The Platform Canvas—Conceptualization of a Design Framework for Multi-Sided Platform Businesses

Abstract

Digital multi-sided platforms reshape today’s economy by reducing coordination costs among participants in a market. The platform’s business model creates and captures value differently than a traditional linear business model. Just as the Business Model Canvas helps entrepreneurs and professionals visualize the essential elements and mechanisms of a linear business model, this paper proposes a Platform Canvas to diagram the essential elements of a multi-sided platform business, including the architectural relations of these elements and the dynamics of the network effect. We then describe how the Platform Canvas can be useful to entrepreneurs, educators and scholars.

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