A System Dynamics Model for Forecasting the Digital Mobility Platform Businesses Growth

Abstract

In this era of digitalization, mobility platforms that are of digital nature have taken the center stage in the marketplace. However, the inherently complex nature of these platforms poses many challenges in understanding their business dynamics. This paper presents a systems dynamics model which is capable of capturing the cross-side network effects that are at play on any digital platform and thereby predicting their market growth. As a real-world case study, the proposed model has been applied to Facebook, which is a well-known digital platform. The results show that the proposed model can be used to study and predict the dynamics of any digital platform, in general.