Data Value-added Chain and Competitive Application for Digital Platform

Abstract

Compared with traditional enterprises, the value-added mode of digital platform enterprises is quite different. Data value-added chain of digital platform enables platform enterprises to get excess profits from virtual data value to real currency. This paper gives a kind of formal description and a pross model to the data value-added chain of digital platform, clarifies the value-added process for digital platform enterprises based on data value-added chain, explains the mechanism of multi-sided market effects in digital platform such as installed base, cross network effect, competition effect, etc. The results show the key competitive behaviors of digital platform enterprises is acting on the data value-added chain for example, algorithm, user allowance and investment in platform. Then, collections of competitive strategies are given to different types of digital platform enterprises at different stage in the life cycle.