Research & development project: Online marketplaces and platforms of the future

Table of contents

• Why are sustainable platform business models necessary?
• Why are we at a critical point for our business progress?
• Why is there a lack of a "strategic idea"?
• What is our contribution to this and why are we investing?
• Why do we need experimental and industrial research?
• Which influencing factors are decisive for digital business models?
• Our approach: A hybrid modular system for online platforms & marketplaces
• Our funding partners

Why are sustainable platform business models necessary?

We and many decision-makers are disturbed by a number of developments that are becoming increasingly acute:

1. Germany and Europe are lagging massively behind in digital business models Innovations are not implemented at all or only to a limited extent in the EU. As a result, European knowledge and capital is migrating and can no longer contribute to local social prosperity.

2. Building truly innovative, digital (platform & marketplace) business models is still very expensive Too expensive for many SMEs, which make an important contribution in their field but often lack the experience of how to establish a successful digital business model. The same applies to innovative start-ups and scale-ups, which often lack the - still considerable - start-up capital or simply the time to pilot and scale a platform or marketplace business model in the conventional way.

Why are we at a critical point for our business progress?

If we do not succeed in rapidly expanding our capabilities in Germany and Europe to build successful digital business models, we will increasingly lose importance as a business location. The rapid developments in the field of artificial intelligence reinforce this necessity. After all, only those companies that can master AI and use it for the benefit of their target groups will benefit from it. f Germany in particular does not develop the skills to successfully build digital business models and retain value creation here in the next five years at most, then the train will have left the station for good. And only those players who have mastered the rapid developments in the field of artificial intelligence (machine learning, generative AI, large language models, small language models, etc.) and know how to use them for the benefit of their target groups will benefit. We are missing a "strategic idea". Where do we want to go as Europe & Germany? What is our positioning? What is our unique global value proposition? And how do we ensure that not only the ideas and basic research come "from here", but that the financial and social benefits also unfold here in Europe?

Why is there a lack of a "strategic idea"?

On the social and political side, we are missing a discourse: Where do we want to go as Europe and Germany? What is our positioning? What is our unique value proposition? And how do we ensure that not only the ideas and basic research come "from here", but that the financial and social benefits also unfold here in Europe?

What is our contribution to this and why are we investing?

As a company, we can only influence the overarching strategic direction to a limited extent. However, where we have room for maneuver, we see it as our duty to make a contribution. And we can: We can help companies in Germany and Europe to build successful marketplace and platform business models. Especially companies and start-ups that are excellent in their field but lack the knowledge, technology and experience to build a platform business model. Together, we can make a contribution to ensuring that value creation remains "here", that important social problems can be solved and that prosperity is also achievable in the future.

Why do we need experimental and industrial research?

In many interviews, focus groups and discussions with those responsible for digitalization, marketplaces, strategy, business development, etc., we have repeatedly identified similar problem patterns in recent years. Many problems can already be solved today - at least for currently known requirements and needs. With knowledge, experience and the right IT. However, we also know from innovation and behavioral research that the needs of users and customers are constantly changing. Expectations and trends from the consumer sector are finding their way into the B2B world faster and faster. And thus also into the backbone of the European and, above all, German economy - the SME sector.

Which influencing factors are decisive for digital business models?

When it comes to future requirements for online platforms and digital business models, three important influencing factors are relevant:

1. "Technology push", i.e. technological developments that make new functionalities and business models possible (e.g. artificial intelligence, scalability e.g. via cloud computing etc.)
2. "User/market pull", i.e. changing needs of users and markets
3. external influences (e.g. climate impacts and social changes)

Moreover, these drivers are not constant, but are changing ever faster. Companies that are able to react quickly will therefore be able to assert themselves on the market. Those who not only react, but actively shape will be truly successful.

Our approach: A hybrid modular system for online platforms & marketplaces

In order to drive digital change in Germany and Europe, we are developing an innovative hybrid modular system (a mixture of standard modules and individually developed software) for the development of online platforms and marketplaces. This system specifically addresses the challenges facing society as well as start-ups and companies.

What problems do we want to solve and how?

The challenges that we want to tackle with our modular system are both social and entrepreneurial in nature.

For society:

The problem:

Too few innovative digital platform & marketplace business models come from Germany and the EU: innovations are not implemented at all or not in the EU.
➝ European knowledge and capital is migrating
➝ Capital can no longer contribute to social prosperity

Our solution approach:

More innovative platform & marketplace business models from D / EU through
➝ Lowering the barriers to entry (costs, lack of experience, etc. by providing a combination of software, consulting and support)
➝ Risk minimization (best practices, feedback- and data-driven approach, etc.)

For marketplace & platform founders & companies:

1. The problem:

Building digital (platform & marketplace) business models is still expensive and time-consuming
➝ only possible for companies with the corresponding financial reach
➝ many good ideas do not make it to the street

Our solution approach:

Reduction of investment costs through
➝ Provision of a marketplace / platform modular system (quick start through combination of ready-to-use and individual modules that can be expanded or exchanged using code generators) ➝ Complete customizability and scalability possible without expensive new development

2. The problem:

Overall complexity and lack of experience in designing, validating, piloting, establishing and scaling digital business models
➝ Avoidable mistakes lead to wasted financial resources
➝ Many projects fail - real problems remain unsolved

Our solution approach:

Maximizing the chances of success by
➝ using a customizable best-practice approach (user-centric, holistic view of business, innovations, processes and IT - instead of thinking and working in silos)
➝ early validation of hypotheses, bottleneck-focused scaling of business sides in parallel with technical optimization

3. The problem:

long time from idea to real benefit for customers
➝ long time-to-market or time-to-scale with previous approaches
➝ due to non-stringent roadmaps or necessary software changes, among other things

Our approach:

Reducing time-to-market and time-to-scale by
➝ Starting with ready-to-use best-practice components and accelerated further development with the help of code generators
➝ Clear overall roadmap with measurable milestones (instead of "working on the fly")

4. The problem:

High uncertainty in view of procedural and technical complexity, e.g. when selecting a suitable software approach (make/buy, standard vs. individual vs. hybrid, avoidance of lock-in effect, protection of intellectual property)
➝ Decisions for providers under high uncertainty ("Is this the right way?")
➝ Often reaching customer-critical, technical limits of the "initial software" even before the ability to decide on further investments

Our solution approach:

(Technological) clarity with optimal business IT fit through
➝ Transparent decision criteria and recommendations for the selection of different software approaches
➝ Supplementing the software market (standard or individual software) with a fully customizable hybrid solution that can be scaled without redevelopment, especially for online platforms and marketplaces

Our Partners

The project is co-financed by the European Union and the state of Thuringia. The Thüringer Aufbaubank is responsible for managing and implementing the project.

Wolfgang Tiefensee, former Federal Minister of Transport, Building and Urban Development, former Federal Government Commissioner for the New Federal States and current Thuringian Minister of Economics, writes: "The examination of your project has shown that you are making an important contribution to the further development of Thuringia as a location for innovation and are helping to implement the Thuringian Innovation Strategy (RIS Thuringia). I would like to thank you for this and wish you and your team every success in implementing your project."