Towards a Framework of Digital Platform Disruption: A Comparative Study of Centralized & Decentralized Digital Payment Providers

Erol Kazan; Chee-Wee Tan; Eric T. K. Lim

Towards a Framework of Digital Platform Disruption: A Comparative Study of Centralized & Decentralized Digital Payment Providers

Erol Kazan, Chee-Wee Tan, Eric T. K. Lim

Australian Graduate School of Management

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

120 Downloads (Pure)

Abstract

Digital platforms are disruptive information technology (IT) artifacts that erode conventional business logic associated with traditional market structures. This paper presents a framework for examining the disruptive potential of digital platforms whereby we postulate that the strategic interplay of governance regimes and platform layers is deterministic of whether disruptive derivatives are permitted to flourish. This framework has been employed in a comparative case study between centralized (i.e., PayPal) and decentralized (i.e., Coinkite) digital payment platforms to illustrate its applicability and yield propositions on the nature and impact of digital platform disruptions. Preliminary findings indicate that centralized digital platforms attempt to create unique configurals to obtain monopolistic power by tightly coupling platform layers, which are difficult to replicate. Conversely, decentralized digital platforms purposely decouple platform layers, to foster open innovation and accelerate market disruption. This paper therefore represents a first concrete step aimed at unravelling the disruptive potential of digital platforms.

Original language	English
Title of host publication	Proceedings of the 25th Australasian Conference on Information Systems : ACIS 2014
Editors	William Wang, David Pauleen
Number of pages	10
Place of Publication	Sydney
Publisher	Australasian Association for Information Systems (AAIS)
Publication date	2014
Publication status	Published - 2014
Event	The 25th Australasian Conference on Information Systems. ASIC 2014: Integral IS: The Embedding of Information Systems in Business, Government and Society - Auckland, New Zealand Duration: 8 Dec 2014 → 10 Dec 2014 Conference number: 25 http://bis2.aut.ac.nz/acis2014/

Conference

Conference	The 25th Australasian Conference on Information Systems. ASIC 2014
Number	25
Country/Territory	New Zealand
City	Auckland
Period	08/12/2014 → 10/12/2014
Internet address	http://bis2.aut.ac.nz/acis2014/

Access to Document

Kazan Tan and Lim_ACIS2014Final published version, 196 KBLicence: CC BY-NC-ND

http://hdl.handle.net/10292/8052Licence: Unspecified

Handle.net

Persistent link

Cite this

Kazan, E., Tan, C.-W., & Lim, E. T. K. (2014). Towards a Framework of Digital Platform Disruption: A Comparative Study of Centralized & Decentralized Digital Payment Providers. In W. Wang, & D. Pauleen (Eds.), Proceedings of the 25th Australasian Conference on Information Systems : ACIS 2014 Australasian Association for Information Systems (AAIS). http://hdl.handle.net/10292/8052

Kazan, Erol ; Tan, Chee-Wee ; Lim, Eric T. K. / Towards a Framework of Digital Platform Disruption : A Comparative Study of Centralized & Decentralized Digital Payment Providers. Proceedings of the 25th Australasian Conference on Information Systems : ACIS 2014. editor / William Wang ; David Pauleen. Sydney : Australasian Association for Information Systems (AAIS), 2014.

@inproceedings{96533dcb515c4985b2cb7595c60c5ff1,

title = "Towards a Framework of Digital Platform Disruption: A Comparative Study of Centralized & Decentralized Digital Payment Providers",

abstract = "Digital platforms are disruptive information technology (IT) artifacts that erode conventional business logic associated with traditional market structures. This paper presents a framework for examining the disruptive potential of digital platforms whereby we postulate that the strategic interplay of governance regimes and platform layers is deterministic of whether disruptive derivatives are permitted to flourish. This framework has been employed in a comparative case study between centralized (i.e., PayPal) and decentralized (i.e., Coinkite) digital payment platforms to illustrate its applicability and yield propositions on the nature and impact of digital platform disruptions. Preliminary findings indicate that centralized digital platforms attempt to create unique configurals to obtain monopolistic power by tightly coupling platform layers, which are difficult to replicate. Conversely, decentralized digital platforms purposely decouple platform layers, to foster open innovation and accelerate market disruption. This paper therefore represents a first concrete step aimed at unravelling the disruptive potential of digital platforms.",

keywords = "Platforms, Platform Design, IS Centralization/decentralization, Digital Payment, Disruptive Technologies",

author = "Erol Kazan and Chee-Wee Tan and Lim, {Eric T. K.}",

year = "2014",

language = "English",

editor = "William Wang and David Pauleen",

booktitle = "Proceedings of the 25th Australasian Conference on Information Systems",

publisher = "Australasian Association for Information Systems (AAIS)",

address = "Australia",

note = "The 25th Australasian Conference on Information Systems. ASIC 2014 ; Conference date: 08-12-2014 Through 10-12-2014",

url = "http://bis2.aut.ac.nz/acis2014/",

}

Kazan, E, Tan, C-W & Lim, ETK 2014, Towards a Framework of Digital Platform Disruption: A Comparative Study of Centralized & Decentralized Digital Payment Providers. in W Wang & D Pauleen (eds), Proceedings of the 25th Australasian Conference on Information Systems : ACIS 2014. Australasian Association for Information Systems (AAIS), Sydney, The 25th Australasian Conference on Information Systems. ASIC 2014, Auckland, New Zealand, 08/12/2014. <http://hdl.handle.net/10292/8052>

Towards a Framework of Digital Platform Disruption: A Comparative Study of Centralized & Decentralized Digital Payment Providers. / Kazan, Erol; Tan, Chee-Wee; Lim, Eric T. K.
Proceedings of the 25th Australasian Conference on Information Systems : ACIS 2014. ed. / William Wang; David Pauleen. Sydney: Australasian Association for Information Systems (AAIS), 2014.

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review

TY - GEN

T1 - Towards a Framework of Digital Platform Disruption

T2 - The 25th Australasian Conference on Information Systems. ASIC 2014

AU - Kazan, Erol

AU - Tan, Chee-Wee

AU - Lim, Eric T. K.

N1 - Conference code: 25

PY - 2014

Y1 - 2014

N2 - Digital platforms are disruptive information technology (IT) artifacts that erode conventional business logic associated with traditional market structures. This paper presents a framework for examining the disruptive potential of digital platforms whereby we postulate that the strategic interplay of governance regimes and platform layers is deterministic of whether disruptive derivatives are permitted to flourish. This framework has been employed in a comparative case study between centralized (i.e., PayPal) and decentralized (i.e., Coinkite) digital payment platforms to illustrate its applicability and yield propositions on the nature and impact of digital platform disruptions. Preliminary findings indicate that centralized digital platforms attempt to create unique configurals to obtain monopolistic power by tightly coupling platform layers, which are difficult to replicate. Conversely, decentralized digital platforms purposely decouple platform layers, to foster open innovation and accelerate market disruption. This paper therefore represents a first concrete step aimed at unravelling the disruptive potential of digital platforms.

AB - Digital platforms are disruptive information technology (IT) artifacts that erode conventional business logic associated with traditional market structures. This paper presents a framework for examining the disruptive potential of digital platforms whereby we postulate that the strategic interplay of governance regimes and platform layers is deterministic of whether disruptive derivatives are permitted to flourish. This framework has been employed in a comparative case study between centralized (i.e., PayPal) and decentralized (i.e., Coinkite) digital payment platforms to illustrate its applicability and yield propositions on the nature and impact of digital platform disruptions. Preliminary findings indicate that centralized digital platforms attempt to create unique configurals to obtain monopolistic power by tightly coupling platform layers, which are difficult to replicate. Conversely, decentralized digital platforms purposely decouple platform layers, to foster open innovation and accelerate market disruption. This paper therefore represents a first concrete step aimed at unravelling the disruptive potential of digital platforms.

KW - Platforms

KW - Platform Design

KW - IS Centralization/decentralization

KW - Digital Payment

KW - Disruptive Technologies

M3 - Article in proceedings

BT - Proceedings of the 25th Australasian Conference on Information Systems

A2 - Wang, William

A2 - Pauleen, David

PB - Australasian Association for Information Systems (AAIS)

CY - Sydney

Y2 - 8 December 2014 through 10 December 2014

ER -