared, in particular platforms and multisided markets. The emergence and rapid development of platforms are caused primarily by the existence of so called indirect network externalities. Regarding to this, a question arises of whether the existing instruments of competition law enforcement and market analysis are still relevant when analyzing markets with digital platforms? This paper aims at discussing advantages and disadvantages of using various tools to define markets with platforms. In particular, we define the features of the SSNIP test when being applyed to markets with platforms. Furthermore, we analyze adjustment in tests for platform market definition in terms of possible type I and type II errors. All in all, it turns out that to reduce the likelihood of type I and type II errors while applying market definition technique to markets with platforms one should consider the type of platform analyzed: transaction platforms without pass-through and non-transaction matching platforms should be tackled as players in a multisided market, whereas non-transaction platforms should be analyzed as players in several interrelated markets. However, if the platform is allowed to adjust prices, there emerges additional challenge that the regulator and companies may manipulate the results of SSNIP test by applying different models of competition.

Principles for sharing economy formation in the digital society

2020 ◽  
Vol 16 (5) ◽  
pp. 800-821
Author(s):  
E.V. Popov ◽  
K.A. Semyachkov
Keyword(s):  
Network Effects ◽  
Sharing Economy ◽  
Network Effect ◽  
Industrial Society ◽  
Economic Activities ◽  
Digital Platforms ◽  
Digital Society ◽  
Modern Economy ◽  
Characteristic Features ◽  
The Impact

Subject. The article addresses economic relations that are formed in various areas of economic application of digital platforms. The target of the research is the modern economy of digital platforms across different economic activities. Objectives. The aim is to systematize principles for share economy formation in the context of the digital society development. Methods. We employ general scientific methods of research. Results. The study shows that the development of digital platforms is one of the most important trends in the development of the modern economy. We classified certain characteristic features of modern digital platforms, analyzed principles for their creation. The paper emphasizes that the network effects achieved through the use of digital platforms are an important factor in the development of the share economy. The network effect describes the impact of the number of the platform users on the value created for each of them. The paper also considers differences in the organization of traditional economy companies and companies that are based on the digital platform model, reveals specifics of changes in socio-economic systems caused by the development of digital platforms, systematizes principles of the sharing economy formation in the context of the digital society development. Conclusions. The analyzed principles for sharing economy development on the basis of digital platforms can be applied to create models for the purpose of forecasting the transformation of economic activity in the post-industrial society.

Developing a Strategy for the Digital Transformation of an Enterprise with Allowance for the Capabilities of Business Ecosystems

2020 ◽  
Vol 26 (6) ◽  
pp. 629-642
Author(s):  
T. A. Gileva ◽  
A. V. Babkin ◽  
G. A. Gilev
Keyword(s):  
High Efficiency ◽  
Direct Interaction ◽  
Digital Transformation ◽  
Business Trend ◽  
Digital Environment ◽  
Digital Platforms ◽  
Business Ecosystems ◽  
Key Aspects ◽  
Enterprise's Competitiveness ◽  
Transformation Strategy

The presented study analyzes the processes of creating ecosystems in the context of external challenges and increasing the level of competitive market environment and global digitalization of business to develop a strategy for the digital transformation of an enterprise.Aim. The study aims to assess the practicability of creating ecosystems when developing a strategy for the digital transformation of traditional (“defensive”) enterprises and to provide recommendations for their utilization.Tasks. The authors analyze the characteristics, features, and typology of business ecosystems; substantiate the need to analyze and use the capabilities of business ecosystems in the development of a strategy for corporate development in the digital environment; describe the essence, key aspects of development, and propose a modular structure for the strategy of the digital transformation of an enterprise; develop a conceptual framework for the strategic management of the digital transformation of an enterprise; formulate recommendations for selecting ecosystems that would enhance the enterprise’s competitiveness.Methods. This study uses general scientific methods of cognition in various aspects to propose approaches and a conceptual model of the corporate digital transformation strategy with allowance for the capabilities of business ecosystems.Results. The authors show that in the context of the developing digital economy, business ecosystems have become a new way to organize economic activity due to their high efficiency and rapid scaling. There are two major types of ecosystems: centralized (transaction) ecosystems in the form of digital platforms and adaptive (solution) ecosystems formed by the orchestrating company to create a new value proposition by joint efforts of partners from various industries through direct interaction with each other. The study identifies stages in the development of a digital transformation strategy based on enhancing the enterprise’s competitiveness through its participation in the ecosystem(s) and formulate recommendations for selecting ecosystems that would improve the efficiency of the enterprise.Conclusions. Ecosystem development is a business trend that determines the competitiveness of enterprises and improves the efficiency of their operation in the digital environment. Therefore, under modern conditions, an enterprise should develop its digital transformation strategy based on the creation and/or use of business ecosystems.

scholarly journals Dynamic Capability and Open-Source Strategy in the Age of Digital Transformation

2021 ◽  
Vol 7 (3) ◽  
pp. 175
Author(s):  
Nobuyuki Fukawa ◽  
Yanzhi Zhang ◽  
Sunil Erevelles
Keyword(s):  
Operating System ◽  
Open Source ◽  
Customer Value ◽  
Big Data Analytics ◽  
Idea Generation ◽  
Network Size ◽  
Digital Transformation ◽  
Mobile Technologies ◽  
Dynamic Capability ◽  
Digital Platforms

Today, Industry 4.0 technologies, such as Big Data analytics and mobile technologies, are forcing firms to seek new ways to create and deliver customer value. We argue that the Android project, one of the most successful open-source digital platforms, reflects a new business model in the age of digital transformation. In the Android community, application developers create and sell applications for the Android operating system provided by the open-source firm (Google), and share the profit with Google. Such an open-source strategy forces the open-source firm to give up the profits from selling the operating system to customers. A firm generally chooses an open-source strategy to increase its user network size. Using the concept of creative intensity, or the speed of idea generation, we offer a new explanation regarding the benefits of an open-source strategy in the age of digital transformation. We investigate how to enhance creative intensity and profit on the open-source digital platform. Our model suggests that an open-source strategy effectively manages the diminishing value of ideas and, thus, facilitates the dynamic capability of an open-source firm.

scholarly journals International trade in services and inequalities

2016 ◽  
Vol 23 (5) ◽  
pp. 1069-1075 ◽  
Author(s):  
Sylvain Petit
Keyword(s):  
Wage Inequality ◽  
Developed Countries ◽  
Tourism Industry ◽  
Skilled Workers ◽  
Business Services ◽  
Long Run ◽  
Short Run ◽  
Unskilled Workers ◽  
Tourism Services ◽  
The Impact

This study investigates the impact of the international openness in tourism services trade on wage inequality between highly skilled, semi-skilled, and unskilled workers in the tourism industry. The sample covers 10 developed countries and expands over 15 years. A cointegrated panel data model and an error correction model were used to distinguish between the short- and long-run effects. The results are compared to those of openness of business services and manufactured goods. The findings point out that tourism increases wage inequality at the expense of the least skilled workers in the long run and the short run.

How electronic word of mouth (e-WOM) triggers intention to visit through destination image, trust and satisfaction: the perception of a potential tourist in Japan and Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ida Bagus Putu Purbadharmaja ◽  
Putu Yudi Setiawan ◽  
Toshikatsu Hayashi ◽  
Anak Agung Bagus Putu Widanta
Keyword(s):  
Peer Review ◽  
Word Of Mouth ◽  
Structural Model ◽  
Developed Countries ◽  
Tourism Industry ◽  
Online Discussions ◽  
Theory And Practice ◽  
Destination Image ◽  
Electronic Word Of Mouth ◽  
Content Type

PurposeThe purpose of the paper is to analyze the different results between the effects of electronic word of mouth (e-WOM) on the perception of potential tourist in Japan and Indonesia regarding destination image, destination trust, satisfaction and their intention to visit.Design/methodology/approachThis research method is a structural model. Based on the existing literature review, several variables were obtained which were then analyzed by WarpPLS 6.0 software. The sampling method applied in this study is the purposive sampling technique. Samples of 200 potential tourists were collected in Indonesia and 100 potential tourists were collected in Japan. The population in this study was a potential tourist in Indonesia and Japan, with the following criteria: An Indonesian citizen, age between 19 and 60 years, who has never visited Japan and a Japanese citizen who has never visited Indonesia and have ever read or conduct online discussions regarding Japan and Indonesia as a tourist destination.FindingsThe results of the analysis of the two respondents in Japan and Indonesia prove that e-WOM has a positive effect on the image of the destination and intention to visit but not on the confidence of the destination. Destination image was also proven to significantly mediate the influence of e-WOM on intention to visit. These findings bring important implications for the theory and practice of tourism marketing.Originality/valueTheoretically, the result could be used as a reference for further research about the comparison between the effect e-WOM on destination image, destination trust and intention to visit of potential tourist in developed countries and developing countries. Practically, the result could be used as a consideration for the tourism industry and authority in both countries when formulating the destination marketing strategy.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-03-2019-0111

The potential of entry barriers in the context of digitalization

2021 ◽  
Vol 21 (1) ◽  
pp. 128-147
Author(s):  
Aleksey Zazdravnykh
Keyword(s):  
Big Data ◽  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Digital Transformation ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Significant Growth ◽  
Digital Infrastructure ◽  
Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

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