Digital platform development: A service-oriented perspective

The traditional view of value is largely rooted in the material properties of physical goods. However, service-dominant logic tells us that value is not imbued in goods, but derived in its judicious application. A contextually bounded nature of value is highly relevant for the study of digital platforms given the reprogrammable nature of digital technology coupled with a necessity to serve several different stakeholders and applications. This paper applies servitization as a theoretical framework for illustrating the subjective and transitory value propositions that influence platform development. Based on a case study of a firm that has transitioned from product supplier to provider of a platform for digital services, it is evident that value propositions are ambivalent, yet vital components in the evolution of platforms. Furthermore, we may discern that platform providers are faced with value propositions that are multidirectional, multidimensional, and offered from a variety of sources.