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

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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    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 languageEnglish
    Title of host publicationProceedings of the 25th Australasian Conference on Information Systems : ACIS 2014
    EditorsWilliam Wang, David Pauleen
    Number of pages10
    Place of PublicationSydney
    PublisherAustralasian Association for Information Systems (AAIS)
    Publication date2014
    Publication statusPublished - 2014
    EventThe 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 201410 Dec 2014
    Conference number: 25
    http://bis2.aut.ac.nz/acis2014/

    Conference

    ConferenceThe 25th Australasian Conference on Information Systems. ASIC 2014
    Number25
    CountryNew Zealand
    CityAuckland
    Period08/12/201410/12/2014
    Internet address

    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 Sydney: Australasian Association for Information Systems (AAIS).
    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.
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    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",
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    }

    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, Auckland, New Zealand, 08/12/2014.

    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 proceedingArticle in proceedingsResearchpeer-review

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    T1 - Towards a Framework of Digital Platform Disruption

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    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.

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    Kazan E, Tan C-W, Lim ETK. Towards a Framework of Digital Platform Disruption: A Comparative Study of Centralized & Decentralized Digital Payment Providers. In Wang W, Pauleen D, editors, Proceedings of the 25th Australasian Conference on Information Systems : ACIS 2014. Sydney: Australasian Association for Information Systems (AAIS). 2014