Leveraging the Software Ecosystem - Towards a Business Model Framework for Marketplaces

Abstract

Software platforms in the form of marketplaces like Salesforce.com`s AppExchange, Netsuite`s SuiteApp or SAP`s Commercial Platform are changing the way how software and services are distributed, consumed, and priced. Technical innovations in the underlying platforms receive high attention, while innovative business models that build on and commercialize a flourishing ecosystem are neglected. In this paper we investigate the question which marketplace business model options are available to software platform owners that want to commercialize their ecosystem's products and services. We present a framework of ten possible models that is derived from both theory and practice. The options are clustered by the required level of product/service standardization to guide the choice of business model. The framework may serve decision makers as a starting point for their business model innovation plans.